Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: First Amendment to Office Lease with GLC Belmont LLC, as successor in interest to Harbor Belmont Associates, for the County’s leasing of 260 and 264 Harbor Boulevard, in unincorporated Belmont (Lease No. 1304)
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute an amendment to Office Lease with GLC Belmont LLC, as successor in interest to Harbor Belmont Associates, for the County’s leasing of 260 and 264 Harbor Boulevard, in unincorporated Belmont; and
B) The County Executive, or their designee, to accept or execute on behalf of the County of San Mateo any and all notices, options, consents, approvals, terminations, and documents in connection with the lease agreement and all amendments thereto.
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BACKGROUND:
Since 1992, the County has leased for the use of the Department of Housing, office space from Harbor Belmont Associates (“Predecessor Landlord”) in the Harbor Business Complex at 264 Harbor Boulevard, in unincorporated Belmont.
As authorized by Resolution No. 072983 on January 28, 2014, the County of San Mateo and Predecessor Landlord entered into a new ten-year lease agreement, labelled at the time as Lease No. 1303, with two options to extend for an additional five years each, for approximately 16,534 square feet of office space in Building A (“Original Premises”).
The lease expired on June 30, 2024, and the County wishes to amend the lease to extend the term of the lease and to expand the Original Premises.
DISCUSSION:
The County has requested to lease additional space containing approximately 8,564 rentable square feet and described as 260 Harbor Boulevard in Building A (“Expansion Space”). The Original Premises, remeasured and deemed to be 16,482 rentable square feet, and the Expansion Space, collectively, shall be deemed the “Premises,” as defined in the lease.
Real Property Services has negotiated an amendment to extend the term of the lease for the Original Premises from July 1, 2024 through June 30, 2027, and to add the Expansion Space, increasing the Premises to 25,046 rentable square feet, from September 1, 2024 through June 30, 2027. The monthly Base Rent will be $3.40 per rentable square foot, or $56,038.80 for the Original Premises and $29,117.60 for the Expansion Space, increasing annually by three percent. The County will pay its proportionate share of the Operating Expenses, estimated to be $0.39 per rentable square foot per month.
County Attorney has reviewed and approved the First Amendment to Office Lease as to form. The Director of Housing concurs in this recommendation.
EQUITY IMPACT:
The County of San Mateo is dedicated to ensuring equitable access to quality services for all residents. The County acquires and leases real property to ensure all residents can access services in the locations and facilities best suited to their specific purposes. This amendment will further the County’s ability to ensure that critical services for residents can continue to be met.
FISCAL IMPACT:
The monthly base rent of $56,038.80 for the Original Premises and $29,117.60 for the Expansion Space, and the estimated annual Operating Expenses have been budgeted in the Fiscal Year 2024-25 Budget.