REQUEST FOR CITY COUNCIL ACTION
DATE: 09/15/2021
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
SUBJECT:
Title
Fifth Amendment to City of Corona Historic Civic Center lease agreement between the City of Corona and Inspire Life Skills Training, Inc.
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EXECUTIVE SUMMARY:
Inspire Life Skills Training, Inc. currently leases tenant space at the City of Corona Historic Civic Center located at 815 W. Sixth Street. The lease will expire on September 30, 2021, and Inspire Life Skills Training, Inc. is requesting to enter into another lease agreement with the City of Corona to continue operating at the Historic Civic Center. The proposed fifth amendment to the lease agreement covers the lease Term and Base Rent.
RECOMMENDED ACTION:
Recommended action
That the City Council approve the Fifth Amendment to City of Corona Historic Civic Center lease agreement between the City of Corona and Inspire Life Skills Training, Inc.
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BACKGROUND & HISTORY:
On September 17, 2014, Inspire Life Skills Training, Inc. (Inspire) and the City of Corona (City) entered into a lease agreement to occupy Suite 160. The suite space is approximately 573 square feet. On October 17, 2018, Inspire entered a lease amendment to include the Basement “B” storage area which is approximately 230 square feet. For the past seven years, Inspire has operated its non-profit functions at HCC. Inspire provides housing, programs, and services to young adults aged out of the foster care system.
ANALYSIS:
Inspire’s lease will expire on September 30, 2021, and they wish to extend the agreement. The fifth amendment to the lease agreement covers the following terms and obligations.
Lease Term
Staff request authorization to extend the lease one (1) year through September 30, 2022, with a Renewal Term option of an additional two (2) years for a total of three (3) years, through September 30, 2024. The City Manager, or his designee, will be authorized to consider the extension, at their sole discretion, and execute the Renewal Term.
Base Rent and Common Area Maintenance Fee
Tenant Reporting Issues
The Community Services Department is responsible for managing the lease agreements and maintenance of the property. To better assist tenants with a point of contact for service, a full list of City personnel along with a brief explanation of their duties is attached to the agreement. Additionally, a new tenant lease obligation under Section 3.14.5, Repairs and Maintenance Contact List, is included in the agreement. The table below is a copy of the current contact list, as may be amended as needed.
FINANCIAL IMPACT:
The fifth amendment to the lease agreement is estimated to generate the following revenue to the General Fund.
|
Year |
Base Rent |
CAM |
|
Year 1 October 1, 2021 to September 30, 2022 Assuming a 6.5% CPI escalator. |
$6262.44 |
$1416.46 |
|
Year 2 October 1, 2022 to September 30, 2023 Based on a minimum 2% CPI escalator. |
$6387.69 |
$1458.95 |
|
Year 3 October 1, 2023 to September 30, 2024 Based on a minimum 2% CPI escalator. |
$6515.44 |
$1502.72 |
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Existing Facilities (§15301) - operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination. Therefore, no environmental analysis is required.
PREPARED BY: CYNTHIA LARA, ADMINISTRATIVE SERVICES MANAGER II
REVIEWED BY: ANNE K. TURNER, COMMUNITY SERVICES DIRECTOR
Attachments:
1. Exhibit 1 - Fifth Amendment to the Lease Agreement with Inspire Life Skills Training, Inc.