| | | | | | | | Agenda Item - 2.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | City Manager
| Dept.: | Community and Economic Development
| | Subject: | Approval to extend lease Agreement with Credit Union of Southern California for property located at 11390 Stanford, Garden Grove. (Action Item) | Date: | 11/9/2021 |
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| | | | | | | | OBJECTIVE
For the City Council to approve the Fifth Amendment to the Credit Union Lease (“Fifth Amendment”) with Credit Union of Southern California for the continued use of office space at 11390 Stanford Avenue, Garden Grove. |
| | | | | | | | BACKGROUND
Golden West Cities Federal Credit Union (“Golden West”) as the predecessor to the Credit Union of Southern California has leased the office located at 11390 Stanford Avenue owned by the City of Garden Grove (“City”), since 1979. In 2002, the 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, the 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 (3) years, with two (2) one-year options held by CUSC. In 2019, the City and CUSC executed the Third Amendment, the first of two (2) one-year options, extending the Lease through December 1, 2020. In 2020, the City and CUSC executed the Fourth Amendment, extending the Lease for the second one-year option through December 1, 2021, and negotiated for two (2) additional one-year lease extension options with rent adjusted by the CPI, not to exceed three percent (3%) with City Council approval. The first-year option would extend the lease through December 1, 2022, and the second-year option through December 1, 2023. |
| | | | | | | | DISCUSSION
The CUSC has requested to exercise the first one-year lease extension option through December 1, 2022. The adjusted rent via CPI has been calculated at 2.6%, the new rent will be Five Thousand Six Hundred and Forty Dollars and 95/100 Cents ($5,640.95) per month. |
| | | | | | | | FINANCIAL IMPACT
Revenues generated from the Fifth Amendment in the amount of $5,640.95 per month or $67,691.38 for the said period will be deposited into the City’s General Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve the Fifth Amendment to the Lease with Credit Union of Southern California extending the lease of 11390 Stanford Avenue for one year, and
- Authorize the City Manager to execute the Fifth Amendment and make minor modifications as needed on behalf of the City.
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