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File #: 19-1514    Version: 1 Name: First Amendment to UMC Purchase Sale Agreement and Lease
Type: Agenda Item Status: Approved
File created: 10/30/2019 In control: Internal Services
On agenda: 11/5/2019 Final action:
Enactment date: Enactment #: Agreement No. 19-486-1, Agreement No. 19-488-1
Title: 1. Approve and authorize the Chairman to execute First Amendment to Sale/Purchase Agreement No. 19-486 with CMG Construction Management, Inc. (CMG) to extend CMG's 60-day due diligence period to a 90-day due-diligence period. 2. Approve and authorize the Chairman to execute First Amendment to Lease Agreement No. 19-488 with CMG Construction Management, Inc. to update the end date of the Phase 1 term of the Lease to December 31, 2021, and to update the end date of the Phase 2 term of the Lease to December 31, 2020.
Attachments: 1. Agenda Item, 2. Agreement A-19-486-1 with CMG Construction Management, Inc. - Sale/Purchase Agreement, 3. Agreement A-19-488-1 with CMG Construction Management, Inc. - Lease Agreement
DATE: November 5, 2019

TO: Board of Supervisors

SUBMITTED BY: Robert W. Bash, Director, Internal Services/Chief Information Officer

SUBJECT: First Amendment to UMC Purchase Sale Agreement and Lease

RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute First Amendment to Sale/Purchase Agreement No. 19-486 with CMG Construction Management, Inc. (CMG) to extend CMG's 60-day due diligence period to a 90-day due-diligence period.

2. Approve and authorize the Chairman to execute First Amendment to Lease Agreement No. 19-488 with CMG Construction Management, Inc. to update the end date of the Phase 1 term of the Lease to December 31, 2021, and to update the end date of the Phase 2 term of the Lease to December 31, 2020.
REPORT
Approval of the first recommended action will extend CMG's due diligence period by 30 days, for a total 90-day due diligence period. Approval of the second recommended action will update the term end dates of Phase 1 and Phase 2 of Lease Agreement No. 19-488. All other terms of the Sale/Purchase Agreement and Lease Agreement remain the same. This item is countywide.

ALTERNATIVE ACTION(S):

There is no viable alternative action.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended actions. Approval of the recommended actions will only extend the due diligence period for the Sale/Purchase Agreement and the end dates of the Phase 1 and Phase 2 terms of the Lease Agreement.

DISCUSSION:

On September 24, 2019, your Board approved Sale/Purchase Agreement No. 19-486, to sell the former University Medical Center campus (UMC) to CMG Construction Management, Inc. (CMG). Sale/Purchase Agreement No. 19-486 included a 60-day due diligence period for the Buyer to complete its inspection of the property. CMG notified ISD that they will be unable to complete their due-diligence inspections on the property within the 60-day timeframe, and have requested an additional 30 days. Approval of the first recommended...

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