HomeMy WebLinkAbout01/17/1995, C-1 - LEASABLE SPACE IN THE MARSH STREET PARKING GARAGEMEETI DA
���h�i ►�IIIII�IU° ��IU city of San LUIS OBISPO �
COUNCIL AGENDA REPORT ITE N� aEA:,
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FROM: Michael D. McCluskey, Public Works Director
PREPARED BY: David Elliott, Administrative Analye9
SUBJECT: Leasable Space in the Marsh Street Parking Garage
CAO RECOMMENDATION:
Adopt the resolution approving the agreement between the City and the Senate Rules Committee of
the California Legislature 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. Since March 1, 1992, the City has leased this space to a real estate firm, which vacated the
premises on December 15, 1994.
Through Dill Commercial Properties, the City's commercial property manager, staff has accepted a
proposal from the Senate Rules Committee of the California Legislature to lease this space as a local
office for Senator Jack O'Connell. Acceptance of this proposal is contingent upon approval of the
lease agreement by the City Council.
The lease space shares utility meters, hallways, and restrooms with the City's parking program
offices next door. Under the previous triple net lease, the tenant paid $900 rent per month plus
$150 per month as a pro rata share of estimated expenses paid by the City (including structure
insurance, utilities, possessory interest taxes, and janitorial service). To simplify calculations the
new lease will be a full service gross lease, with the tenant paying $1,100 per month, and the City
paying for all expenses.
FISCAL IMPACT:
The rental rate of $1.45 per square foot per month approximates full service gross 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 is $100
per month, and its lease commission is five percent of the base rent for the first 60 months and two -
and-a- half percent of the base rent for the remainder of the lease term. After management fees and
commissions are deducted, the parking fund will receive $945 per month, or $11,340 in the first
year. The lease agreement includes a CPI adjustment factor.
ATTACEMIENTS:
Resolution
Lease Agreement (available for review in the city clerk's office)
GAWP6ITMEASE
RESOLUTION NO. (1995 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 stable, long -term tenant; and
WHEREAS, the Senate Rules Committee of the California Legislature has submitted
a proposal to lease this space as a local office for Senator Jack O'Connell; 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 the
Senate Rules Committee of the California Legislature;
2. authorize the City Administrative Officer to execute the agreement; and
3. direct the City Clerk to forward three originals of the lease agreement
executed by the City to Dill Commercial Properties via the public works staff.
On motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this 10th day of January 1995.
Mayor Allen K. Settle
APPROVED AS TO FORM:
ATTEST:
City Clerk
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