07-10-2023 BPU RPT 05 - Laserfiche WebLink

Home

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: JULY 10, 2023 SUBJECT: SECOND AMENDMENT TO COMMERCIAL LEASE AGREEMENT WITH RUBEN BARRAGAN AND LUIS HERNANDEZ DOING BUSINESS AS FIRE UP GRILL — MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 190, 60 -MONTH TERM FOR $191,136 IN REVENUE ISSUE: Consider recommending that the City Council approve a Second Amendment to Commercial Lease Agreement to extend the lease for a 60 -month term with Ruben Barragan and Luis Hernandez doing business as Fire Up Grill, of Riverside, California for approximately 1,000 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suite 190 for $191,136 in revenue. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve a Second Amendment to the Commercial Lease Agreement to extend the lease for a 60 -month term between Ruben Barragan and Luis Hernandez doing business as Fire Up Grill, of Riverside, California, from September 1, 2023 through August 31, 2028; and 2. Authorize the City Manager, or designee, to execute the Second Amendment to the Commercial 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 California 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