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A A I E R I -E N E R G Y I L I -f F <br />RIVERSIDE PUBLIC UTILITIES <br />- Board Memorandum <br />P U B L I C U 1 I I 1 r I€ 4 <br />BOARD OF PUBLIC UTILITIES DATE: JULY 24, 2023 <br />SUBJECT: SIXTH AMENDMENT TO LEASE AGREEMENT WITH MORGAN STANLEY <br />SMITH BARNEY FINANCING LLC — MISSION SQUARE OFFICE BUILDING, <br />3750 UNIVERSITY AVENUE, SUITE 600 — TO EXTEND THE LEASE FOR AN 18 - <br />MONTH TERM FOR APPROXIMATELY $310,368 IN REVENUE <br />ISSUE: <br />Consider recommending that the City Council approve a Sixth Amendment to Lease Agreement <br />to extend the lease for an 18 -month term with an option to extend for an additional five-year term <br />between Morgan Stanley Smith Barney Financing LLC and the City of Riverside for approximately <br />5,738 square feet of rentable space in the Mission Square Office Building located at 3750 <br />University Avenue, Suite 600. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that the City Council: <br />1. Approve a Sixth Amendment to the Lease Agreement with Morgan Stanley Smith Barney <br />Financing LLC to extend the Lease Agreement for an additional 18 -month term from <br />September 1, 2025 to February 28, 2027 with an option to extend for an additional five- <br />year term; and <br />2. Authorize the City Manager, or designee, to execute the Sixth Amendment to the Lease <br />Agreement, including making minor, non -substantive changes, and to sign all documents <br />and instruments necessary to complete the transaction. <br />BACKGROUND: <br />On October 13, 2015, the City acquired the Mission Square Building at 3750 University Avenue <br />(Property), which was funded by Riverside Public Utilities (RPU). The Property consists of <br />approximately 127,533 square feet of rentable office and retail space in a six -story building, plus <br />a basement level and a 490 -parking stall garage situated on approximately 2.5 acres of land in <br />downtown Riverside. <br />To help market, broker and negotiate lease spaces of the Property, the City Council, on January <br />26, 2016, approved an Exclusive Authorization of Lease Agreement with Newmark of Southern <br />California, Inc. dba Newmark Knight Frank (NKF) for a five-year term to provide broker leasing <br />services for the Property. On January 5, 2021, the City Council approved a First Amendment to <br />California Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc., <br />dba Newmark Knight Frank (NKF) which extended the Agreement through December 31, <br />