SR-900-002 (7)
RMD:EDD:MR:GK:F:RESOURCE/STAFFREPORTS/RDA Lease Renewal.doc
Council Meeting: September 24, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Three-Year Lease Extension with 2121 Cloverfield Boulevard Associates,
LLC for Office Space for the Redevelopment Agency
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate
and execute a three-year lease extension with 2121 Cloverfield Boulevard Associates,
LLC for office space for the Redevelopment Agency.
DISCUSSION
The Redevelopment Agency, which is part of the Resource Management Department, is
currently leasing a 1,974 square foot office at 2121 Cloverfield Boulevard, Suite 100.
This lease term expired May 21, 2002, and the tenancy is in a holdover status. 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
determined that the current space continues to satisfy the needs of the Agency.
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 three years, effective approximately October 15, 2002, with
one three-year option to extend the lease. The rent upon renewal will be $2.27 per
square foot (including six parking spaces), with an annual escalation keyed to the cost
of living index (CPI).
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BUDGET/FINANCIAL IMPACT
Funds for this lease are in the current fiscal year budget at account number
01264.522620, subledger 76027-W. In FY02/03, the annual cost to rent this space will
be $55,958.24 (including parking), assuming an October 15, 2002 commencement date.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to negotiate and
execute a three-year lease extension with 2121 Cloverfield Boulevard Associates, LLC
for office space for the Redevelopment Agency.
Prepared By: Jeff Mathieu, Director of Resource Management
Bob Moncrief, Housing and Redevelopment Manager
Tina Rodriguez, Redevelopment Administrator
Gretchen Kubacky, Senior Real Estate Analyst