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 and Cajon 1 Investors, LLC for Office and Parking Lot Space in Victorville
End
RECOMMENDATION(S)
Recommendation
1. Find that approval of Amendment No. 3 to Lease Agreement No. 14-333 with Civic Center Investors, LLC for office 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. 14-333 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. Add Cajon 1 Investors, LLC as Landlord for the Parking Lot portion of the property.
b. Extend the term of the Lease for approximately 1,569 square feet of office space on the first floor at 14344 Cajon Street Suite 104 in Victorville (Assessor’s Parcel Number 0396-154-16-0000 and 0396-154-21-0000), for a five-year period from September 1, 2026 through August 31, 2031, through the mutual agreement of the County and Civic Center Investors, LLC and Cajon 1 Investors, LLC, following a permitted holdover period of July 1, 2024 through August 31, 2026.
c. Add two additional three-year options to extend.
d. Adjust the rental rate schedule for the extended five-year term commencing September 1, 2026 through August 31, 2031, in the amount of $344,294 inclusive of the $98,306 for the permitted holdover period of July 1, 2024 through August 31, 2026.
e. Increase the total contract amount by $344,294, from $408,600 to a new total amount of $752,894.
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. 3 (Amendment) to Lease Agreement No. 14-333 (Lease), with Civic Center Investors, LLC is $344,294. 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 landlord’s 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 2026-2027 budget and will be included in future recommended budgets. Annual lease costs are as follows:
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Year |
Lease Cost |
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*July 1, 2024 - August 31, 2026 |
$98,306 |
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September 1, 2026 - August 31, 2027 |
$47,268 |
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September 1, 2027 - August 31, 2028 |
$48,216 |
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September 1, 2028 - August 31, 2029 |
$49,176 |
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September 1, 2029 - August 31, 2030 |
$50,160 |
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September 1, 2030 - August 31, 2031 |
$51,168 |
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Total Cost |
$344,294 |
*Permitted holdover period
BACKGROUND INFORMATION
This Amendment extends the Lease term for five years, from September 1, 2026 through August 31, 2031, through the mutual agreement of the County and Civic Center Investors, LLC and Cajon 1 Investors, LLC (Landlord), following a permitted holdover period from July 1, 2024 through August 31, 2026. The Amendment also adjusts the rental rate schedule, adds two additional three-year options to extend the term, revises the termination language, and updates standard lease agreement language which includes, Parties, Holding Over, and Levine Act Campaign Contribution.
On May 20, 2014 (Item No. 63), the Board of Supervisors (Board) approved the Lease with two two-year options to extend the term for 1,569 square feet of office space on the first floor at 14344 Cajon Street Suite 104 in Victorville (Premises) for PD. The original term of the Lease was July 1, 2014 through June 30, 2019. Since that time, the Board has approved two amendments to extend the lease term, adjust the rental rate schedule, add a three-year option to extend, and update standard lease agreement language.
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Amendment No. |
Approval Date |
Item No. |
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1 |
June 25, 2019 |
43 |
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2 |
June 22, 2021 |
75 |
PD requested that RESD negotiate a lease extension for the Premises. The Landlord initially proposed a rental rate increase, citing inflation and market adjustments; however, RESD's market survey determined that the proposed rate exceeded the market rate for comparable office facilities in the Victorville area. 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 Public Defender services, the parties mutually agreed to continue occupancy under the Lease's permitted month-to-month holdover provision from July 1, 2024 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 July 1, 2024. RESD recommends approval of the five-year lease extension, including two additional three-year extension options, to ensure continuity of Public Defender operations in the Victorville area while preserving the County's ability to terminate the Lease with 180 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 9,719 square feet of office space in the same building on the second floor under Lease Agreement No. 07-1079, which is not affected by this Amendment.
The project to approve this 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, and Cajon 1 Investors LLC Jose Luis Andreau, Managing Member |
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Location: |
14344 Cajon Street, Suite 104 First Floor, Victorville |
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Size: |
1,569 square feet of office space |
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Term: |
Five years, September 1, 2026 through August 31, 2031 |
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Options: |
Two additional three-year options remain |
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Rent: |
Cost per square foot per month: $2.51 per square foot per month, full -service gross |
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Monthly: $3,939 |
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Annual: $47,268 |
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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 2% |
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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 $7,870.20 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 the 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 right to terminate at any time with 180-Day Notice; During a Holdover Period, either Party may terminate 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.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (John Tubbs II, Deputy County Counsel, 387-5455) on June 30, 2026; Public Defender (Thomas Sone, Public Defender, 382-3940) on July 7, 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)