HomeMy WebLinkAboutCC AG PKT 2002-12-09 #V 0 21
AGENDA REPORT
#::"..0 „0"11' DATE: November 12, 2002
TO: Honorable Mayor and City Council -
THRU: John B. Bahorski, City Manager
FROM: June Yotsuya, Assistant City Manager
SUBJECT: LEASE AGREEMENTS FOR THIRD PARTY TENANTS
AT OLD CITY HALL BUILDING
DISCUSSION
Last year the City of Seal Beach reacquired the leasehold interest in the property at 201
Eighth Street referred to as the Old City Hall building. At that time, the City became
responsible for the lease agreements with the various third party tenants that rent tenant
space in the building. At the end of the year, the City contracted with its present Property
Manager, Bancap Commercial Real Estate Services, to manage the property and tenants.
The property manager is comfortable with the current tenant mix and has moved forward
with negotiating new lease agreements /extensions with the following:
1. Track III /The Q Agency — the original lease agreement was with Jim Klisanin
of Baytown Realty who moved out of the Old City Hall property in the
summer of 2001. He subsequently sublet the premises to Track III/The Q
Agency. Track III hauls waste away from racetracks and the Q Agency
handles advertising for the Los Alamitos Race Track. The owner is Brad
McKinzie and Bancap recommends a direct lease with Mr. McKinzie for a 3-
year term from January 1, 2003 to December 31, 2005.
2. Ned's House of Produce — Ned's House of Produce is a food broker and has
been a tenant for the past four years. Thad W. Schamberger is the owner and
is requesting a lease extension of five years. Bancap recommends the five -
year extension from January 1, 2003 to December 31, 2007.
3. Bill L. Knight — Bill L. Knight is a retired Seal Beach fire captain who now
has an electrical contractor business and wishes to remain on a month -to-
month tenancy. Bancap recommends extending his occupancy for a one -year
term from January 1, 2003 to December 31, 2003.
4. Micki Sangster — Micki Sangster owns and operates Hello Gorgeous and has
been a tenant for approximately four years. The salon has added class and
Agenda Item V
Page 2
Agenda Report —Lease Agreements for Third -Party Tenants at Old City Hall building
character to the building. Bancap recommends a five -year extension from
January 1, 2003 to December 31, 2007.
5. Retha Evans — Retha Evans is a professional consultant and owner of
Professional Development Courses, Inc. Her business presently occupies the
tenant space recently vacated by Edgwood Consulting Group. She has been a
month -month tenant since October 2002 and Bancap recommends a three -year
lease agreement beginning with that period from October 1, 2002 expiring on
September 30, 2005.
FISCAL IMPACT
The rental rates established by Bancap are based on market rate values and include tenant
costs of building maintenance expenses based upon their pro rata share of building square
footage. Each multi -year agreement provides for an increase in annual rent for each
subsequent year.
Original Sq. Base CAM Total Continuing/New New Year 2 Year 3 Year 4 Year 5
Tenant Ft. Rent Tenant Total
Jim Klisanin 1009 $1619 $479 $2098 Track II1/Q Agency $2219 $2286 $2354
Ned's House
of Produce 260 $ 390 $ 95 $ 485 Same $ 520 $ 536 $ 552 $ 568 $ 585
Bill L. Knight 175 $ 287 $ 81 $ 368 Same $ 376
MickiSangster 1156 $1769 $546 $2315 Same $2428 $2500 $2576 $2653 $2733
Edgewood Retha Evans/
Consulting 590 $1057 $ 0 $1057 ProfessionalDev. $1200 $1250 $1300
RECOMMENDATION
Staff recommends that the City Council approve the attached lease agreements /extensions
with the various third party tenants who rent tenant space in the Old City Hall building
located at 201 Eighth Street.
Submitted by:
J /e Yotsuy , Assist City Manager
Ap∎o .b.
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