To: Board of Supervisors
From: Public Works
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Fourth Lease Amendment with Eureka Old Town, LLC. for Continued Use of 507 F Street, Eureka, for Offices.
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. That the Board of Supervisors approve and authorize the Chair to execute the Third Lease Amendment to extend the Lease Term at 507 F Street, Eureka with Eureka Old Town LLC, (Lessor), for 91 calendar days to March 31, 2024.
Body
SOURCE OF FUNDING:
Social Services Fund (1160-516)
DISCUSSION:
On Jan. 14, 2003, the Department of Health and Human Services (DHHS) entered into a Lease with Lessor for office space at 507 F Street, Eureka. On Nov. 18, 2003, DHHS entered into a First Lease Amendment with Eureka Old Town, LLC. On Oct. 16, 2013, the Board of Supervisors approved a Second Lease Amendment with the Lessor.
The initial 2003 lease term was for 10 calendar years, with two (2) five (5) year options to extend the lease to Sept. 30, 2023. On Sept. 26, 2023, the Board of Supervisors approved the Third Lease Amendment with the Lessor to extend the lease to Dec. 31, 2023.
The county and lessor are working on a new lease agreement for the premises at 507 F Street, Eureka, but have not yet agreed upon a final lease. This Fourth Amendment is to extend the term of the lease for 507 F Street until Mar. 31, 2024. In the interim, DHHS will soon come to your Board with a new lease for use of 507 F Street, Eureka.
FINANCIAL IMPACT:
Narrative Explanation of Financial Impact:
The expense of the lease for 507 F St. was included in the approved budget for fiscal year (FY) 2023-24 in Fund 1160 Budget Unit 516, DHHS Administration. The monthly lease payments for the extension of the lease, will increase 3%, from $63,760.45 to $65,673.26, resulting in a projected cost of $197,019. This increase is included in the original Lease which allowed for an annual increase bas...
Click here for full text