On November 19, 2014, the County entered into a lease with New Horizons Career Development Center (Tenant) for use of the County-owned property located at 199 Parker Avenue in Rodeo. The lease term ended on May 31, 2015. Tenant has continued to occupy the premises as a holdover tenant on a month-to-month basis since then. As a result, the lease is terminable at any time by either party with 30 days’ notice.  
  
Tenant is currently paying rent in the amount of $750 per month for 2,400 square feet of office space. Staff estimates that the fair market rental value of the space is approximately $3,000 per month. In addition, under the terms of the existing lease, the County is responsible for the cost of the utilities being provided to the property and for all maintenance and repairs.   
  
This board order seeks authority to terminate the existing lease and, if necessary, pursue legal action through County Counsel to regain possession of the property. Once the existing lease has been terminated, staff will work with Tenant in an effort to negotiate a new lease that (i) increases the rent to fair market value, and (ii) shifts to Tenant the obligation to pay for utilities, maintenance, and repairs. If Tenant is unable or unwilling to enter into a new lease, the Real Estate Division of Public Works will endeavor to find a new commercial tenant or make the space available for use by an internal client (i.e., a County department). The space is located next door to the Rodeo Senior Center.  
  
Regaining possession of the property will enable the County to make the property available to another interested business at a lower cost to the County.