Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Resolution of various outstanding payments between the County of San Mateo and the owners of the Fair Oaks Health Center at 2710 Middlefield Road and extension of the lease for the property
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing and directing the execution by the County Manager or designee of all documents necessary or appropriate to extend the term of the lease between 2700 Middlefield Road LLC and the County of San Mateo for the Fair Oaks Health Center at 2710 Middlefield Road ("Property"); and
B) Directing the preparation of final orders of condemnation in two proceedings in eminent domain for easement and road right-of-way and similar rights across the Property; and
C) Confirming various proposed actions to fix the terms of other obligations between the Parties.
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BACKGROUND:
In June 2011, the County entered into a Lease Agreement ("Lease Agreement") with 2700 Middlefield Road LLC ("Landlord") for a thirty year term concerning the property located at 2710 Middlefield Road in the unincorporated North Fair Oaks area of San Mateo County ("Property"), which Lease Agreement remains valid and includes two five-year renewal options. At the same time, the County entered into a Real Estate Option Agreement ("Option Agreement") with Landlord and Diversified Capital, LLC for an option to purchase the Property.
In April 2015, the County initiated litigation against Landlord, Diversified Capital, LLC and Nariman Teymourian (collectively, "Litigation Defendants"), who then filed a cross-complaint against the County ("Litigation").
In April 2017, the County and Defendants entered into a Settlement Agreement and General Mutual Release ("Litigation Settlement Agreement") resolving the Litigation under which the Litigation Defendants agreed to pay the County the sum of $1,600,000, a...
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