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SR-913-000 (8) f)........ J City of Redevelopment Agency Report Santa Moniea@ Redevelopment Agency Meeting: August 8,2006 Agenda Item: 1 F To: Chairperson and Redevelopment Agency From: Martin Kennerly, Acting Director, Resource Management Department Subject: Second Amendment to RAND Lease -1700 Main Street Recommended Action It is recommended that the Redevelopment Agency Board ("Agency") authorize a Second Amendment to the lease ("Lease Amendment") between the Agency and RAND, for 1700 Main Street ("Property") extending the Lease to March 4, 2007 and authorize the Executive Director or his designee to enter into two additional three month extensions if necessary. Executive Summary The current lease between the Agency and RAND expires on September 4, 2006. RAND has requested a time extension to the Lease, in order to fulfill its obligations under the Owner Participation Agreement ("OPA") and the Lease between the Agency and RAND. The proposed Lease Amendment will provide additional time for RAND to complete the remaining soils remediation work on the Property. 1 Discussion The Agency purchased the Property from RAND in 2000 as part of the Redevelopment Plan for the Earthquake Recovery Redevelopment Project Area and to further the goals of the Civic Center Specific Plan. Under the terms of the OPA, RAND is to demolish its former buildings and perform abatement and remediation work before releasing the property to the Agency. The Agency also executed a Lease in 2000 providing RAND use of buildings as well as access to perform the required demolition and soils remediation work on the Property. To date RAND has completed soils testing, abatement work and has demolished its former buildings and is currently performing soils remediation work. The remaining soils remediation work, including close out activities, is estimated to take 6-12 months to complete. Budget/Financial Impact The lease is an absolute triple net lease whereby RAND is responsible for operation, maintenance, repairs, and all costs and expenses related to the management of the property. The Agency agreed to forbear the payment of monetary rent from RAND. Therefore, extension of the lease has no budget or financial impact on the Agency. Prepared by: Tina Rodriguez, Redevelopment Administrator 2 Prepared by: Tina Rodriguez, Redevelopment Administrator Approved: Forwarded to Council: ;/ Martin Kennerly, Acting Directo , Resource Management Depa ment / Attachment A: Map of Leased Premises 3 E o III L.. Q)LL. .!!! U E Q) Q)u L.. ::J a..u U x Q)UJ "'ro ro Q) u L.. roc::( >'-" en Q) en E Q) L- a.. "'0 Q) en eo Q) .....J '+- o C- eo ~ <( +oJ C Q) E ..c u eo +oJ +oJ <( o 'Vi c: Q) ... x UJ Q) III ro Q) .....J ~ c: o III c: Q) ... X >- IIlUJ U Q)1Il Q) c: .- III Q) E ro el Q) Q) c::( L.......J >- a.. c: .0 Q) .- III U U ro Q) Q) Q)U c: .....J::J s: UU 0 Q) c: ... u...... 0 c: ro Z Q) Q) ro E L.. Q) c::( ~ L.. c::( ~ c: o III ...c: ::J2 .oX >-w U Q) c: III Q) ro elQ) c::(.....J >-c: .0...... UU Q) Q) c:U s:.=! o~ ro...... Q)'" L.. 0 C::(Z ~,._;.(- 1<) ( l() ( " ~(\ o I- (f) Z I-l <( ::E J l' >. t:: Q) Co e a.. c o :.p c Q) +" Q) 0:: Ll.J > <( Z <( Ll.J U o I- (f) Z I-l <( ::E Ll.J > <( Z <( Ll.J U o