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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Board of Directors | | From: | Dave Delfino, Finance Officer / Analyst | | Meeting Date: | May 24, 2017 | | Subject: | Lease Extension with Plaza Circle Ltd. for 55B Plaza Circle |
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| | | | | | | | | RECOMMENDED ACTION: | | AUTHORIZE the Executive Director to sign a lease extension with Plaza Circle Ltd. for five years under newly-negotiated lease terms for office space at 55B Plaza Circle, Salinas. |
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| | | | | | | | | SUMMARY: | Staff approached Plaza Circle Ltd. about an extension at the present location under new terms and also conducted research on other comparable office locations. Based on this research and a negotiated lease savings of $5,695.68 per year, staff is recommending extending the present lease under the proposed new terms. |
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| | | | | | | | | FINANCIAL IMPACT: | Staff has negotiated and the landlord has agreed to terms that would result in $5,695.68 annual savings, when compared to the present lease. If extended on June 1, 2017, prior to the current lease expiration date of January 30, 2018, the landlord has also agreed to make the lease reduction effective June 1, 2017, resulting an additional savings of $3,797.12 in the current fiscal year. |
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| | | | | | | | | DISCUSSION: |
With the present lease at 55B Plaza Circle set to terminate January 30, 2018, staff researched the Salinas area for new office space. The Salinas office has served the Agency and its members well, being centrally-located and allowing for good access for its member agencies to attend scheduled Agency meetings.
With the help of a real estate agent, staff examined other potential office spaces that would accommodate the Agency’s requirements, and contacted our present landlord to negotiate more favorable terms at the current location. Staff reviewed several available comparable office space offerings. The present landlord's offer is comparable to some and less than other available office spaces. Lastly, the Plaza Circle landlord has agreed to make some much-needed minor capital improvements to the existing space.
The Agency has functioned efficiently at the present location of 55B Plaza Circle. Given the reduced rent, which would begin June 1, 2017, the lack of moving costs and the proposed facility improvements, staff strongly recommends staying at the present location under the new terms.
Staff asks that the Board of Directors authorize the Executive Director to sign a five-year lease extension with Plaza Circle Ltd., under newly negotiated lease terms, at the present office space, 55B Plaza Circle, Salinas.
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