12-12-2022 BPU RPT 07 - Laserfiche WebLink

Home

RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: DECEMBER 12, 2022 SUBJECT: MISSION SQUARE FISCAL YEAR 2021/22 YEAR-END UPDATE ISSUE: Consider receiving an update on the Mission Square Fiscal Year 2021/22 year-end. RECOMMENDATION: That the Board of Public Utilities receive and file an update on the Mission Square Fiscal Year 2021/22 year-end. BACKGROUND: On October 13, 2015, the City acquired the Mission Square Office 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 471-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) to provide broker- leasing services for the Property. 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. DISCUSSION: As of June 30, 2022, the Mission Square Office Building is 95.9% occupied. Lease Negotiations are underway or executed with the following tenants: 1. -Mobile) 2. Varner and Brandt currently in negotiations for renewal. 3. Morgan Stanley currently in negotiations for renewal. 4. October 18, 2022, the City Council approved a three-year extension with David Horton. 5. On October 18, 2022, the City Council approved a new lease agreement with T-Mobile for a five-year term. On September 26, 2017, the City Council approved a Supercharger Agreement with Tesla for 24 spaces available for charging 24/7. The electric revenue generated in Fiscal Year 2021/22 was