Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JANUARY 20, 2021
Subject
SUBJECT: SECOND AMENDMENT TO STANDARD COMMERCIAL LEASE AGREEMENT WITH PBONE OSF-C, LLC, FOR THE METRO OFFICE LEASE FOR VARIOUS OPERATING DEPARTMENTS LOCATED AT 100 S. SANTA FE AVENUE, SUITE 100, LOS ANGELES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer (CEO) to execute a Second Amendment to the Standard Commercial Lease Agreement to make improvements totaling approximately $150,765 and to continue renting 70 parking spaces at a cost of $159,600 annually (total of $798,000 over the option term of 5 years), commencing March 1, 2021 with PBONE OSF-C, LLC ("Lessor") for the Metro Operations and Training office located at 100 S. Santa Fe Avenue, Suite 100, Los Angeles.
Issue
ISSUE
The office lease at 100 S. Santa Fe Avenue, Suite 100, Los Angeles ("One Santa Fe"), which provides essential office space for system maintenance services and safety training for Metro vendors and other Metro departments, includes leasing 70 parking spaces. Currently Metro is actively using all 70 existing parking spaces for staff and equipment parking. The parking space lease will terminate on February 28, 2021 if not amended. In addition, repair work to the ventilation, alarm and lighting systems that serve the premises is required.
Background
BACKGROUND
Metro exercised its first option to extend the lease at One Santa Fe for an additional five (5) years from March 1, 2021 to February 28, 2026 ("Option Term"). This option included predetermined rental rates for the office space but did not include a predetermined rental rate for the 70 parking spaces which requires separate negotiation to lock in a new rental rate for the period of the Option Term.
In addition, the office space at One Santa Fe has had longstanding issues with the ventilation in certain areas of the premises, the volume of the alarm system, and lighting in certain area...
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