SR 09-27-2011 3HCity of City Council Report
Santa Monica
City Council Meeting: September 27, 2011
Agenda Item:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Second Extension of Lease Agreement at 1212 Fifth Street, First Floor
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a second extension of the lease agreement for Contract No. 8404 with Wilshire
& 5th I & II, LLC, a California -based company, for continued occupancy by the Office of
Sustainability and the Environment at 1212 Fifth Street, first floor to:
1. Extend the term of the existing four -year lease by an additional five months, from
February 1, 2012, to June 30, 2012; and
2. Continue the existing monthly base rent at $7,159.45, estimated common area
maintenance fees at $909.50, and parking fees at $255 for a total of $41,619.75
over five months.
Executive Summary
The Office of Sustainability and the Environment (OSE) occupies 1,819 sq. ft. of office
space owned by Wilshire & 5th I & II, LLC, at 1212 Fifth Street, first floor. The existing
four -year lease expires January 31, 2012. The owners have agreed to extend the term
of the lease another five months until June 30, 2012, at the same monthly rate that is
now in effect. This extension would provide the time needed for the City to complete
tenant improvements for OSE at City - leased space at 1717 4th Street.
During the second lease extension, the rent and common area maintenance expenses
(CAM) are proposed to remain the same as are currently in effect. The monthly base
rent will remain at $3.94 per sq. ft., and CAM fees will remain at an estimated $.50 per
sq. ft. for a monthly rate of $4.44 per sq. ft. The parking fee for three reserved spaces is
proposed to remain at $255 per month. The total cost for the additional five months is
$41,619.75.
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Background
OSE has leased administrative offices at 1212 5th Street since 2004. The Division
occupies 1,819 sq. ft. on the first floor. The most recent lease, which was authorized by
Council on October 26, 2004, and amended on January 8, 2008, expires on January 31,
2012.
Discussion
After CityTV relocates to its new location at 1654 19th Street in January 2012, OSE
intends to move into a portion of the space now occupied by CityTV on the first floor of
17174 th Street. Tenant improvements will be required to accommodate OSE at 1717
4th Street. The tenant improvements would partition approximately 800 sq. ft. for OSE,
leaving the remaining area of approximately 1,600 sq. ft. for future use by other City
staff. Staff will return to Council for authorization to award a construction contract and, if
necessary, to appropriate funds for tenant improvements after plans for OSE at 1717 4"
Street are better defined.
Staff anticipates completion of tenant improvements for OSE at the 4th Street location by
June 30, 2012. In order for OSE to remain at its current location until June 30, 2012,
staff recommends modifying the existing lease through a second lease extension. The
second lease extension would provide for the following:
1. Extend the term of the lease an additional five months, from February 1, 2012, to
June 30, 2012; and
2. Effective February 1, 2012, set the monthly base rent at $7,159.45, the estimated
monthly CAM expense at $909.50, and the monthly parking fees at $255.
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Financial Impacts & Budget Actions
Funds for the rental, CAM, and parking expenses of $41,619.75 over the five -month
period are available in Account Number 01226.522630. Staff will return to Council at a
later date with a construction contract recommendation and a request for funds to
complete tenant improvements.
Prepared by: Donna Rickman, Senior Administrative Analyst
Andy Agle, Director
Housing and Econ n
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Forwarded to Council:
Rod Gould
City Manager
Reference Amended
Lease No. 8404 (CCS).