REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 9, 2022
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JACQUELYN GREENE, Director, Preschool Services Department
SUBJECT
Title
Amendment to Lease Agreement with IV3 662-696 S Tippecanoe Ave, LLC for Office Space for the Preschool Services Department in San Bernardino
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RECOMMENDATION(S)
Recommendation
Approve Amendment No. 5 to Lease Agreement No. 06-1152 with IV3 662-696 S Tippecanoe Ave, LLC to reflect a change of property ownership from Tip Property Two, LLC to IV3 662-696 S Tippecanoe Ave, LLC, for the remaining term of the lease expiring December 31, 2024, and to update standard lease agreement language for approximately 18,000 square feet of office space at 662 South Tippecanoe Avenue in San Bernardino for the Preschool Services Department at no cost.
(Presenter: Terry W. Thompson, Director, 387-5000)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost). There is no cost to San Bernardino County (County) associated with this amendment to reflect the change of property ownership from Tip Property Two, LLC (Tip) to IV3 662-696 S Tippecanoe Ave, LLC (IV3) and to update standard lease agreement language.
BACKGROUND INFORMATION
The recommended action will amend an existing lease agreement to reflect a change of property ownership from Tip to IV3, and to update standard lease agreement language for approximately 18,000 square feet of office space located at 662 South Tippecanoe Avenue in San Bernardino to provide for the continuing administration of the Preschool Services Department.
On November 28, 2006 (Item No. 21), the Board of Supervisors (Board) approved a 10-year Lease Agreement No. 06-1152, with three, three-year options to extend the term of the lease with Perris Campus Plaza, LLC for approximately 18,000 square feet of office space located at 662 South Tippecanoe Avenue in San Bernardino. The original term of the lease was for the period of June 1, 2007 through May 31, 2017. In the 15 years since the lease was originally approved, the Board has approved four amendments, which extended the term of the lease through December 31, 2024, adjusted the monthly rental rate schedule, adjusted the commencement and expiration dates of the lease, adjusted the critical completion date of the building, reflected a change of property ownership, and updated standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
August 21, 2007 |
32 |
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2 |
October 7, 2008 |
51 |
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3 |
July 24, 2018 |
34 |
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4 |
December 14, 2021 |
54 |
On April 26, 2022, Tip notified the Real Estate Services Department (RESD) of its sale of the property to IV3. Amendment No. 5 to Lease Agreement No. 06-1152, reflects a change of property ownership from Tip to IV3 and updates standard lease agreement language specific to delivery of notices. All other terms and conditions of the lease remain unchanged.
Staff has reviewed the recommended action pursuant to the California Environmental Quality Act (CEQA) and has determined that it does not constitute a project. Accordingly, no further action is required under CEQA.
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Summary of Lease Terms |
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Lessor: |
IV3 662-696 S Tippecanoe Ave, LLC (Joonas Partanen, Senior Vice President) |
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Location: |
662 South Tippecanoe Avenue, San Bernardino |
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Size: |
Approximately 18,000 square feet of office space |
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Term: |
Three years commencing January 1, 2022, and expiring December 31, 2024; two years five months remain of the second extended term |
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Options: |
One three-year option remains |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessor |
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Maintenance: |
Provided by Lessor |
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Utilities: |
Provided by Lessor |
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Insurance: |
The Certificate of Liability Insurance, as required by the lease, is on file with RESD |
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Right to Terminate: |
County has the right to terminate with 90-days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
On November 28, 2006 (Item No. 21), the Board approved a 10-year Lease Agreement, No. 06-1152, with three, three-year options to extend the term of the lease, procured using an alternative procedure process as provided in County Policy 12-02 - Leasing Privately Owned Real Property for County Use (Policy). The procurement process required by the Policy does not apply to amendments of existing leases, provided the amendment does not exceed the maximum term (including options) of the lease.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel, and Adam Ebright, Deputy County Counsel, 387-5455) on June 10, 2022; Preschool Services (Jacquelyn Greene, Director, 383-2005) on May 18, 2022; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on May 19, 2022; Finance (Paul Garcia, Administrative Analyst, 386-8392, and Carl Lofton, Administrative Analyst, 387-5404) on July 25, 2022; and County Finance and Administration (Diana Atkeson, Deputy Executive Officer, 387-4376) on July 25, 2022.
(KB: 677-7961)