title
Approve Lease Amendment #4 for 10 Sage St., Vallejo with 10 Sage St. Vallejo, LLC through February 29, 2052; and Authorize the County Administrator or designee to execute the document and any subsequent modifications or amendments
body
Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1. Approve Lease Amendment #4 for 10 Sage St., Vallejo with 10 Sage St. Vallejo, LLC (Attachment A) through February 29, 2052; and
2. Authorize the County Administrator or designee to execute the document and any subsequent modifications or amendments.
SUMMARY:
The County owns the real property located at 10 Sage St. Vallejo which is leased by 10 Sage St. Vallejo, LLC that is set to expire on March 31, 2033. Prior sublessee space was vacated during the COVID 19 pandemic shutdown. Negotiations with a potential new national brand sublessee are ongoing and the existing tenant has requested a lease extension to aid in those negotiations. Concurrently, Pacific Gas and Electric Company (PG&E) has requested to use a portion of the ground lease site area for the construction of an underground gas vault that will be subject to a yet to be negotiated agreement that would grant PG&E a temporary construction easement and a permanent utility easement. The lease extension is being brought forward for the Board's approval at this time to allow the tenant to finalize negotiations with the sublessee. Staff will return at a later date for an approval of an agreement with PG&E once negotiations are concluded.
FINANCIAL IMPACT:
Ground lease rent is proposed to remain as-is. Current rent is $5,790 per month or $69,480 per fiscal year. Rent is adjusted every five years based on Bay Area CPI. The next increase is scheduled for January 2, 2024. Revenue for the ground lease is accounted for in the General Services Department's budget....
Click here for full text