REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 4, 2026
FROM
TERRY W. THOMPSON, Director, Real Estate Services Department
THOMAS W. SONE, Public Defender
SUBJECT
Title
Amendment to Lease Agreement with Civic Center Investors, LLC for Office and Parking Lot Space in Victorville
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 7 to Lease Agreement No. 07-1079 with Civic Center Investors, LLC for office and parking lot space, is an exempt project under the California Environmental Quality Act Guidelines, Section 15301 - Existing Facilities (Class 1).
2. Approve Amendment No. 7 to Lease Agreement No. 07-1079 with Civic Center Investors, LLC, through the Real Estate Services Department’s use of an alternative procedure in lieu of a Formal Request for Proposals, as allowed per County Policy 12-02 - Leasing Privately Owned Real Property for County Use, to:
a. Extend the term of the Lease Agreement for approximately 9,719 square feet of office and parking lot space at 14344 Cajon Street in Victorville (Assessor’s Parcel Numbers 0396-154-17-0000, 0396-154-18-0000, 0396-154-19-0000, 0396-154-20-0000, and 0396-154-21-0000), for a five-year period, for a new Lease Agreement term of September 1, 2026 through August 31, 2031.
b. Add two additional two-year options to extend the Lease Agreement term.
c. Adjust the rental rate schedule for the five-year extension term from September 1, 2026 through August 31, 2031, in the amount of $1,387,032.
d. Increase the total Lease Agreement amount by $1,556,528, from $4,495,592 for a new total amount of $6,052,120.
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 additional Discretionary General Funding (Net County Cost). The total cost of Amendment No. 7 (Amendment) to Lease Agreement No. 07-1079 (Lease), including the mutually agreed upon holdover period from January 1, 2026 through August 31, 2026, is $1,556,528. Lease payments will be made from the Real Estate Services Department (RESD) Rents budget (7810001000) and reimbursed from the Public Defender (PD) budget (4914001000). The Lease includes an electric utility cap beyond which the Civic Center Investors, LLC’s (Landlord) expenses are reimbursable by PD, but it is not anticipated that electric utility expenses will exceed the cap. Sufficient appropriation is included in PD’s 2026-27 budget and will be included in future recommended budgets. Annual lease costs are as follows:
|
Year |
Lease Cost |
|
*January 1, 2026 - August 31, 2026 |
$169,496 |
|
September 1, 2026 - August 31, 2027 |
$261,252 |
|
September 1, 2027 - August 31, 2028 |
$269,088 |
|
September 1, 2028 - August 31, 2029 |
$277,164 |
|
September 1, 2029 - August 31, 2030 |
$285,480 |
|
September 1, 2030 - August 31, 2031 |
$294,048 |
|
Total Cost |
$1,556,528 |
*Permitted holdover period
BACKGROUND INFORMATION
This proposed Amendment extends the Lease term for five years, for a new term of September 1, 2026 through August 31, 2031, through the County’s and Landlord‘s mutual agreement, following a permitted holdover period from January 1, 2026 through August 31, 2026. The Amendment also adjusts the rental rate schedule, adds two additional two-year options to extend the term, revises the termination language, and updates standard lease agreement language.
On December 18, 2007 (Item No. 40), the Board of Supervisors (Board) approved the Lease for 9,719 square feet of office space on the second floor and parking lot space at 14344 Cajon Street in Victorville (Premises) for PD. The original term of the Lease was March 1, 2008 through February 28, 2018. Since that time, the Board has approved six amendments, decreasing the lease term, adding extension options, adjusting the rental rate schedule, extending the lease term, and updating standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
|
1 |
February 12, 2008 |
29 |
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2 |
February 12, 2013 |
37 |
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3 |
May 20, 2014 |
64 |
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4 |
July 25, 2017 |
40 |
|
5 |
July 27, 2021 |
47 |
|
6 |
December 19, 2023 |
78 |
PD requested that RESD negotiate a lease extension for the Premises. As a result, extended negotiations were required to reach mutually agreeable lease terms while also confirming the County's long-term operational space needs. Because these negotiations continued beyond the expiration of the previous lease term, and to avoid disruption of constitutionally required PD services, the parties mutually agreed to continue occupancy under the Lease's permitted month-to-month holdover provision from January 1, 2026 through August 31, 2026. Accordingly, Board approval is requested to formalize the negotiated lease extension, including the mutually agreed upon holdover period and the associated lease costs that have accrued since January 1, 2026. RESD recommends approval of the five-year lease extension, including two additional two-year extension options, to ensure continuity of PD operations in the Victorville area while preserving the County's ability to terminate the Lease with 90 days' notice, if operational needs change. This approach minimizes relocation costs, avoids service interruptions, and provides the County with continued operational flexibility.
PD also occupies 1,569 square feet of office space in the same building on the first floor under Lease Agreement No. 14-333, which is not affected by this Amendment.
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.
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Summary of Lease Terms |
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Lessor: |
Civic Center Investors, LLC Jose Luis Andreau, Managing Member |
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Location: |
14344 Cajon Street, Second Floor Suites 201, 202, 203 and 204, Victorville |
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Size: |
9,719 square feet of office space |
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Term: |
Five years, September 1, 2026 - August 31, 2031 |
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Options: |
Two two-year options remain |
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Rent: |
Cost per square foot per month: $2.24 Full -service gross |
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Monthly: $21,771 |
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Annual: $261,252 |
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*High-range for comparable facilities in the Victorville 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: |
Landlord shall provide utilities; however, County shall be responsible for electrical costs exceeding an annual cap of $44,319 per lease year (the ‘Electrical Cap’), subject to annual increases of 3% |
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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 expiration 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: |
Either Party with a 90-day 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.
RESD conducted a market review of comparable office facilities in the Victorville area and negotiated with the Landlord to obtain terms determined to be reasonable and appropriate for the current market conditions. The negotiated rental rate reflects the operational needs of PD while maintaining occupancy within the existing facility currently occupied and improved for PD’s operations.
The Premises provides an established operational location for PD services in the Victorville area and contains existing tenant improvements, infrastructure, and operational configurations that support PD’s current use. Relocating PD operations to an alternative facility would likely result in operational disruption, increased transition costs, potential downtime, and additional expenses associated with tenant improvements, furniture reconfiguration, technology and security infrastructure relocation, and staff transition.
Approval of the Amendment will allow PD to maintain continuity of operations and uninterrupted public services while preserving the County’s operational flexibility through the negotiated termination provision and extension options. Accordingly, RESD recommends the use of an alternative procedure in lieu of a Formal RFP process, pursuant to County Policy 12-02.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on June 29, 2026; Public Defender (Thomas Sone, Public Defender, 382-3940) on July 6, 2026; Purchasing (Ariel Gill, Supervising Buyer, 387-2070) on July 7, 2026; and County Finance and Administration (Celia McDonald, 387-4286, and Eduardo Mora, 387-4376, Administrative Analysts) on July 20, 2026.
(PHL: 665-4890)