WRCOG approves up to $1.9 million for tenant improvements in newly purchased building
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Summary
The Western Riverside COG authorized up to $1.9 million for LED conversions, a small first-floor buildout and suite improvements in Suite 200 of a recently purchased building; the motion passed unanimously.
Dr. Kurt Wilson, WRCOG executive director, asked the Executive Committee to authorize up to $1.9 million for tenant improvements to WRCOG’s newly purchased building, and the committee approved the request unanimously.
Wilson said WRCOG purchased the building earlier in the year with cash, with a ballpark purchase price of $6.7 million and an authorized acquisition budget of $7 million; the purchase requires no new debt service. He said current annual lease payments WRCOG avoids by moving would result in a break‑even period of roughly 15 years in a no-tenant scenario, and that existing tenants provide additional rental revenue that shortens that timeline. Wilson noted WRCOG is already collecting rent (about $61,000 per month) from tenants including the California Department of Tax and Fee Administration and CalRecycle, and that Progressive was in a holdover status.
Wilson said the requested $1.9 million authority would address three items: (1) a building-wide LED lighting conversion, (2) buildout of an unfinished small first-floor space to enable new tenancy, and (3) suite improvements for WRCOG’s Suite 200 (primarily meeting spaces). He described a time sensitivity driven by WRCOG’s existing Citrus Towers lease (which expires in 2028) and an active potential sublease of the Citrus Towers space, which makes timely completion of tenant improvements desirable.
Committee members asked clarifying questions. Commissioner Holiday asked who is currently paying electricity for tenants; Wilson said WRCOG currently pays electricity under existing lease terms that came with the tenants at purchase. Holiday suggested discussions with tenants during lease renewals about shifting electricity costs where appropriate. Commissioner Barajas asked about prior budgeting; Wilson said the purchase authorization included a cushion and that the team has consulted experts, estimating the $1.9 million authorization should be sufficient with some contingency.
During the meeting a motion to approve the tenant improvement authority was moved by the City of Paris and seconded by the City of San Jacinto (as recorded in the meeting system). The committee voted and the item passed unanimously. Staff noted permitting, final drawings and contractor selection remain to be completed before work begins.
The committee received the staff report, authorized WRCOG to proceed with tenant improvements up to $1.9 million, and directed staff to complete permitting and tenant-fit drawings.