HomeMy WebLinkAboutMINUTES - 10222013 - C.35RECOMMENDATION(S):
APPROVE the First Amendment to Lease with Sand Creek Business Associates I, LLC, to extend the term for ten
years and six months beginning February 1, 2015 and ending August 31, 2025, and to reduce the rent, to receive free
rent allowance, and to receive a leasing commission for use of approximately 10,052 square feet of medical office
space located at 171 Sand Creek Road, Units A through E, Brentwood, for the continued occupancy by the Health
Services Department, under the terms and conditions set forth in the Lease.
AUTHORIZE the Public Works Director, or designee, to execute the First Amendment to Lease on behalf of the
County, and to exercise any options to extend the Lease.
FISCAL IMPACT:
The Lease costs were anticipated and budgeted in the Health Services Department’s approved FY 2013/2014 budget.
(100% Health Services – Enterprise Fund)
BACKGROUND:
The County’s Health Services Department (HSD) has occupied the premises
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 10/22/2013 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: D. Silva, (925)
313-2132
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 22, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stacey M. Boyd, Deputy
cc:
C. 35
To:Board of Supervisors
From:Julia R. Bueren, Public Works Director/Chief Engineer
Date:October 22, 2013
Contra
Costa
County
Subject:171 Sand Creek Road, Units A - E, Brentwood - First Amendment to Lease for Health Services Department
BACKGROUND: (CONT'D)
since January 2005. In early 2013, the County asked the Lessor to consider granting the County an extension of
the lease term. HSD has approved the extension of the term. In exchange for the extended lease term, the County
negotiated a reduction in rent, an additional renewal term of five years, and a real estate commission.
The County's current lease for the premises expires January 31, 2015. This First Amendment to Lease extends the
lease term by ten years and six months from February 1, 2015, through August 31, 2025; will reduce the rent paid
by the County during the existing lease term by $156,480, or approximately 43%; will obligate the County to pay
a total rent of $1,947,990 over the extension period; and, will require the Lessor to pay the County a real estate
commission of $18,695.70.
CONSEQUENCE OF NEGATIVE ACTION:
If the lease amendment is not approved, the Health Services Department will either have to remain in their current
location and pay a higher rent than market, not have a lease extension option, not receive a real estate
commission, or find other office space in the East County area and absorb the moving costs.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
First Amendment to Lease