Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
SEPTEMBER 17, 2026
Subject
SUBJECT: AMENDMENT TO LEASE AGREEMENT WITH DOWNTOWN PROPERTIES, LLC FOR THE OFFICE OF INSPECTOR GENERAL LOCATED AT 818 WEST 7TH STREET IN LOS ANGELES
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) or their designee to execute Amendment No. 9 to the Lease Agreement with Downtown Properties, LLC (“Lessor”), for the Office of the Inspector General (“OIG”) located at 818 West 7th Street in Los Angeles (Attachment A – Location Map), extending the lease term for 65 months (5 years, 5 months), commencing August 1, 2027, at an initial rate of $39,274 per month with 3% annual escalations, for a total of $2,521,267.65 over the 65-month term.
Issue
ISSUE
The current lease term for the OIG office space at 818 West 7th Street in Los Angeles (“OIG Office”) will expire on July 31, 2027, unless the term is extended. The window for Metro to exercise the option to extend the lease commences August 1, 2026, and closes October 31, 2026. Board approval is needed to allow Metro to timely execute the negotiated lease amendment, obtain favorable lease terms, and allow sufficient time for completion of tenant improvements prior to the commencement of the extended term. Both the term and the value of the proposed amendment exceed the delegated authority of the CEO; therefore Board approval is required.
Background
BACKGROUND
The OIG has occupied office space at 818 West 7th Street in Los Angeles since 1998. The original lease was for 55,560 square feet (SF), but has been reduced by approximately 77% during the lease period to the current size of 12,912 SF. The space is used by OIG staff and OIG consultants and is strategically located directly across from the Metro 7th Street/Metro Center Station. The current lease term expires July 31, 2027
Prior lease amendments include:
First Amendment to memorialize the commencement date a...
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