To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Third Amendment to Lease Agreement with Sand Creek Business Associates I, LLC.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute an Amendment to a Lease between the County, as Lessee, and Sand Creek Business Associates I, LLC, as Lessor, for approximately 14,098 square feet of medical/office space located at 171 Sand Creek Road, Brentwood, to decrease the annual rent for the five-year period beginning September 1, 2025, from $293,280 to $282,516; add one five-year renewal option; and clarify that Lessor is responsible for any maintenance or repairs that result from settling/foundation issues, as requested by the Health Services Department, and as recommended by the Public Works Director.
FISCAL IMPACT:
100% Health Services - Enterprise Fund I.
BACKGROUND:
The County has leased a portion of Building 4, located at 171 Sand Creek Road, Brentwood, since 2005, for use as medical and office space. In 2016, the premises were expanded from 10,052 square feet to the current 14,098 square feet. The proposed Amendment will decrease the rent charged for the space for the five-year period that begins September 1, 2025. The Amendment will also give the County a five-year renewal option and clarify that the Lessor, not the County, is responsible for any costs associated with the foundation of the building or the building settling.
CONSEQUENCE OF NEGATIVE ACTION:
If the Amendment is not approved, rent for the five-year period beginning September 1, 2025, would not be reduced and the County could have exposure to the costs associated with repairs and maintenance that could result from ongoing settling/foundation issues.