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File #: 2017-0560   
Type: Project Status: Agenda Ready
File created: 8/11/2017 In control: Construction Committee
On agenda: 9/21/2017 Final action: 9/28/2017
Title: AUTHORIZE the Chief Executive Officer to approve a lease amendment to extend the term of the existing sublease with Maguire Properties - 777 Tower, LLC, to extend the term for sixty-two (62) months from May 1, 2018 to June 30, 2023 for the rental of approximately 41,628 rentable square feet of office space in an office building located at 777 Figueroa Street, Los Angeles, at an estimated rental cost of seven million, one hundred twenty-three thousand, nine hundred ninety-seven dollars ($7,123,997.00) over the term of the lease.
Sponsors: Finance, Budget and Audit Committee
Indexes: Construction, Construction management, Downtown Los Angeles, Easements, Metro Blue Line, Metro Exposition Line, Metro Gold Line, Metro Purple Line, Metro Rail A Line, Metro Rail D Line, Metro Rail E Line, Metro Rail L Line, Program management, Project, Project management, Regional Connector Transit Corridor Project, Tenants, Travel time, Westside Subway Ext (Project), Westside Subway Extension Section 2 (Project), Westside Subway Extension/Purple Line Extension Phase 1, Westside Subway Extension/Purple Line Extension Phase 2, Westside Subwy Ext. Section 3 (Project)
Attachments: 1. Attachment A - Summary of Class A& B Rental Rates in downtown Los Angeles, 2. Attachment B - Summary of Rental Costs in West Los Angeles
Meeting_Body
CONSTRUCTION COMMITTEE
SEPTEMBER 21, 2017

Subject
SUBJECT: LEASE FOR INTEGRATED PROJECT MANAGEMENT OFFICE - WESTSIDE PURPLE LINE EXTENSION PROJECT

Action
ACTION: APPROVE LEASE AMENDMENT FOR 777 FIGUEROA STREET, LOS ANGELES

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to approve a lease amendment to extend the term of the existing sublease with Maguire Properties - 777 Tower, LLC, to extend the term for sixty-two (62) months from May 1, 2018 to June 30, 2023 for the rental of approximately 41,628 rentable square feet of office space in an office building located at 777 Figueroa Street, Los Angeles, at an estimated rental cost of seven million, one hundred twenty-three thousand, nine hundred ninety-seven dollars ($7,123,997.00) over the term of the lease.

Issue
RATIONALE

At its October 2010 Board meeting, the Metro Board authorized the rental of approximately 41,628 rentable square feet of office space in the office building located at 777 Figueroa Street. The original lease was a year-to-year sublease between Marsh USA, Inc. and LACMTA. In September 2011, the Board authorized an amendment to extend the term from a year-to-year lease to a fixed term that will expire on April 30, 2018. The office building was purchased by Maguire Properties-777 Tower, LLC ("Maguire Properties") in 2014 and the sublease was subsequently converted to a direct lease with Maguire Properties in December 2014 under the same terms and conditions of the original sublease with Marsh.

The office space was originally leased to house the Integrated Project Management Offices (IPMO) for the Westside Purple Line Extension and Regional Connector Transit Corridor Projects. Currently the space is occupied by the Westside Purple Line Extension Project (WPLE or Project) Sections 1, 2 and 3 staffs and consultants. The leased space has been built out with enclosed offices, open office furniture work stations, conference rooms, storage space and ot...

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