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HomeMy WebLinkAboutMINUTES - 03312015 - C.65RECOMMENDATION(S): APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a second amendment to the lease agreement with 230 Alamo Plaza, LLC, for a five-year term from January 1, 2015 to December 31, 2019, for continued use of approximately 3,000 square feet of office space located at 150 Alamo Plaza, Suites B and C, Alamo, at a rent of $7,376 per month, for occupancy by the Sheriff-Coroner, under the terms and conditions set forth in the second amendment to lease agreement. (WLP867) FISCAL IMPACT: 100% General Fund. BACKGROUND: The Sheriff-Coroner has occupied this location since February 1996 as a substation for its patrol activities in the south central area of the Contra Costa County (County). Approving a second amendment to lease will provide for the Sheriff-Coroner’s continued occupancy at this location to support law enforcement activities and services to the residents of this area. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 03/31/2015 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor ABSENT:John Gioia, District I Supervisor Federal D. Glover, District V Supervisor Contact: Steven B. Van Horn (925) 313-2131 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: March 31, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: C. 65 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:March 31, 2015 Contra Costa County Subject:150 Alamo Plaza, Suites B and C, Alamo – Second Amendment to Lease for the Sheriff-Coroner BACKGROUND: (CONT'D) The second amendment to lease will obligate the County to pay rent of approximately $469,920.00 over the five-year extended term. The first year’s rent was anticipated and budgeted in the Sheriff-Coroner’s approved 2014/15 budget. CONSEQUENCE OF NEGATIVE ACTION: Not authorizing a second amendment to lease for the Sheriff-Coroner’s continued occupancy at 150 Alamo Plaza, Suites B and C, Alamo, would require the Sheriff-Coroner to either not have a substation in the south central area of the county to provide law enforcement services to residents of this area, or require finding another location for its substation in the area at an additional expense. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS Second Amendment Lease 1 Second Amendment to Lease 150 Alamo Plaza, Suites B and C Alamo, California Contra Costa County Sheriff-Coroner This second amendment to lease is dated March 31, 2015 and is between 230 Alamo Plaza, LLC, a California limited liability company (the “Lessor”) and the County of Contra Costa, a political subdivision of the State of California (the “County”). Recitals A. The Lessor and the County are parties to a lease dated September 19, 2006, as amended on March 27, 2012 (the “Lease”), under which the County is leasing approximately 3,000 square feet consisting of Suites B and C in the building located at 150 Alamo Plaza, Alamo, California. B. On December 31, 2014, the parties agreed to extend the Lease on a month-to-month basis. C. The parties desire to amend the Lease to extend the term, revise the rent, change address information in the notices section, add additional language to the common area – maintenance reimbursement section, and change language in the property tax section of the lease. The parties therefore agree as follows: Agreement 1. Paragraph A.3. Term is deleted in its entirety and replaced with the following: A.3. Term: The term (“Term”) of this Lease begins on October 1, 2006, and ends December 31, 2019. County has no renewal options under this Lease. The Premises are leased in their “AS IS” condition, and Lessor has no obligation to provide or to fund any tenant improvements. 2. Paragraph A.4. Rent is deleted in its entirety and replaced with the following: A.4. Rent: County shall pay to Lessor as rent (“Rent”) for the use of the Premises a monthly rent as follows: 1. FIFTEEN THOUSAND ONE HUNDRED TWENTY AND NO/100 DOLLARS ($15,120.00) for the month commencing October 1, 2006 and ending October 31, 2006. 2. SIX THOUSAND AND NO/100 DOLLARS ($6,000.00) per month commencing November 1, 2006 and ending September 30, 2007. 2 3. SIX THOUSAND ONE HUNDRED EIGHTY AND NO/100 DOLLARS ($6,180.00) per month commencing October 1, 2007 and ending September 30, 2008. 4. SIX THOUSAND THREE HUNDRED SEVENTY AND NO/100 DOLLARS ($6,370.00) per month commencing October 1, 2008 and ending September 30, 2009. 5. SIX THOUSAND FIVE HUNDRED SIXTY AND NO/100 DOLLARS ($6,560.00) per month commencing October 1, 2009 and ending September 30, 2010. 6. SIX THOUSAND SEVEN HUNDRED FIFTY AND NO/100 DOLLARS ($6,750.00) per month commencing October 1, 2010 and ending December 31, 2012. 7. SIX THOUSAND NINE HUNDRED FIFTY-TWO AND NO/100 DOLLARS ($6,952.00) per month commencing January 1, 2013 and ending December 31, 2013. 8. SEVEN THOUSAND ONE HUNDRED SIXTY-ONE AND NO/100 DOLLARS ($7,161.00) per month commencing January 1, 2014 and ending December 31, 2014. 9. SEVEN THOUSAND THREE HUNDRED SEVENTY-SIX AND NO/100 DOLLARS ($7,376.00) per month commencing January 1, 2015 and ending December 31, 2015. 10. SEVEN THOUSAND FIVE HUNDRED NINETY-SEVEN AND NO/100 DOLLARS ($7,597.00) per month commencing January 1, 2016 and ending December 31, 2016. 11. SEVEN THOUSAND EIGHT HUNDRED TWENTY-FIVE AND NO/100 DOLLARS ($7,825.00) per month commencing January 1, 2017 and ending December 31, 2017. 12. EIGHT THOUSAND SIXTY AND NO/100 DOLLARS ($8,060.00) per month commencing January 1, 2018 and ending December 31, 2018. 13. EIGHT THOUSAND THREE HUNDRED TWO AND NO/100 DOLLARS ($8,302.00) per month commencing January 1, 2019 and ending December 31, 2019. The total monthly Rent is payable in advance, without notice or demand, on the tenth (10th) day of each month during the Term of this Lease. Payments are to be mailed to: 230 Alamo Plaza, LLC, P. O. Box 66, Rodeo, CA 94572, or such other place as Lessor may designate in writing from time to time. 3 3. Paragraph A.6. Notices is deleted in its entirety and replaced with the following: A.8. Notices: All notices given hereunder shall be in writing and shall be deemed to have been given if personally delivered, sent by nationally-recognized overnight courier services, or deposited in the United States mail postage prepaid, certified or registered, return receipt requested, and addressed to the other party as follows, or as otherwise designated by written notice hereunder from time to time: To Lessor: c/o Colliers International 1850 Mt. Diablo Boulevard, Suite 200 Walnut Creek, CA 94596 Attention: Alamo Plaza Property Manager With a copy to: Invesco Real Estate 2001 Ross Avenue, Suite 3400 Dallas, TX 75201 Attention: Alamo Plaza Asset Manager To County: Contra Costa County Public Works Department Attn: Principal Real Property Agent 255 Glacier Drive Martinez, CA 94553 4. Paragraph C.7. Common Area – Maintenance Reimbursement is deleted in its entirety and replaced with the following: C.7. Common Area – Maintenance Reimbursement: County agrees to reimburse Lessor for County’s share of the actual costs incurred by Lessor for insuring the S hopping Center, in lighting the common areas, in keeping same striped, clean, and cleared of all debris, including snow and ice, and in maintaining the common area in good repair, excluding, however, the costs of any capitalized improvements or additions to the common area. County shall so reimburse Lessor after receipt of satisfactory evidence of said costs and the amount due from County, on a monthly basis concurrently with Rent. County’s share (“Proportionate Share”) shall be a fraction of said costs, the numerator of which fraction shall be 3,000 square feet, which is the area of the leased Premises, and the denominator of which fraction shall be as follows: (i) for common area maintenance charges, 197,688 square feet, (ii) for liability insurance, 140,548 square feet, and (iii) property insurance, 113,264 square feet. County’s Proportionate Share may change from time to time as the leasable square footage and/or configuration of the Shopping Center is changed. County acknowledges that it is responsible for the payment of its Proportionate Share of costs incurred by Lessor for property insurance premiums, as provided above. County and Lessor acknowledge that Lessor has failed to bill County, and County has not paid, its Proportionate Share of property insurance costs in prior years. Lessor 4 hereby waives any claim Lessor may have to collect County’s Proportionate Share of property insurance for any prior years of the Term through and including calendar year 2013. Effective January 1, 2014 and thereafter throughout the remainder of the Term of this Lease (as hereby extended), County shall be responsible for payment of its Proportionate Share of property insurance costs. County’s Proportionate Share of property insurance for calendar year 2014, which have not been paid by County, will be billed to County by Lessor in conjunction with Lessor’s annual reconciliation of common area costs during the first quarter of 2015, and County shall pay any amounts due to Lessor based on such reconciliation, including County’s Proportionate Share of property insurance costs for 2014, within thirty (30) days of receipt of a billing therefor. 5. Paragraph C.9. Property Taxes is deleted in its entirety and replaced with the following: C.9. Property Taxes: County shall pay to Lessor within thirty (30) days after being requested to do so by Lessor during the Term, as additional rent, County’s share of any real property taxes, assessments and levies, excluding any leasable square feet of any building separately assessed or parceled for which one hundred percent (100%) of the taxes are paid by any tenant or occupant of such building(s) or parcel(s). County’s share of real property taxes is based on a fraction, the numerator if which is 3,000 square feet and the denominator of which is 126,746 square feet. County’s share of real property taxes may change from time to time as the leasable square footage of the tax parcel is changed. At Lessor’s option, County shall pay County’s share of real property taxes on a monthly basis concurrently with Rent. It is understood that during the last year of occupancy, the taxes will be prorated between Lessor and County according to the number of full months the County shall have possession of the Premises. 6. All other terms of the Lease remain unchanged. (Remainder of Page Intentionally Left Blank) 5 Lessor and County are causing this Second Amendment to Lease to be executed as of the date set forth in the introductory paragraph. COUNTY LESSOR COUNTY OF CONTRA COSTA, a political subdivision of the State of California 230 ALAMO PLAZA, LLC, a California limited liability company By: Invesco Advisors, Inc., Manager By By Kevin Johnson Julia R. Bueren Public Works Director Assistant Vice President RECOMMENDED FOR APPROVAL: JULIA R. BUEREN, Public Works Director By______________________________ Karen Laws Principal Real Estate Agent By______________________________ Steven B. Van Horn Senior Real Property Agent APPROVED AS TO FORM: SHARON L. ANDERSON, County Counsel By______________________________ Kathleen M. Andrus Deputy County Counsel SBV:jc 150Alamoamendment13.3 G:\realprop\Board Orders\2015\03-March\March 31\Alama Plaza_SVH\150Alamoamendment13.3.doc