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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. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 i7 18 19' 20i 21 22 23 24 25 26 27 28 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: 1 2 3 4 5 6 7 8 f 9 10 t 11 12 13 14 15 z 16 17 s C 18 { 19 i 20 21' 221 ' 23 24 25 26 27 28 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 - 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 t Ve REAL ESTATE DEVELOPMENT �a 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.