Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
NOVEMBER 18, 2020
Subject
SUBJECT: LEASE AGREEMENT FOR METRO OPERATOR LAYOVER OFFICE, 8305 HINDRY AVENUE, LOS ANGELES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute a three (3)-year lease agreement with two (2) one-year options commencing December 1, 2020 with Priceless Westchester Investment, LLC ("Lessor"), for the LA Metro rail operator layover space located at 8305 Hindry Avenue in Los Angeles at a rate of $4,810.00 per month with escalations of three percent (3%) annually and approximately $500,000 in tenant improvements for a total of $906,627.39 over the initial term and options, if needed (see Attachment B - Deal Points).
Issue
ISSUE
Metro is in need of a rail operator layover site for light rail transit operators along the Crenshaw/LAX (CLAX) line in close proximity to the Westchester/Veterans Station in Los Angeles to be complete and fully operational by summer 2021.
Background
BACKGROUND
The location and scope of the Airport Metro Connector (AMC) construction project will require the temporary relocation of a current Metro rail operator layover space due to the AMC project requiring closure of rail operations within the project area. Originally located at the Southwest Maintenance Yard (SWY), the rail operator layover space - vital in providing necessary rest and transfer points for rail operators - will be moved to a new leased space consisting of 1,850 square feet to include bathrooms, breakroom and office space located within walking distance to the next northern CLAX station (Veterans/Westchester Station) until the AMC Station project is complete and ready to operate (see Attachment A - Lease Location and Plan Draft). Once rail operations are started in this area, the new operator layover space will be transferred back permanently to previous location at the SWY thus terminating the new lease location.
Di...
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