Summary
Board authorizes the President to enter into a contract to lease more office space.
Text
Mr. Roberts and Mr. Touton described the need for ICANN to acquire expanded office facilities. The current space in Marina del Rey, California, USA, is subleased from the University of Southern California and consists of five small offices and a conference/work room. In the past month, ICANN's staff has investigated various alternatives for adequate office space, including sites in the El Segundo, Culver City, and Santa Monica areas, as well as other buildings in Marina del Rey. Based on their review of prevailing costs and their preliminary discussions with lessors, the staff recommends that ICANN attempt to lease a suite of offices (3520 square feet) in an office building adjacent to the one in which the current office is located. A significant advantage of this location is its proximity to the Information Sciences Institute, so that ICANN can readily continue to draw on ISI's technical expertise through shared employees and otherwise.
The Board discussed the term of leasing arrangements. Mr. Touton noted that the space being considered in the adjacent building was being offered for a five-year lease, which presently is the commercial norm for the Los Angeles area. The Board discussed the trade-offs between the flexibility afforded by a shorter term and the increased availability of suitable space and reduced annual cost afforded by a five-year term. It was concluded that in view of the present urgent need for more suitable space a five-year term was appropriate.
In view of current competitive market conditions, it might not be possible to obtain the space in the adjacent building on appropriate terms, but there are other alternatives in the vicinity.
Upon motion duly made and seconded, the Board unanimously adopted the following resolutions:RESOLVED [00.2] that the President is authorized on behalf of the Corporation to enter into a lease for offices near the Corporation's present offices in Marina del Rey, for a lease term not to exceed five years, totaling not more than 4000 square feet, and at a rental rate not to exceed $2.75 per square foot per month.
RESOLVED FURTHER [00.3] that the President is authorized on behalf of the Corporation to contract for the improvement of the leased space to make it suitable for the Corporation's use, at a monthly cost to the Corporation not to exceed $0.55 per rentable square foot amortized over a five-year term.
Explanatory text does not modify or override Resolutions. See Board Resolutions Page for more information.