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HomeMy WebLinkAboutRDA CITY RELOCATION 01-07-91DATE: TO: FROM: SUBJECT: JANUARY 71 1990 WILLIAM A. HUSTON, EXECUTIVE DIRECTOR COMMUNITY DEVELOPMENT DEPARTMENT RDA N0. 5 1-7-91 Inter - Com CITY HALL RELOCATION - AUTHORIZATION FOR PREPARATION OF TENANT IMPROVEMENT PLANS RECOMMENDATION Authorize the Executive Director to sign an authorization for Catellus to begin preparation of construction plans for tenant improvements at 15222 Del Amo Avenue. BACKGROUND The Tustin Redevelopment Agency at a regular meeting on August 20, 1990 authorized the Executive Director to select and negotiate a temporary relocation site for City Hall operations during construction of the expansion to Civic Center. On October 1, 1990, the Executive Director approved a Letter of Intent with Catellus Development for lease of approximately 24,300 square feet of a larger building located at 15222 Del Amo Avenue, just south of Edinger Avenue. Staff are finalizing the terms and conditions of the lease in negotiation with Catellus and would anticipate that a completed lease document would be available for review and approval by the Redevelopment Agency at their meeting of January 21, 1990. While approval of a lease is normally required prior to any working drawings for tenant improvements being prepared or work commencing on such improvements, a landlord may begin preparation of said construction plan prior to a lease being approved provided the prospective tenant is willing to assume the costs of said plan preparation if said lease agreement is not ultimately approved. To take advantage of the next three weeks prior to the anticipated completion of the lease, staff would recommend that the Agency authorize the Executive Director to permit work on tenant improvement plans to begin. A draft agreement between Catellus and the Agency to indemnify Catellus against their incurred risks will be available for the Agency's consideration. Christine Shingl � n Director of Commixfiity Development CAS:kf/reloc.ccr :NT BY;xerox i e i ecopler -ruzu I �- o-0 I , .+• ;)ur1f; , INDEMNIFICATION THIS INDENINIFICATION, dated January 3, 1.991, by and between Redevelopment Agency of the City of Tustin ("Tenant"), and Catellus Development Corporation ("Landlord"). WHEREAS, the parties to this Indemnification are negotiating but have not executed a lease agreement for approximately 24,300 usable square feet of space in the building located at 15222 Del Amo Avenue, Tustin, California. WHEREAS, it is the desire of Tenant to take occupancy as soon as reasonably possible; THEREFORE, if such a lease is not executed and delivered by Tenant to Landlord on or before January 30, 1991, Tenant shall immediately indemnify Landlord for any reasonable expenses incurred that are directly related to the engineering and mechanical drawings, and construction of the Demised Premises for Tenant. In no event will Tenant be responsible for expenses in excess of $20,000 without prior written notice. LANDLORD: CATELLUS DEVELOPMENT CORPORATION TENANT: REDEVELOPMENT AGENCY OF THE CITY OF TUSTIN 8y; Ey: Kelley S. Johnson Title: William Huston