Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JULY 18, 2024
Subject
SUBJECT: FIRST AMENDMENT TO LEASE AGREEMENT WITH DWF V WILSHIRE/ VERMONT LP
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO), or their designee, to execute the First Amendment to the Lease Agreement (First Amendment) or any other documents with DWF V Wilshire/ Vermont LP, (Lessor), to extend the lease by five years (First Option) commencing September 1, 2024, for the Metro Customer Center located at 3183 Wilshire Boulevard, Suite 174 (Site) in Los Angeles consisting of 2,469 square feet at a rate of approximately $10,001.93 per month for a total of $600,115.80 over the First Option term.
Issue
ISSUE
On June 27, 2013, the Board approved a lease located at the Site for a Metro Customer Center (CC). The lease commenced on June 6, 2014, and expires on August 31, 2024. Under the terms of the lease, Metro has three (3) five-year options to extend the initial term. The Board approved the initial lease and options, however the amount authorized by the Board only included the first ten-year term. The total rent for the First Option is $600,116, which exceeds CEO authority and requires Board approval.
Background
BACKGROUND
The CC was originally located at a Metro-owned building at Wilshire Boulevard and La Brea Avenue. However, in 2014, the CC needed to be relocated so the property could be utilized for the extension of the D (Red) Line. After an extensive search, a suitable location was found within the Wilshire Vermont Joint Development project (Attachment A).
The Wilshire Vermont CC services about 4,250 customers per month, which is the second-highest volume of customer activity of the five Metro Customer Centers. Services provided at this location include TAP card fare media purchases, reduced fare subsidies, reduced fare application intake, LIFE program application Intake, Metro HR Career Kiosk, public phones ...
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