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APPROVE LEASE AMENDMENT WITH ANIMAL PROTECTION LEAGUE AT 501 WEST WEBER AVENUE
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RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1) Approving a Lease Amendment to the month-to-month lease with Animal Protection League for larger office space in the Waterfront Towers (501 W. Weber Avenue); and
2) Authoring the City Manager, or his designee, to take all the necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The City purchased the Waterfront Office Towers at 501 and 509 West Weber Avenue in January 2018 to serve as the City’s future City Hall. The City currently acts as landlord to several tenants on month-to-month leases in the 501 West Weber Avenue building; Animal Protection League (APL), a local non-profit which supports the Stockton Animal Shelter, is one such tenant leasing a small office on the first floor. Animal Protection League desires to lease a presently empty larger office and a conference room in the same building totaling approximately 625 square feet.
DISCUSSION
Background
In January 2018, the City of Stockton acquired the two Waterfront Office Tower buildings at 501 and 509 West Weber Avenue to serve as the future home of City Hall. A number of tenants occupy the buildings. One of these tenants is Animal Protection League, a non-profit organization that currently leases a small, 205 square foot office on the first floor of 501 West Weber Avenue from the City on a month-to-month basis (Attachment A - Current Lease)
Animal Protection League (APL) has supported the Stockton Animal Shelter (Shelter) for many years by raising funds for equipment, supporting spay and neuter clinics, and assisting with off-site adoption events. In April 2017, the San Francisco Society for Prevention of Cruelty to Animals (SF SPCA) notified the City that it would not renew its contract with the City to provide veterinary and sheltering services that expired June 30, 2018. As a result, on May 15, 2018, the City Council approved a Memorandum of Understanding with APL to provide the veterinary and sheltering services for an initial three-year term expiring June 30, 2021, which SF SPCA had previously performed. Because of APL’s recently expanded scope of services, the organization will hire additional staff and desires to expand the physical size of its office.
PUBLIC NOTICE
As required, a “Notice of Intent to Grant or Lease Real Property Interest” in accordance with the provisions of Article V, Section 510, of the Charter of the City of Stockton was advertised in The Record on August 1, 2018.
Present Situation
APL wishes to modify its lease with the City to move office locations from its present location at 501 West Weber, Suite 100A-1, a 205-square foot office space, to Suite 100B-1, a 625 square foot space containing an office and conference room. Suite 100B-1 is presently unoccupied and move-in ready (Attachment B - Floor Plan and Photos of Lease Area).
APL currently pays $200 in rent per month for the 205-square foot office space, or $0.97 per square foot per month, plus additional rent for basement storage space and conference room use as required. The Lease Amendment (Exhibit 1 to the Resolution) would increase APL’s rent to $600 per month, or $0.96 per square foot per month, which keeps the rent roughly the same per square foot and eliminates the per-use charge for the conference room, as that space would now be included in the leased premises. All other terms and conditions of the month-to-month lease will remain unchanged.
FINANCIAL SUMMARY
Approval of the Lease Amendment would increase City revenue by $400 per month or $4,800 per year ($400 monthly rent differential x 12 months). Funds will be deposited into the Property Rental account, No. 010-0160-362.10-00.
Attachment A - Current Lease
Attachment B - Floor Plan and Photos of Lease Area