DATE: February 22, 2022
TO: Board of Supervisors
SUBMITTED BY: Susan Holt, Interim Director, Department of Behavioral Health
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Heritage Centre Lease Agreement
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute a Lease Agreement with Heritage Centre, LLC for approximately 173,200 square feet of combined office and storage space located at 3109, 3115, 3119, 3121, 3127, 3133, 3147, 3151, and 3155 N. Millbrook Avenue and 3676 and 3708 E. Shields Avenue, CA 93726, for use by the Department of Behavioral Health, effective March 1, 2022, not to exceed ten years, which includes tenant improvements and a purchase option ($43,559,311); and,
2. Authorize the Director of the Internal Services Department/Chief Information Officer, or designee, upon review by County Counsel as to legal form and Auditor-Controller/Treasurer-Tax Collector as to accounting form, to execute an Estoppel Certificate and/or Subordination and Attornment Agreement required by the Lessor, and any other such necessary agreements, certificates, notices, instruments, or documents.
REPORT
There is no Net County Cost associated with the recommended actions. Approval of the recommended actions will permit the Department of Behavioral Health (DBH) to continue to utilize the majority of the space at the Heritage Centre, located at Millbrook and Shields Avenues in Fresno. The recommended agreement includes tenant improvements to allow the Department to fully utilize the space and an option to purchase the property at the end of the lease for $1,000,000. Approval of the recommended actions will authorize the Director of the Internal Services Department/Chief Information Officer, or designee, to execute any documents required by the lessor during the term, including, but not limited to, an estoppel certificate or subordination and attornment agreement. The lease will be funded with Mental Health Real...
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