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Home My WebLink About05- Community Development D E N - LO P M E N T DE P A R T N iL A T OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION From: KENNETH J. HENDERSON Subject: LEASING STATUS UPDATE, Executive Director 201 NORTH "E" STREET Date: January 8, 1993 Synopsis of Previous Commission/Council/Committee Action(s): The Redevelopment Committee and Community Development Commission have considered this matter on four separate occasions. On January 7, 1993 the Redevelopment Committee recommended to the Community Development Commission approval of the San Bernardino Area Chamber of Commerce lease and acquisition and approval of a lease with Assemlbyman Baca for office space on the first floor of the Economic Development Agency office building. ------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission authorize the Executive Director to execute documents for the Chamber of Commerce lease and acquisition subject to the deal points set forth in the staff report and, further, authorize the Executive Director to execute a lease with Assemblyman Baca for office space on the first floor of the EDA office building. Administrator KENNE J. HEOERSON Executive Director -------------------------------------------------------------------------------- Contact Person(s): Ken Henderson/James Sharp Phone: 5081 Project Area(s): Central City (CC) Ward(s): One (1) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A ------------------------------------------------------------------------------- Commission/Council Notes- ------------------------------------------------------------------------------- KJH:JWS:mkc:2782J COMMISSION MEETING AGENDA Meeting Date: 1/11/1993 Agenda Item Number: D E V b L 0 P M E N T D E P A R T M n N T OF THE CITY OF SAN BERNARDINO STAFF REPORT -------- --------- ------ -------- LEASING ACTIVITY 201 NORTH "E" STREET The following is a brief narrative and individual analysis of the current leasing activity at the above referenced building. The following analyses pertain only to leasing activity within the "Thrifty" building. As of this date, there is no new activity relative to the second floor office space in the Agency office building tower. A. Paul Roberts and Company dba Baja Billiard Club Use: Upscale billiard parlor. Prospective tenant has signed a lease with Ray Fox for space at 440 West Court Street. B. Benco Development Incorporated dba The Dartmouth Club Use: Upscale billiard parlor. Staff informed Benco Development of Mr. Roberts lease at 440 W. Court Street. Staff does not believe the existing market can support two competing billiard parlors within one block of each other. C. Bally's Health & Tennis Corporation dba L A Snorts Connection Use: Upscale health club Prospective tenant and broker have failed to tour the facility on four separate occasions and are unliky to produce an offer. D. Assemblyman-Elect Joe Baca Use: Office space Leased Square Footage: 2,183 square feet. Proposed Term: 2 years with one (1) 2-year option. Rent: $.70 per square foot per month gross. Tenant Improvement Allowance: Turnkey office not to exceed $15.00/sq. ft. ------------------------------------------------------------------------------- KJH:JWS:mkc:2782J COMMISSION MEETING AGENDA Meeting Date: 1/11/1993 Agenda Item Number: DEVELOPMENT DEPARTMENT _,AFF REPORT Leasing Status Update, 201 North "E" Street October 6, 1992 Page Number -2- Leasing Commission: $ - 0 - Gross Rent: $36,672 (2 years) POSITIVE ATTRIBUTES NEGATIVE ATTRIBUTES 1. Very prestigious tenant. 1. Short-term. 2. Tenant's use creates an 2. Marginal rental extremely high exposure to income a wide and varied clientele. 3. Tenant is a high-profile use which coincides with a high profile corner. 4. Tenant's occupancy creates a public "point of destination" use of the building. Staff completed construction of Mr. Baca's second floor office space within an extremely aggressive ten day schedule. While currently occupying space on the second floor, Mr. Baca ultimately desires to have his office on the street level within the old Fuddruckers' space. Staff is continuing negotiations with Mr. Baca for his future permanent office. E. San Bernardino Area Chamber of Commerce I. Lease 201 North "E" Street Use: Office space Leased Square Footage: 3,670 square feet. Proposed Term: 10 years with 2-5 year options Rent: One dollar ($1) per year, modified gross (tenant to pay metered utilities and janitorial). Tenant Improvement Allowance: $15 per square foot. Tenant has and exterior building and monument signage rights. ------------------------------------------------------------------------------- KJH:JWS:mkc:2782J COMMISSION MEETING AGENDA Meeting Date: 1/11/1993 Agenda Item Number: DEVELOPMENT DEPARTMENT .,GAFF REPORT Leasing Status Update, 201 North "E" Street October 6, 1992 Page Number -3- --------------------- Leasing Commission: $ - 0 - Gross Rent: $10.00 (10 years)(offset from sale of property not included). Net Annual Income: $1.00 (offset for sale of property not included) . POSITIVE ATTRIBUTES NEGATIVE ATTRIBUTES 1. Excellent location 1. Marginal rental income. of partitionable office space for future use. 2. Prestigious tenant. 3. Tenant's use creates an high exposure to a wide and varied clientele. 4. Tenant is a high-profile use which coincides with the high profile corner. 5. Tenant's occupancy creates a public "point of destination" use of the building. II. Acquisition of SBACC Property Property: Land, Improvements and Structure located at: 542 - 546 West 6th Streets. 22,500 SF. Land 2,250 SF. Structures Purchase Price: Assume existing $52,000 Deed of Trust. Estimated gross value of property and improvements: $360,000 Net Value to Agency: $308,000 Income Potential of Property: $ 24,300/yr ------------------------------------------------------------------------------- lrJH:JWS:mkc:2782J COMMISSION MEETING AGENDA Meeting Date: 1/11/1993 Agenda Item Number: DEVELOPMENT DEPARTMENT -fAFF REPORT Leasing Status Update, 201 North "E" Street October 6, 1992 Page Number -4- The San Bernardino Area Chamber of Commerce is still interested in relocating its office from Sixth Street to the old Fuddruckers' space. Staff is continuing negotiations with the Chamber for the leasing of approximately 3,760 square feet. With the demise of proposals A, B and C, staff has determined that proposals D and E represent the highest and best reuse of the old Fuddruckers' Restaurant space. The following are some of the highlights of the benefits of building office space for the Chamber and Assemblyman Baca at this location. 1. The proposed leases would facilitate the relocation of the SBACC and Assemblyman Joe Baca to one of the highest pedestrian and vehicle traffic intersections in the downtown area. 2. Both the SBACC and Assemblyman Baca would enjoy the benefit of an extremely high profile exposure by using exterior signage directly at the corner of the intersection of Second and "E" Streets. The sign would be highly visible to City Hall and Mall visitors and others in the downtown. 3. The relocation of the SBACC to the old Fuddruckers' space would facilitate SBACC's greater interaction with City Hall, EDA and IL Assemblyman Baca due to the close proximity to Agency, City and Assembly offices. 4. By moving Assemblyman Baca to permanent space adjacent to the Chamber on the ground level, the Agency is consolidating compatible uses on the first floor, thereby making the second floor in the office building available for more diverse office uses. 5. The adaptive change in reuse of the Fuddruckers' restaurant space would prove to be a new and energetic change for the corner which would increase the potential for attracting other prospective tenants to the area. 6. Acquisition of the existing SBACC property will be used initially for the expanded parking needs of the adjacent public library. 7. The acquired SBACC property facilitates the assemblage of contiguous properties for future acquisition and development of the entire northwest corner of the intersection of 6th and "E" Streets. --------------------------------- ---- ---- - KJH:JWS:mkc:2782J COMMISSION MEETING AGENDA Meeting Date: 1/11/1993 Agenda Item Number: i DEVELOPMENT DEPARTMENT btAFF REPORT Leasing Status Update, 201 North "E" Street October 6, 1992 Page Number -5- Based on the knowledge that staff has completed negotiations with two entities desiring street level office space and that the development of office space for the aforementioned uses represents the highest and best reuse of the old Fuddruckers' space, staff recommends approval of the San Bernadino Area Chamber of Commerce lease and acquistion, the Assemblyman Baca lease and relocation and that the old Fuddruckers' space be developed as office suites. On January 7, 1993 the Redevelopment Committee recommended to the Community Development Commission approval of the Chamber of Commerce lease and acquisition subject to the deal points set forth in this staff report and further recommended approval of a lease with Assemblyman Baca for office space on the first floor of the EDA office building. Staff recommends adoption of the form motion. KRSON, Executive Director artment ---------------------------------------------------------------- K...rH:JWS:mkc:2782J COMMISSION MEETING AGENDA Meeting Date: 1/11/1993 Agenda Item Number: