07-24-2023 BPU RPT 07 - Laserfiche WebLink

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WATER I ENERGY I LIFE --is RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: JULY 24, 2023 SUBJECT: FOURTH AMENDMENT TO LEASE AGREEMENT WITH VARNER AND BRANDT, LLP — MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 610, FOR APPROXIMATELY 15,260 SQUARE FEET OF RENTABLE SPACE — 72 -MONTH TERM FOR $2,851,392.50 IN REVENUE ISSUE: Consider recommending that the City Council approve a Fourth Amendment to Lease Agreement with Varner and Brandt, for a 72 -month term with two options for five-year extensions, for approximately 15,260 square feet of rentable space located at Mission Square Office Building, 3750 University Avenue, Suite 610. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Fourth Amendment to the Lease Agreement with Varner & Brandt, LLP; and 2. Authorize the City Manager, or designee, to execute the Fourth 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). 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 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 Services Division of the Community & Economic Development Department and NKF as the broker for the Property. On January 24, 2017, a Third Amendment to the Lease Agreement with Varner and Brandt, LLP was approved by the City Council with an Effective Date of February 15, 2017.