The office located at 11390 Stanford Avenue owned by the City of Garden Grove (City) has been leased to Credit Union of Southern California and its predecessor, Golden West Cities Federal Credit Union (Golden West), since 1979.  In 2002, the City and Golden West executed a lease amendment (First Amendment), extending the term for fifteen (15) additional years. 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 three (3) additional years, with two (2) one-year options. 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, 2022, and negotiated for two (2) additional one-year lease extension options with the rent adjusted each year via Consumer Price Index (CPI), not to exceed three percent (3%).

The CUSC has requested to exercise the final, one-year lease extension option, if approved, the lease would extend through December 1, 2024, the Seventh Amendment. The rent would be adjusted via CPI, calculated at 3.0% maximum, the new rent would be Five Thousand Nine Hundred and Eighty-Four Dollars and 49/100 Cents ($5,984.49) per month. Additionally, the CUSC has requested for one (1) more one-year lease extension option to be added to the Seventh Amendment.  If approved, the lease would extend through December 1, 2025. The same CPI annual rent adjustment would apply.

Revenues generated from the Seventh Amendment is $5,984.49 per month or $71,813.88 annually.

It is recommended that the City Council:

• Approve the Seventh Amendment with Credit Union of Southern California for continued occupancy of 11390 Stanford Avenue, and

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