20A - AGMT LEASE SARTC WALSH - Laserfiche WebLink

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Appropriation Adjustment and Lease Agreement with Walsh Construction for Office Space at the SARTC December 18, 2018 Page 2 Westminster Avenue in Garden Grove. With construction scheduled to begin shortly, it is expected to begin carrying passengers in 2021. OCTA is the lead agency for the OC Streetcar Project. OCTA selected Walsh Construction as the Contractor for the project. Walsh Construction approached the City to lease office space at the SARTC. PGH Wong Engineering, Inc., the construction management firm selected for the project, has also approached the City to lease office space. The proximity of SARTC to the OC Streetcar Project, along with the availability of office space, created for an efficient partnership that will allow both Walsh Construction and PGH Wong Engineering, Inc., via a separate lease agreement, to be in close proximity of each other. Suites 200 and 220 were vacated earlier this year, creating an annual lease revenue loss of approximately $235,944 and 12,500 square feet of vacant space. Walsh Construction is interested in leasing 4,429 square feet of office space in Suite 200, generating $375,460 in lease revenue for the entire term of the agreement, including optional extensions. The OC Streetcar will provide a great service to the residents of the City. By leasing available office space to Walsh Construction, lease revenue will be generated for the SARTC day-to-day operations. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,. Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Strategy C (support business development and job growth along transit corridors through the completion of critical transit plans/projects including: The Fixed Guideway Project, Santa Ana Regional Transportation Center Master Plan, Complete Streets and General Plan Circulation Element update). FISCAL IMPACT Approval of the site lease agreement obligates Walsh Construction to compensate the City $96,660 annually for the lease of interior office space at the SARTC. The three-year agreement term begins December 19, 2018, and ends December 18, 2021. There is also an option for month-to-month extensions for up to twelve months. The total anticipated revenue from this agreement is as follows: FISCAL YEAR REVENUE Agreement 3 -year Term 2018/19 $40,275 2019/20 $96,660 2020/21 $96,660 2021/22 $45,045 Optional Extensions 2021/22 $51,775 2022/23 $45,045 TOTAL $375,460 20A-2