HomeMy WebLinkAboutReso 2008-256
RESOLUTION NO. 2008-256
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE
AN AGREEMENT BETWEEN THE CITY AND INVESTCAL
REALTY, INC. TO SURRENDER THE CITY'S LEASED
PREMISES LOCATED AT 900 LANE AVENUE SUITE 200
AND AUTHORIZE THE PAYMENT OF THE BUY-OUT FEE
WHEREAS, the City of Chula Vista currently leases 5,843 square feet of office space
from Investcal Reality, Incorporated (Investcal), located at 900 Lane Avenue, which has been
used by the Building Inspection and Plan Review sections of the Planning and Building
Department since 1998; and
WHEREAS, due to the relocation of all Planning and Building Services to the City Hall
campus, this office space is no longer needed; and
WHEREAS, this lease currently has 13 months remaining and obligates the City to pay
rent totaling $12,459 per month for the space plus the cost of utilities and custodial service; and
WHEREAS, staff has looked at options for this space and has determined that, due to the
short duration of the remaining lease and the current state of the real estate market, the City's
options are limited; and
WHEREAS, staff has negotiated a buy-out with Investcal, that would allow the City to
surrender the lease; and
WHEREAS, the City's future obligation under the lease agreement is 13 months, from
November 2008 through December 2009; and
WHEREAS, with $12,459 in monthly lease costs and $1,200 in estimated monthly utility
costs, this equates to an estimated future expense of$I77,567; and
WHEREAS, under this Surrender Agreement, the City will incur costs totaling $147,829.
The net savings to the City resulting from this agreement totals $29,738.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby authorizes the Mayor to execute an agreement between the City and Investcal
Realty, Inc. to surrender the City's leased premises located at 900 Lane Avenue Suite 200 and
authorizes the payment of the buy-out fee.
Presented by
Approved as to form by
~~~-7
Engineering Director
Resolution No. 2008-256
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 4th day of November 2008 by the following vote:
AYES:
Councilmembers:
Castaneda., McCann, Ramirez, Rindone, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
Chery~St
ATTEST:
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Donna R. Norris~ CMt";' City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Donna R. Norris, City Clerk of Chula Vista, California., do hereby certifY that the foregoing
Resolution No. 2008-256 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 4th day of November 2008.
Executed this 4th day of November 2008.
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Donna R. Norris, CMC, City Clerk