TITLE
Recommendation to authorize City Manager to execute all documents necessary for the Second Amendment to Lease No. 27876 with 3837 Atlantic Real Estate, for approximately 1,000 square feet of commercial office space at 3837 Atlantic Avenue, for use as the City Council Eighth District Field Office, for a four-year term at the initial monthly base rent of $1,500. (District 8)
DISCUSSION
Since 2002, the Eighth District Councilmember has operated a field office at 3837 Atlantic Avenue (Site) to provide residents with a convenient point of contact to discuss community issues. The Site is a visible storefront office facility that is easily accessible to the general public and offers a wide variety of community services to Eighth District constituents.
On December 19, 2007, the City exercised its final option to extend Lease No. 27876, which terminated on June 30, 2008. In an effort to secure the Site for continued long-term use, a new Lease extension has been negotiated for approximately 1,000 square feet of office space at 3837 Atlantic Avenue. The proposed Second Amendment to Lease No. 27876 contains the following major terms and conditions:
· Lessor: 3837 Atlantic Real Estate.
· Lessee: The City of Long Beach.
· Premises: The leased premises shall contain approximately 1,000 square feet of
commercial office/retail space located at 3837 Atlantic Avenue, Long Beach.
· Lenqth of Term: The term shall be for 4 years, commencing on July 1,2008 and
terminating on June 30, 2012.
· Rent: The monthly base rent shall be $1,500 ($1.50 per square foot) for the first
year of the new term. Thereafter, the rent shall have annual C.P.I. increases with
a cap of 5 percent. This rent is considered to be very competitive for the Eighth
District Council area.
. Option to Renew: There shall be one option to renew for one two-year period at
the then prevailing rental rate.
. Utilities. Services and Taxes: The Lessor shall pay the costs associated with gas,
water and refuse, and be responsible for all costs associated with property taxes
and common area expenses. The Lessee shall pay the costs associated with
electricity, in an amount not to exceed $3,000 per year.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on June 3, 2008 and Budget Management Officer Victoria Bell on June 11, 2008.
TIMING CONSIDERATIONS
City Council action is requested on July 1, 2008 in order to formalize an agreement for the continued occupancy of the site.
FISCAL IMPACT
The total FY 08 costs for the Second Amendment to Lease No. 27876 are estimated to be $5,250. Of this amount, base rent payments are estimated to be $4,500 and electricity charges are estimated to be $750. Sufficient funds are budgeted in the General Fund (GP) in the Legislative Department (LD) to support this activity.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
Dennis J. Thys
Director of Community Development
NAME |
APPROVED: |
TITLE |
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PATRICK H. WEST |
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CITY MANAGER |