City Council
MEETING DATE: 11/16/2015
TITLE:
Title
Property Management Contract with Playa del Sol for Space Adjacent to Fire Station 413
End
FROM:
Tami Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff Recommends the City Council Renew the Property Management Contract with Playa del Sol Development Company, Inc. for the Commercial Space Adjacent to Fire Station 413
Body
BACKGROUND:
Playa del Sol Development Company has been managing the commercial space and leases located within this facility and have provided management services since the project was developed in 1992. The contract provides that Playa del Sol collect all rents and/or assessments and deposit all funds collected in a custodial account, renew and/or cancel existing leases, prepare and execute new leases, advertise the premises if vacancies exist and, if services of an outside broker are required, pay no more than reasonable and customary brokerage fees (although Playa del Sol will not charge a brokerage fee if they are able to lease vacant commercial space themselves). The contract further requires the property manager to make or cause to be made all ordinary repairs, to retain gardening services, to contract for utility services, to negotiate contracts for nonrecurring items not exceeding $5,000, and to purchase supplies and pay all bills for a fee of $1250/month. This amount has not increased in nine years. Playa del Sol has now submitted a proposal to continue managing this space under the same terms and conditions for an additional thirty six months commencing November 1, 2015 through October 31, 2018. In addition, staff recommends an option to extend for up to an additional thirty six months.
DISCUSSION:
If approved, the City General Fund would continue to be the beneficiary of commercial lease payments from the facility that is presently being leased to three commercial tenants. It is anticipated that net rental ...
Click here for full text