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Council Meeting Apnl 27, 1999 Santa Monica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Authonze the City Manager to Negotiate and Execute
a Two-Year Lease ExtenSion with En SKroch and Yona Y Kroch for Office
Space for the City'S Multifamily Earthquake RepaIr Loan Program/Housing
and Redevelopment Agency
INTRODUCTION
This report recommends that the City Council authorize the City Managerto negotiate and
execute a two-year lease extension with En SKroch and Yona Y Kroch for office space
for the City's MultifamIly Earthquake Repair Loan Program/Housing and Redevelopment
Agency (MERLlRedevelopment)
DISCUSSION
The MERLlRedevelopmentoffice, which IS partofthe Resource Management Department,
IS currently leaSing a 1,974 square foot office at 2121 Cloverfield Boulevard. SUite 100
ThIs lease term expires May 21, 1999 No space for these functions eXists within the City
Hall complex, and, after analyzing current market conditions and the availability of lease
space In Santa MOnica, It was determmed that the current space stili satisfies the needs
of MERLlRedevelopment
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DISCUSSions with the property owner's representative have resulted In agreement on
tentative terms and conditions of the renewal The City has proposed, subject to Council
approval, that the term be two years, with two one-year options to extend the lease The
rent upon renewal will be $1 75 per square foot, with an annual escalation keyed to the
cost of liVing Index (CPI) SIX parking spaces shall continue to be prOVided at a cost of
$55 00 per space per month
BUDGET/FINANCIAL IMPACT
Funds for thiS lease are In the current fIscal year budget at account numbers 19-700-695-
00000-4483-00000 and 01-620-264-76033-2262-00000 The annual cost to rent thiS
space In the first year of the renewal IS $45,414 (including parking), of which $5,00530 will
be drawn from the current fiscal year budget at account numbers 19-700-695- 00000-4483-
00000 and 01-620-264-76033-2262-00000, assuming a May 22,1999 commencement
date The balance of the first year, continuing Into FY 99/00, will be split between accou nt
numbers 19-700-274-00000-4483-00000 and 01-620-264-76033-2262-00000 In the
second year of the option period and future fiscal years, funds for the lease payment Will
be budgeted exclUSively at01-620-264-76033-2262-00000, and will reflect the appropriate
cost
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RECOMMENDATION
It IS recommended that the City Council authonze the City Manager to negotiate and
execute a two-year lease extension with En SKroch and Yona Y Kroch for office space
for the City's Multifamily Earthquake Repair Loan Program/Redevelopment Agency
Prepared By Jeffrey P Mathieu, Director of Resource Management
Bob Moncnef, Housing and Redevelopment Manager
Tma Rodnguez, Redevelopment Admmlstrator
Gretchen Kubacky, Semor Real Estate Analyst
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