TITLE
Recommendation to authorize the City Manager, or designee, to execute all documents necessary between Omninet Freeway, L.P., and the Housing Authority of the City of Long Beach, to lease the property at 1500 Hughes Way, Suite 100, for a period of ten years, and increasing by 3 percent annually, with the option to extend for one five-year period. (Citywide)
DISCUSSION
Since February 2000, the Housing Authority of the City of Long Beach (Housing Authority) has leased the building and appurtenant parking located at 521 E. 4th Street for its operations. The current lease term ends on March 31, 2020. Staff has determined that additional space is required and evaluated options to relocate the office space and services. Office space at 1500 Hughes Way, Suite 100 (Premises), has been identified as the most suitable option to relocate Housing Authority operations.
Relocation to the Premises would provide the use of approximately 19,120 rentable square feet (RSF) of office space for operations at a lease rate of $2.20 per RSF per month. Rent will increase by 3 percent annually. The property owner, Omninet Freeway, L.P. (Landlord), will provide the City (Tenant) with a Tenant Improvement (TI) Allowance of $60 per RSF leased and will build out the space to meet the Tenant’s needs. The Landlord will also provide an additional allowance of $40 per RSF if needed to complete improvements. If the additional allowance is utilized, Tenant will reimburse Landlord as additional rent amortized over the term of the lease at an interest rate of 7.5 percent per year. The Landlord will also provide the Tenant with the right to use four unreserved parking permits per each 1,000 rentable square feet leased, free of charge, as well as access to electric vehicle charging stations.
The proposed Lease has been negotiated containing the following major terms and provisions:
· Landlord: Omninet Freeway, L.P., a Delaware limited liability partnership.
· Tenant: Housing Authori...
Click here for full text