HomeMy WebLinkAbout12- Development Department D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERN ARDIWO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: LEASE OF WAREHOUSE SPACE AT
Executive Director 223 SOUTH "G" STREET
Date: February 19,1993
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Synopsis of Previous Commission/Council/Committee Action(s):
On February 18, 1993, the Redevelopment Committee recommended that the
Community Development Commission approve the terms and conditions for
the lease of approximately 8,000 square feet of warehouse and office
space located at 223 South "G" Street.
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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 Mr. R. Von Ossko
of R.G.O. Auto Cellular and Wholesale Service for the
lease of approximately 8,000 square feet of warehouse and
office space located at 223 South "G" Street and direct
staff to prepare and execute all necessary documents for
said lease of property.
Admini rator Mm4i.-HEWDERSON
Executive Director
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Contact Person(s): Ken Henderson/James Sharp Phone: 5081
Project Area(s): _ Central City (CC) Ward(s): One (1)
Supporting Data Attached: _ Staff Report
I JNDIHG REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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+.JH:JWS:MKC:2889J COMMISSION MEETING AGENDA
Meeting Date: 3/08/1993
Agenda Item Number: ��
D a V E L O P M E N T D E P A R T H I N T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
LEASE OF WAREHOUSE/OFFICE SPACE LOCATED AT 223 SOUTH "G" STREET
In the summer of 1992, the Redevelopment Agency acquired the property
known as Inland Beverage, Inc., located at 223 South "G" Street. Said
acquisition included a hold-over clause for the Seller to retain
occupancy, during which time said tenant would pay rent to the Agency.
This hold-over agreement was created in an effort to assist the
previous owner in providing his operation with occupancy until his new
facility, located on River View Road, was completed. In January, 1993,
Inland Beverage's new facility was completed and the entire business
operation was relocated.
Since the acquisition of the 223 South "G" Street property, staff has
diligently pursued a marketing effort to locate an interim tenant to
occupy the facility. This effort was initiated for several reasons.
First, with any Agency-owned property, it has been staff's effort to
market and create income from each property; therefore, leveraging the
Agency's ability to promote business and industry within the project
area. Secondly, this particular property is located within an area of
significant vandalism and other damaged properties. From the
inspection of the surrounding properties, it has been determined that
another vacant structure in that area would only promote increased
vandalism and vagrancy. Therefore, any tenant occupying said property
would provide a physical presence which would deter the deterioration
of the property.
Staff has been able to identify a prospective tenant by implementing an
aggressive marketing campaign. The following is a brief description of
the tenant and the terms and conditions of the lease as proposed:
Tenant: R.G.O. Auto Cellular & Wholesale Services
Address: 223 South "G" Street
Previous Address: Industrial Way, Redlands, CA
Rent: $.15/SF per month
Lessee's Responsibilities: Lessee shall pay for all metered
utilities which shall include electric, telephone, gas, water,
sewer and refuse. Lessee shall be responsible for the maintenance
in Lessee's occupied portion of the building and common areas
during the term of occupancy.
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KJH:JWS:MKC:2889J COMMISSION MEETING AGENDA
Meeting Date: 3/08/19913
Agenda Item Number: la
DEVELOPMENT DEPARThnAT STAFF REPORT
Lease of Space at 223 South "6" Street
February 19, 1993
Page Number -2-
Term: One (1) year with one (1) one year option.
Special Conditions: Lessor shall have the right to cancel said
lease after the initial six (6) month period by notifying Lessee
sixty (60) days in advance of the desired date of Lessee's vacation
of said property.
*No commissions are to be paid to brokers.
*No tenant improvement allowances are required.
In conclusion, staff believes this is an opportunity for the Agency to
relocate a business into the City of San Bernardino into a property which
the Agency has significant exposure. This property, because of its
unique character and location, is a negative catalyst that could promote
a rapid decline of the neighborhood and adjacent properties. Although
this lease creates only marginal income, the tenant occupancy and term
will by far offset the potential damage to the area and to the property
itself. Staff, therefore, recommends the agreement of the lease terms
and conditions for the lease and occupancy of 223 South "G" Street
between R.G.O. Auto Cellular & Wholesale Service and the Redevelopment
Agency.
On February 18, 1993, the Redevelopment Committee considered this matter
and recommended to the Community Development Commission approval of same.
Staff recommends adoption of the form motion.
KENNE J. REND RSON, Executive Director
Development Department
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KJH:JWS:MKC:2889J COMMISSION MEETING AGENDA
Meeting Date: 3/08/199j3
Agenda Item Number: I