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<br /> REQUEST FOR <br /> <br /> COUNCIL ACTION <br /> CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: <br /> JUNE 7, 2010 <br /> TITLE: APPROVED <br /> ? As Recommended <br /> DOWNTOWN OFFICE LEASE ? As Amended <br /> ? Ordinance on 15f Reading <br /> EXTENSION ? Ordinance on 2nd Reading <br /> ? Implementing Resolution <br /> ? Set Public Hearing For <br /> CONTINUED TO <br /> ~ FILE NUMBER <br /> CITY MANAGER <br /> RECOMMENDED ACTION <br /> Authorize the City Manager and the Clerk of the Council to execute the attached first amendment <br /> to the lease agreement with Fiesta Marketplace Partners #1, subject to non-substantive changes <br /> approved by the City Manager and City Attorney. <br /> DISCUSSION <br /> The Downtown office has been located at 305 East Fourth Street since February 2001. The <br /> current lease agreement covers 3,910 square feet, which is occupied by Downtown Police staff <br /> and parking meter operations, and expires on July 31, 2010. With the initiation of the Downtown <br /> Community Management District, the new management corporation, Downtown Inc. occupies <br /> separate office space from City staff. The current lease also includes two one-year renewal <br /> options which may be exercised at the option of the City. <br /> A two percent annual increase will be added to the rent upon exercising this one-year lease <br /> option. The new rent is $5,982 monthly, or $1.53 per square foot, and is afull-service gross <br /> lease with a stipulation that the City pay a portion of the utilities that exceed the base year figure <br /> established during the first year of the lease. According to the 2010 office market report for <br /> Orange County by Voit Commercial, this lease rate falls within the average lease rate for similar <br /> buildings. <br /> 25C-1 <br /> <br />