Title
Authorization to Amend Lease Agreement 129426 Located at 1220 and 1224 S. 7th Avenue With Buckeye and 7th Avenue, LLC to Extend Term - (Ordinance S-53017) - District 8
Description
Request to authorize the City Manager, or his designee, to amend Lease Agreement 129426 with Buckeye and 7th Avenue, LLC to extend the term for a two-year period and provide for one additional one-year option. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Human Services Department currently leases approximately 7,700 square feet of interior floor space at 1220-1224 S. 7th Avenue for the operation of the Senior Opportunities West Senior Center. The center provides fitness and health programs, education programs, social activities, lunch, transportation and other services. The lease amendment will begin September 20, 2026, through September 19, 2028, with one additional one-year option to extend. Total rent during the initial year of the lease agreement is $9,355.50 per month, which includes $6,256.25 base rent and $3,099.25 Common Area Maintenance fees, plus applicable taxes. Rent is within the range of market rents as determined by the Real Estate Division. Base rent will increase by three percent annually.
Contract Term
The lease term will be extended two years beginning September 20, 2026, through September 19, 2028, with one additional one-year option to extend.
Financial Impact
Rent during the initial year of the lease amendment is $112,266, plus applicable taxes. Base Rent will increase by three percent annually.
Concurrence/Previous Council Action
Agreement 129426-0, 01 and 02, Ordinance S-37173, adopted June 16, 2010.
Agreement 129426-03, Ordinance S-41821, adopted June 17, 2015.
Agreement 129426-04, 05, 06, and 07, Ordinance S-44927, adopted August 29, 2018.
Location
1220 and 1224 S. 7th Avenue
Assessor's Parcel Number: 105-01-062B
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Human Services and Finance departments.