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DISCUSSION
City of San Bernardino
Request for Council Action
Date: January 15, 2025
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager
Department: City Manager's Office
Subject: Vanir Building Lease Options for a Permit and Plan Check Counter Location and Office Space Needs
Recommendation:
Mayor and City Council Receive an update on the lease options for additional office space in the Vanir Building at 290 N. D Street and provide direction to staff.
Executive Summary
The City budgeted $440,000 to expand the public counter for Community Development, Building & Safety permit and plan check services as the space for the existing counter is not sufficient. The opportunity to expand the current lease space in the Vanir building was presented to staff and has proven to be a viable and cost effective option to serve the public in one location to satisfy multiple public service needs.
Background
In early 2024 calendar year, the project to expand the public counter for permit and plan check services was initiated. The project was put on hold due to the evaluation of the former City Hall building occupancy and has now been re-engaged. The cost of design for the remodel is now estimated to be significantly higher than initially anticipated and budgeted.
In addition to the needs of Community Development, there are additional space needs by the departments of Finance, Human Resources and the City Clerk. With the addition of the new department of Economic Development and the Legislative Affairs Manager, a large portion of the Finance team was relocated to the first floor, along with some of the Human Resources team, where offices must be shared. This has created departments that are fragmented and do not have adequate space. 2 4
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Discussion
The Vanir Tower Building space available to the City has minimal improvements, namely furniture and connectivity infrastructure. The space available that will suit the needs of the permit and plan check counter is on the first floor, Suite 101A, and is adjacent to the City’s information center. Staff has evaluated the space and it is suitable to not only house the staff for counter needs, but also public facing Land Management and Business License staff.
Additionally, there is space available on the ninth floor, Suite 900, that could accommodate the City Manager and City Council offices. This could allow the finance and grants staff that was relocated to the 1 st floor, to reunite with their full department on the 3rd floor.
The relocation of the Community Development staff to Suite 101A could allow for much needed space for plans and other document storage that should be maintained on- site, which is currently stored at a neighboring building. The option for the Business License team to relocate to Suite 101A could allow the City Clerk department to have access to a much-needed conference room and additional office space.
The lease cost to occupy the space is available at a cost of $2.10 per square foot. The cost for each Suite is as follows:
Suite 101A is 3,657 square feet, at $2.10 per square foot, totaling $7,679.70 per month or $92,156.40 per year. Suite 900 is 7,109 square feet, at $2.10, totaling $14,928.90 per month or $179,146.80 per year.
The current monthly rent is $56,817.60 per month and if the City adds both suites, the total monthly rent would be $79, 426.20, an increase of $22,608.60 per month.
The infrastructure needed is estimated to remain within the budgeted remodel amount of $440,000, however staff must obtain quotes to get accurate totals.
Staff is seeking direction from the Mayor and City Council to proceed with the option to relocate the public counter to Suite 101A or to continue the remodel as previously directed and budgeted. Further, staff is seeking direction on the option to occupy Suite 900. Staff will return with necessary information and lease agreement if such direction is given.
2021-2025 Strategic Targets and Goals
Aligns with Key Target No. 3- Improved Quality of Life by securing the building space to serve the public needs in one location.
Fiscal Impact
There is no fiscal impact associated with this item.
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Conclusion
Mayor and City Council Receive an update on the lease options for additional office space in the Vanir Building at 290 N. D Street and provide direction to staff.
Attachments
Attachment 1 – Vanir Building Suite 101A
Attachment 2– Vanir Building Suite 900
Ward:
All Wards
Synopsis of Previous Council Actions:
Approved the FY2023-2024 budget for the remodel of Community Development’s Building & Safety Permit and Plan Check counter.