Title
Authorization to Amend Lease with BWC, LLC to Extend Term (Ordinance S-49493)
Description
Request to authorize the City Manager, or his designee, to amend Lease Agreement 135009 with BWC, LLC to extend the lease term for two years, with two additional, one-year options to extend. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
BWC, LLC (BWC) leases approximately 1,300 square feet of interior space located at 1945 W. Dunlap Ave., Suite 8. The space is utilized for the purposes of a beauty salon. The term of the lease agreement expires March 31, 2023. The lease agreement will be amended to extend the term for two years, with two additional one-year options to extend. Base rent during the two-year extension is $1,228.50 per month, plus applicable taxes, which is a three percent increase in the current rent and is within the range of market rents as determined by the Real Estate Division. Each option period will be exercised upon mutual agreement by the City and BWC, with annual base rent adjustments of three percent at the beginning of each option period. All other terms and conditions will remain the same. BWC is a long-term tenant in good standing.
Contract Term
The term of the lease agreement will be extended two years, with two additional, one-year options to extend.
Financial Impact
Revenue during the initial year of the extended term will be $14,742, plus applicable taxes.
Concurrence/Previous Council Action
City Council previously approved:
- Agreements 135009, 135009-1, 135009-2, and 135009-3 authorized by Ordinance S-39268 adopted Oct. 17, 2012.
- Agreements 135009-4, 135009-5, 135009-6, 135009-7, and 135009-8 authorized by Ordinance S-44310 adopted March 7, 2018.
Location
1945 W. Dunlap Ave., Suite 8
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.