REPORT TO COUNCIL
SUBJECT
Title
Action on Resolution Authorizing an Agreement with Eugene Burger Management Corporation for Property Management Services of City-Owned Commercial Properties Located at 900 and 1000 Lafayette Street, and Authority for the City Manager to Negotiate and Execute Leases at 900 and 1000 Lafayette Street; and Associated Budget Amendment
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 1000 Lafayette Street, known as Peddler's Plaza, and 900 Lafayette Street, known as Commerce Plaza. In 1971, the City entered long-term ground leases which are set to expire in the coming months.
Peddler's Plaza is approximately a 1.3-acre site with a one-story retail commercial building. The retail commercial building has 10,300 square feet of leasable space with seven (7) units. The Peddler's Plaza Ground Lease will expire on September 30, 2021.
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. The Commerce Plaza Ground Lease will expire on April 11, 2022.
These two properties have been long discussed as integral components of a long-term vision for rebuilding downtown. The planning process on a specific plan for downtown is not complete and it will be several more years before any redevelopment of the properties could begin to occur. The two buildings are occupied, and it would be beneficial to the City if there is ongoing occupancy of the structures.
As the Ground Leases are set to terminate, the current tenants will have no rights to remain in their spaces. Staff has reached out to tenants to determine their interest in continuing to operate in their existing space and indicated that the City is interested in possibly ext...
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