DATE: July 18, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Lease Agreement with Pontiac 4 LLC
RECOMMENDED ACTION(S):
TITLE
1. Approve and accept the assignment of Lease Agreement No. 17-645 with Pontiac 3 & 5 LLC to its successor entity, Pontiac 4 LLC;
2. Approve and authorize the Chairman to execute a First Amendment to Lease Agreement with Pontiac 4 LLC, a California Limited Liability Company, for approximately 37,282 square feet of office space and 65,252 square feet of warehouse space located at 200 W. Pontiac Way, Clovis CA 93612, to establish the option to purchase the property for $15,700,000 and establishing the date of rent commencement as September 1, 2023, not to exceed 10 years ($20,958,510); or
3. As an alternative, direct the CAO or his designee to provide notice of termination of Lease Agreement 17-645 pursuant to the terms of that agreement on the grounds that there are no longer state and federal funds available to fund the lease payments.
REPORT
Approval of the first recommended action will assign the rights, responsibilities, and obligations of Pontiac 3 & 5 under lease agreement No. 17-645 (Agreement), over to its successor entity, Pontiac 4 LLC. Approval of the second recommended action will amend the Agreement to establish the option to purchase the property located at 200 W. Pontiac Way, Clovis, CA 93612 (Premises) for $15,700,000, establish the date of rent commencement as September 1, 2023, and removes the non-funding provision from the lease. As an alternative to the second recommended action, approval of the third recommended action would direct staff to terminate the Agreement pursuant to the non-funding clause. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
Your Board may direct the Internal Services Department (ISD) to pursue other facility options, including but not limited to keeping the Agreement in...
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