Loading...
HomeMy WebLinkAboutMINUTES - 10271992 - 1.51 -51 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS DATE: October 20, 1992 FROM: Richard J. Martinez, Acting Interim Executive Director SUBJECT: CONCORD OFFICE SPACE LEASE I. RECOMMENDED ACTION: APPROVE the Amendment to Lease for 3,401 rentable square feet of office space at the Willows Office Park at an effective rental rate of $1.35 per square foot per month, fully serviced, which serves as the Concord Housing Office and AUTHORIZE the Acting Interim Executive Director to proceed with the execution of the necessary amendment to the lease for this office space once the amendment to the lease has been approved by County Counsel , as recommended by the Advisory Housing Commission. II. FINANCIAL IMPACT: The rental schedule for the five year lease shows $1.35 per rentable square foot per month, fully serviced. The rental costs for this office will be charged to the Section 8 Certificate and Housing Voucher Programs. III. REASONS FOR RECOMMENDATION/BACKGROUND: On June 19, 1987 the Housing Authority entered into a five year lease for office space at the Willows Office Park in Concord with the Contra Costa County Employees Retirement Association. The term of that lease has now expired and staff recommends that the Housing Authority enter into an amended lease for an additional five year period at $1.35 per rentable square foot for the 3,402 square feet of office space utilizied as the Concord Housing Office. Rental costs will be charged to the Section 8 Certificate and Housing Voucher Programs and. County Counsel is currently reviewing the proposed amendment to the lease. At its Regular Meeting on Monday, October 19, 1992 the Advisory Housing Commision voted to recommend approval of the Amendment to Lease for the 3,401 rental square feet of office space at the Willows Office Park at a rental rate of $1.35 per square foot, fully serviced, currently utilized as the Concord Housing Office. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not approve the Amendment to Lease on the office space at the Willows Office Park the Housing Authority would be forced to locate other available office space which might not have such favorable rental terms. CONTINUED ON ATTACHMENTt YES SIGNATUREt RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF 1300RD COMMITTEE APPROVE OTHER SIGNATURE($) ACTION OF BOARD ON ' _ - _ APPROVED AS RECOMMENDED OTHER VOTE OF COMMISSIONERS X UNANIMOUS (ABSENT ) I HEREBY CERTIFY THAT THIS A TRUE AND AYES: NOES: CORRECT COPY OF AN ACTION TAKEN AND ABSENT: ABSTAIN: ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. �gtej CC: ATTESTED a Phil Batchelor, Clerk of the Board of Commissioners M362/7•03 BY I , DEPUTY AMENDMENT TO LEASE THIS AMENDMENT TO LEASE entered into on October 20, 1992 and effective November 1, 1992, between CONTRA COSTA COUNTY EMPLOYEES RETIREMENT ASSOCIATION hereafter "Landlord", and HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA, hereafter "Tenant". The parties have heretofore entered into an Office Building Lease dated June 19, 1987, covering the rental of Suite 265 located on the second floor of that certain office building known as Willows Office Park, 1355 Willow Way, Concord, CA 94520. The parties are desirous of amending the above referred to lease and amendment and set forth below the terms and conditions of such amendment as agreed upon by the parties hereto: 1. TERM. This Lease shall be for a term of five (5) years commencing on November 1, 1992. 2. BASIC MONTHLY RENTAL - Throughout the term hereof, Tenant shall pay to Landlord, Basic Monthly Rental for the Premises, in lawful money of the United States, without deduction or offset or prior notice or demand, in advance, on the first (1st) day of each calendar month of the term hereof in monthly installments of: Months 1-60 $4,591 .35 This amount represents $1 .35 per rentable square foot on the 3401 rentable square feet in the Premises. The building was remeasured in 1991, and all leases and renewals will reflect the new accurate calculations. 3. OPTION TO RENEW. In the event Tenant is not in default in the performance of this Lease then Tenant shall receive one (1) five (5) year option to renew the lease by giving written notice to Landlord no later than 180 days before lease expiration (of the lease in effect at the time) of intention to exercise option. The option base rental rate to be determined for the extension period shall equal the then prevailing market rental rate (new minimum rent) but in no event less than Tenant is paying in the 60th month of the extended term,which is to be mutually agreed upon by Landlord and Tenant. "Fair Market Value" is defined as comparable space in a comparable building of similar age and class in the Concord area as promulgated by three or more independent experienced commercial brokers who have personally negotiated similar transactions to the transaction at issue. If the parties cannot agree on the minimum monthly rent for the period beyond Tenant's initial lease term (hereinafter referred to as period), then within thirty (30) days after Lessee has exercised its option to extend, each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least three (3) years; full-time commercial appraisal experience in the area in which the premises are located to appraise and set the minimum monthly rental and any future rental escalations during the option period thereof. If the party does not appoint an appraiser within ten (10) days after the other 1 -• s party has given notice of the same, its appraiser shall set the minimum monthly rent for the period. The two appraisers appointed by the parties as stated in this paragraph shall meet promptly and attempt to set the minimum monthly rent for the period. If they are unable to agree within thirty (30) days after the second appraiser has been appointed, then the two appraisers will elect a third appraiser meeting qualifications stated above within teen (10) days after the last day the two appraisers are given to set the minimum rent. The third appraiser will then choose one of the minimum monthly rent figures proposed by the two former appraisers which, in the third appraiser's opinion, most closely approximates fair market value in respect to new minimum monthly rent and any future rental escalations during the option period. Thus, the new minimum monthly rent will be determined to be fair market value not including any future rental escalations during the option period. Other than as amended above, the Office Building Lease dated June 19, 1987, shall remain in full force and effect during the term as extended by this Amendment to Lease. LANDLORD TENANT CONTRA COSTA COUNTY HOUSING AUTHORITY OF THE EMPLOYEES RETIREMENT ASSOCIATION COUNTY OF CONTRA COSTA BY: MELLON/MCMAHAN REAL ESTATE BY: ADVISORS, INC. BY: BY: DATE: DATE: 2