DATE: January 23, 2018
TO: Board of Supervisors
SUBMITTED BY: Lisa Smittcamp, District Attorney - Public Administrator
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Lease/Option to Purchase Agreement #17-520
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute First Amendment to Lease/Option to Purchase Agreement #17-520 with River Park Properties III to extend the Contingencies expiration period from February 1, 2018 to June 30, 2018.
REPORT
The current lease/option to purchase agreement (Agreement #17-520) is contingent upon Landlord obtaining New Market Tax Credits and includes provisions allowing the Landlord to terminate Agreement #17-520 by the date of February 1, 2018 or provide written assurance that the Landlord Contingency of securing New Market Tax Credits has been satisfied. The Landlord has requested to extend the contingency period end date from February 1, 2018 to June 30, 2018.
ALTERNATIVE ACTION(S):
Your Board can choose not to extend the Landlord Contingency and by doing so the Landlord’s right to terminate Agreement #17-520 under the Landlord Contingency provision will expire on February 1, 2018 as is presently provided in Agreement No. 17-520.
FISCAL IMPACT:
The recommended action will have no fiscal impact.
DISCUSSION:
On September 26, 2017 the Fresno County Board of Supervisors approved Agreement #17-520, a lease/option to purchase agreement of the Rowell Building at 2100 Tulare Street, Fresno, for office use by the District Attorney - Public Administrator. This concluded a facilities search that begun in 2013 to consolidate this County department’s staff and operations.
The Agreement #17-520 includes Contingencies provisions with expiration dates of February 1, 2018. The contingencies include Section 35.1 Landlord Contingency providing that Agreement #17-520 shall be contingent and conditional upon Landlord obtaining New Market Tax Credits and providing Landlord the right to terminate Agreement No. 17-520 on or prior to the date of February 1, 2018. The contingencies also include Section 35.2 Plans and Cost Contingency providing that Agreement No. 17-520 shall be contingent and conditional upon Landlord and the County (Tenant) mutually approving the plans and costs for Tenant Improvements and providing both Landlord and County (Tenant) the right to terminate Agreement No. 17-520 on or prior to February 1, 2018. Sections 35.1 and 35.2 also allow Landlord and County (Tenant) to execute, prior to February 1, 2018, written assurances that the contingencies have been satisfied and ending either parties’ right to terminate Agreement 17-520.
The Landlord has requested to extend the Contingency period due to the changes in New Market Tax Credits which took effect on January 1, 2018.
The recommended First Amendment To Lease/Option to Purchase Agreement #17-520 extends the above-mentioned Contingency expiration dates from February 1, 2018 to June 30, 2018.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with the Clerk:
- First Amendment To Lease/Option to Purchase Agreement;
- Lease/Option to Purchase Agreement # 17-520.
CAO ANALYST:
Jeannie Z. Figueroa