SR-407-002
RMD:EDD:GK:F:\RESOURCE\SHARE\GRETCHSH\Staff Reports\housing.WPD
Council Meeting: January 25, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute a
Three-Year Lease Extension with Two One-Year Options with Eri S. Kroch
and Yona Y. Kroch for Office Space for the Citys Housing Authority/Section
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8 Administration Office.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate and
execute a three-year lease extension with two one-year options with Eri S. Kroch and Yona
Y. Kroch for office space for the Citys Housing Authority/Section 8 Administration office
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(Housing).
DISCUSSION
The Housing office, which is part of the Resource Management Department, is currently
leasing a 3,031 square foot office at 2121 Cloverfield Boulevard, Suite 131. This lease
term expires March 31, 2000. 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 still satisfies the needs of
Housing.
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Discussions with the property owners representative have resulted in agreement on
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tentative terms and conditions of the renewal. The rent upon renewal will be $1.85 per
square foot, with an annual escalation keyed to the cost of living index (CPI). Nine parking
spaces shall continue to be provided at a cost of $55.00 per space per month. The three
year term was approved in the initial lease, but the additional one-year options are a new
feature of the renewal. It is preferable to remain in the existing space rather than move to
new space, both to avoid disruption to office functions and services, as well as based on
cost. This rental rate is reasonable and competitive, based upon comparison to the
available rental market.
BUDGET/FINANCIAL IMPACT
Funds for this lease are in the current fiscal year budget at account number 12274.578320.
The annual cost to rent this space in the first year of the renewal is $73,228.20 (including
parking). In future years of the option period, funds for the lease payment will be budgeted
at the same account number, and will reflect the appropriate cost.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to negotiate and
execute a three-year lease extension with two one-year options with Eri S. Kroch and Yona
Y. Kroch for office space for the Citys Housing office.
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Prepared By: Jeffrey P. Mathieu, Director of Resource Management
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Mark Richter, Economic Development Manager
Bob Moncrief, Housing and Redevelopment Manager
Peter Mezza, Housing Coordinator
Gretchen Kubacky, Senior Real Estate Analyst
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