HomeMy WebLinkAboutCorrespondence - Renewal of Lease for City Government Office AnnexCITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
May, 29, 1973 COUNCIL AGENDA
ITEM NO.
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
SUBJECT: RENEWAL OF LEASE FOR CITY GOVERNMENT OFFICE ANNEX - CONR'IUNITY
DEVELOPMENT BUILDING AT 503 32ND STREET.
RECOMMENDATION:
If desired, adopt Resolution No. authorizing execution of
an agreement between J. Lafe and Jeanne C. Ludwig and the City for the
continued lease of an office building at 503 32nd Street.
DISCUSSION:
The subject building contains 5690+ square feet of usable floor
area and houses the Community Development Department and City Attorney's
offices. The City has rented at least some space in this two story building
since September 1965.
The proposed new rental agreement provides for the following:
1. Rate. An 11.4 percent increase in the monthly rental rate
from $965 to $1075. This is the first rent increase the
City has paid since 1969 and represents a rate of $.1889
per square foot per month.
2. Term. The lease term is for one year beginning September 1,
1973, with four one year options which the City may, in its
sole discretion, exercise. The City may terminate the lease
without cause upon 120 daylprior writtep notice.
``-r cr°; 4`z'Y.r'c r'
3. Repainting. The lessor shall have the entire building "
exterior repainted by a professional painting contractor
within 45 days after execution of the 'renewal agreement.
4. Rent Guarantee. The monthly rental rate is guaranteed for
the next five years.
5. Property Tax Increases. The City will continue to pay for
any property tax increase levied against the building. The
increase this year over the 1969 - 70 lease base was $252.
Page - 2 -
6. Parking Facilities. The agreement obligates the lessor
to make availalble 24 nonexclusive parking spaces in the
lot adjacent to Richards Lido Center for use by visitors
to City offices in the building.
7. Utilities. Utilities and interior building maintenance
continue to be a leasee obligation.
The proposed rental rate is competitive when compared with
other available office space in the City Hall vicinity and the renewal
agreement is recomrnended for execution.
ROBERT L. WYNN
RLW:PFB:cs
cc: Mr. Howard Lawson, Jr., Realtor