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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Housing
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DATE:
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Sept. 18, 2007
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BOARD MEETING DATE:
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Sept. 25, 2007
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors, (Sitting as the Board of Commissioners of the Housing Authority)
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FROM:
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Duane Bay, Director, Department of Housing
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SUBJECT:
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Resolution 636-C approving the Second Amendment to the commercial lease for retail space located at El Camino Village
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RECOMMENDATION:
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Adopt Resolution 636-C approving the Second Amendment to the commercial lease between the Housing Authority, as landlord, and Yahia Shehadeh and Sabah Echkantana (dba Jaffa city Café), as tenants, for retail space located at El Camino Village extending the lease term to September 30, 2009 and increasing the total rent from $2017.80 per month to $2409.00 per month.
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VISION ALIGNMENT:
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Commitment: Offering a full range of housing choices.
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Goal(s): #11. New housing is clustered with jobs and commercial services along transportation corridors.
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BACKGROUND:
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The Housing Authority’s El Camino Village development contains a ground level retail space. In 2000, the non-profit developer of El Camino Village located the current tenant and negotiated a three year lease with two optional renewal periods. The initial lease and First Amendment were signed by prior Housing Authority management, but appear not to have come before the Board. This second and final lease extension will correct that omission.
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DISCUSSION:
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The lease agreement permits the landlord to increase the base rent at each lease extension by a minimum of 3% and a maximum of 7%. A survey of rents at nearby comparable retail spaces was conducted and the survey results justify the maximum allowable rent increase of 7% contained in this renewal. In addition, a “concession fee” of $250 per month has been added to compensate for the tenants’ desired additional use of the property as an office for a small business that they operate. The new monthly rent totals $2,409.00. The lease renewal extends the lease term to September 30, 2009.
County Counsel has reviewed and approved the Second Amendment to the Lease and the Resolution as to form.
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FISCAL IMPACT:
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There is no Net County Cost associated with this action. Proceeds of the rental become part of the general operating funds of the Housing Authority for operation of its housing developments.
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