Report to City Council
ID: 26-0330 Page 1
TO: Mayor and City Council
FROM: Kyle Warsinski, Economic Development Director
AGENDA DATE: September 1, 2026
TITLE: BUSINESS & EMPLOYMENT RESOURCE CENTER
LEASE EXTENSION (REPORT OF: ECONOMIC
DEVELOPMENT) (DISTRICT 1)
TITLE SUMMARY: Amendment To Extend The Business & Employment Resource Center (BERC) Lease within the TownGate Center With Tumon Bay Resort & Spa, LLC.
DISTRICT: District 1
Recommendation(s)
That the City Council:
1. Approve the Eighth Lease Amendment to extend the BERC lease at the TownGate Center between the City of Moreno Valley and Tumon Bay Resort & Spa, LLC;
2. Authorize the City Manager or an Authorized Representative to execute the agreement, including future renewals, extensions, and all necessary documents, with Tumon Bay Resort & Spa, LLC; and
3. Authorize the City Manager, or designee, the authority to execute any subsequent amendments to the Agreement with Tumon Bay Resort & Spa, LLC, including authorizing associated Purchase Orders and Change Orders in accordance with the Agreement’s terms, subject to the app roval of the City Attorney and within the budgetary amounts previously approved by the City Council as part of the adopted and/or amended budget process.
SUMMARY
ID: 26-0330 Page 2
This report recommends approval of a lease amendment with Tumon Bay Resort & Spa, LLC, to extend the lease for the Business & Employment Resource Center located in the Towngate Center for three (3) years.
DISCUSSION
The Business and Employment Resource Center (BERC), an accredited comprehensive America’s Job Center, first opened in 2009 as a o ne-stop job resource center operated by the City of Moreno Valley, in partnership with Riverside County. The 3,500-square-foot facility is used for workshops and trainings, recruitment events, career assessments, a resource library, computer and internet a ccess, and Veterans’ employment service and resources.
The BERC’s current location, 12625 Frederick Street, Suites K-3 & K-4, was identified as a centrally located facility, and the City negotiated with the owners of the TownGate shopping center to rent th e space to create the BERC (Attachment A). Since then, the popularity and need of the BERC has only increased; more workshops are offered, more businesses are utilizing the recruitment services and holding job fairs (e.g., Amazon, P&G, Solaris, Karma Automotive, and Caltrans), and more and more residents are visiting the BERC for job searches and training. Additionally, the BERC serves as a satellite office for Cal Baptist University, Moreno Valley College, and Riverside County Workforce Development. In 2025, the BERC served almost 27,000 individuals seeking career and business growth opportunities, reflecting a 54% increase in attendance in the last five (5) years.
The City of Moreno Valley entered into an architectural and design contract with SVA Architects, Inc. on May 5, 2026, to design the new BERC facility at the Moreno Valley Mall. Design is expected to take 10-12 months, and when complete, the City will seek to initiate construction. The proposed three-year lease extension is intended to allow the existing BERC to remain fully operational throughout this period, ensuring no lapse in services for the city’s businesses and residents. To provide flexibility, an early termination provision has been in cluded in the proposed lease amendment, allowing the City to terminate the lease during the 3-year term once the new BERC is completed.
The Eighth Amendment to the Original Lease (Attachment B) will allow the City to continue operating the BERC within the TownGate Center under the following revised lease terms:
1. Term: Extend the term of the current lease through June 30, 2029, effective July 1, 2026;
2. Rent: $5,633.29 per month through June 30, 2027, with a 3% increase in base rent for years 2 and 3.
3. Triple Net: Common Area Maintenance (CAM), property tax, and insurance estimated at $3,600 per month.
ALTERNATIVES
ID: 26-0330 Page 3
The City Council may consider the following alternatives:
1. Approve the lease amendment and continue to operate the Business and Employment Resource Cen ter at the current location within the TownGate Center. Staff recommends this alternative.
2. Reject the lease amendment, which will result in the closure of the Business and Employment Resource Center until the design and construction of the new facility is complete. Staff does not recommend this alternative.
FISCAL IMPACT
No fiscal impact; Funding is included in the Fiscal Year 2026-27 Operating Budget.
NOTIFICATION
Publication of the agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Stephanie Macias Kyle Warsinski
Business & Workforce Development Division Manager Economic Development Director
CITY COUNCIL GOALS
Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ID: 26-0330 Page 4
Report Approval Details
Document Title: STAFFREPORT_EDD_BERC LEASE.docx
Attachments: - Attachment A.pdf
- Attachment B.pdf
Final Approval Date: Aug 26, 2026
This report and all of its attachments were approved and signed as outlined below:
Kyle Warsinski
Sean Kelleher
Anna Chacon
Felicia London, MPA
Launa Jimenez
Brian Mohan
Patty Rodriguez