02-27-2023 BPU RPT 10 - Laserfiche WebLink

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W A I F R I E N E R G Y I I_ I F F RIVERSIDE PUBLIC UTILITIES Board Memorandum NU 13 1r U I I 111F:• BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 27, 2023 SUBJECT: SEVENTH AMENDMENT TO LEASE AGREEMENT WITH RAINCROSS HOSPITALITY CORPORATION DOING BUSINESS AS RIVERSIDE CONVENTION AND VISITORS BUREAU — MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 570 — 64 -MONTH TERM THROUGH JUNE 30, 2028 FOR $906,860 IN REVENUE ISSUE: Consider recommending that the City Council approve a Seventh Amendment to Lease Agreement to extend the lease for an additional 64 -month term through June 30, 2028, with Raincross Hospitality Corporation doing business as Riverside Convention & Visitors Bureau, of Riverside, California for approximately 4,466 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suite 570 for $906,860 in revenue, including storage rent. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council - 1 . ouncil: 1. Approve a Seventh Amendment to the Lease Agreement with Raincross Hospitality Corporation doing business as Riverside Convention & Visitors Bureau, of Riverside, California, to extend the lease for an additional 64 -month term from March 1, 2023 through June 30, 2028; and 2. Authorize the City Manager, or designee, to execute the Seventh Amendment to the Lease Agreement, including making minor, 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 in downtown Riverside. To help market, broker and negotiate lease spaces of the Property, the City Council, on January 26, 2016, 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