(OB-2012-24) OVERSIG HT BOARD RESOLUTION NUMBER OB-20 12-24 A RESOLUTION OF THE OVERSIG HT BOARD FOR THE CITY OF SAN D IEG O REDEVELOPMENT SUCCESSOR AGENCY APPROVING THE PROPOSED TERMINA TION A ND SURRENDER OF LEA SE A G REEMENT WITH PRICE CHA RITIES RELA TED TO A SUCCESSOR A G ENCY OFFICE SPA CE LEA SE LOCA TED A T UNIVERSITY A VENUE IN CITY HEIGHTS

WHEREAS, the former Redevelopment A gency o f the City of San Diego (Former RD

A) administered the implementation o f various redevelopment projects, programs , and activities within designated redevelopment project areas throughout the City o f San Diego (City); and WHEREA S, in accordance with A ssembly Bill x1 26 (A B 26) , the Former RDA dissolved as of February 1, 2012, at which time the City o f San D iego, solely in its capacity as the designated successor agency to the Former RD A (Successor Agency) , assumed the Former RD A 's assets and obligations ; and WHEREA S, the Successor A gency is winding down the Former RDA ' s affairs in accordance with A B 26, enacted on June 28,2011, and A ssembly Bi111484 (A B 1484), enacted on June 27, 2012 (collectively, the D issolution Laws); and

WHEREAS, in May 2003 , the Former RD A (Tenant) entered into an Office Lease A greement (Lease Agreement) with Urban Village Commercial , LLC, currently Price Charities (Landlord), for office space within the City Heights Center, an office building located at University A venue; and WHEREA S, the lease commenced on A pril 1 , 2004 for a term often (1 0) years with two five-year extensions and was entered for the purpose o f leasing field office space for Former RD A staff and for the Mid-City Community Service Center for the City Heights community; and WHEREA S, the Mid-City Community Service Center was closed in June due to budget constraints; and (OB-2012-24)

WHEREAS , the Lease Agreement was amended by the Fir s t A mendment to Office Lease Agreement (Lease Amendment) by the Former RD A and Price Charities in August to allow the Former RD A staffto mo v e to a smaller suite within the City Heights Center; and WHEREA S, the office space identified in the Lease A mendment is no longer needed by the Successor A gency as a result of the dissolution and winding down of the Former RD A pursuanUo the - Di .s solutioH L aw s_, '- anEl - - - - - - - - - - - - - - - - - - - - - - WHEREA S, the Lease A greement and Lease A mendment do not have applicable termination provisions, but Price Charities , in the interest of mutual cooperation, has agreed to terminate the lease ; and

WHEREAS, Price Charities has identified a new / suitable tenant , to occupy the space; and WHEREA S, the Successor A gency and Price Charities propose to execute the Termination and Surrender of Lease A greement (Termination Agreement) , a copy of which i s attached to the staffreport accompanying this item, wherein Price Charities agrees to accept a lump sum termination payment of $27 , 603.12 plus approximately $300 . 00 for utilities charges and direct expenses currently owed under the Lease A greement and Lease A mendment terms , and the Successor A gency is to be released from any future liability or obligations under the Lease A greement and Lease Amendment; and

WHEREAS , the lump sum termination payment is an amount equivalent to the difference between rental payments Price Charities would have received from the Successor A gency under the current Lease Amendment and the rental payments to be received from the new lessee ; and

WHEREAS , approval of the Termination A greement will save Successor Agency $44,882.88 over the remaining term of the obligation under the Lease Amendment and those savings can then be distributed to other taxing entities on a pro-rata basis; and (OB-20 12-24) WHEREA S, the termination payment is less than the amount owed for the balance ofthe Lease A mendment term, as identified on the Recognized Obligation Payment Schedules (ROPS) #1 and #2 and listed most recently in ROPS #3 (January- June 2013), as Item #141; and WHEREA S, with this action, and approval by the State Department o f Finance, Item #141 on ROPS #3 will then be removed from future ROPS .

NOW, THEREFORE, ~ BE-II-RESOLVED by the ~ 0 ¥ et:s-i-ght BG >ard that the - Tet:m - i-nation A greement is hereby approved . PASSED AND ADOPTED by the Oversight Board at a duly noticed meeting of the Oversight Board held on September l8 2012 . Chair, Oversight Board