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Approve the First Amendment to the Lease Agreement with the Judicial Council of California for approximately 11,460 square feet of County owned office space located at the Hall of Justice at 550-600 Union Avenue in Fairfield, for a 5 year term commencing June 1, 2018 and expiring May 31, 2023, at an initial rate of $22,959 per month with annual rent increases thereafter; and Authorize the County Administrator to execute the amendment and any necessary, subsequent modifications or amendments
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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 the First Amendment to Lease Agreement with the Judicial Council of California for approximately 11,460 square feet of County owned office space located at the Hall of Justice at 550-600 Union Avenue in Fairfield for a five year term commencing June 1, 2018 and expiring May 31, 2023 at initial rate of $22,959 per month with annual rent increases thereafter; and
2. Authorize the County Administrator to execute the amendment and any necessary, subsequent modifications or amendments.
SUMMARY:
The proposed lease amendment (Attachment A - First Amendment to Lease Agreement) extends the lease term for five years, commencing on June 1, 2018 and expiring on May 31, 2023. Monthly rent payments are $22,959 (the same as the prior year) through the first year of the extended term, then increase annually by $573 per month (roughly 2.5%). The monthly rent payment of $22,959 equates to $2.00 per square foot, which is at the top of the fair market rent range for comparable office space in Fairfield. The proposed lease amendment contains no other changes from the prior lease agreement (Attachment B - Lease Agreement).
FINANCIAL IMPACT:
Approval of the amendment will generate $276,081 in anticipated revenue for FY2018/19. Overall, $1,446,302 will be gener...
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