DATE: January 21, 2020
TO: Board of Supervisors
SUBMITTED BY: Delfino Neira, Director, Department of Social Services
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease Agreement with Kosla Properties, LLC for Office Space at 3830 McCall Ave., Selma
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute a lease agreement with Kosla Properties, LLC, for 21,440 square feet of office space at 3830 McCall Ave, Selma, CA 93662, for use by the Department of Social Services, effective upon the first date of occupancy, not to exceed 19 consecutive years, total not to exceed $13,112,149.
2. Authorize the Director of Internal Services to terminate L-281 (Agreement #13-511) upon completion of tenant improvements at 3830 McCall Ave., Selma, CA 93662.
REPORT
Approval of the first recommended action will authorize the execution of a 19-year lease for 21,440 square feet of office space for the Department of Social Services to continue providing services to Selma residents. The maximum for the first year's rent under the recommended lease is $240,000, and will increase by 2% annually. The County currently leases space from this property owner under Lease L-281. Approval of the second recommended action will allow the Director of Internal Services to terminate L-281 upon completion of the tenant improvements at the new space. This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
Your Board could opt not to approve the recommended actions and have the Department wait for the current lease to expire in 2021; however, the proposed building may not be available at that time.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The maximum amount of the recommended Lease Amendment for the nineteen-year term is $13,112,149, which includes $5,481,734 in rent and $7,630,415 in tenant improvements. The cost for the Agreement will be offset with State and Fede...
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