12/7/2023
1 RiversideCA.gov
1 RiversideCA.gov
REAFFIRM APPROVAL TO EXTEND CALIFORNIA
TOWER GROUND FLOOR LEASEBACK
AGREEMENT FOR 10 MORE YEARS WITH STATE
DEPARTMENT OF GENERAL SERVICES
City Council
December 19, 2023
Community & Economic Development Department
RiversideCA.gov
2 • California Tower purchased and RDA renovates for leasing to retail and office users.
• Lease agreement with the State, for the office tower and ground floor retail/office space (Ground Floor).
• Leaseback agreement for 30 years for the RDA use of the Ground Floor (Leaseback Agreement).
BACKGROUND
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12/7/2023
2 RiversideCA.gov
3 LEASE & LEASEBACK AGREEMENTS
Key provisions:
• Option to Purchase: State may purchase the Property for $1 • Option to Extend: RDA may extend the Leaseback Agreement for 10 years
• RDA is responsible for the operation, maintenance and repairs, and leasing.
RiversideCA.gov
4 ENFORCEABLE OBLIGATION
Option To Purchase/Extension:
1. DGS exercises Option to
Purchase
2. SA sells Property to DGS for $1
3. SA exercises Option to Extend
4. DGS leases the ground floor to
SA for 10 years
ROPS (1/18/2024 COB Meeting):
Existing line items remain as-is
until 9/30/2034:
– $100K for professional
services
– $250K for property
maintenance
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12/7/2023
3 RiversideCA.gov
5 Strategic Priority 3 – Economic Opportunity and Goal 3.3 – Cultivate a business climate that welcomes innovation,
entrepreneurship, and investment.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
6 1. Adopt a resolution reaffirming the approval for the Successor Agency to exercise its option to extend the Leaseback Agreement with the State and lease the California Tower ground floor, for an additional ten years, from October 1, 2024, through on September 30, 2034, should the State exercise its option to purchase the Property;
2. Recommend the Countywide Oversight Board adopt a Board resolution reaffirming the approval for the Successor Agency to take the same action, to be presented to the Countywide Oversight Board for final consideration and approval; and
3. Authorize the Executive Director , or designee, to take all actions, on behalf of the Successor Agency, and work with State to execute the Leaseback Agreement extension for an additional ten years if State exercises its option to purchase the Property.
RECOMMENDATIONS
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