Agenda Item AGENDA STAFF REPORT ASR Control 26-000089
MEETING DATE:	03/24/26
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	2
SUBMITTING Agency/Department:	County Executive Office (Approved)
Department contact person(s):	Thomas A. Miller (714) 834-6019
	Lynn Werner (714) 308-2555

Subject: Third Amendment to Lease at 600 W. Santa Ana Blvd, Suite 510, in Santa Ana

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Consent Calendar

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: See Financial Impact Section

Annual Cost: See Financial Impact Section

Staffing Impact:

# of Positions:

Sole Source: No

Current Fiscal Year Revenue: N/A

Funding Source: See Financial Impact Section	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 3/3/2015 #30; 8/5/2008 #13; 10/23/2007 #9

RECOMMENDED ACTION(S):

Find the project is categorically exempt from the California Environmental Quality Act (CEQA), Class 1 (Existing Facilities) pursuant to CEQA Guidelines, Section 15301.

Approve and execute the third amendment to lease agreement with Civic Center, LLC., a California limited liability company, for 7,015 rentable square feet of office space located at 600 W. Santa Ana Boulevard, Suite 510, in Santa Ana.

Authorize the Chief Real Estate Officer or designee to exercise option terms and execute subsequent documents and amendments that make non-monetary and/or monetary changes that do not increase County costs or liability by more than $75,000 per year, as approved by County Counsel.

SUMMARY:

Approval of this third amendment to lease agreement with Civic Center, LLC will memorialize the previously exercised option to extend term and allow for continuity of County services.

BACKGROUND INFORMATION:

On October 23, 2007, the Board of Supervisors (Board) approved a ten-year lease (Lease) for 5,150 rentable square feet (RSF) of office space at 600 W. Santa Ana Boulevard, Suite 510, Santa Ana (Premises), for the Health Care Agency’s (HCA) Mental Health Services Act (MHSA) administration and training programs, with a termination date of September 31, 2018. On August 5, 2008, the Board approved a first amendment to Lease, which expanded the Premises to a total of 7,015 RSF with tenant improvements for the additional 1,865 RSF. Subsequently, on March 3, 2015, the Board approved a 10-year term extension through March 31, 2025, with two five-year options to extend on the same terms and conditions with annual three percent rental increases. On December 13, 2024, the Chief Real Estate Officer executed the first option which extended the Lease term through March 31, 2030, while this third amendment was finalized. Effective November 1, 2025, the lease transitioned to County Executive Office, under CEO Real Estate, to administer the lease agreement until District Attorney (DA) takes occupancy in 2026, and address DA’s immediate need for a short-term location near the Central Justice Center and Civic Center.

CEO Real Estate finalized the third amendment to memorialize the previously exercised five-year option to extend the term, which extends the Lease term through March 31, 2030, and updates relevant clauses within the Lease to County standard (Proposed Third Amendment). Consistent with the terms of the Lease, under the Proposed Third Amendment, County will pay rent at the existing rate of $15,650 per month, with no increase costs to County, commencing on the first day of the month following the Effective Date and adjusted annually at a fixed three percent increase throughout the term. Additionally, the Proposed Third Amendment includes two options to extend the Lease term thereafter, with at least 60 days’ written notice prior to the lease expiration date, each for five additional years at a fixed three percent annual rental increase.

County maintains its right to terminate this Lease at any time with 180 days prior written notice to Lessor. The Proposed Third Amendment includes the addition of language that allows County to assign and sublease the Premises without Lessor's consent.

FINANCIAL IMPACT:

Appropriations for this Proposed Third Amendment will be included in CEO Real Estate’s Budget Control 035 Budget FY 2025-26 from November 1, 2025, to June 30, 2026, and will be included in DA’s Budget Control 026 commencing FY 2026-27 Budget to future years.

DA:

GF:

100%

The table below of the fiscal-year costs for the Proposed Third Amendment is based upon an April 1, 2026, commencement date:

FY 2025-26	$48,358
FY 2026-27	$194,883
FY 2027-28	$200,729
FY 2028-29	$206,751
FY 2029-30	$158,526

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

District Attorney

ATTACHMENT(S):

Attachment A – Proposed Third Amendment to Lease
Attachment B – Acquisition Questionnaire
Attachment C – Lease Summary