REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
September 15, 2020
FROM
LUTHER SNOKE, Interim Director, Department of Public Works - Transportation
TERRY W. THOMPSON, Director, Real Estate Services Department
SUBJECT
Title
Amendment No. 4 to Revenue Lease Agreement with the Crestline Resorts Chamber of Commerce for Use of County-owned Land in Crestline
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RECOMMENDATION(S)
Recommendation
Approve Amendment No. 4 to revenue Lease Agreement No. 06-128 with the Crestline Resorts Chamber of Commerce to extend the term of the lease by lessee’s exercise of its last three-year option for the period of October 1, 2020 through September 30, 2023, following a one month permitted holdover for the period of September 1, 2020 through September 30, 2020, and update standard lease agreement language for the use of approximately 0.12 acres of County-owned land in Crestline at no cost.
(Presenter: Terry W. Thompson, Director, 387-5252)
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COUNTY AND CHIEF EXECUTE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). There is no cost or revenue associated with this lease amendment. In lieu of monetary rent for the land, the Crestline Resorts Chamber of Commerce (Chamber) will provide approximately 550 square feet of office space within the Chamber’s modular building placed on County land to accommodate the Sheriff/Coroner/Public Administrator’s (Sheriff) need for space in the Crestline area.
BACKGROUND INFORMATION
The recommended action will amend an existing revenue lease agreement with the Chamber to extend the term of the lease by the Chamber’s exercise of its last three-year option for the period of October 1, 2020 through September 30, 2023, following a one month permitted holdover for the period of September 1, 2020 through September 30, 2020, and provide updates to standard lease language for the Chamber’s use of approximately 0.12 acres of County-owned land in Crestline for the placement of a modular building.
On February 7, 2006 (Item No. 33), the Board of Supervisors (Board) approved a four-year lease agreement, No. 06-128, with two three-year options to extend the term of the lease with the Chamber for approximately 0.12 acres of County-owned land, acquired for use by the Department of Public Works-Transportation (DPW-T) located at 24385 Lake Drive in Crestline. The original term of the lease was for the period of February 1, 2006 through January 31, 2010. In the 14 years since the lease was originally approved, the Board has approved three amendments to extend the term of the lease through August 31, 2020, consent to improvements performed by Chamber on its modular building located on the land, and update standard lease agreement language.
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Amendment No. |
Approval Date |
Item No |
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1 |
February 9, 2010 |
48 |
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2 |
January 14, 2014 |
33 |
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3 |
August 22, 2017 |
44 |
DPW-T requested the Real Estate Services Department (RESD) prepare an amendment as a result of the Chamber’s exercise of its last 3-year extension option. Extended negotiations regarding updates to standard lease agreement language delayed the agreement of the terms of the amendment and on September 1, 2020 Lease Agreement No. 06-128 went into a permitted holdover. The Chamber has continued to occupy the leased area and abide by the provisions of the lease. Amendment No. 4 to revenue Lease Agreement No. 06-128, extends the term of the lease 3 years for the period of October 1, 2020 through September 30, 2023, following a one month permitted holdover for the period of September 1, 2020 through September 30, 2020, and updates standard lease agreement language. All other terms and conditions of the lease remain unchanged.
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Summary of Lease Terms |
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Lessee: |
Crestline Resorts Chamber of Commerce |
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(Louis D. Boehloe, President) |
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Location: |
24385 Lake Drive, Crestline |
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Size: |
Approximately 0.12 acres of land |
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Term: |
Three years commencing October 1, 2020 through September 30, 2023, following a one month permitted holdover for the period of September 1, 2020 through September 30, 2020 |
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Options: |
None |
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Rent: |
None; rent entirely offset by County’s use of 550 square feet of office space in the Chamber-owned modular building |
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Annual Increases: |
None |
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Improvement Costs: |
None |
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Custodial: |
Provided by Lessee |
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Maintenance: |
Provided by Lessee |
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Utilities: |
Provided by Lessee |
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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: |
The County has the right to terminate with 90-days’ notice |
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Parking: |
Sufficient for County needs |
PROCUREMENT:
Not applicable.
REVIEW BY OTHERS:
This item has been reviewed by County Counsel (Agnes Cheng, Deputy County Counsel and Suzanne Bryant, Deputy County Counsel, 387-5455) on August 4, 2020; Public Works (Mervat Mikhail, Chief, Transportation Design Division, 387-7940) on July 20, 2020; Finance (Jessica Trillo, Administrative Analyst, 387-4222 and Wen Mai, Principal Administrative Analyst, 387-4020) on August 24, 2020; and County Finance and Administration (Matthew Erickson, County Chief Financial Officer, 387-5423) on August 31, 2020.
(PN: 677-8321)