DATE: March 24, 2020
TO: Board of Supervisors
SUBMITTED BY: Raman Bath, County Librarian
Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Lease Agreement with Marks Bullard Investors LP - Fig Garden Library
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a lease Agreement with Marks Bullard Investors LP, for 17,678 square feet of office space located at 3071 W. Bullard Ave, Suite 20A & B, Fresno, CA 93711, for use by the Library, effective upon the first date of occupancy, not to exceed 15 consecutive years, total not to exceed $3,585,098.
REPORT
There is no Net County Cost associated with the recommended action. Approval of the recommended action will permit the Fig Garden Branch Library to remain at its current location at Marks and Bullard in Fresno and allow the Library to expand into an adjacent space, for an initial five-year term, with an option to renew for five additional two-year periods. Each renewal shall occur automatically unless the County provides a 180-day written notice of non-renewal. The County currently leases space from this property owner under existing Lease L-041 (Agreement # 05-115) on a month-to-month basis. This item pertains to a location in District 2.
ALTERNATIVE ACTION(S):
Your Board could direct the Library to pursue other facility options. However, it would result in a lost opportunity to remain in a desirable location that fulfills the needs of the Library, and serves the residents of northwest Fresno.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action. The rent is $18,032 per month for 17,678 square feet ($1.02/square foot) for the first year, and will increase by $0.02 per square foot for each additional year, during the 5-year primary term. After the primary term, the rent will increase by $0.02 per square foot, for of each of the five (5), 2-year renewal periods. The maximum rent for the potential 15-year term is $3,585,098. Sufficient appropriations are included in the Library’s org 7511. The Library has been leasing 10,218 square feet of space for $11,123 per month ($1.09 psf) on a month-to-month basis, with no rate increase since June 1, 2015.
DISCUSSION:
The Fig Garden Library has been located at Marks and Bullard since February 1, 1995. On April 26, 2005, the Board approved the existing Lease Agreement # 05-115 for an eight-year initial term, with the option to renew for three additional one-year periods, not to extend beyond May 31, 2016. On May 24, 2016, the Board approved First Amendment to Agreement # 05-115, to continue the lease on a month-to month basis and authorized the County Librarian or Director of Internal Services/Chief Information Officer to terminate the lease upon 30 day written notice. The Library currently pays $11,123 per month in rent for 10,218 square feet of office space ($1.09/square feet) in the current location.
The expansion of the Fig Garden branch, provides the Library with the opportunity to increase the size of the current meeting room, create a larger quiet space, add additional restroom facilities, and improve ADA accessibility. The expansion will also provide staff with a lactation room, increase the amount of available storage space, and allow the Library to more effectively meet the needs of the community.
Approval of the recommended action will permit the Fig Garden Branch Library to remain at its current 10,218 square feet space and expand into an adjacent 7,460 square feet space (17,678 square feet total), for an initial five-year term, with an option to renew for five additional two-year periods, not to exceed 15 consecutive years, total not to exceed $3,585,098 during the potential 15-year term of this Agreement.
REFERENCE MATERIAL:
BAI #46, May 24, 2016
BAI #47, April 26, 2005
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Agreement with Marks Bullard Investors LP
CAO ANALYST:
Samantha Buck