8C Consent 2008 1204 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: February 4, 2008 TO: John Jermanis, City Manager r APPROVED AND FORWARDED TO CITY COUNCIL C John ./Jermanis Cis anager FROM: Uchenna Udemezue, P.E., Director e Engineering and Transportation Dep rtment BY: Tara H. Peterson, Administrative S rvices Manage SUBJECT PROJECT/PROJECT DESCRIPTION: RESOLUTION APPROVING A SUBLEASE AGREEMENT WITH TRANSBOX SYSTEMS FOR THE AIRSPACE UNDER THE DAMS STREET OVERCROSSING AT BEECHER STREET SUMMARY AND RECOMMENDATION Staff recommends that the City Council authorize afive-year lease with an option for a five-year extension with TransBox Systems for the sublease of airspace under the overpass of Davis Street at Beecher Street, commonly referred to as Freeway Lease Area No. 04-ALA-112-01. BACKGROUND Anal sis The area is approximately 11,900 square feet of land that lies underneath the Davis Street Overpass between Warden Avenue and Beecher Street. TransBox Systems originally subleased the space from the City for vehicle parking from January 1, 1994 to July 31, 2006. TransBox terminated the lease when it no longer required additional parking. Due to various changes within the organization, it needs the space again to park employee vehicles. The space has been empty since TransBox vacated it, and the City has been unable to find a suitable tenant ever since. TransBox will pay $600 per month to sublease the space. The term of the sublease will be from February 5, 2008 to February 5, 2013, for a total rental amount of $36,000. The sublease agreement stipulates that the sublessee, TransBox Systems, may extend the lease by another five (5) years at the mutual consent of both parties and at a monthly rental fee adjusted based upon the change in the annual Consumer Price Index, All Urban Consumers (San Francisco-Oakland-San Jose).