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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