HomeMy WebLinkAboutMINUTES - 10232012 - C.36RECOMMENDATION(S):
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a Subordination, Attornment and
Non-disturbance Agreement (SNDA) with Comerica Bank (Bank) related to the County’s executed lease with 3052
Willow Pass Road LLC for a portion of the building at 3024 Willow Pass Road, Concord for use as part of the
Concord Health Clinic. (WW0742)
FISCAL IMPACT:
There is no fiscal impact from approving the proposed action. A negative action could increase the initial cost of
constructing tenant improvements on the leased premises.
BACKGROUND:
In January 2012, the County executed a lease for a portion of the building at 3024 Willow Pass Road, Concord to
expand the Concord Health Clinic, which is currently located in an adjacent building. Under the subject lease, the
landlord is required to cause any lender that has a security interest in the building to enter into a SNDA with the
County. The purpose of the SNDA is to ensure that the County’s lease cannot be extinguished if a lender forecloses
on a
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 10/23/2012 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
925-313-8130
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: October 23, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: J. Carlson, Real Estate Division, Auditor-Controller
C. 36
To:Board of Supervisors
From:Julia R. Bueren, Public Works
Date:October 23, 2012
Contra
Costa
County
Subject:3024 Willow Pass Road, Concord – Subordination, Attornment and Non-disturbance Agreement
BACKGROUND: (CONT'D)
loan that is secured by the building at 3024 Willow Pass Road.
The landlord is seeking a loan from the Bank in order to make improvements to the building, improvements that
are necessary to expand the health clinic. Without a SNDA, if the Bank were to foreclose on its loan to the
landlord, the foreclosure would terminate the County’s lease. The SNDA here assures that the County’s right to
the premises as a tenant will be preserved even if the landlord defaults on its loan and the lender forecloses. The
protection afforded the County by a SNDA is important here, given the cost of the improvements being made to
the building to conform it to use as a health clinic, and the County’s desire to remain in the building over a long
term.
CONSEQUENCE OF NEGATIVE ACTION:
If the SNDA is not approved, the Bank may not approve the loan to the County’s landlord, which the landlord
intends to use to pay for the tenant improvements. If the anticipated loan from the Bank to the landlord is not
made, the Health Services Department may have to terminate the lease or pay a greater percentage of the cost of
the tenant improvements. In addition, a negative action is likely to delay construction of the desired tenant
improvements.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
SNDA