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Agenda Item
ASR
Control 25-000011 |
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MEETING
DATE: |
03/25/25 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
2 |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Thomas
A. Miller (714) 834-6019 |
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Martin
Schwarz (657) 251-8879 |
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Subject: Public Defender Second Amendment to
Lease at 801 West Civic Center Drive
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Agreement to Form |
Discussion |
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3
Votes Board Majority |
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Budgeted: N/A |
Current Year
Cost: N/A |
Annual Cost: See Financial Impact Section |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 2/26/2019 #S45F |
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RECOMMENDED
ACTION(S):
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1. |
Find the project is categorically exempt
from the California Environmental Quality Act (CEQA), Class 1 (Existing
Facilities) pursuant to CEQA Guidelines, Section 15301. |
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2. |
Approve and execute the Second Amendment
to Lease Agreement with Santa Ana CA I SGF, LLC, a Delaware limited liability
company, for Orange County Public Defender's expansion and continued use of a
total of approximately 73,105 rentable square feet of office space located at
801 W. Civic Center Dr. in Santa Ana, for a term of 10 years. |
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3. |
Authorize the Chief Real Estate Officer
or designee to exercise option terms and execute subsequent lease amendments
or documents that make non-monetary and/or monetary changes that do not
increase County costs by more than $75,000 per year, as approved by County
Counsel. |
SUMMARY:
Approval
of the Second Amendment to Lease agreement with Santa Ana CA I SGF, LLC, a
Delaware limited liability company, will provide the Orange County Public
Defender with a total of approximately 73,105 rentable square feet of space
necessary for continued use and anticipated caseload increases at the Central
Justice Center.
BACKGROUND
INFORMATION:
On February 26, 2019, the Board of
Supervisors (Board) approved a 15-year lease agreement (Lease) wherein Orange
County Public Defender (Public Defender) leases from Santa Ana CA SGF, LLC
(Lessor) approximately 71,197 rentable square feet (RSF) on the second (2nd),
third (3rd) and fourth (4th) floors of the building located at 801 W. Civic
Center Dr., in the city of Santa Ana (Existing Premises) for use as its
headquarter facility. On November 14,
2019, Lessor and Public Defender entered into a First Amendment to Lease, which
amended the term, updated the construction clauses and established the
Commencement Date of the Lease as October 1, 2019.
The Public Defender’s Recidivism
Reduction Unit (RRU) is currently located in the Existing Premises. The RRU is home to the Public Defender’s
Collaborative Court teams, Clean Slate Program, AB109 Team, Incompetent to
Stand Trial Unit, Veteran’s Resentencing Project, Youthful Offender Parole
Unit/AB 600 Unit, Immigration Support Services and Social Worker Program. The work of the RRU has grown significantly
since Public Defender initially leased the premises and RRU staff has grown
from 13 to 32 employees, primarily to provide staffing for an expanded number
of collaborative courts, post-conviction legislative mandates, increased
participation in programs with other justice-partner agencies, and an increased
number of legally available diversion programs.
Additional office space is needed to accommodate these staffing demands and
to provide for continuity of operations.
In order to ensure continuity of
the services described above, CEO Real Estate negotiated the proposed second
amendment to expand the first floor of the Existing Premises, adding
approximately 1,980 RSF of office space located in Suite 130 (Expansion
Premises), for a combined total premises of 73,105 RSF (Proposed Premises), for
Public Defender’s continued use until the Lease expiration date of September
30, 2034 (Proposed Second Amendment).
The Proposed Second Amendment requires Lessor to complete the tenant
improvements for the Expansion Premises no later than nine (9) months after
Lessor’s receipt of all necessary permits and approvals for the work. Lessor agrees to provide County with a tenant
improvement allowance of one hundred and ninety thousand dollars ($190,000), to
be used, at County’s sole and absolute discretion, towards the costs of the
improvements, including but not limited to, the purchase and installation of
telephones, data cabling, furniture, fixtures, equipment, supplemental HVAC, or
rent credit.
After completion of the work, the
rent for the Expansion Premises will commence at $2.64 per RSF and increase to
$3.01 per RSF on October 1, 2025, consistent with the rent adjustment schedule
for the Existing Premises. The Lease
will maintain the existing two five-year options to extend the term of the
Lease, each under the same terms agreed upon for the Existing Premises and
accounts for additional parking due to the addition of the Expansion
Premises.
The Public Defender desires continued occupancy and
expansion at the same building as the Existing Premises for increased
efficiencies and consistency of services.
The Proposed Second Amendment allows flexibility for operational needs
and therefore, approval is recommended by the Public Defender and CEO Real
Estate.
CEQA
Compliance: The proposed
project is Categorically Exempt (Class 1) from the provisions of CEQA pursuant
to CEQA Guidelines Section 15301, because it involves a lease of an existing
private facility for County office space, resulting in negligible or no
expansion of use beyond that which currently exists. The project conforms to the General Plan of
the city of Santa Ana.
FINANCIAL
IMPACT:
Appropriations
for this Proposed Second Amendment to Lease are included in Public Defender's
FY 2025-26 Budget and will be included in the budgeting process for future
fiscal years.
Existing Premises:
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FY 2019-2020 |
$1,894,605 |
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FY 2020-2021 |
$1,932,794 |
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FY 2021-2022 |
$1,970,406 |
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FY 2022-2023 |
$2,004,993 |
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FY 2023-2024 |
$2,033,898 |
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FY 2024-2025 |
$2,253,591 |
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FY 2025-2026 |
$2,575,714 |
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FY 2026-2027 |
$2,646,104 |
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FY2027-2028 |
$2,718,607 |
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FY 2028-2029 |
$2,793,284 |
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FY 2029-2030 |
$2,870,202 |
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FY 2030-2031 |
$2,949,428 |
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FY 3031-2032 |
$3,031,029 |
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FY 3032-2033 |
$3,115,080 |
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FY 3033-2034 |
$3,201,652 |
Expansion
Premises:
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FY 2019-2020 |
$1,894,605 |
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FY 2020-2021 |
$1,932,794 |
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FY 2021-2022 |
$1,970,406 |
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FY 2022-2023 |
$2,004,993 |
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FY 2023-2024 |
$2,033,898 |
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FY 2024-2025 |
$2,253,591 |
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FY 2025-2026 |
$2,627,484 |
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FY 2026-2027 |
$2,716,546 |
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FY2027-2028 |
$2,790,977 |
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FY 2028-2029 |
$2,867,640 |
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FY 2029-2030 |
$2,946,606 |
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FY 2030-2031 |
$3,027,939 |
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FY 3031-2032 |
$3,111,710 |
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FY 3032-2033 |
$3,198,000 |
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FY 3033-2034 |
$3,286,872 |
STAFFING
IMPACT:
N/A
REVIEWING
AGENCIES:
Orange
County Public Defender
ATTACHMENT(S):
Attachment
A - Second Amendment to Lease
Attachment B - Summary of Second Amendment to Lease
Attachment C - Acquisition Questionnaire