TITLE
Recommendation to authorize City Manager to execute the Third Amendment to Lease No. 27279 with Edwin White for City-leased property at 2023 Pacific Avenue for a term of one year, with two one-year options for renewal at the discretion of the City Manager. (District 6)
DISCUSSION
On September 28, 1993, the City Council approved a lease at 2023 Pacific Avenue (Site) for the creation of the Wrigley Community Police Center (Center). In 2001, the City Council approved a new lease to allow for the continued operation of the Center.
Lease No. 27279 was amended twice and will terminate on April 30, 2006.
Since its opening on December 2, 1993, the Center has become an important resource to the neighborhood, providing area residents with convenient access to the Police Department, facilitating referral of requests and questions to other City departments, and providing a location for community meetings. During the past 12 months, the Center recorded the following activities: 292 crimes were reported to Center staff, which includes a Police Department representative; 392 residents were referred to various city departments for assistance with solving neighborhood problems; 371 residents were able to access information in their native language; and 54 community meetings and workshops were organized by the Center's staff to educate residents and business owners.
The property owner and the City. have agreed to an extension of the lease. The proposed Third Amendment to Lease No. 27279 addresses the following major terms and conditions:
. Term: The Lease Term shall be extended one year commencing June 1, 2006 and terminating May 31,2007. As allowed under the provisions of the Lease, the City shall remain on the Site from May 1-31, 2006 on a holdover status allowing for execution of the Third Amendment;
. Option Term: The City shall be granted two separate and consecutive one-year options to renew the term of the Lease;
. Rent: The monthly base rent shall be $1,150 (approximately $1.00 per square foot). This amount is consistent with the current market rate of $1.00-$1.25 per square foot for similar type property in the area;
. Option Term Rent: The monthly base rent shall increase 3 percent for each option term. If exercised, rent for the first one-year option term shall be $1,184.50 per month. If exercised, rent for the second one-year option term shall be $1,220.04 per month;
All other terms, covenants and conditions in Lease No. 27279 shall remain in effect.
This letter was reviewed by Deputy City Attorney J. Charles Parkin on April 11, 2006 and Budget Management Officer David Wodynski on April 27, 2006.
TIMING CONSIDERATIONS
City Council action is requested on May 9, 2006, in order to execute an agreement for the City's continued use of the Site.
FISCAL IMPACT
Sufficient funds are 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 for this Amendment.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PATRICK H. WEST |
APPROVED: |
DI RECTOR OF COMMUNITY DEVELOPMENT |
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GERALD R. MILLER |
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CITY MANAGER |