HomeMy WebLinkAboutMINUTES - 09252012 - C.37RECOMMENDATION(S):
APPROVE a First Amendment to Lease with 3052 Willow Pass Road LLC and the Subordination, Attornment and
Non-Disturbance Agreement with Comerica Bank, et al, to expand the Concord Health Clinic into leased space
located at 3024 Willow Pass Road, Concord, to restate the rent to reflect the Lessor’s financing, and to include dates
by which the Lessor will provide tenant improvements and furniture plans, under terms and conditions set forth in the
First Amendment to Lease. (WW0742)
AUTHORIZE the Director of Public Works, or designee, to EXECUTE the First Amendment to Lease and the
Subordination, Attornment and Non-Disturbance Agreement on behalf of the County, and to exercise any options to
extend the lease.
FISCAL IMPACT:
The County will have to pay an additional $200,000 to construct the tenant improvements, and will pay
approximately $166,580 less in interest cost over the term of the Lease. (Funding source: Fund # 145000 – Health
Services Enterprise Fund )
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 09/25/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Dick Awenius (925)
313-2130
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: September 25, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Carrie Del Bonta, Deputy
cc: J. Carlson, Public Works, Auditor-Controller
C. 37
To:Board of Supervisors
From:Julia R. Bueren, Public Works
Date:September 25, 2012
Contra
Costa
County
Subject:3024 Willow Pass Road, Concord – First Amendment to Lease
BACKGROUND:
The original Lease assumed the Lessor would take a loan of $500,000 amortized at 7% over 10 years to pay for a
portion of the tenant improvements. The County would then repay the Lessor’s amortized cost of the loan over the
first 10 years of the lease, and would also pay for the remainder of the tenant improvements in cash. The First
Amendment to Lease provides the County will pay an additional $200,000 in cash, and the Lessor’s loan would be
for only $300,000 amortized at 4.25% over 4 years. As a result, the County’s net interest cost to amortize the
Lessor’s loan will be reduced by approximately $166,580. The Improvements section of the Lease is also being
amended to add dates by which the Lessor will provide tenant improvements and furniture plans.
CONSEQUENCE OF NEGATIVE ACTION:
The lease will not be amended, and the Lessor will not have sufficient funds to pay for the tenant improvements.
The Health Services Department would then either have to pay for the entire cost of the tenant improvements
above a lessor’s allowance in cash, or terminate the lease.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
SNDA
Lease Amendment