Inter-Departmental Correspondence

Department of Housing



April 1, 2010


April 13, 2010







Honorable Board of Supervisors (Sitting as the Board of Commissioners of the Housing Authority)


Duane Bay, Director of Housing
William Lowell, Executive Director, Housing Authority


Execution of an amendment to the commercial lease agreement for retail space located at El Camino Village



Adopt Resolution No. 2010-03 authorizing the Executive Director of the Housing Authority of the County of San Mateo to execute a third amendment to the commercial lease agreement between the Housing Authority, Landlord, and Yahia Shehadeh and Sabah Echkantana d/b/a Jaffa City Café, Tenants, for retail space located at El Camino Village, 7662 El Camino Real, Colma, CA, allowing for a lease extension through March 31, 2013, increases in the base rent over the term of the amendment, and the option of a three-year extension at the expiration of the term.



El Camino Village is owned and operated by the Housing Authority of the County of San Mateo (HACSM). The El Camino Village development contains a ground level retail space. In June 2000, HACSM executed a lease agreement with Yahia Shehadeh and Sabah Echkantana, owners of Jaffa City Café, to lease the retail space at El Camino Village. In September 2007, the Board approved the second lease extension which expired on September 30, 2009. Since that time, the lease provided that the rental term would continue on a month-to-month basis; however, HACSM is interested in executing a third amendment to the lease.

HACSM will continue the monthly rent rate of $2159.00 through March 31, 2011. The base rent will be increased by 3% effective April 1, 2011, and by 4% effective April 1, 2012. 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 they operate.

This third amendment to the lease extends the lease term through March 31, 2013, and provides for the option of a three-year extension at the expiration of the term.

County Counsel has reviewed and approved the Third Amendment to Lease Agreement and the Resolution as to form.

Approval of this Resolution contributes to the Shared Vision 2025 outcome of a Livable Community by exemplifying mixed-use housing development that includes jobs and commercial services along transportation corridors.



There is no Net County Cost associated with this action. Revenue from the lease of the retail space becomes part of the general operating funds of HACSM for operation of its public housing developments. Annual rental income of $25,908.00 increases to $26,685.24 for the 12-month period beginning 04/01/2011 and $27,752.64 for the 12- month period beginning 04/01/2012.