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Report regarding a direct lease between the City of South San Francisco and the property owner at 235 Grand Avenue to use the second floor office space for City staff for two years. (Mike Futrell, City Manager and Mike Lappen, Economic Development Coordinator)
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RECOMMENDATION
Recommendation
Staff recommends the City Council authorize the City Manager to enter into a direct lease with the property owner at 235 Grand Avenue to use the second floor office for City staff temporarily for two year, beginning August 1, 2021.
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BACKGROUND/DISCUSSION
Over the past 15 months the City has embarked on new programs and initiatives to address the numerous economic and social equity issues arising from the COVID-19 pandemic and the racial and social equity awareness following the murder of George Floyd. This has included the addition of Graduate Fellows to assist in these initiatives, working under the direction of the City Manager and the team in the City Manager's Office. These initiatives and associated staff have stretched the space available in City Hall to the limit, and temporary office space in the downtown area is needed to accommodate city staff.
Over the past few months, City staff has explored potential downtown locations and evaluated them based on location, size, configuration, accessibility, availability, and affordability. Based on these criteria, staff quickly deemed 235 Grand Avenue as the preferred leasing option. The unit has a central and accessible location, large space, private offices, open floor plan, bathroom, kitchen, conference room, access to transit, and immediate availability.
The proposed lease rate is "full service" and equates to $2.46 per square feet per month - a rate that includes all monthly expenses save for utilities (as mentioned above). This falls within the range of current lease rates for space in the downtown, as verified by CoStar. As a comparison, staff investigated three possible sites in downtown that o...
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