HomeMy WebLinkAbout1988-09-27; City Council; 9651; Lease Agreement Branch Library Plaze de la Costa0
CIT"F CA.ARLSBAD -- AGENDA SILL � Q
AB# S(55 TITLE EXTENSION OF LEASE AGREEMENT FOR DEPT.
BRANCH LIBRARY IN PLAZA DE LA COSTA ._i--
MTG. .9$ SHOPPING CENTER CITY A
DEPT, LIB CITY MGR. t
RECOMMENDED ACTION:
Adopt Resolution No. &LES authorizing the mayor to sign a letter
of agreement with Sudberry Properties, Inc. extending the leases for
7750-L and 7750-M E1 Camino Real (branch library space)° for a period
of three (3) years, with an option to renew for one (1) additional
year.
ITEM EXPLANATION.
At its December 6, 1983 meeting, council approved and the mayor
signed a 5-year lease for 3,050 square feet of space located at
7750-M E1 Camino Real. On October 23, 1984 council approved and the
mayor signed a 4-year lease for an additional 1459 square feet of
space located at 7750-L El Camino Real. Both leases expire on
January 31, 1989. Based upon the estimated time schedule for
design, construction and completion of the new library, an extension
of the current lease for an additional three years is required. As
a contingency, the option to renew the lease for an additional year
beyond the 3-year renewal has been specified in the extension
agreement.
Over the past five years, the initial 3,050 square feet has been
leased at $.50 per square foot. The additional 1,459 square feet
was leased on a graduated scale beginning at $.-70 per square foot
and ending in the fourth and current year at $1.00 per square foot.
No triple net (insurance, taxes and maintenance) has been charged
for the library space. The current lease rate for retail space in
the Plaza de la Costa center is $1.20-,-1.30 per square foot, plus
$.20 per square foot triple net. A nearby center's lease rate is
$1.40 per square ,foot, plus $.34 triple net.
Based upon the renewal provisions in the original lease agreement,
the rent for the 4509 square feet of space during the renewal period
will be approximately $1.19 per square foot or $5366 per month,
$64,388 per year.
EXHIBITS:
1. Resolution No.8A-1q5L authorizing extension of lease agreement
for branch library in Plaza de la Costa Shopping Center.
2. Sudberry Properties, Inc. lease renewal letter.
3. Sudberry Properties, Inc. lease renewal formula example.
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IN
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AUTHORIZING THE
EXTENSION OF LEASE AGREEMENT FOR BRANCH
LIBRARY IN PLAZA DE LA COSTA SHOPPING CENTR
WHEREAS, the City Counci.- of the City of Carlsbad,
California has determined that it is in the best interest of
the City to extend the lease agreement for library space in
the Plaza de la Costa Shopping Center,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That a letter of agreement between the City of
Carlsbad and Sudberry Properties, Inc., a copy of which is
attached hereto marked Exhibit 2 and incorporated herein by
reference, is hereby approved.
2. That funds are available in the Branch Library
Account 180-820-8101-2350.
3. That the Mayor of the City of Carlsbad is hereby
authorized and directed to sign said agreement, for and on
behalf of the City of Carlsbad.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council of the City of Carlsbad, California, on the 27th
day of September , 1988 by the following vote, to wit:
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AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT: None
LAUDE A. LEWIS, Mayor
ATTEST:
dza� 12 2Q=&-4.6�
AL T'1A L. RAUTENKRANZ Cit Clerk
(SEAL)
Exhibit 2
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REAL ESTATE DEVELOPMENT
4350 IA XX A MLIAGE DRIVE. SUITE 210, SAN DIEGO, CAUFORNIA 92122.1244 P14ONE (619) 5465151
FAX- (619) 546.5163
July 21, 1988
4 Mr. Frank Mannen
Assistant City Manager
CITY OF CARLSBAD
1200 Elm A;-enue
Carlsbad, CA 92008-1989
a
RE: LA COSTA BRANCH LIBRARY
PLAZA DE LA COSTA REAL �
P
Lear Mr. Mannen:
This letter will serve as an attachment to the leases for 7750-L
and 7750-M E1 Camino Real, Carlsbad, California 92009 between
the City of Carlsbad and Plaza De La Costa Associates.
As per Section 4, Page 2 of the lease agreement, the City of
Carlsbad Library (La Costa Branch) will extend the term of lease
for 7750-L and 7750-M E1 Camino Real for three (3) years.
Rent will be determined based on a five year cost of living i
increase with base rent at $1.00 per square foot and base year oz
1984.
The most recent Consumer Price Index - U. S. City Average - All
Terms published by the United States Department of Labor will be
used in calculating said increase.
Finally_ Plaza De La Costa Associates grants an additional) cra
i ( } year option on both 7750-L and '7750-12 E1 Ca:ni::o Real to t F
City of Carlsbad. The City must exercise this option in writt,:�n
form at least 120 days prior to the lease term expiration. Rent
during the option period will be increased according to the
Consumer Price Index - U. S. City Average - All Items as
published by the United States Department of Labor's Bureau of
Labor Statistics. In no event will rent decrease during the
option period.
s '
i Please sign this letter and return for our files.
�91
wo
Mr. Frank Mannen
July 21, 1988
Page Two
i
Should you have any questions, please do not hesitate to call.
Sincerely, \i
SUDBERRY PRQPER IES, INC.
r�
Kathy/Loga , CSM
Director a Property,Panagertent
KL : hf
APPROVED AND ACCEPTED:
CITY OF C BAD
BY: GGGC G6-t'
CLAUDE A. LEWIS, Mayor
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REAL ESTATE DEVELOPMENT
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s3501A:OLLAVILLAGE DMVE.SUtTE210.SANDIEGO.CAUfOGN1A021224244 PNONF (Oii)546.5151
PLAZA DE LA COSTA
CARLSBAD LIBRARY LEASE RENEWAL
Lease -I!: 3,050 Square Feet
Renew for Year(s) at $1.00/SF
5 Year Cost of Living Increase
EXAMPLE: $3,050.00 X _349.0 (3/88)* _ $3,628.00 or $1.19/SF
293.4 (3/83)*
Lease #2: 1,459 Square Feet
Renew for Year(s) at $1.00/SF
5 Year Cost of Living Increase
EXAMPLE: $1,459.00 X _349.0 (3/88)* _ $1,735.50 or $1.19/SF
293.4 (3/83)*
Total rent per month for option period would be approximately
$5,363.50 or a 44% increase.
*Actual cost of living will he based on 11/83 and 11/88.