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 Ave., 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 began negotiating another extension (“Second Amendment”) for an additional 3-years, with (2) one-year options held by CUSC. The salient points of the Second Amendment are as follows:

• Premises:  correcting the actual area of the city-owned building from 2,882 square feet to 3,738 square feet.
• Term:  Additional 3-years, with CUSC holding option to extend the Lease for an additional two years, in one-year increments.
• Rent:  Five Thousand Two Hundred Thirty Three Dollars and Twenty Cents ($5,233.20) per month, which is at fair market value. All other terms of the Lease remain unchanged. 

Revenues generated from the Second Amendment in the amount of $313,992, over the five year term of the lease will be deposited into the City’s General Fund. 

It is recommended that the City Council:

• Approve the Second Amendment to Lease Agreement with the Credit Union of Southern California for continued occupancy of 11390 Stanford Avenue, Garden Grove; and
  
  
• Authorize the City Manager to execute the Second Amendment and make minor modifications as needed on behalf of the City.

By:  Carlos Marquez, Senior Real Property Agent