09-26-2022 BPU RPT 06 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 26, 2022 SUBJECT: LEASE AGREEMENT WITH HALO CONNECT, LLC OPERATING AS A T-MOBILE FRANCHISE MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 110 FIVE YEAR TERM WITH ONE OPTIONAL FIVE-YEAR EXTENSION, FOR $209,947 IN REVENUE ISSUE: Consider recommending that the City Council approve a Lease Agreement with Halo Connect, LLC, operating as a T-Mobile franchise and the City of Riverside, for a five-year term with one optional five-year extension, for approximately 1,185 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suite 110. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve a Lease Agreement with Halo Connect, LLC dba T-Mobile for a five-year term from June 12, 2022, through June 30, 2027, and with one optional five-year extension; and 2. Authorize the City Manager, or designee, to execute the Lease Agreement, including making minor and non-substantive changes, and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: On October 13, 2015, the City acquired the Mission Square Building at 3750 University Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, RPU is now the Landlord of the Property. The Property consists of approximately 127,533 square feet of rentable office and retail space in a six-story building, plus a basement level and a 490-parking stall garage situated on approximately 2.5 acres of land. On January 26, 2016, the City Council approved an Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc. dba Newmark Knight Frank (NKF) for a five-year term to provide broker leasing services for the Property. On January 5, 2021, the City Council approved a First Amendment to Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc., dba Newmark Knight Frank (NKF) which extended the Agreement through December 31, 2025. RPU staff has been coordinating the leasing process for the Property with the Real Property Services Division of the Community & Economic Development Department and NKF as the broker for the Property.