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Approve Lease Agreement with Aldridge Group for Office Space at the SARTC <br />February 19, 2019 <br />Page 2 <br />OCTA is the lead agency for the OC Streetcar Project. OCTA selected Walsh Construction as <br />the Contractor for the project. Walsh Construction approached the City to lease office space at <br />SARTC and on December 18, 2018, City Council approved a three-year lease agreement with <br />Walsh Construction. Since then, the City has been contacted by sub -contractors working on the <br />OC Streetcar Project to lease space at SARTC. Aldridge Group is interested in leasing 2,041 <br />square feet of office space at SARTC. SARTC has become a central hub for contractors working <br />on the OC Streetcar Project due to the availability of office space and the close proximity to the <br />OC Streetcar Project. <br />The OC Streetcar will provide a great service to the residents of the City. By leasing available <br />office space Aldridge Group, lease revenue will be generated for the SARTC day-to-day <br />operations. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, <br />Objective #2 (create new opportunities for business/job growth and encourage private <br />development through new General Plan and Zoning Ordinance policies), Strategy C (support <br />business development and job growth along transit corridors through the completion of critical <br />transit plans/projects including: The OC Streetcar Project, Santa Ana Regional Transportation <br />Center Master Plan, Complete Streets and General Plan Circulation Element update). <br />FISCAL IMPACT <br />Approval of the site lease agreement obligates Aldridge Group to compensate the City $48,984 <br />annually for the lease of interior office space at the SARTC. The two-year agreement term <br />begins February 20, 2019, and ends February 19, 2021. There is also an option for twelve one- <br />month extensions. The total anticipated revenue from this agreement is as follows: <br />FISCAL YEAR <br />REVENUE <br />Agreement 2 -year Term <br />2018/19 <br />$16,328 <br />2019/20 <br />$31,124 <br />2019/20 <br />$17,536 <br />2020/21 <br />$31,124 <br />Optional Extensions <br />2020/21 <br />$17,536 <br />2021/22 <br />$31,124 <br />TOTAL <br />$144,771 <br />20A-2 <br />