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Agenda Item
ASR
Control 06-000062 |
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MEETING DATE: |
03/07/06 |
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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: |
Health Care Agency
(Approved) |
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Department contact
person(s): |
Mark Refowitz, (714) 834-6032 |
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Subject: Lease Renewal - 3115 Redhill, Costa
Mesa
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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: Yes |
Current Year Cost:
$70,656 |
Annual Cost:
$282,624 |
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Staffing Impact: No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: $62,884 |
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Funding Source: GF:
11%, FED: 16%, State: 51%, Fees: 22% |
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Prior Board Action: N/A
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RECOMMENDED ACTION(S)
1. Find that the project is Categorically Exempt (Class 1) from the provisions of CEQA.
2. Approve and execute the lease with Blackmon Investments, LLC.
SUMMARY:
The Health Care Agency requests approval of a lease for 12,093 rentable square feet of office space at 3115 Redhill, Costa Mesa for Behavioral Health Services Program.
BACKGROUND INFORMATION:
The Health Care Agency/Behavioral Health Services Program currently occupies 12,093 rentable square feet of office space located at 3115 Redhill, Costa Mesa to provide outpatient mental health services for children and adults and outpatient alcohol and drug abuse services for adults. The term of the existing lease expired on January 31, 2005, and the County has continued to occupy this space under the terms of the holdover provisions of the lease.
This request will renew the lease for ten years commencing April 1, 2006. Under the proposed new lease, the first year monthly rent will be $23,552 or $1.95 per rentable square foot full service gross, which is at or below fair market value for comparable office space in the area. The rent increases $0.03 per rentable square foot per month in years 2 through 5 and three percent (3%) per square foot per month every year thereafter. The Lessor has agreed to construct approximately $51,000 in tenant improvements for new paint and carpet and will pay the County a real estate commission, in the amount of $41,201, in the form of rent credits during the first three years of the lease term.
Under this full service lease, the Lessor pays the cost of all utilities, maintenance, repairs, real estate taxes, insurance and janitorial service. The lease also provides that if the cost of these Lessor services exceed $105,076 per year, then the County will pay Lessor the difference in a lump sum payment. In the event the cost of Lessor services are less than $105,076, then the Lessor will pay County the difference in a lump sum payment. The County can terminate the proposed lease at any time after the fifth year of the lease term with 180 days prior written notice.
The Health Care Agency requests that your Honorable Board find that the proposed project is Categorically Exempt from the provisions of CEQA and approve the Lease with Blackmon Investments, LLC, as referenced in the Recommended Action.
Legal Requirements:
The use conforms to the General Plan of the City of Costa Mesa and the project is Categorically Exempt (Class 1) from CEQA per Section 15301 of the CEQA Guidelines. The proposed project conforms to the Americans with Disabilities Act.
FINANCIAL IMPACT:
This Lease is included in the Health Care Agency's FY 2005-06 Current Budget and will be included in the budgeting process through the term of the lease agreement.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
CEO/Real Estate
ATTACHMENT(S):
A - Lease
B - Lease Summary
C - Plot Plan