REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 21, 2025
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JAMES LOCURTO, Director, Transitional Assistance Department
SUBJECT
Title
Amendment to Lease Agreement with 7353 ECB, LLC, and Pima 25, LLC, as Tenants in Common, for Office Space in Yucca Valley
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 9 to Lease Agreement No. 93-1116 with 7353 ECB, LLC and Pima 25, LLC, as tenants in common, for office space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 9 to Lease Agreement No. 93-1116 with 7353 ECB, LLC, and Pima 25, LLC, as tenants in common to:
a. Extend the term of the lease for five years, for the period of November 1, 2025, through October 31, 2030, through the County’s exercise of an existing option, following a permitted holdover period from August 1, 2025, through October 31, 2025.
b. Update the leased premises from approximately 25,000 square feet to approximately 25,193 square feet.
c. Adjust the rental rate schedule.
d. Update the termination language, the holdover language and standard lease agreement language.
e. Continue leasing approximately 25,193 square feet of office space, located at 56357 Pima Trail in Yucca Valley, for the Transitional Assistance Department.
f. Increase the total lease amount by $3,831,839, from $13,770,253 to a new total amount of $17,602,092, inclusive of $160,487 for the permitted holdover period.
3. Direct the Real Estate Services Department to file the Notice of Exemption in accordance with the California Environmental Quality Act.
(Presenter: Terry W. Thompson, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of Amendment No. 9 (Amendment) to Lease Agreement No. 93-1116 (Lease) will not result in the use of additional Discretionary General Funding (Net County Cost) as the Human Services (HS) Administrative Claim budget is 95% federal and state funded and 5% Discretionary General Funding. The total cost of this five-year Amendment is $3,831,839, which is inclusive of $160,487 for the permitted holdover. Lease payments will be made from the Real Estate Services Department (RESD) rents budget (7810001000) and reimbursed from the HS Administrative Claim budget (3000428). Sufficient appropriation is included in the 2025-26 Rents and HS Administrative Claim budgets and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Annual Rent |
Annual Day Porter |
Total Annual Lease Cost |
|
*August 1, 2025 - October 31, 2025 |
$160,487 |
$0 |
$160,487 |
|
November 1, 2025 - October 31, 2026 |
$680,208 |
$12,000 |
$692,208 |
|
November 1, 2026 - October 31, 2027 |
$700,620 |
$12,000 |
$712,620 |
|
November 1, 2027 - October 31, 2028 |
$721,644 |
$12,000 |
$733,644 |
|
November 1, 2028 - October 31, 2029 |
$743,292 |
$12,000 |
$755,292 |
|
November 1, 2029 - October 31, 2030 |
$765,588 |
$12,000 |
$777,588 |
|
Total Cost: |
$3,771,839 |
$60,000 |
$3,831,839 |
*Permitted holdover period
BACKGROUND INFORMATION
On November 23, 1993 (Item No. 29), the Board of Supervisors (Board) approved the Lease for 15,000 square feet of office space at 56357 Pima Trail in Yucca Valley (Premises) for use by the Transitional Assistance Department (TAD). The original term was for the period of February 1, 1995, through January 31, 2005. In the 32 years since the Lease was originally approved, the Board has approved eight amendments to extend the term through July 31, 2025, provide for tenant improvements, increase the premises by 10,000 square feet for a total of 25,000 square feet, adjust the rental rate schedule, reflect a change in property ownership to 7353 ECB, LLC, and Pima 25, LLC, as tenants in common (Landlord), and update standard lease agreement language.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
July 16, 1996 |
28 |
|
2 |
November 26, 1996 |
12 |
|
3 |
August 13, 2002 |
47 |
|
4 |
April 13, 2010 |
82 |
|
5 |
April 7, 2015 |
46 |
|
6 |
July 28, 2020 |
48 |
|
7 |
July 27, 2021 |
46 |
|
8 |
May 10, 2022 |
44 |
TAD requested that RESD negotiate an amendment to extend the existing term which expired on July 31, 2025. Approval of this Amendment was delayed due to ongoing negotiations related to rental rates, termination language, leased premises square footage, and the custodial service provisions. On August 1, 2025, the Lease went into a permitted holdover and TAD has continued to occupy the Premises and abide by the terms.
The Amendment will exercise the first extension option to extend the term for the period of November 1, 2025, through October 31, 2030, adjust the rental rate schedule, update the holdover and termination language and update standard lease agreement language. The holdover language will be updated to state that should the agreement fall into holdover, the rent for the premises will be 110% of the rent that exists at the time of expiration. The termination language will be updated to give the County the right to terminate the Lease effective November 1, 2028, by giving the Landlord at least 90-days written notice. All other Lease terms remain unchanged.
RESD, acting in its approved capacity as the County Administrative Office designee to review proposed real property leases under Policy 12-02, completed a market analysis of comparable properties and found the current rental rate, including annual increases during the five-year extended term, to be competitive.
The project to approve the Amendment was reviewed pursuant to the California Environmental Quality Act (CEQA) and determined to be categorically exempt under Section 15301 - Class 1 Existing Facilities because the proposed Lease is to secure property to operate within the existing structure with negligible or no expansion of existing use.
|
Summary of Lease Terms |
|
|
Lessor: |
7353 ECB, LLC, and Pima 25, LLC, as tenants in common |
|
|
|
|
Location: |
56357 Pima Trail, Yucca Valley |
|
|
|
|
Size: |
25,193 square feet of office space |
|
|
|
|
Term: |
November 1, 2025, through October 31, 2030 |
|
|
|
|
Options: |
One five-year option remains |
|
|
|
|
Rent: |
Cost per square foot: $2.25* |
|
|
Monthly: $56,684 |
|
|
Annual: $680,208 |
|
|
*Mid-range for comparable facilities in the Yucca Valley area per the competitive set analysis on file with RESD |
|
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Annual Increases: |
Approximately 3% |
|
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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, except that County pays for electric costs that exceed an expense cap |
|
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Insurance: |
The Certificate of Liability Insurance, as required by each Lease, is on file with RESD |
|
|
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Holdover: |
Upon the end of the term, if permitted by Lessor, the Lease shall continue on a month-to-month term upon the same terms and conditions which existed at the time of expiration, except that the monthly rent shall be 110% of the rent in effect immediately prior to the expiration |
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Right to Terminate: |
County has the right to terminate beginning November 1, 2028, with a 90-day written notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, and Jacqueline Carey-Wilson, Deputies County Counsel, 387-5455) on September 17, 2025; Transitional Assistance (James Locurto, Director, 388-0245) on September 17, 2025; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on September 19, 2025; and County Finance and Administration (John Hallen, 388-0208, and Eduardo Mora, 387-4376, Administrative Analysts) on October 2, 2025.
(YG: 665-0268)