DATE: August 19, 2025
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
Raymond T. Hunter, Director, General Services Department
SUBJECT: Amendment No. 4 to Heritage Centre, LLC Lease Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 4 to Lease Agreement No. 22-059 with Heritage Centre, LLC, to revise the scope of work for additional unforeseen tenant improvements to the Heritage Centre located at 3109, 3115, 3119, 3121, 3127, 3133, 3147, 3151, and 3155 N. Millbrook Avenue and 3676 and 3708 E. Shields Avenue, CA 93726 (APN 445-020-07, 445-020-09 and 437-290-60), effective upon the parties' execution with no change to the term of March 1, 2022, through February 29, 2032, and increasing the maximum rent (excluding operating costs) by $3,831,645 for a total of $53,989,907.
REPORT
There is no additional Net County Cost associated with the recommended action. Approval of the recommended action will permit the Department of Behavioral Health (DBH) to authorize the lessor to make necessary renovations at the Heritage Centre, located at Millbrook and Shields Avenues in Fresno (Heritage Centre). After conferring with the lessor, staff learned that large-scale tenant improvements (TI) to the space were determined necessary for the space to comply with City of Fresno and State of California Department of Health Care Services (DHCS) regulations for mental health facilities. The recommended amendment includes $3,831,645 in TI for DBH, which will be funded with Mental Health Realignment and Mental Health Services Act (MHSA) funds. Due to the evolving nature of the project and potential for additional compliance-related costs, DBH will return to your Board at a later date for approval of additional appropriations if necessary. This pertains to a location within District 3.
ALTERNATIVE ACTION(S):
Your Board may opt to direct DBH to cease further improvements to the Heritage Ce...
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