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Home My WebLink AboutAbdelmuti Development Company & Computer Memory Test Labs, Inc. - 2001-02-05° Y1, t 11NP*S)4, 0 � 7 Council/Agency Meeting Held, 0'L— OS— 0) Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied Da ler ' Signature Council Meeting Date: February 5, 2001 Department 18 Number: ED 01-05 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL MEMBERS/REDEVELOPMENT AGENCY MEMBERS r~ SUBMITTED BY: RAY SILVER, City Administrator/Executive Directory PREPARED BY: David C. Biggs, Director of Economic Development SUBJECT: Approval as to Form: Lease Between Abdelmuti Development Co & = Computer Memory Test Labs Inc. Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachmeht(s) Statement of Issue: The Owner Participation Agreement between the Agency and Abdelmuti Development Company requires the Agency to review and "Approve As To Form" all leases within the office space of the Oceanview Promenade building. Funding Source: Redevelopment Tax Increment Recommended Action: Motion to: Approve as to form the attached lease between Abdelmuti Development Company and Computer Memory Test Labs Inc., a Califomia Corporation. Alternative Actions): Do not approve the lease as to form. Analysis: On May 28, 1991, the Agency entered an Owner Participation Agreement (OPA) with the Abdelmuti Development Company for the Oceanview Promenade building which was amended in November 1991 to establish the "Guaranteed Rental Rate." The Agency's obligation is based on the rent collected from office space on the second floor and one-half of the third floor, approximately 20,600 square feet in total. If actual rents are less than the guaranteed rate ($1.70 per square foot), the Agency pays the difference (the "Rent Differential Payment"). The attached lease amendment represents the extension of an existing lease of 2,460 square feet designated as Suites 2G and 2H in the building known as the Oceanview Promenade for a period of approximately two (2) years and four (4) months. The company leasing the space is an existing tenant. The rate per square foot is $1.65 in year one (1) and $1.70 per square foot for the remainder of the term. fG� PO -la- • • The lease rate of $1.70 per square foot was established as the fair market value in the appraisal commissioned by the Agency in 1999. The lease rate for the remainder of the lease (one (1) year and four (4) months) is $1.70 per square foot, which is the established fair market rate as the Agency conducted an appraisal in 1999. The current lease is at $1.425 per square foot. Thus, this increase brings the rent closer to market rents and thereby reduces the Agency subsidy for the building. Environmental Status: NIA AttachmentLsl: RCA Author: Tom Andrusky x 1530 • • Lease between Abdelmuti Development Company and %..ompuier memory 1 esi Laos, !"G. ATTACHMENT #1 . . rw ,v•e n! r .,t:,.1 RUTAN . �,,., ar ,rt„[ `. .. _lr�f' as [wl�t[,«Ir ♦ I['-,ni! .. ..a fe.:e r,[ «,[• .Il •[,e- 1� w]1` 11-r V 7: ai [[• n�.��.e,l &TUCKER, ,.I,, r,,. . eAnr.l.— e,se5an l.!(x :, [•rI, 1 r.)1, acll•r - ll!s+,[r,te, ..,rn. I. , 1 , '•71t t,rn.: f. [ r 11 II::+ally r. ,l rlr Lwf;♦ l •rl •LI A T T [) R N r Y 5 A T I- A \4 �� I:LLl ,•m1� .•I•:nAlonl. u.a o--c.,. �pgf'r'elµ rr •, Lr ,u)u.L w .I,b.. � . _ .. e.aewrinw r I •1. r..n«.as alln[ a• rea-n•1 . rt,[..-oti~It K.• ��k� � I A PART NERSHII'Iti(IUDIV[, PRUFI SSIU\AL C(7kPC)fiATl(7 CIS 1 ,a e;lw'- A. ,.1 Il x:-:♦ S I)w •1 rra•f [,r t[, ,r,..... r n r[:[ D[al, ,.)L„s+ •r«U.•n.,ol rwlt V'S,ILita 611 AN70N EIUULEvARD• FOURTEENTH FLO02 A.�Ir,.,n� !vl,w w1«r.�a r, rya •+•L COSTA ME5A. CALIFORNIA 92626.1911 aw4 to .of„AL1111 s..mr +,�f .no,e u•l��ell e�Lar ��■ ar en_.•e. ,�„r,v «":,), taLA}• 1!n s •Lwrrl , �� [Mll,Ix,�•, sl, [L cnfLirl .. ID•••R_,• �•1. a«A �t- DIW I AU MAIL TO POST OFFICE BOX [YSO ,. n1[nrr- ..,+„><o,. 1-t nrn!„a'fa .+.+ -,av�.r, c..ey,1'1. �u COSTA M[S.A.4AUiORA'IA?262e-1950 "'•lrls er.rr A n,e.AIII I?.e DAw -If IlLl+w�r.:1s�� TELEPHONE 714.641-Sinn FACSIMI1t 714 546-9015 �••w. •Ils.rlu •' " nssclo•r •�1,1. r, r. •LAr .. nw•rga, «Lr, I.,rl..s,,. n.,,uL «rorlr r.o•rs n�•. •r Vernf a-,::. INTERYET ApDRESS ww.. ru n m t ale"'!I A u, s%!nel [ x,. c. -M. . coa .,Nrt!«,w:-Nr wln•rn a'rOta , ,.w-.I wa. rL �w,rn.•,:n e•.q I L has DireciDial (714)641-3442 E-mail avolkertwrutan com January 12, 2001 VIA FACSIMILE AND FIRST CLASS MAIL Mr. Gus Duran Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Re: Redevelopment Agency Approval of CMTL Lease Amendment-, Ocean View Promenade, Huntington Beach, California Dear Gus: As we discussed today, enclosed please find the proposed form of the above -referenced Lease Amendment for review and approval by the Redevelopment Agency of the City of Huntington Beach (the "Redevelopment Agency"). The Amendment extends the existing tenancy set to expire on February 15, 2001 to June 30, 2003. The base rent for the extension term has increased to $4,059 per month (SI.65 per square foot) in year 1 and $4,192 per month (S :.?0 per square foct) fcr the remaindcr of the term. LY he cxistirtg rc;i[t ib $3.5if 7 per inuiEti, (S 1.45 per square foot). Pursuant to the Owner Participation Agreement between Abdeimuti Development Company and the Redevelopment Agency, we hereby formally request your approval of the Lease Amendment within fifteen (15) business days of this request for approval. Because the Lease is set to expire next month, we ask that you expedite the approval process. RECEIVED JAN 1 r, 2001 DEPARTMENT OF ECONOMIC DEVELOPMENT 2671014620-tI00I 15150901 a01r12101 0 RUTAN &TUCKER, • I 1 0.., e 1 . ,.- Mr. Gus Duran January 12, 2001 Page 2 Should you have any questions regarding the foregoing, please do not hesitate to contact me- Very truly yours, RUTAN & TUCKER, LLP Adam N Volkert ANV:ks enc. cc: Mr. Mike Abdelmuti (via facsimile w/enc_) John Deters (via facsimile w;enc.) 267,014920.0001 151508 01 301112,01 THIRD AMENDMENT TO OFFICE SPACE LEASE This Third Amendment to Office Space Lease (this "Amendment") is dated for reference purposes as of , 2001, by and between ABDELMUTI DEVELOPMENT COMPANY, a California partnership ("Landlord"), and COMPUTER MEMORY TEST LABS INC., a California corporation ("Tenant"). RECITALS: A. Landlord and Tenant have previously executed that certain Office Space Lease dated December 2, 1997, as amended by that certain First Amendment to Office Space Lease dated March 11, 1998, and that certain Second Amendment to Office Space Lease dated January 11, 1999 (collectively, the "Lease"), demising to Tenant Two Thousand Four Hundred Sixty (2,460) rentable square feet of space designated as Suites 2G and 2H (the "Premises") in the building known as Oceanview Promenade (the "Building"). B. Tenant desires to extend the term of the Lease for approximately two (2) years four (4) months on the same terms and conditions set forth in the Lease, except as otherwise set forth herein. C. The parties now desire to amend the Lease, pursuant to Section 20.3 thereof, as more particularly set forth below. NOW, THEREFORE, for fair and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Landlord and Tenant agree as follows: i . Extension of Lease Term. The term of the Lease which was otherwise set to expire on February 15, 2001 shall be extended to June 30, 2003. 2. Basic Annual Rent. The Basic Annual Rent for the Premises shall be payable as follows: Lease Term Basic Annual Rent February 16, 2001 — January 31, 2002 $48,708.00 payable at $4,059.00 per month February 1, 2002 — June 30, 2003 S50,184.00 payable at $4,182.00 per month 3. Security Deposit. Upon the execution of this Amendment, Tenant shall deposit with Landlord an additional Six Hundred Fifteen Dollars ($615.00) to increase the Security Deposit under the Lease to Four Thousand One Hundred Eighty -Two Dollars ($4,182.00). 4. Agency Approval. This Amendment is conditioned upon the approval of this Amendment by the Redevelopment Agency of the City of Huntington Beach (the "Agency"), and in the event the Agency disapproves the Amendment, it shall become null and void. 267!014820-0001 151515-01 201/12/01 0 5. Conflict. In the event of a conflict between this Amendment and the Lease, the terms of this Amendment shall control_ 6. Full Force and Effect. Except as specifically modified herein, the Lease remains in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above. ABDELMUTI DEVELOPMENT COMPANY, a California general partnership iIn Ahmad H. Abdelmuti, general partner "LANDLORD„ COMPUTER MEMORY TEST LABS, INC., a California corporation Ll-n John Deters, President "TENANT" r- e 2671014820.0001 151515.01 01112+91 -2- RCA ROUTING SITEET INITIATING DEPARTMENT: Economic Development SUBJECT: Lease Between Abdelmuti Development Co. and Computer Memory Test Labs COUNCIL MEETING DATE: February 5, 2001 RCA ATTACHMENTS STATUS Ordinance (wlexhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in full by the City Attomey) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attomey) Attached Certificates of Insurance (Approved by the City Attomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (if applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff ( ) { ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) { ) ( ) J City Clerk { ) EXPLANATION FOR RETURN OF ITEM: