AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 4/5/2017
TO: Honorable Mayor and City Council Members
FROM: Community Development Department
SUBJECT:
Title
City Council consideration and approval of First Amendment to the Historic Civic Center Lease Agreement with Corona Historic Preservation Society to extend the term of the lease up to 5 years and establish an annual rent escalator.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Approve the First Amendment to the City of Corona - Historic Civic Center Lease Agreement with the Corona Historic Preservation Society.
2. Authorize the City Manager, or his designee, to execute the first amendment to the lease agreement and documents in furtherance of this action.
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ANALYSIS:
Since 2006, the Corona Historic Preservation Society (CHPS) has leased tenant space at the Corona Historic Civic Center located at 815 W. Sixth Street. CHPS occupies Suite 185 which is approximately 209 square feet. The initial lease gave CHPS rent-free tenant space in exchange for certain in-kind review services provided to the City on historic preservation matters, but required CHPS to pay common area maintenance fees. In February 2016, the initial lease expired and the City and CHPS entered into a one year lease that required CHPS to pay base rent for their tenant space. CHPS wishes to remain a tenant of the Corona Historic Civic Center and is requesting an extension to their lease.
The City is proposing to amend the current lease based on the terms agreed to by CHPS and the City.
1. Base rent will be established at $0.30 per square foot.
2. A base rent escalator will be included and shall be the annual increase based on the Consumer Price Index or 3%, whichever is greater
3. The lease term will expire February 28, 2020, but prior to the expiration date an additional two years may be allowed as mutually agreed upon by both parties.
It should be noted the base rent is below market...
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