Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Amendment to Lease Agreement with Harbor Belmont Associates. (Lease No. 1286)
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute an amendment to the lease agreement with Harbor Belmont Associates; and
B) The County Manager, or his 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.
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BACKGROUND:
Since 1988, the County has leased for the use of the Human Services Agency (HSA) most of Buildings B and C of the Harbor Business Park complex, located in unincorporated Belmont. The two single story office buildings contain approximately 59,215 square feet of space. HSA's administrative headquarters are located at the Harbor Business Park and direct client services are provided there.
Pursuant to Resolution No. 69940, the Board of Supervisors approved a ten-year lease agreement and authorized the County Manager to exercise an option to extend the lease for an additional five-year term at 95 percent of the then-prevailing market rate. Real Property Services, in coordination with HSA, determined that it was appropriate to exercise the County's option to extend for an additional five years commencing March 1, 2019, and entered into discussions with the landlord on the determination of the prevailing market rate for purposes of setting the initial base rent for the extended term.
As a result of those negotiations, the Landlord has agreed to an initial base rent for the extended term of $2.97 per square foot per month, "full service," and further agreed to provide a $300,000 tenant improvement allowance. The Landlord will also expend approximately $300,000 for ADA walkway improvements and approximately $...
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