*Authorize a sixty-six month lease with GVI-LC Harrison Square Owner, LP at 1800 SW First Ave for office space for the Fire & Police Disability & Retirement Board for an estimated annual cost of $198,000
The City of Portland ordains:
Section 1. The Council finds:
The Fire & Police Disability & Retirement Board (“FPDR”) offers disability and retirement planning services to active members and pension benefit services to retired members.
In 1994, FPDR began leasing office space from Oregon Pacific Investment and Development Company (“Landlord”) located in certain office space at 1800 SW First Avenue, Suite 450, Portland, Oregon, and more commonly known as the Harrison Square Building (“Building”). Effective January 29, 2020, the Building was acquired by GVI-LC Harrison Square Owner, LP and assumed all obligations of the lessor under the lease. Effective April 2020, Ordinance 189917 authorized the lease extension for the existing 8,060 square feet of office space in Suite 450 through April 30, 2022.
FPDR recently re-assessed its office space needs and determined a smaller space was more suitable and cost-effective for its operations and wishes to execute a lease for approximately 5,399 square feet in Suite 250 in the same building, Harrison Square. Occupancy commences the latter of July 1, 2022, or upon substantial of Tenant Improvements, and the lease includes one 5-year option to renew the term. The Landlord is willing to lease at commercially reasonable rental rates and terms, and to extend FPDR’s existing term in Suite 450 to bridge the gap until Suite 250 is ready for occupancy. FPDR will contract with union-represented janitorial services in the space through the lease term.
Pursuant to Resolution #37017 “Reaffirming the City’s Interest to Maximize Investment in City-Owned Facilities and Directing the Office of Management and Finance to Fully Implement ADM 13.01, the Office of Management and Finance (“OMF”) is working with bureaus to fully implement ADM 13.01 and ART 3.01 by bringing City operations back into City-owned facilities when possible.
OMF and FPDR have strategically assessed the space needs against the availability of space in existing City-owned facilities. There are no viable options within City-owned facilities to provide sufficient space to accommodate FPDR’s needs by May 1, 2022.
The expected financial impact for FY 22/23 is estimated at $185,000 and is already built into the FPDR office space lease budget, including for subsequent years of the lease. Annual increases over the remaining term of the lease are approximately 3%. The savings from this lease is $55,734 annually or $278,670 for the duration of the lease.
By resolution, the FPDR Board of Trustees has authorized that the FPDR Director be, and hereby is, authorized to execute on behalf of the Board of Trustees and FPDR documents necessary to lease property at Harrison Square.
NOW, THEREFORE, the Council directs:
The Chief Administrative Officer or designee is authorized to execute any documents including, but not limited to, amendments and extensions necessary to lease property in the Harrison Square Building for Fire and Police Disability Review Board’s purposes. All documents will be approved as to form by the City Attorney prior to execution.
Section 2. The Council declares that an emergency exists in order that this lease agreement may occur without delay; therefore, this Ordinance shall be in full force and effect from and after its passage by the Council.
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Mary Hull Caballero
96 Consent Agenda in February 16-17, 2022 Council Agenda
- Commissioner Carmen Rubio Yea
- Commissioner Dan Ryan Yea
- Former Commissioner Jo Ann Hardesty Yea
- Commissioner Mingus Mapps Yea
- Mayor Ted Wheeler Yea