20B - AGMT LEASE SARTC PGH WONG - Laserfiche WebLink

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Execute Lease Agreement with PGH Wong Engineering, Inc. for Office Space at the SARTC December 18, 2018 Page 2 OCTA is the lead agency for the OC Streetcar Project. OCTA selected PGH Wong Engineering, Inc., as the Construction Manager Consultant for the project. PGH Wong Engineering, Inc., approached the City to lease office space at SARTC. Wash Construction, the Contractor 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 PGH Wong Engineering, Inc. and Walsh Construction, via a separate lease agreement, to be in close vicinity 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 sq. ft. of vacant space. PGH Wong Engineering, Inc., is interested in leasing 2,507 sq. ft. of office space in Suite 200, generating $300,230 in lease revenue for the entire term of the agreement. The OC Streetcar will provide a great service to the residents of the City. By leasing available office space to PGH Wong Engineering, Inc., 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 PGH Wong Engineering, Inc., to compensate the City $60,000 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 two one-year extensions. The total anticipated revenue from this agreement is as follows: FISCAL YEAR REVENUE Agreement 3 -year Term 2018/19 $32,145 2019/20 $60,000 2020/21 $60,000 2021/22 $27,970 Optional Extensions 2021/22 $32,145 2022/23 $60,000 2023/24 $27,970 TOTAL $300,230 20B-2