RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION AUTHORIZING THE COUNTY MANAGER, OR HIS DESIGNEE, TO
1) NEGOTIATE THE PRICE AND TERMS OF, AND EXECUTE A LEASE WITH 2700 MIDDLEFIELD LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, FOR THE COUNTY TO LEASE THE ENTIRE THREE STORY, 36,000 SQUARE FOOT MEDICAL OFFICE BUILDING TO BE CONSTRUCTED BY LANDLORD AT 2700 MIDDLEFIELD ROAD IN UNINCORPORATED REDWOOD CITY, AT AN INITIAL ANNUAL RENT OF $1,175,000, FOR A TERM OF THIRTY YEARS, WITH TWO OPTIONS TO EXTEND FOR AN ADDITIONAL FIVE YEARS EACH, AND
2) NEGOTIATE AN OFFSET AGAINST SUCH RENT IN THE ANNUAL AMOUNT OF $215,000 IN CONSIDERATION OF THE PAYMENT TO LANDLORD OF $4,300,000 IN FUNDS GRANTED TO THE COUNTY BY THE SEQUOIA HEALTHCARE DISTRICT AS A CONTRIBUTION TOWARD THE COST OF LEASEHOLD IMPROVEMENTS MADE TO THE BUILDING BY LANDLORD ON BEHALF OF THE COUNTY, AND 3) EXECUTE NOTICES, OPTIONS AND DOCUMENTS ASSOCIATED WITH THE LEASE INCLUDING, BUT NOT LIMITED TO, EXTENSION OR TERMINATION OF THE AGREEMENTS UNDER THE TERMS SET FORTH THEREIN
(LEASE NO. 1292)

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, this Board desires to authorize the County Manager or his designee to negotiate a lease of real property (“Lease”), whereby the County of San Mateo shall lease from 2700 Middlefield LLC (“Landlord”) the entire three-story building to be constructed by Landlord at 2700 Middlefield Road in Unincorporated Redwood City, consisting of approximately 36,000 square feet of medical office space (“Building”), at an annual rent of $1,175,000, for a term of thirty years with two options to extend for an additional five years each; and

WHEREAS, the Board further desires to authorize the County Manager or his designee to negotiate an offset from such rent in the annual amount of $215,000 in consideration of the payment to Landlord of $4,300,000 in funds granted to the County by the Sequoia Healthcare District as a contribution toward the cost of leasehold improvements made to the Building by Landlord on behalf of the County; and

WHEREAS, the Board further desires that the Lease shall provide that, commencing at the beginning of the sixth year of the County’s occupancy of the Building, the County shall have the option to purchase the Building at the then fair market value, but in no event for less than the actual, documented cost of the land and building; and

WHEREAS, the Lease shall commence upon execution and expire on the date that is thirty years from the date of substantial completion of construction of the Building unless otherwise extended or terminated as set forth therein.

NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the County Manager be, and is hereby, authorized and directed to negotiate the terms and execute such Lease as set forth hereinabove for and on behalf of the County of San Mateo, and the Clerk of this Board shall attest the County Manager’s signature thereto; and

IT IS FURTHER DETERMINED AND ORDERED that the County Manager or his designee is hereby authorized to accept or execute on behalf of the County, any and all written notices, options and documents associated with the Lease including, but not limited to, extension or termination of the agreement under the terms set forth therein.

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