Title
Authorization to Amend Lease to Extend Term at 1220-1224 S. 7th Ave. for Senior Opportunities West Senior Center (Ordinance S-44927)
Description
Request to authorize the City Manager, or his designee, to amend City Contract 129426 with Nasser Zaghi and Ashraf Zaghi, as Co-Trustees of the Zaghi 2001 Revocable Trust, to extend the lease term for a five-year period with three additional one-year renewal options. Further request authorization for the City Controller to disburse 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 Ave., for operation of the Senior Opportunities West Senior Center (SOW). The center provides fitness and health programs, classes, social activities, lunch and other services. The City is currently in the final option period of the current lease through Sept. 19, 2018. The City desires to continue operating the SOW at this location. Base rent will remain at the current rate of $60,606 per year during the first three years of the extended term, which is reasonable based on market rents as determined by the Finance Department's Real Estate Division. Base rent will be escalated by three percent annually at the beginning of years four and five of the extended term. Base rent will be adjusted to the then-prevailing market rent at the beginning of the first option year, and will be escalated by three percent at the beginning each of the remaining option years.
Contract Term
The contract will be amended to extend the term for a five-year period beginning Sept. 20, 2018, with three additional one-year renewal options.
Financial Impact
Base rent will be $60,606 per year, plus applicable taxes, during the first three years of the extended term. The City is responsible for paying for all utilities, repairs to the premises, and common area maintenance.
Concurrence/Previous Council Action
The current contract was authorized by Ordinance S-37173, adopted June 16, 2010, and amended by Ordinance S-41821, adopted June 17, 2015.
Location
1220-1224 S. 7th Ave.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Human Services and Finance departments.