To: Board of Supervisors
From: Public Works
Agenda Section: Consent
SUBJECT:
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First Amendment to Sublease at 520 E Street for the County Administrative Office - Economic Development Division
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the First Amendment to Sublease at 520 E Street, Eureka with Redwood Region Economic Development Commission (RREDC);
2. Authorize the Chair to execute two (2) originals of the First Amendment to Sublease; and
3. Direct the Clerk of the Board to return two (2) fully executed First Amendments to Sublease to Public Works Facility Management for transmittal to RREDC and Economic Development Division.
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SOURCE OF FUNDING:
Economic Development (1120)
DISCUSSION:
Since Feb. 1, 2000, Economic Development has subleased office space from RREDC at 520 E Street in Eureka, with current use consisting of the administration of three (3) programs; Economic Development grant programs, Workforce Development programs, and the Headwaters Fund grants.
On Aug. 16, 2016, your Board approved a sublease to allow Economic Development’s continued use of approximately 981 square feet of office space at 520 E Street in Eureka up to and including June 30, 2021 (Attachment No. 1 - Sublease). On Mar. 26, 2019, Economic Development increased its square footage use by 213 square feet with the addition of Room 20. The addition of Room 20 was not included in the Sublease. However, until recently Economic Development was paying the additional square footage use by invoice (Attachment No. 2 - Rent History).
RREDC has requested a First Amendment to Sublease to include the use of Room 20 in the premise description of the Sublease (Exhibit A - Premises). In addition, a rent increase for use of Room 20 effective Mar. 26, 2019, and a one-time consolidated rent payment of $7,112.10 for remaining rent due for the lease term ending on Jun. 30, 2021.
Staff is recommending your Board to approve the First Amendment to Sublease to accommodate the requests of RREDC (Attachment No. 3 - First Amendment).
FINANCIAL IMPACT:
The balance due to RREDC through the term of the lease, Jun. 30 2021, is $7,112.10.
The Economic Development budget unit, 1120-275, has sufficient funds budgeted in fiscal year 2020-21 for this expense.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by supporting business, workforce development and creation of private-sector jobs
OTHER AGENCY INVOLVEMENT:
Redwood Region Economic Development Commission
Public Works Facility Management
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to approve the First Amendment to Sublease. However, this is not recommended as the absence of the First Amendment to Lease will prevent the one-time payment to the owner for space utilized by Economic Development Division.
ATTACHMENTS:
Attachment No. 1 - Sublease
Attachment No. 2 - Rent History
Attachment No. 3 - First Amendment
Exhibit A - Premises
PREVIOUS ACTION/REFERRAL:
Board Order No.: C-3
Meeting of: 8/16/2016
File No.: N/A