Metro - File #: 2017-0777

• File #: 2017-0777
• Type: Agreement
• Status: Agenda Ready
• File created: 11/7/2017
• In control: Finance, Budget and Audit Committee
• On agenda: 1/17/2018
• Title: AUTHORIZE the Chief Executive Officer to execute a five-year amendment to the existing lease agreement with Bakewell Hawthorne, LLC ("Landlord"), and option a five-year term extension, for use of 11,500 rentable square feet ("RSF") of office space located at 4401 Crenshaw Boulevard, Los Angeles ("Crenshaw Building") commencing August 1, 2018 at a monthly rate of $18,644 for total value of $1,189,092 including annual escalations of three percent, with a five-year option to extend commencing August 1, 2023, for $1,378,500 costing a combined $2,567,592 over the ten-year term.
• Sponsors: Planning and Programming Committee
• Indexes: Budgeting, Crenshaw Station, Expo Line Operating Project (Project), Expo/Crenshaw Station, Hawthorne, Landlords, Law enforcement, Leimert Park Station, Metro Exposition Line, Metro Rail E Line, Metro Rail K Line, Payment, Property Agreement, Security
• Related files: 2018-0015

Date	Action By	Action	Result
1/25/2018	Board of Directors - Regular Board Meeting

Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JANUARY 17, 2018

Subject
SUBJECT: LEASE AGREEMENT WITH BAKEWELL HAWTHORNE,
LLC FOR LOS ANGELES METRO SYSTEM SECURITY
AND LAW ENFORCEMENT

Action
ACTION: APPROVE RECOMMENDATION TO EXECUTE A FIVE-YEAR LEASE AMENDMENT WITH ONE OPTION TO EXTEND BY AN ADDITIONAL FIVE YEARS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to execute a five-year amendment to the existing lease agreement with Bakewell Hawthorne, LLC ("Landlord"), and option a five-year term extension, for use of 11,500 rentable square feet ("RSF") of office space located at 4401 Crenshaw Boulevard, Los Angeles ("Crenshaw Building") commencing August 1, 2018 at a monthly rate of $18,644 for total value of $1,189,092 including annual escalations of three percent, with a five-year option to extend commencing August 1, 2023, for $1,378,500 costing a combined $2,567,592 over the ten-year term.

Issue
ISSUE

Metro operates a security and law enforcement office at the Crenshaw Building under an existing five-year lease approved by the Metro Board on November 15, 2012. The lease will expire on July 31, 2018. Metro has five successive one-year options commencing August 1, 2018.

The office space is in a four-story building at the southwest corner of Crenshaw Boulevard and Vernon Avenue, approximately one block from the Crenshaw Leimert Park Station (see Attachment A). The proximity to the Leimert Park Station provides ideal access to support security, fare compliance and law enforcement operations.

Discussion
DISCUSSION

With the term expiration currently set for July 31, 2018, the security office would like to secure the space at the Crenshaw Building for up to an additional ten years with an amendment to the existing lease.

The security office has found the Crenshaw Building to be a highly impactful base of operations since completion of the Exposition light-rail transit. As the Crenshaw/LAX line nears revenue operations...