WeHo looks at ways to lease city-owned properties

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West Hollywood’s Public Facilities Commission will review an overview of city-owned facilities that could potentially be leased to tenants and consider a recommended strategy for leasing these properties. This initiative aims to ensure the optimal use and management of city-owned real estate for the benefit of the community.

As part of the review, staff will present a summary of the current city-leased and leasable properties, alongside a proposed strategy for future leasing. West Hollywood currently has 11 properties with existing tenant agreements, which include operating agreements, leases or licenses. 

West Hollywood has traditionally not sought to acquire properties for non-public use and maintains a limited lease portfolio. However, in instances where properties or spaces become available, the city aims to establish a formal strategy and set priorities to guide staff in leasing these properties. The city’s management of these properties, not utilized for municipal purposes, is intended to benefit the community. This includes preserving historic structures, supporting community non-profits, and ensuring responsible financial management.

Annual expenses are incurred by the city to maintain and operate various properties throughout the community. These costs are typically covered through the city’s operating budget, such as in the case of community-based uses in Plummer Park, or through rent received from tenants like the West Hollywood Recovery Center at the Werle Building. Rent rates and lease terms for commercial tenants will align with market conditions.

If a property is not needed for city use, WeHo intends to first make these unused properties available to city-contracted service providers. These organizations provide essential services and enrichment to the community. The city aims to assist all community service providers, including non-profits and for-profit community-serving businesses, by offering lease space to such organizations. Priority is given to entities that demonstrate strong community service and effective utilization of the property.

The city’s lease allocations will be evaluated based on the following priorities: First, the city will consider newly available spaces for city use, such as staff offices, public service counters, recreational spaces, and other municipal purposes. Second, certain city-contracted service providers, recognized for their valuable community services and financial contributions towards facility improvements, may be offered longer lease terms or reduced rental rates. Third, non-profit community service providers will be considered for vacant city-owned spaces on a case-by-case basis. Lease terms will be negotiated individually. Fourth, after considering the above priorities, retail revenue-generating opportunities will be prioritized for any ground-floor commercial spaces, followed by other commercial uses aligned with the city’s core values.

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8750 El Tovar Place (ARC)
8305 Santa Monica Boulevard – Suite A and B
626 N. Robertson Blvd
8315 Santa Monica Boulevard (4200 SF)

 

City staff will periodically review comparable market-based lease rates, and tenants, except those in the retail/for-profit category, will not be permitted to assign their lease or sublet the property. Additionally, all city tenants should work towards achieving the goals of the city’s Climate Action Plan.

The city has identified several current and upcoming vacancies at city-owned properties, which will be addressed through the proposed leasing strategy. The spaces at 8305 Santa Monica Boulevard, Suite A and B, will see Suite A occupied by the WeHo Cares Team upon completion of tenant improvements expected in Fall 2024, while Suite B will be available in Fall 2024. The Grand Staircase Studio at 8750 El Tovar Place (ARC) is currently vacant. Crossroads Trading is vacating the 4,200 square feet space at 8315 Santa Monica Boulevard in December 2024 and relocating to 8761 Santa Monica Boulevard. At 626 N. Robertson Boulevard, the West Hollywood Recovery Center will vacate one meeting room and one office space on the ground floor upon completion of Log Cabin construction, estimated in June 2026. The WeHo Cares Team will relocate to Suite A at 8305 Santa Monica Boulevard, estimated in Fall 2024.

 

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The Real Zamm
4 days ago

These are generally great strategies. Dedicating street level space in civic buildings is a very common practice and can bring life to an otherwise lifeless block. The presence of Barry’s in the Kings Rd garage building is an ideal example. The city has been buying up the north side of SMB across from city hall (Sweetzer-Flores) for an eventual office expansion / arts center / retail space for years. I’m sure t hey would even put in an offer for the small strip mall containing Hollyway Cleaners if given the chance. Cities generally make good landlords as they are more… Read more »

KoWeho
KoWeho
3 days ago
Reply to  The Real Zamm

Yes, municipalities are often better landlords when it comes to NSF than private landlords. The city only charges Barry’s $2.50 PSF for a great space with built-in parking.

Alan Strasburg
Alan Strasburg
4 days ago

What can possibly go wrong with politicians and bureaucrats playing real estate investor on properties other than those needed for the functioning of the nuts and bolts of sound municipal governance? Standby. Grab some popcorn. Priorities will be based on the whims of pet projects.

greeneyedguy
greeneyedguy
4 days ago
Reply to  Alan Strasburg

Nothing can be worse than the current landlord-tenant situation right now.

Insane rents and businesses unable to renew leases. At least we know the city won’t do that.

Larry Block
4 days ago
Reply to  greeneyedguy

again your just a jackass with the facts. The city is not renewing Crossroads Trading lease they will be forced to move. The city is not renewing Joeys Cafe lease they will be forced to move. The city is charging the same insane market rents to Barrys Bootcamp and no different than any other landlord.

greeneyedguy
greeneyedguy
4 days ago
Reply to  Larry Block

Why do you have to sling names like that, Larry? Is this how you would speak to people at a city council meeting? Have some decorum!

I was referring to the general landlord-tenant environment in West Hollywood/LA, not this site specifically. I know about Crossroads. Joey’s Cafe is moving? How do you know this?

he city is charging the same insane market rents to Barrys Bootcamp and no different than any other landlord.”

Okay what’s their rent then?

Larry Block
3 days ago
Reply to  greeneyedguy

Yes Joeys is closing, the city is trying to work with them, same as Crossroads for a possible re-location. The city bought the land and is not allowing these long term tenants to continue! Lucky they have a lease from the old landlord to protect themselves. The city does not operate much different than a private landlord making choices. Barrys rent, think its about 20k a month.

KoWeho
KoWeho
3 days ago
Reply to  Larry Block

Given its location and the built-in parking, $2.50 a square foot for Barry’s space is under fair value.

Alan Strasburg
Alan Strasburg
3 days ago
Reply to  Larry Block

The difference is that city is not burdened with ensuring the rents cover expenses since they have the luxury of simply dipping into general funds (taxpayers’ money) to cover deficits. A profit and loss statement is a foreign concept to politicians and bureaucrats. No need to sell more widgets to cover expenses, simply abscond with more of the peoples’ money!

BloodshotEyedGuy
BloodshotEyedGuy
4 days ago

Now, what could possibly go wrong?! Watch them turn into those Air BNB-like party pits that blast horrible music at all hours and lure shady strangers into the area to fight, frolic, and add cannabis smoke to the air.

greeneyedguy
greeneyedguy
4 days ago

The city is the entity who basically banned AirBnb in our great town. Do you even realize that? Think before you type out these ridiculous comments.

TomSmart
TomSmart
4 days ago

Crossroads is still in business, no?

Larry Block
4 days ago
Reply to  TomSmart

yes but they are moving to the location next door to tender greens.

Kevin
Kevin
4 days ago

Starting a business incubator program for some of these would be great and it would grow new businesses that can then relocate.

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