Software company expanding to new building in California

Cyan, a software firm, is expanding its operations in California.

A commercial real estate firm headquartered in California's Telecom Valley is ready to break ground on an office building not far from its facilities.

Basin Street Properties plans to start construction on a 56,000-square-foot-building in north Petaluma, Calif., sometime in October. The building will be home to software developer Cyan.

Cyan currently resides in 26,000 square feet of space in the Redwood Business Center development between Highway 101 and North McDowell Boulevard. That building was finished in 2005 and is now full, which spurred the move.

"Cyan is quickly outgrowing its current Petaluma facility and considering our long-standing relationship with Basin Street Properties, expanding into this new space made great sense to us," said Rick Johnston, Cyan co-founder and vice president of business operations, according to the North Bay Business Journal. "Petaluma provides a strong technology talent pool and a great quality of life for our employee-base."

The new office building will have a glass third-floor walkway to connect the two Cyan spaces. Rates have not been set but the ground floor of the new building is available for lease.

Trouble with the city
The project was slated to break ground a few months prior, but Basin Street Properties had a disagreement with the city of Petaluma.

The project was authorized in 2003 but there was a dispute over the development impact fees negotiated at the time of approval.

"Ultimately, the city didn't believe there was sufficient documentation for that proposition," said Paul Andronico, general counsel for the developer. "We reached a compromise."

Basin Street Properties will now pay all new fees in effect currently and in the future, though the higher traffic fee rate would be the same as when it was approved in 2003. The fees were negotiated at $817,000 roughly 10 years ago. The new fees total approximately $900,000, according to the North Bay Business Journal.

"Having worked with Cyan since its infancy and over the past seven years, we are deeply familiar with the company's culture and real estate needs," said Scott Stranzl, vice president of leasing for Basin Street Properties. "Cyan has experienced tremendous growth in recent years, and while they could have sought out a new space anywhere, were committed to staying local and partnering with us on this new Class A facility."

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