HomeMy WebLinkAbout11- Development Department D E V E L O P M E N T D E P A R T MEN T
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: LEASE OF 5055 HALIMARK
Executive Director PARKWAY, SUITES A, B AND C
Date: March 15, 1993
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Synopsis of Previous Commission/Council/Committee Action(s):
On March 11, the Redevelopment Committee recommended the Community
Development Commission approve terms and conditions for the lease of
approximately 7,415 square feet of warehouse and office space located
at 5055 Hallmark Parkway.
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Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission approve the
lease terms and conditions between the Redevelopment
Agency of the City of San Bernardino and Northcutt
Manufacturing for the lease of approximately 7,415 square
feet of warehouse and office space located at 5055
Hallmark Parkway; direct staff to prepare all necessary
documents for the lease of said property and authorize
the Executive Director to execute any and all necessary
attendant documents.
Ad inistrator KENNETH J. HE ERSON
Executive Dir for
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Contact Person(s) : Ken Henderson/James W Sharp Phone: 5081
Project Area(s) : State College Ward(s) :
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount: $ 7,415 Source: Bond Proceeds
Budget Authority: Requested
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Commission/Council Notes:
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KJH:JWS:MKC:2972J COMMISSION MEETING AGENDA
Meeting Date: 3/22/1993
Agenda Item Number: p
D E V L 0 P M E N T D E P A R T M L . T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
LEASE OF 5055 HALLMARK PARKWAY
Staff, in its continuing efforts to lease vacant Agency-owned
properties, has resurrected a former potential tenant for the subject
property. Acceptance of this lease proposal will bring the 5055
Hallmark Parkway property to 100% occupancy. The terms and conditions
of said proposed lease are as follows:
I. PROSPECTIVE TENANT
Tenant Name: Northcutt Manufacturing
Occupation: Light manufacturing of trailer components and
assemblies.
Requirements: All existing facilities and improvements located in
Suites A, B and C consisting of approximately 7,415 square feet.
Special Requirements: Existing utility service is adequate.
Tenant does require specialized improvements for equipment and
manufacturing operations. Because of the nature of said
requirements, tenant will construct and install without landlord
assistance.
II. TERMS AND CONDITIONS
Terms: Three (3) year lease with option to renew for two (2) one
year terms.
Rent: Year One - $1,125/month
Year Two - $1,483/month
Year Three - $1,631/month
Option Years 4 and 5 - Rent to be adjusted to market
value not to exceed six percent (6%) of Year Three.
Rent Allowances: No rent will be charged for Months One, Two and
Three.
Tenant Improvement Allowance: Upon approval by the Community
Development Commission and consummation of the lease document,
Tenant will be issued a Tenant Improvement Allowance in the amount
of one dollar ($1.00) per net square foot of leasable space
($7,415) for the development of specialized building improvements.
Brokerage Commission: None.
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KJH:JWS:MKC:2972J COMMISSION MEETING AGENDA
Meeting Date: 3/22/1993
Agenda Item Number: I (
DEVELOPMENT DEPARTMENT I ?F REPORT
Lease of 5055 Hallmark Parkway
March 22, 1993
Page Number -2-
Rent Commencement Date: Rent to commence ninety (90) days after
tenant receives Certificate of Occupancy for base building and
tenant improvements and/or one hundred twenty (120) days from
initial occupancy, during which period tenant will be constructing
specialized improvements, whichever occurs first.
III. REQUIRED LANDLORD WORK TO BASE BUILDING
On January 11, 1993 the Commission allocated $55,000 to bring the
building into compliance with the municipal building code. The
action was necessary to secure prospective tenants and provides
for the fire sprinklers, exterior lighting and Disability Act
requirements. This work is above and beyond the tenant-required
work and is not included within the tenant improvement allowance.
Staff is confident that the proposed lessee is compatible with the
existing uses and commercial development. The approval and
consummation of the deal points relative to the lease would enable
the Agency to perform the following:
o Justify the substantial amount of base building code
requirement work required to make the structure occupiable
and marketable.
o Provide a working environment in a building that has been
vacant for a considerable amount of time.
o Initiate a physical occupancy in the building which would
deter the continued vandalism by vagrants and transients.
o Provide an income stream which would totally offset the
capital improvements required for the structure within the
fourth year of the lease.
o Provide an immediate income stream which would offset the
ongoing maintenance of the structure.
o Create an income stream to the Agency from one of its
holdings.
o Allow the Agency to benefit by improvement and anticipated
appreciation of its building.
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K.=H:JWS:MKC:2972J COMMISSION MEETING AGENDA
Meeting Date: 3/22/1993
Agenda Item Number: 11
DEVELOPMENT DEPARTMENT Y7 REPORT
Lease of 5055 Hallmark Parkway
March 22, 1993
Page Number -3-
On March 11, 1993, the Redevelopment Committee considered this matter
and recommended to the Community Development Commission approval of
same.
Staff recommends adoption of the form motion.
KE J. NDE SON, Executive Director 04
Development Dep tment
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K-H:JWS:MKC:2972J COMMISSION MEETING AGENDA
Meeting Date: 3/22/1993
Agenda Item Number: �_