Title
Introduction of Ordinance Approving a Lease Amendment with a Maximum Three-Year Extension of the Lease with CSI Mini-Storage, LLC, a California Limited Liability Company, for Buildings 338, 608, and 608A-C Located at 50 and 51 West Hornet Avenue at Alameda Point. [Requires four affirmative votes] (Base Reuse 819009)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
The requested action would extend the existing lease term with CSI Mini-Storage, located at Alameda Point, for three years.
BACKGROUND
CSI Mini-Storage (CSI) provides containerized self-storage and warehouse rentals at Alameda Point. CSI has occupied the current lease premises since 2005; therefore, this lease agreement is retaining an existing Alameda Point tenant. In 2015, the City executed a new lease with CSI for three years (Exhibit 2). The proposed amendment (Exhibit 3) extends the lease for an additional three years with an early termination clause. After two years, the landlord may terminate the lease amendment by delivery of a written notice. The tenant is required to vacate the premises within one hundred twenty (120) days after receiving the City's notice.
While a mini-storage facility is not a desired long-term use of the site, and Site B as a whole, CSI Mini-Storage generates significant revenue to the City and the short-term nature of the lease will not interfere with the City's plans to redevelop this area for more job-intensive uses. Additionally, CSI Mini-Storage has been a long-term tenant and staff believes this is the most efficient and best use of the property for the next three years.
DISCUSSION
The leased premises contain property at both 50 and 51 West Hornet Avenue. Buildings 608, 608A, 608B, and 608C are located at 50 West Hornet Avenue and collectively consist of 17,789 square feet of rentable space. Building 338 is located at 51 West Hornet Avenue and consists of 53,200 square feet of ...
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