HomeMy WebLinkAbout02/18/1992, C-12 - LEASABLE SPACE IN THE MARSH STREET PARKING GARAGE ���iIII�II�II�IIIIlllul II j�/ t MEETING DATE:
Ij��u� c� "JJ o san .��s �B�spO February 18, 1992
COUNCIL AGENDA REPORT ITEM NUMBER:_/
FROM: David F. Romero, Public Works Director
PREPARED BY: David Elliott, Administrative Analyst
SUBJECT: Leasable Space in the Marsh Street Parking
Garage
CAO RECOMMENDATION:
Adopt the resolution approving the agreement between the City and
Lyle O. Tisdel for lease of City-owned office space at the Marsh
Street Parking Garage.
DISCUSSION:
The Marsh Street Parking Garage contains 760 square feet of
leasable storefront space zoned for offices. After completion of
the garage, staff debated whether to reserve this space for City
offices or lease it for commercial use.. Eventually staff decided_
to lease out the space and in October 1991 hired Dill Commercial
Properties to find a suitable tenant, negotiate a lease, arrange
necessary tenant improvements, and manage the lease.
Through Dill, staff has accepted a proposal from Lyle O. Tisdale
to lease the space for a real estate office with the initial term
set at three years. Dill 's credit analysis showed Tisdale would
be a reliable and responsible tenant. Acceptance of this
proposal is contingent upon approval of the lease agreement by
the City Council.
FISCAL IMPACT:
Rent for this space would be $850 per month triple net (about
$1. 12 per square foot per month) . This rate approximates rents
for similar downtown locations and fits the City' s objective of
receiving "an appropriate rent without the appearance of
undercutting other property owners in the downtown" . Dill ' s
management fee would be $100 per month, and its lease commission
would be six percent of the base rent for the first 60 months and
three percent of the base rent for the remainder of the lease
term. After management fees and commissions are deducted, the
parking fund would receive $699 per month, or $8, 388 in the first
year. The lease agreement includes a CPI adjustment factor.
attachment: resolution
enclosure: lease agreement (available for review in the
Council office)
DE:C: \WP\PKGOFFCE
RESOLUTION NO. (1992 SERIES)
APPROVING AN AGREEMENT TO LEASE CITY-OWNED
PROPERTY AT 1260 CHORRO STREET, SUITE A
WHEREAS, the City of San Luis Obispo owns 760 square feet of
storefront space zoned for offices at 1260 Chorro Street, Suite A
(in the Marsh Street Parking Garage) ; and
WHEREAS, the City wants to lease this space to a commercial
tenant; and
WHEREAS, Lyle O. Tisdel has submitted a proposal to lease
this space for a real estate office; and
WHEREAS, the City has accepted this proposal on condition
that the City Council approve a lease agreement;
NOW THEREFORE BE IT RESOLVED by the City Council of the City
of San Luis Obispo to:
1. approve the lease agreement between the City of San
Luis Obispo and Lyle 0. Tisdel;
2 . authorize the City Administrative Officer to execute
the agreement; and
3 . direct the City Clerk to forward two executed originals
of the lease agreement to Dill Commercial Properties and copies
of the executed lease agreement to Public Works Department and
Finance Department.
On motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
C� � �v
Resolution No. (1992 Series) , page 2
the foregoing resolution was adopted this 18th day of February
1992.
Mayor Ron Dunin
ATTEST:
City Clerk
APPROVED:
City dministrative officer
t r
Finance Director
Public works Director