DATE: July 7, 2019
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director of Social Services
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: First Amendment to Lease Agreement 17-644
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute First Amendment to Lease Agreement No. 17-644 with Pontiac 3 & 5, LLC, at 200 Pontiac Way, Clovis, CA 93612, for Tenant Improvements, increasing the office space from 23,580 square feet to 95,534 square feet and reducing the warehouse space from 65,227 square feet to 0 square feet, excluding the 9-11 Memorial from the Lease, and Renewing the Lease for one (1) nineteen-year period upon completion of Tenant Improvements, total not to exceed ($87,786,679).
2. Authorize the Director of Internal Services/Chief Information Officer or his/her representative, to approve and execute Occupancy Notice confirming the building square footage, not to exceed 95,534 square feet, rent schedule, and final tenant improvement amortization schedule.
REPORT
Approval of the recommended action will amend the current Lease to create a nineteen-year Lease for 95,534 square feet of office space ($1.35/square foot, with increases every year) for use by the Department of Social Services (DSS). The Lease maximum for the first year is $4,307,518, with no increase in Net County Cost. This includes base rent of $1,547,650.80, plus tenant improvement rent. The total cost for the tenant improvements is not to exceed $25,974,366.56, which shall be amortized over the Lease term. The recommended Lease Amendment also changes the Lease to exclude the existing 9-11 Memorial from the Lease, as the lessor desires to utilize that space for public access and memorial ceremonies. This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
Your Board could direct the Department of Social Services to not renovate the building. However, this would result in an office space which does not meet...
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