ICANN Resolutions » Los Angeles Hub Office Lease
Important note: The Board Resolutions are as reported in the Board Meeting Transcripts, Minutes & Resolutions portion of ICANN's website. Only the words contained in the Resolutions themselves represent the official acts of the Board. The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.
Whereas, ICANN has stated its objective to secure a lease for long-term office space, conducive to efficient operations, at affordable costs.
Whereas, staff has identified ideally located space available for lease until the expiration of ICANN's main lease in June 2022, allowing ICANN to accommodate the current and planned office needs and consolidate its operations onto two connected floors.
Whereas, the staff and Board Finance Committee recommend that the Board authorize the President and CEO, or his designee(s), to enter into, and make all necessary disbursements for additional space in the ICANN Los Angeles hub office, in an amount not to exceed [AMOUNT REDACTED].
Resolved (2015.12.02.06), the Board authorizes the President and CEO, or his designee(s), to enter into, and make all necessary disbursements for, an amendment to ICANN's lease for the Los Angeles hub office in an amount not to exceed [AMOUNT REDACTED].
Resolved (2015.12.02.07), specific items within this resolution shall remain confidential for negotiation purposes pursuant to Article III, section 5.2 of the ICANN Bylaws until the President and CEO determines that the confidential information may be released.
The ICANN Los Angeles office at 12025 Waterfront Drive currently consists of the entire third floor, a portion of the fourth floor (both terms expiring in June 2022) and space on the second floor of the building, which ICANN has been subleasing on a month-to-month basis, which will end December 2015.
The key drivers for this lease amendment are as follows:
a) provision of space for existing staff and contractors, as current space for current staff is not sufficient;
b) provision of space for future additional staff as per FY16 Operating Plan and Budget;
c) Conversion of month to month lease to consolidated long term lease;
d) Added benefit of improving of operational efficiency as we consolidate operations onto 2 floors, connected through the staircase private to ICANN 3rd/4th floors (2nd floor is only accessible by elevator).
The adopted FY16 Operating Plan and Budget suggests a staff growth of 38 headcount in FY16 (https://www.icann.org/en/system/files/files/adopted-opplan-budget-fy16-2... [PDF, 1.74 MB], page 27), on a worldwide basis, of which 23 employees will be in the Los Angeles office. This expected growth required ICANN to plan for additional space in the Los Angeles office during FY16.
Based on this plan, ICANN has been researching options to expand its Los Angeles office. The landlord for the second floor space, that ICANN currently subleases month-to-month, has requested ICANN to vacate it shortly. Separately, the tenant occupying the remainder of the fourth floor is moving, thereby providing ICANN the opportunity to consolidate its operations on the entire third and fourth floors, through an amendment to its current long-term lease (until June 2022), instead of expanding the 2nd floor month-to-month arrangement.
As a result, ICANN intends to enter into a lease amendment for the portion of the fourth floor that is being vacated, and release the second floor space as requested. The net space addition is 5,732 square feet.
The decision offers the opportunity to resolve the lack of space ICANN is currently already facing in terms of accommodating existing staff and contractors and to accommodate the growth planned for in the FY16 Operating Plan and Budget.
The term of the lease amendment under consideration in this resolution would match ICANN's existing lease through June 2022. The new long-term lease amendment (which would replace the month to month lease for the second floor) would amount to a total of [AMOUNT REDACTED] for the remaining 67 months for the 12,819 square feet on the 4th floor.
This amount exceeds the ICANN Officers' contracting and disbursement authority and must be approved by the Board.
Local real estate market surveys have been reviewed, and there is presently no other rental space available in the immediate area at comparable prices. Other less desirable available space outside of the current building is more expensive.
This decision will have a financial impact on ICANN. The financial impact for FY16 has been for FY16 has been catered for in the FY16 budget. Annual cost will be budgeted for in subsequent years and is expected to be affordable.
This decision is not anticipated to have any impact on the security, stability and resiliency of the domain name system.
This is an Organizational Administrative Function that does not require public comment.