SR-900-002 (13)
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RMD:EDD:GK:F:\RESOURCE\SHARE\GRETCHSHARE\STAFFREPORTS\Doubletree Finance 3 Lease Amend
Council Meeting: December 14, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Third Amendment to Lease Agreement with Santa Monica HSR Limited
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Partnership for Space at 1717 4 Street, Suite 250 for the City?s Finance
Department
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate and
execute a Third Amendment to the lease agreement with Santa Monica HSR Limited
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Partnership for space at 1717 4 Street, Suite 250 for the City?s Finance Department.
DISCUSSION
The City?s Finance Department is currently housed in leased space at 1717 4th Street,
Suite 250. The current lease expires March 1, 2005. No other space for these functions
is available within City Hall or other City buildings at this time. This leased space totals
approximately 6,434 rentable square feet on the second floor of the building and continues
to be necessary for ongoing staff activities including budget administration, financial
operations, purchasing, and disbursements. The space is sufficient for the needs of
Finance Department staff, and requires no tenant improvements.
Discussions with the property owner have resulted in agreement on tentative terms and
conditions. The City has proposed, subject to Council approval, that the lease term be
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extended for an additional 59 months. The new agreement will expire on January 31,
2010, with termination rights at the end of years three and four.
The current rent is approximately $2.48/square foot. The new rent will be approximately
$2.40 per square foot (including two parking spaces at no additional charge), and includes
an annual CPI adjustment of no less than 2% and no more than 3%.
BUDGET/FINANCIAL IMPACT
Future year lease costs will be budgeted in appropriate amounts in future year budgets.
Funds are in the current fiscal year budget at Finance Fund account numbers:
01221.522620, 59206.522620, and 01274.522620. The total cost of the new lease in FY
04/05, commencing March 1, 2005, is $61,766.40.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to negotiate and
execute a Third Amendment to the lease agreement with Santa Monica HSR Limited
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Partnership for space at 1717 4 Street, Suite 250 for the City?s Finance Department.
Prepared By: Jeff Mathieu, Director, Resource Management Department
Miriam Mack, Economic Development Manager
Gretchen Kubacky, Senior Administrative Analyst - Real Estate
(Reference Third Amendment to Contract No. 5473 (CCS).
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