SR-6-E (66)
~-E.
FEB 2 2 1994
AP:TAW:mh Santa Monica, California
Council Meeting 2/22/94
To: Mayor and City Council
From: City Staff
Subject: Recommendation to Authorize City Manager to
negotiate and execute a lease with Renan
Productions, Inc. for office space at Santa Monica
Airport.
Introdll~r.ion
This report requests the City Council to authorize the City
Manager to negotiate and execute a lease with Renan
Productions, Inc. for office space at the Santa Monica
Airport Specialty Hangar Building.
Backaround
The Specialty Hangar Building has commercial office space in
the lower level for lease to the public. The commercial
space was included in the design of the building to
compliment the aviation maintenance hangars that are located
on the upper level. The revenue from the commercial space is
used to pay the debt service on the construction of the
building There has been very little turnover of tenants in
the building since it was first leased in 1989. Recently,
with the recession the airport has seen tenants downsizing
and some tenant turnover in the building. The airport
receives market rents for the commercial space.
FEB 2 2 1994
Ire.
Discussion
Renan Productions, Inc. intends to occupy 875 square feet of
office space for a period of three years. Renan Productions
does video post production and corporate consulting with the
motion picture industry The lease negotiated with Renan is
similar to previous leases approved by Council for the
Specialty Hangar office spaces. The company is very sound
financially and all reference checks were positive. The
company has been in an adjacent office for a period of two
years and the operation is compatible with the other
commercial tenants.
Budqetarv/Financial Impact
The three year lease with Renan will generate $39,375 in
revenue for the City. Revenue will be recorded at revenue
account number 33-620-631-00000-0211-10000. This revenue has
already been reflected in the FY1993/94 budget.
Recornmp-ndation
Staff recommends that the City Council authorize City manager
to negotiate and execute a lease with Renan Productions Inc.
for office space in the Specialty Hangar Building at Santa
Monica Airport.
Prepared by: Timothy A. Walsh, Airport Manager
Jeffrey P. Mathieu, Director, Resource Management