BURBANK REDEVELOPMENT AGENCY
Tuesday, July 25, 2006
AGENDA
CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE
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6:30 P.M.
INVOCATION:
The Courts have concluded that sectarian prayer as part of City
Council meetings is not permitted under the Constitution.
FLAG SALUTE:
ROLL CALL:
CONSENT CALENDAR: (Items 1 and 2)
The following items may be enacted by one motion. There will be no separate discussion on these items unless a Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda. A roll call vote is required for the consent calendar.
1. CONTRACT INCREASE FOR THE MARY ALICE O�CONNOR FAMILY CENTER (BID SCHEDULE NUMBER R-1190):
The purpose of this item is to request Redevelopment Agency (Agency) Board approval to appropriate existing project funds to increase the contract for Bid Schedule No. R-1190, the Mary Alice O�Connor Family Center.
Due to the results of the water damage to the interior, exterior and roof, of the former Buena Vista Library building, the general contractor is required to do additional work outside the original scope. Additional work includes the installation of drywall, shear wall panels, stucco, metal flashing, roof sheet metal and the replacement of dry-rot and termite infested wood. In addition, the roof storm drains will be replaced as recommended by the roofing consultant. The labor and materials to complete the necessary repairs by TLD is approximately $300,000.
As part of the Fiscal Year 2006-07 budget process, an appropriation of $364,000 was included for the unanticipated construction costs associated with water damage to the building. The labor and materials for work performed and to be performed by TLD Construction Inc. is approximately $300,000. Staff does not anticipate any other project cost increases and is planning to open the Family Center in January 2007.
Staff recommends that the Agency Board adopt the proposed resolution approving a contract increase in the amount of $300,000 by appropriating existing project funds to Bid Schedule Number R-1190, the Mary Alice O�Connor Family Center. The amount of $300,000 will be added to the original contract amount of $2,434,900 for a revised contract amount of $2,734,900.
Recommendation:
Adoption of proposed resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING AN INCREASE IN THE CONTRACT WITH TLD CONSTRUCTION FOR THE OLD BUENA VISTA LIBRARY (MARY ALICE O�CONNOR FAMILY CENTER) BID SCHEDULE NUMBER R-1190.
2. PARKING LEASE AGREEMENT WITH UNIVERSAL CITY STUDIOS CREDIT UNION � 120 EAST ORANGE GROVE AVENUE:
The purpose of this report is for the Parking Authority (Authority) and Redevelopment Agency (Agency) Board to consider a parking lease agreement with Universal City Studios Credit Union, the purchasers of an office building at 175 East Olive Avenue, to lease spaces in the parking structure located at 120 East Orange Grove Avenue.
The office building located at 175 East Olive Avenue (where Kinko�s was formerly located) was first constructed in 1971. The approximate 40,000 square foot building was constructed with 26 parking spaces (including 14 tandem spaces), which was far short of the number of onsite parking spaces that a typical office building would provide. In fact, by today�s Code they would be required to provide 120 spaces. As a result, this office building leased parking from the City on nearby public parking lots.
The term of the existing lease was 12 years expiring in August 2009. The current rent with the Consumer Price Index (CPI) increases is just over $50 per space. Of these spaces, 55 are located above a parking control arm, which separates the office parking from the public parking. The other 45 spaces are located below the control arm in the public parking area.
The current owners of the office property, Olive LLC, is in escrow to sell the property to Universal City Studios Credit Union, who plans to operate a branch on a portion of the ground floor, while leasing the remaining portion to other existing and new office tenants. Since the current parking lease expires in 2009, the Credit Union wishes to secure a longer term commitment for parking. After several discussions with staff, a new Parking Lease Agreement has been prepared for the Authority and Agency Board to consider, as well as a Termination Agreement with Olive LLC upon the close of escrow.
The proposed Parking Lease Agreement calls for an additional ten-year term beyond 2009 as well as two five-year options beyond 2019. The rent is proposed to be adjusted up to $70 per space beginning with the execution of the Agreement. This rent amount is recommended as the current market rent for similar office parking in Downtown. The rental rate shall increase by the CPI rate each year. However, the Authority has the right to survey current market rates for office parking in Downtown every three years to see if the fair market rent has increased more than the CPI rate, in which case, the Authority can increase the rental rate to the then current market rate.
The proposed Parking Lease Agreement also provides additional flexibility to the Authority. While it is anticipated that 55 of the 100 spaces will remain in this parking structure above the control arm in the office portion of the parking structure, the remaining 45 spaces in the public parking section can be relocated at the Authority�s discretion in another Downtown public parking structure that is within one and one-half blocks of the office building. Staff believes this is an equitable transaction that will increase the Authority�s revenue and provide more flexibility in locating the parking, while providing the office building a reliable supply of parking to help ensure that they can continue to lease out office space and avoid high vacancy rates.
Recommendation:
Adoption of proposed resolution entitled:
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING THE TERMINATION AGREEMENT BY AND BETWEEN THE AGENCY, PRIME EQUITY, LLC AND 175 OLIVE LLC., AND APPROVING A PARKING LEASE AGREEMENT BY AND BETWEEN THE AGENCY, THE PARKING AUTHORITY OF THE CITY OF BURBANK AND UNIVERSAL CITY STUDIOS CREDIT UNION (120 EAST ORANGE GROVE AVENUE).
END OF CONSENT CALENDAR
RECESS to conclude the Parking Authority and City Council meetings.
ADJOURNMENT.