1990-0206_BIRTCHER PACIFIC_H1e_Agenda Report AGENDA ITEM February 6, 1990
TO: Honorable Mayor and City Council
FROM: Stephen B. Julian, City Manager
SUBJECT: Lease Agreement with Birtcher Pacific for Community Facilities
SITUATION:
In an effort to provide additional space for public meetings, staff meetings, training and
public seminars, we have been negotiating a lease with Birtcher Pacific for the former
Bank of America building located in Birtcher Plaza in downtown San Juan Capistrano.
This facility would provide additional space as we make presentations to the community
regarding such special issues as seismic safety, meetings with downtown merchants and
other concerned citizens regarding traffic circulation and other issues facing the
downtown. In addition, this location would facilitate public information and displays
during the Heritage Festival and in conjunction with some planned uses would facilitate
public education projects involving San Juan Capistrano school children.
Secondarily, I am requesting that the City Council authorize me to negotiate a sublease
of this facility with the San Juan Institute - Center for Global Earth and Planetary
Science Studies. As you are aware, this is a nonprofit scientific research organization
located here in San Juan Capistrano. It is anticipated that with this sublease part of the
facilities will be used by the San Juan Institute. As part of the sublease we would be
negotiating furnishings for the facility, management of the facility as well as its public
use. The San Juan Institute would utilize this facility essentially as their headquarters
and conduct their seminars involving leading scientists from across the United States.
The San Juan Institute is providing working space for a NASA Science Advisory Group
many of whom will be key players in the upcoming exploratory mission to the moon which
is one of the key steps in the NASA program to send space facilities to Mars. In this
regard, comments should be noted that the President in his State of the Union Address is
extremely supportive of NASA's activities and that this will have a positive affect on the
growth development and stature of San Juan Institute. San Juan Institute will be
providing a NASA Science Exhibit including moon sample displays and scientific
information to be exhibited during the upcoming Heritage Festival activities. This is
expected to be the first of many general public information and educational activities to
be conducted locally by the institute.
The lease agreement with Birtcher Pacific would be for a thirty-six (36) month period at
an initial rate of 55 cents per square foot for approximately 10,000 square feet. While
the total first year costs would be $60,918, the actual impact on this year's budget would
be $30,000. The lease provides for nominal increases in the second and third year. While
it is expected that a sublease with the San Juan Institute would provide a minimal offset
against this trust, a donation of in kind services and management of the facility by the
institute will assist in keeping costs to a minimum. In addition, the City staff will be
exploring the possibility of obtaining grants from the State of California Economic
Development Department to assist with the funding of the institute and facilities. We
believe providing community facilities on a shared basis with a program will bring
additional national recognition and perhaps resources to our community.
FOR CITY COUNCIL AGEND
Agenda Item -2- February 6, 1990
COMMISSION/BOARD REVIEW & RECOMMENDATIONS:
Not applicable.
FINANCIAL CONSIDERATIONS:
The lease agreements are attached for approval. The cost, as noted in the report would
be funded out of an appropriation from the General Fund by the City Council.
NOTIFICATION:
Daniel J. O'Hare
Leasing Director
Birtcher Pacific
Douglas B. Nash, President
San Juan Institute
ALTERNATE ACTIONS:
1. By motion, approve the lease agreement between Birtcher Pacific and the City of
San Juan Capistrano for the facility known as the Old Bank of American Building
encompassing 9,230 net rentable square feet, and authorize the City Manager to
negotiate and enter into a sublease with the San Juan Institute for use of this
facility, and further appropriate $30,000 from the General Fund Reserves.
2. Take no action at this time.
3. Request further information from staff.
RECOMMENDATION:
By motion, approve the lease agreement between Birtcher Pacific and the City of San
Juan Capistrano for the facility known as the Old Bank of American Building
encompassing 9,230 net rentable square feet, and authorize the City Manager to
negotiate and enter into a sublease with the San Juan Institute for use of this facility,
and further appropriate $30,000 from the General Fund Reserves.
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Respe ,tfully s mi ,
Stephen B. Julia
City Manager
SBJ:dh
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