Public Works Agency
www.santa-ana.org/pw
Item # 15
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 7, 2026
TOPIC: Lease Agreement with Walsh Construction Company II, LLC for Office Space at the Santa Ana Regional Transportation Center
AGENDA TITLE
Lease Agreement with Walsh Construction Company II, LLC for Office Space at the Santa Ana Regional Transportation Center (Non-General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a lease agreement with Walsh Construction Company II, LLC to compensate the City $12,091 per month, for the lease of approximately 4,429 square feet of office space located at the Santa Ana Regional Transportation Center for a term beginning July 16, 2026 and expiring July 15, 2027 with provisions for up to one, one-year extension, for a total lease agreement amount of $290,190 (Agreement No. A-2026-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
Walsh Construction Company II, LLC, a contractor on the OC Streetcar project, has leased office at the Santa Ana Regional Transportation Center (SARTC) since December 2018 and is requesting to continue leasing approximately 4,429 square feet of office space on the second floor at SARTC from the City through July 15, 2027.
Under the current lease, which expires on July 15, 2026, Walsh Construction II, LLC pays $2.63 per square foot. The proposed lease agreement reflects a Consumer Price Index (CPI) increase to $2.73 per square foot for a one-year term beginning July 16, 2026 through July 15, 2027, for a total monthly rate of $12,091. The lease will include up to one optional one-year extension, with the monthly rate subject to CPI increase (Exhibit 1).
Staff evaluated current market conditions and negotiated a rental rate increase that reflects the value of the space and the temporary nature of the tenant's occupancy related to the OC Streetcar project. The negotiated rate provides continued rental revenue to the City while maintaining occupancy of the space.
ENVIRONMENTAL IMPACT
Lease Agreement with Walsh Construction Company II, LLC for Office Space at the Santa Ana Regional Transportation Center
July 7, 2026
5 8
5 7
There is no environmental impact associated with this action.
FISCAL IMPACT
Approval of the lease agreement will provide compensation to the City of up to $290,190 over the term of the lease agreement, assuming all renewal options are exercised, for lease of interior office space at the SARTC.
Fiscal
Year
Accounting
Unit-Account
No.
(Project No.)
Fund
Description
Accounting Unit,
Account
Description
Amount
Initial Term
2026-27 06717002-
53823
Regional
Transportation
Center
PWA-SARTC
Operations, Rental-
Walsh Construction
$139,244
2027-28
(Jul 1–Jul
15)
06717002-
53823
Regional
Transportation
Center
PWA-SARTC
Operations, Rental-
Walsh Construction
$5,851
Optional One, One-Year Extension
2027-28 06717002-
53823
Regional
Transportation
Center
PWA-SARTC
Operations, Rental-
Walsh Construction
$139,244
2028-29
(Jul 1-Jul
15)
06717002-
53823
Regional
Transportation
Center
PWA-SARTC
Operations, Rental-
Walsh Construction
$5,851
TOTAL: $290,190
EXHIBIT(S)
1. Lease Agreement with Walsh Construction Company II, LLC Submitted By: Rodolfo Rosas, P.E., Acting Executive Director, Public Works Agency Approved By: Alvaro Nuñez, City Manager