Golden West Cities Federal Credit Union (“Golden West”) as the predecessor to the Credit Union of Southern California leased the city-owned office building located at 11390 Stanford Avenue, since 1979.  In 2002, the City of Garden Grove (“City”) and Golden West executed an amendment (“First Amendment”) to the Lease, extending the term for an additional 15-years and for the renovation of the office building to comply with the American with Disabilities Act (“ADA”).  In 2014, Credit Union of Southern California (“CUSC”) and Golden West merged and the Lease was assigned to CUSC. In September 2016, Staff and CUSC negotiated another Lease extension (“Second Amendment”) for an additional three years, with two (2) one-year options held by CUSC. 

The attached Third Amendment extends the Lease for the first-option year through December 1, 2020, and adjusts the rent by CPI to Five Thousand Three Hundred Ninety Dollars and 20/100 Cents ($5,390.20) per month.  All other terms of the Lease as amended by the prior two (2) amendments remain unchanged.

Revenues generated from the Third Amendment in the amount of $5,390.20 per month or $64,682.40 for the said period will be deposited into the City’s General Fund.

It is recommended that the City Council:

• Approve the Third Amendment to the Lease Agreement with Credit Union of Southern California for continued occupancy of 11390 Stanford Avenue; and

• Authorize the City Manager to execute the Third Amendment and make minor modifications as needed on behalf of the City.

By:  Paul Guerrero, Sr. Program Specialist