SR-800-005 (4)
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Council Meeting 3/8/88
Santa Monica, California
TO: Mayor and City Council
FROM: city staff
SUBJECT: Recommendation to Authorize City Manager to Negotiate
and Execute Lease with Solberg + Lowe Architects, AlA,
for Office Space in the New Airport Administration
Building
Introduction
This report recommends that the City Council authorize the City
Manager to negotiate and execute a lease with Solberg + Lowe
4IIt Architects AlA for 5000 square feet of office space in the new
Airport administration building.
Background
Last August,
the City Council approved a contract for
construction of new Airport administration and specialty/limited
fixed base operator facilities just south of the runway at Santa
Monica Airport. The new Airport administration building includes
a restaurant and other public amenities as well as approximately
10,000 square feet of Class A professional office space.
The building was designed by the Santa Monica-based architectural
firm of Solberg .... Lowe.
Its leasable areas will provide a
consistent revenue stream to the Airport that will assist in
. paying for construction of the new public facilities.
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As soon as construction began on the new buildings, the city
commissioned an independent appraisal of the market rate for the
various lease areas.
Advertisements for the professional office space ran in the Los
Angeles Times and Pacific Flyer. In addition, Airport staff
began discussions with existing tenants in the old Airport
administration building and a number of local, Santa Monica-based
businesses. Among this group were the building architects,
Solberg + Lowe AlA, who needed to vacate their Main street
facilities in the first part of 1988.
Basic Lease Terms
staff met with the principals of Solberg + Lowe and finalized the
basic terms of the lease agreement. These terms are summarized
below:
- The rental rate for the premises will be $1.75 per square
foot the first year, $1.80 per square foot the second year and
$1.85 per square foot the third year. The rental rate includes
free parking and free use, on a prescheduled basis, of the
building's main conference room and the pilot's conference room.
- The three year lease term will commence May 1, 1988, or, if
no certificate of occupancy is received by that date, the lease
term will commence on the date the certificate of occupancy is
issued.
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- During the lease term, Lessee will have first right of
.. refusal at their current lease rate on additional space in the
administration building as it becomes available.
- At the end of the third year of the lease term, Lessee
shall have the option to extend the lease agreement an additional
two years. The rental during the option period shall be $1.85
per square foot adjusted by the percentage increase in the U.s.
Bureau of Labor statistics Los Angeles-Long Beach Consumer Price
Index (CPI) for All Urban Wage Earners and Consumers.
- Solberg + Lowe will design tenant improvements and provide
construction administration services for the entire lease space
in the administration building. They also will design tenant
improvements and provide space planning services for the store
front office space in the specialty/limited FBO hangar.
- Standard City liability clauses and insurance requirements
will be included in the lease.
If the Council authorizes the City Manager to negotiate and
execute the lease, Solberg + Lowe will proceed immediately with
the preparation of working drawings for the improvements.
Budgetary/Fiscal Impact
No fiscal or budgetary changes are required in the FY1987-88
revenue budget for the Municipal Airport. Funds for the tenant
improvements are budgeted in Account No. 33-710-631-000-908.
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Recommendation
staff respectfully recommends that the City Council authorize the
City Manager to negotiate and execute a lease with Solberg + Lowe
Architects AlA, for 5000 square feet of office space in the new
administration building at Santa Monica Airport.
Prepared: Hank Dittmar, Airport Director
Linda Sullivan, Sr. Administrative Analyst
(cc3B881)
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