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Homeless Navigation Center Lease at 1815 Carnegie Avenue <br />March 2, 2021 <br />Page 2 <br />5 <br />1 <br />9 <br />Two would involve the City seeking a new operator of the navigation center. The operator <br />would be decided based upon a future Request for Proposals (RFP) process. <br />To implement Plan B, the City would become the Lessee of the Carnegie site under the <br />following terms: <br />Property Lease Terms <br />Lessee City of Santa Ana <br />Lessor DYER 18 LLC <br />Term 15 years <br />Base Rent $61,666 monthly ($2.09 sq. ft.) <br />Security Deposit $200,000 <br />Amount Due at Execution $261,666 <br />Annual Rent Adjustment 3% (effective 7/1/2021) <br />Purchase Option $9.2M in Year 2 @ 50% of CPI <br />R.S.P. relocation Reduction by $1,000,000 for relocated Regulatory Safety Permit <br />Tenant Improvements (TI) Terms <br />Retainer 10% ($850,000) <br />Costs of Work Approx. $8.5M including prevailing way <br />Contingency 10% ($850,000) <br />Approval of the lease commences construction toward an April 30, 2021 opening date. <br />The proposed lease and lease addendum are attached as an exhibit. <br />Future Actions <br />The City’s selected operator (procured via RFP) will be presented to City Council within <br />the next month and will outline all costs of services related to the operation of the Carnegie <br />Navigation Center. <br />FISCAL IMPACT <br />Funds for the initial start-up of the agreement, tenant improvements and lease are <br />currently available in the FY 2020-21 budget: <br />Fiscal Year Accounting <br />Unit-Account <br />Fund <br />Description <br />Accounting Unit, <br />Account Description Amount <br />FY 20-21 <br />(March-June)12218700-69135 <br />Homeless <br />Emergency Aid <br />Program (HEAP) <br />HEAP Grant, Payment to <br />Subagent $913,462.00 <br />FY 20-21 <br />(March-June)12218710-69135 Emergency and <br />Health Grants <br />HHAP-COVID, Payment to <br />Subagent $125,771