DATE: June 22, 2021
TO: Board of Supervisors
SUBMITTED BY: Dawan Utecht, 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 retroactive Lease Agreement with Heritage Centre, LLC for approximately 163,170 square feet of combined office and storage space located at 3109, 3127, 3133, 3147, and 3676 N. Millbrook, Fresno, CA 93726, for use by the Department of Behavioral Health, effective February 1, 2021, not to exceed two years and five months, which includes a one-year and five month base contract and an automatic one-year extension ($5,987,668); 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 to utilize the majority of the space at the Heritage Centre while consolidating several lease agreements for simpler administration. The term will allow the Department to finalize plans for future tenant improvements, negotiate and enter into a longer-term lease agreement with an option to purchase the property. Approval of the recommended action items 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. This item pertains to a location in District 3.
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