REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
JANKI PATEL, Acting Director, Department of Public Health
SUBJECT
Title
Amendment to Lease Agreement with Stellar Plaza, LLC for Office and Clinic Space in Adelanto
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 3 to Lease Agreement No. 13-1022 with Stellar Plaza, LLC, for office and clinic space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 3 to Lease Agreement No. 13-1022 through the Real Estate Services Department’s use of an alternative procedure in lieu of a Formal Request for Proposals, as allowed under County Policy 12-02 - Leasing Privately Owned Real Property for County Use, to:
a. Reflect the permitted month-to-month holdover from January 1, 2024 through September 30, 2026, at a total cost of $100,683.
b. Extend the term of the lease agreement, for approximately 1,838 square feet of office and clinic space at 11336 Bartlett Avenue Units 11 & 12 (Assessor’s Parcel Number 0459-254-02-0000) in Adelanto, for three years, from October 1, 2026 through September 30, 2029, by exercising one of the two existing three-year extension options.
c. Add one additional three-year option to extend.
d. Adjust the monthly base rent during the three-year extension from October 1, 2026 through September 30, 2026, resulting in total base rent of $152,040.
e. Increase the total lease amount by $252,723, from $353,568 to a new total amount of $606,291, inclusive of the $100,683 permitted holdover amount.
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
Promote and Fulfill the Countywide Vision
Operate in a Fiscally Responsible and Business-Like Manner
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total cost of Amendment No. 3 (Amendment) to Lease Agreement No. 13-1022 (Lease) is $252,723, consisting of $100,683 in holdover rent and $152,040 in base rent during the extended term. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Department of Public Health (DPH) Clinic Operations program budget (9300001000). DPH’s Clinic Operations program lease costs are funded with Medi-Cal fee-for-service and State Managed Care funds. Sufficient appropriation is included in DPH’s 2026-27 budget and will be included in future recommended budgets. Annual Lease costs are as follows:
|
Year |
Lease Cost |
|
*January 1, 2024 through September 30, 2026 |
$100,683 |
|
October 1, 2026 through September 30, 2027 |
$49,188 |
|
October 1, 2027 through September 30, 2028 |
$50,664 |
|
October 1, 2028 through September 30, 2029 |
$52,188 |
|
Total Cost |
$252,723 |
*Permitted holdover period
BACKGROUND INFORMATION
On December 3, 2013 (Item No. 34), the Board of Supervisors (Board) approved the Lease for 1,838 square feet of clinic space located at 11336 Bartlett Avenue, Units 11 and 12 (Assessor’s Parcel Number 0459-254-02-0000) in Adelanto (Property), for use by DPH. The original Lease term was for the period of January 1, 2014 through December 31, 2020. Since approval of the Lease, the Board has approved two amendments reflecting a change in property ownership, extending the term, exercising an existing extension option, adding one three-year option, adjusting the rental rate schedule, and updating standard lease agreement language related to ownership and parties, notices, venue, holdover tenancy, transfer of ownership, and federal funding requirements.
|
Amendment No. |
Approval Date |
Item No. |
|
1 |
September 11, 2018 |
46 |
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2 |
December 8, 2020 |
37 |
The Lease entered into a permitted holdover period on January 1, 2024, due to protracted negotiations with Stellar Plaza, LLC (Stellar Plaza) regarding the rental rate adjustment and multiple rounds of review and market analysis. RESD notified DPH of the need to complete a renewal to formalize continued occupancy beyond the permitted holdover period. RESD conducted a market survey of comparable properties in the Adelanto area and determined the proposed rental rate of $2.23 per square foot per month is consistent with current market conditions in Adelanto and surrounding areas. DPH has requested that the County exercise an existing option to extend the Lease for a three-year term.
The Amendment with Stellar Plaza will extend the term of the Lease for three-years for the period of October 1, 2026 through September 30, 2029, by exercising the first of two three-year options to extend, following a permitted holdover period from January 1, 2024 to September 30, 2026. The County is exercising an existing option, adjusting the rental rate schedule, adding an additional three-year option, and updating standard lease agreement language related to ownership and parties, notices, venue, holdover tenancy, transfer of ownership, and federal funding requirements, due to the continuing need for DPH to provide services in the Adelanto area.
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 - Existing Facilities (Class 1), because there is no possibility that the leasing of the subject property will have a significant effect on the environment.
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Summary of Lease Terms |
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Lessor: |
Stellar Plaza, LLC Maida Maida, Managing Member |
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Location: |
11336 Bartlett Avenue, Units 11 & 12, Adelanto |
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Size: |
1,838 square feet of office and clinic space |
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Term: |
Three years, commencing October 1, 2026 through September 30, 2029 |
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Options: |
Two three-year options remain |
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Rent: |
Cost per square foot per month: $2.23 (initial year) |
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Monthly: $4,099 |
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Annual: $49,188 |
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*Low range for comparable facilities in the Adelanto 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 County |
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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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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 |
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Right to Terminate: |
County has the right to terminate upon 180 days’ prior written notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT
County Policy 12-02 provides that the Board may approve the use of an alternative procedure in lieu of a Formal Request for Proposals (RFP) process whenever the Board determines that compliance with the Formal RFP requirements would unreasonably interfere with the financial or programmatic needs of the County, or when the use of an alternative procedure would otherwise be in the best interest of the County.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II Deputy County Counsel, 387-5455) on August 26, 2026; Public Health (Shannon Bailey, Assistant Director, 387-9146) on August 25, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on August 26, 2026; and County Finance and Administration (Iliana Rodriguez, 387-4205, and Eduardo Mora, 387-4376, Administrative Analysts) on September 4, 2026.
(PHL: 665-4890)