SR-913-000 (8)
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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
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