TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for the Third Amendment to Office Lease (Contract No. 23828) with Behringer Harvard Downtown Plaza LP, a Delaware limited partnership, successor in interest to Pacifica Downtown Plaza, L.P., for office space at 211 East Ocean Boulevard, Suite 500, for the continued occupancy by the Long Beach Gas and Oil Department’s Oil Properties, for an additional 20 month term, at a monthly base rent of $27,664. (District 2)
DISCUSSION
Since 1995, the City has leased office space at 211 East Ocean Boulevard, Suite 500, to house Oil Properties, formerly known as the Department of Oil Properties. In 2005, Oil Properties was combined with the Long Beach Gas and Oil Department (LBGO) in an effort to streamline business operations. Oil Properties administers all City oil operations, contracts, leases and agreements, and directs all subsidence control activities. Oil Properties' funding is from oil revenues.
On August 24, 2004, the City exercised its second option to extend Lease No. 23828 (Lease), which ended on December 31, 2009. Oil Properties remains on site under a month-to-month agreement.
In an effort to consolidate business operations and to implement cost savings for the City, LBGO intends to relocate Oil Properties to its headquarters at 2400 East Spring Street. Certain office modifications are required to house Oil Properties at this site that will be completed in Spring 2011. Until such time, Oil Properties will remain at its current location. To accommodate Oil Properties' relocation plans, the City has negotiated a modified third extension to Lease No. 23828.
In 2005, the Downtown Plaza Office Building at 211 East Ocean Boulevard was sold to Behringer Harvard Downtown Plaza LP, as successor in interest to Pacifica Downtown Plaza, L.P. The proposed Third Amendment to Office Lease No. 23828, with the new landlord, contains the following major provisions:
· Lan...
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