Title
Authorization to Enter into Lease with Maricopa Association of Governments for Office Space located at 302 N. First Ave. (Ordinance S-43729)
Description
Request authorization for the City Manager, or designee, to enter into a lease with the Maricopa Association of Governments (MAG) to occupy approximately 47,300 square feet of office space in the Public Transit Building located at 302 N. First Ave., Floors 2, 3, 4 and 7. Further request authorization to amend Contract 130019 to include access to the seventh floor for the build out of tenant improvements.
Report
Summary
MAG currently leases approximately 44,817 square feet of office space in the Public Transit Building on floors 1, 2, 3 and 4 under Contract 130019. MAG will relocate the first floor offices to the seventh floor, which will provide additional square footage to MAG's leased space, allow Public Transit to continue the use of the seventh floor conference room, and will free up rentable space on the first floor which is more marketable because of the location and condition. All tenant improvements for the build out of the seventh floor, including demolition, will be incurred by MAG.
Contract 130019 will be amended to allow MAG access to the seventh floor for the build out of office space. Upon receipt of the certificate of occupancy for the seventh floor and the relocation of the first floor office furniture, anticipated January 2018, the new lease contract will become effective and Contract 130019 will be terminated. Terms and conditions of the new lease are outlined in Attachment A.
Financial Impact
The current lease rate of $851,400 annually will continue in the new lease, which is within the range of market rents as determined by the Finance Department Real Estate Division.
Location
302 N. First Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.