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1 SECOND AMENDMENT TO STANDARD
INDUSTRIAL/COMMERCIAL SINGLE-TENANT
LEASE FOR STORAGE LOCATED AT 4049
BURGESS WAY FOR A FOUR-YEAR TERM
City Council
October 11, 2022
Community & Economic Development Department
RiversideCA.gov
2 1. May 30, 2018 - City, on behalf of the then named
Riverside Metropolitan Museum (Museum), entered into
a Commercial Single-Tenant Lease-Gross agreement
with the Stephen and Lisa Campbell Family trust for use of a 3,176 square foot warehouse at 4049 Burgess Way -
Riverside
2. June 15, 2019 - City, on behalf of the Museum, entered into a First Amendment extending the term for three (3) additional years
BACKGROUND
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3 1. Museum leased space to prepare for a Measure Z
funded renovation of the downtown museum site
2. 3,176 square foot warehouse used to store furniture, equipment needed during construction and
renovation, and other items
3. Due to COVID-19 impacts, Museum was unable to
complete the renovations as planned
DISCUSSION
RiversideCA.gov
4 4. Museum desires to continue the current lease for an additional four years commencing on October 16,
2022.
5. Second Amendment Terms:
a) Base rent increased annually at 3% for the first two years b) Rent increased annually at 4% for the remaining two years c) Annual increase shall be prorated for the month of October and payable in November of each anniversary year
DISCUSSION
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5 Year 1 2022 - 2023 $3,129.58 / mo. 3% Original Option #1 $0.99 PSF $37,554.96 Year 2 2023 - 2024 $3,223.47 / mo. 3% Original Option #2 $1.01 PSF $38,681.64 Year 3 2024 - 2025 $3,352.41 / mo. 4% Fair Market Value $1.06 PSF $40,228.92 Year 4 2025 - 2026 $3,486.51 / mo. 4% Fair Market Value $1.10 PSF $41,838.12 TOTAL $158,303.64
SUMMARY OF BASE RENT
RiversideCA.gov
6 Lease Type Term Amount
Original Lease June 15, 2018 – October 15, 2019 $47,648.05 Extension Term #1 October 16, 2019 – October 15, 2022 $106.221.24 Extension Term #2 October 16, 2022 – October 15, 2026 $158,303.64 Total Lease Cost June 15, 2018 – October 15, 2026 $312,172.93
TOTAL COST OF LEASE
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7 Envision Riverside 2025 Strategic Plan Priorities
#1 Arts, Culture and
Recreation
Cross-Cutting Threads
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
8 That the City Council:
1. Approve the Second Amendment to the Standard
Industrial/Commercial Single-Tenant Lease between the City and the Stephen and Lisa Campbell Trust for use of a storage facility located at 4049 Burgess Way for a four-year term in the amount of $158,303.64; and
2. Authorize the City Manager, or his designee, to execute the Second Amendment, including making minor, non-substantive changes, and to execute all documents necessary to complete the transaction.
RECOMMENDATIONS
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