REPORT TO COUNCIL
SUBJECT
Title
Action on Lease Extensions for Properties at 900 Lafayette Street (Commerce Plaza) and 1000 Lafayette Street (Peddler's Plaza) until May 31, 2025, with an option to extend until May 31, 2026
Report
COUNCIL PILLARS
Promote and Enhance Economic, Housing and Transportation Development
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The City of Santa Clara ("City") is the landowner of two downtown properties located at 900 Lafayette Street, known as Commerce Plaza, and 1000 Lafayette Street, known as Peddler's Plaza. Commerce Plaza is approximately a 3.7-acre site with a seven-story office building. The office building has 90,000 square feet of leasable space with 60 units. Peddler's Plaza is approximately a 1.3-acre site with a one-story retail and commercial building. Peddler's Plaza has 10,300 square feet of leasable space with seven (7) units.
On September 28, 2021, the City Council approved an Agreement with Eugene Burger Management Corporation (EBMC) for property management services and also authorized the City Manager to negotiate and execute leases at 900 and 1000 Lafayette Street (RTC 21-1214). At that time, there were 34 leases across both properties, including four of the leases at Peddler's Plaza (Attachment 1).
On May 23, 2023, the City Council authorized the City Manager to negotiate and execute amendments to the existing leases for the commercial spaces at 1000 Lafayette to extend the term of each lease to May 31, 2024 (RTC 23-579; Attachment 2). There currently are 33 total leases across both properties, including 29 executed leases at Commerce Plaza and four spaces at Peddler's. The leases at both Commerce Plaza and Peddler's Plaza will expire on May 31, 2024.
These two properties have long been discussed as integral components of a long-term vision for rebuilding downtown. On December 5, 2023, the City Council adopted Resolution 23-9294 approving the Downtown Precise Plan, i...
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