MEETING DATE:
NOVEMBER 10, 2014
SUBJECT:
Title
CONSIDERATION OF FINANCING OPTIONS FOR CAPITAL COSTS RELATED TO THE 600 RANCHEROS BUILDING FOR CONSTRUCTION AND OCCUPANCY BY THE DEPARTMENT OF MOTOR VEHICLES
Body
Recommendation
Recommendation
CONSIDER AND DIRECT options for the City and, on behalf of LP Partnership, for financing related capital costs associated with the construction of the new Department of Motor Vehicle's (DMV) building at 600 Rancheros.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Economic Development
Planning for the Future
Relevant Department Goal
Continuing to Maintain Fiscal and Financial Health to the City
Introduction
The City, acting in its capacity as a partner in the existing partnership known as Rancheros Commercial Park, is a financial participant in the development of an approximately 30,000 square foot net usable build-to-suit office building (the "Project") for the State of California Department of General Services to be used by the Department of Motor Vehicles (the "DMV") located at 600 Rancheros Drive. The site is currently owned by the City and leased to the partnership. The partnership is also the leaseholder of property at 570 Rancheros, owned by LBP Partnership and is directly adjacent to the DMV site. The cost to construct the building is estimated at approximately $11 million. The Project is under construction with occupancy by the DMV to occur in May 2015. Rent payments received from the DMV pursuant to a lease agreement are expected to commence with occupancy.
Discussion
History of Rancheros Commercial Park Partnership
On March 6, 1989, the Redevelopment Agency of San Marcos entered into a Limited Partnership Agreement with LBP Partnership (LBP). The purpose of the partnership was to engage in the business of leasing, developing, constructing, maintaining and operating commercial real estate known as 570 Rancheros Drive, owned by...
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