TITLE
Recommendation to authorize City Manager to execute a Consent to Sublease and Sublease to Lease No. 26751 between the City of Long Beach and the Historical Society of Long Beach, California, a non-profit corporation, for office space at 110 Pine Avenue, Suite 1200. (District 2)
DISCUSSION
On February 8, 2000, the City Council approved Lease No. 26751 with 110 Pine Avenue, LLC for office space at 11 0 Pine Avenue, Suite 1200, to house staff from the Department of Community Development (CD). This constituted approximately 80 percent of Suite 1200. Subsequent First and Second Amendments to the Lease expanded the premises to include Suite 1100 and the remainder of Suite 1200. Lease No. 26751 will terminate on September 30, 2005. The City is currently in discussions to extend the Lease term.
In February 2005, the Historical Society of Long Beach (HSLB) was advised that it would need to vacate its current facility by March 31, 2005. HSLB approached the City for assistance in securing temporary office space. HSLB's permanent facility is not yet constructed and may not be available until the end of the year.
In an effort to assist HSLB during the construction period, CD has reorganized its use of office space at 110 Pine Avenue to accommodate HSLB in a portion of Suite 1200. The City proposes a Sublease with HSLB for shared leased office space containing the following major terms and provisions:
0 Sublease Term: Six month term commencing April I, 2005. If the Lease is extended, the Sublease will continue on a month-to-month basis.
0 Sublease Premises: Approximately 1,777 rentable square feet of office space located at 1 10 Pine Avenue, Suite 1200.
0 Rent: The monthly rent for the Sublease term will be $1.
Parking: Parking will not be provided with the Sublease. HSLB shall be solely responsible for costs associated with its own procurement of parking in the vicinity.
Holdover Provision: Pursuant to the City's extension of the Lease term, the Sublease shall automatically rollover to a month-to-month tenancy at the termination of the initial Sublease term. Either party may terminate the Subleaseat any time during the holdover period by providing' thirty days' prior written notice.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on March 3, 2005 and Budget Management Officer David Wodynski on March 14,2005.
TIMING CONSIDERATIONS
City Council action is requested on March 22, 2005, in order to meet an April 1, 2005, target commencement date.
FISCAL IMPACT
Sufficient funding for the monthly rental payment for Lease No. 26751 is budgeted in the Community Development Grants Fund (SR 150) in the Department of Community Development (CD) to support this activity. There is no impact on the General Fund.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
MELANIE S. FALLON
DIRECTOR OF COMMUNITY DEVELOPMENT