Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
AUGUST 17, 2016
Subject/Action
SUBJECT: LEASE OF OFFICE SPACE FOR OFFICE OF INSPECTOR GENERAL
ACTION: CONSIDER APPROVING A NEW LEASE FOR 818 WEST 7TH STREET
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to execute a five-year lease agreement, including one (1) five (5) year option, with Downtown Properties effective March 1, 2017 for the rental of approximately 12,912 square feet of office space in an office building located at 818 West 7th Street, 5th Floor, Los Angeles, at an estimated rental cost of $2,055,891.59 over the term of the lease.
Discussion
BACKGROUND
The Office of the Inspector General ("OIG") has occupied office space in the 818 W. 7th Street Building since 1998. This space is used by 24 OIG staff and OIG consultants also use the space from time to time. The current lease was originally executed effective March 1, 2007. The lease covered the use of 12,912 square feet for a term of five (5) years ending February 28, 2012, with one (1) five-year option. The option to extend was exercised effective March 1, 2012 and will expire on February 28, 2017. Metro has an option to extend the lease for an additional five years by providing notice between June 1, 2016 and August 31, 2016. Instead of exercising the option, staff has negotiated new lease terms effective March 1, 2017 pending Board approval. Early negotiations regarding the lease renewal provided the opportunity to negotiate free rent, establish a new 2017 base year for expense purposes and obtain tenant improvements provided by the landlord.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
This Board Action will not have an impact on safety standards for METRO operations.
Financial_Impact
FINANCIAL IMPACT
Current funding for the payment of rent for the OIG space is included in the FY17 budget in cost center 0651, Non-Departmental Real Estate, under project number 100002, Governmental Ove...
Click here for full text