Redacted Justification 1NJ2202.pdf

MEMORANDUM TO THE FILE

TO: THE FILE

FROM: ALANNA FITZPATRICK

SUBJECT: 1NJ2202

DATE: 8/23/2021

Agency:

Lease Location: Orchard St, Walnut St, and Beach St, Newark, NJ 07102 (This lease is for the land and street space surrounding the Rodino Federal Building, MLK Courthouse and Lautenberg Courthouse; the address used for contract purposes is 34 Orchard Street)

Proposed Term: Request authority to negotiate a succeeding lease for 3 month extension at the rental rate of annual rent, which will be charged partially as security and partially as parking on a prorated basis to the Federal tenants in the above listed Federal buildings.

Justification Plan: The succeeding lease is a mission critical security lease for all the federal tenants at Federal Square Complex, which includes the Rodino building, MLK Courthouse, and Lautenberg Courthouse. The anticipated rent falls below the $250,000 net annual Simplified Lease Acquisition Threshold (SLAT). As a result, a Justification for Other than Full and Open Competition is not required. The LCO has determined the succeeding lease is necessary to provide critical security and it is in the best interest of the Government to pursue a new long term lease.

Lease Summary: GSA currently leases the streets and related space surrounding the Rodino federal building, which is currently being billed as 20 parking spaces for at 34 Orchard Street, and uses the land covering parts of Walnut St, Orchard St, and Beach St, under Lease No. LNJ23065, which expires on 8/31/2021.

currently pays a rate of per space per month, annually for the 20 spaces. The land is being rented at an annual rate of by A 10 year succeeding lease with 2 5-year evaluated renewal options will maintain the security of the federal tenants and is in progress, however it is anticipated that the parking allocation will be replaced by a lump BSAC amount of annually, charged on a prorated basis to each of the federal tenants in the federal complex and that a short term extensions will be required to secure Government occupancy.

Determination That Anticipated Costs Will Be Fair And Reasonable: On 6/3/2020, the LCO reviewed market research for the Newark market through Leasing Specialist, Bena Parker’s market research for parking in Newark, indicating that the target rental rate range for parking is between $60 per space and $250 per space, so the current rate of per space per month is fair and reasonable. This market research is included in the GREX lease file. The current lease is not fully serviced, snow and ice removal is not included, and alterations are split between the Lessor and GSA, but it is anticipated that the succeeding lease, once completed, will capture a fully serviced rate. The federal government also has a significant security need to secure these streets, so this extension is mission critical.

Prepared by:

Bena Parker Leasing Specialist

Approved by:

Alanna Fitzpatrick Leasing Contracting Officer