|
|
|
|
COUNTY OF SAN MATEO
Inter-Departmental Correspondence
|
County Manager’s Office
|
|
|
DATE:
|
December 26, 2007
|
BOARD MEETING DATE:
|
January 29, 2008
|
SPECIAL NOTICE/HEARING:
|
None
|
VOTE REQUIRED:
|
Majority
|
|
|
TO:
|
Honorable Board of Supervisors
|
FROM:
|
Steve Alms, Manager, Real Property Division
|
SUBJECT:
|
First Amendment to Lease Agreement with the United States Postal Service for space at 1600 Bay Road, East Palo Alto, for the East Palo Alto Post Office (Lease No. 5324).
|
|
|
RECOMMENDATION:
|
Adopt a resolution:
1. Authorizing the execution of a First Amendment to the Lease Agreement with the United States Postal Service for a 2,266 square foot building, together with 7,640 square feet of parking space at 1600 Bay Road, East Palo Alto, California, which extends the term set to expire June 30, 2008 for a period of five years at an initial annual rent of $40,000 with one option to extend at an annual rent of $45,000 for an additional five year period, and
2. Authorizing the County Manager or his designee to execute notices, options and documents associated with the First Amendment and the Lease including, but not limited to, extension or termination of the agreement under the terms set forth therein.
|
|
|
VISION ALIGNMENT:
|
Commitment: Responsive, effective and collaborative government
|
Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. This Amendment contributes to this commitment and goal by continuing to provide a convenient location for an important community resource.
|
|
|
BACKGROUND:
|
The United States Postal Service has leased space at 1600 Bay Road in East Palo Alto since 1978. The Term of the Lease is set to expire on June 30, 2008.
The lease was originally between the United States Postal Service and the Redevelopment Agency of the County of San Mateo. By ordinance, the County is successor in interest to the Redevelopment Agency.
On October 30, 2007, this Board declared the Post Office property surplus to the needs of the County in order to facilitate its sale for a mixed-use development that would include market rate and affordable housing. The Redevelopment Association of the City of East Palo Alto (RDA) has formally indicated interest in acquiring the surplus property. An independent appraisal of the property is in progress, and negotiations with the RDA are ongoing. The Amendment provides that the lease can be assigned and terminated by either party with six months notice. If the property is sold while the lease is still in effect, it will be sold subject to the lease.
|
|
|
DISCUSSION:
|
Real Property Services has negotiated the First Lease Amendment that subject to the right of early termination extends the lease for a period of five years at an initial annual rent of $40,000, with one option to extend at an annual rent of $45,000 for an additional five-year period.
|
|
|
County Counsel has reviewed and approved the Amendment as to form. The Director of the Department of Housing concurs with this recommendation.
|
|
|
FISCAL IMPACT:
|
The initial year’s revenue of $40,000 will be deposited into a San Mateo Housing Department Trust Account to cover property maintenance costs.
|
|
|