5/11/2023
1 RiversideCA.gov
1 RiversideCA.gov
SEVENTH AMENDMENT TO LEASE
AGREEMENT– RAINCROSS
HOSPITALITY CORPORATION
City Council
May 23, 2023
Public Utilities Department
RiversideCA.gov
2 1. On February 12, 2018, the City Council approved the Sixth Amendment to Lease Agreement with Raincross
Hospitality Corporation doing business as Raincross
Convention & Visitors Bureau for a five-year term with
one five-year option to extend.
2. Raincross Hospitality Corporation has requested to
exercise the option to extend the Lease Agreement for
an additional 64-month term.
BACKGROUND
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2 RiversideCA.gov
3 1. Term: March 1, 2023 through June 30, 2028.
2. Premises: Approximately 4,466 rentable square feet of space located at 3750 University Avenue, Suite 570.
3. Base Rent Schedule (Modified Gross Lease):
4. Tenant Improvements: None. Tenant is leasing the space in “as is” condition.
PROPOSED 64-MONTH LEASE TERMS
Period Monthly Base Rent
March 1, 2023 – February 29, 2024 $13,175.00
March 1, 2024 – February 28, 2025 $13,570.00
March 1, 2025 – February 28, 2026 $13,977.00
March 1, 2026 – February 28, 2027 $14,397.00
March 1, 2027 – February 29, 2028 $14,829.00
March 1, 2028 – June 30, 2028 $15,273.00
RiversideCA.gov
4 5. Base Year: Will be amendment to Calendar Year 2023.
6. Options to Renew: None.
7. Parking: Lessee will be entitled to a total up to 18 parking space to be either reserved or unreserved.
8. Broker: Pursuant to the existing Exclusive Authorization to Lease Agreement with NKF, City to pay NKF a leasing
commission equal to 2.5% of the lease consideration in the amount of $22,671.50.
9. Storage: Tenant will pay $100 per month for storage space of approximately 71 square feet.
PROPOSED 64-MONTH LEASE TERMS CONT.
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5 Strategic Priority 3 – Economic Opportunity
Goal 3.3 – Cultivate a business climate that welcomes innovation, entrepreneurship, and investment.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
6 That the City Council:
1. Approve a Seventh Amendment to the Lease Agreement with Raincross Hospitality Corporation doing business as Riverside Convention & Visitors Bureau, of Riverside, California, to extend the lease for an additional 64- month term from March 1, 2023 through June 30, 2028; and
2. Authorize the City Manager, or designee, to execute the Seventh Amendment to the Lease Agreement, including making minor, non- substantive changes, and to sign all documents and instruments necessary to complete the transaction.
RECOMMENDATIONS
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