Special Notice/Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: First Amendment to Office and Warehouse Lease with 550 Quarry Road, LLC for the County's Leasing of 550 Quarry Road, in San Carlos (Lease No. 1303)
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute a First Amendment to the Office & Warehouse Lease Agreement (Lease No. 1303) with 550 Quarry Road, LLC, to amend the lease and extend the term of the agreement for a period of three (3) years, with one (1) option to extend for an additional two (2) years; and
B) The County Executive, or their designee, to accept or execute any and all notices, options, extensions, termination and documents associated with the lease agreement and all amendments thereto.
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BACKGROUND:
Since 1998, the Department of Human Services has leased 550 Quarry Road in San Carlos (the "Property" or "Premises") for the use of various programs. Currently, the agency occupies the 65,104 square foot Property to operate vocational rehabilitation services, which serves county residents with disabilities and other barriers to employment, creating pathways towards self-sufficiency through vocational counseling and assessment, case management, job training and job placement.
DISCUSSION:
Real Property Services has negotiated a three (3) year extension, with one (1) option to extend for an additional two (2) years, at a monthly rental amount of $2.50 per square foot for office and kitchen space, and $2.05 per square foot per month for warehouse space, for a total of one hundred forty-two thousand seven hundred four dollars and forty cents ($142,704.40) per month, with 3 percent annual rent adjustments. Additionally, the amendment provides the County with a Right of First Offer to Purchase the Premises in the event the Landlord decides to sell the building to a party outside ...
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