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C. 26

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	January 17, 2023

Contra

Costa

County

Subject:

Lease of 4300 Delta Gateway Blvd., Pittsburg, for use as Law Enforcement Training Center

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/17/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Margaret Eychner, 925-957-2463

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: January 17, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a lease with CP Development Commercial, LLC, under which the County will lease approximately 35,306 square feet of office and gym space located at 4300 Delta Gateway Boulevard in Pittsburg for 15 years for use as a law enforcement training center, at an initial annual rent of $593,136 with increases every five years thereafter, subject to approval by the County Administrator and approval as to form by County Counsel.


AUTHORIZE the Public Works Director, or designee, to exercise lease extension options in accordance with the terms of the lease.

RECOMMENDATION(S): (CONT'D)

AUTHORIZE the Public Works Director, or designee, to execute a Subordination, Non-Disturbance and Attornment agreement with the property owner and its lender to protect the County’s interests in the event of a foreclosure by the lender.

FISCAL IMPACT:

100% Office of the Sheriff - #2501 (100% General Fund)

BACKGROUND:

The County’s Law Enforcement Training Center (LETC) has been located in a city-owned facility in the City of Pittsburg for approximately 20 years. The City elected to not renew the lease when it expired on December 31, 2022. The proposed new site of the LETC is located at 4300 Delta Gateway Boulevard in Pittsburg. The new site was identified after an extensive search for a suitable location that could be occupied in early 2023. The new site is a former gym with many of the unique features needed for this specialty operation already in place. Once the planned tenant improvements are complete, the site will meet all current and anticipated needs of the LETC.

Tenant improvements will be constructed and delivered by the landlord all-inclusive for a turnkey operation. The estimated cost of the tenant improvements is approximately $2,600,000. The landlord will pay approximately $1,200,000 for the tenant improvements; the County will pay approximately $1,400,000. The County’s share of the cost of tenant improvements will be paid when the tenant improvements are complete.

The monthly expense incurred under the lease will be comprised of base rent and operating expenses. In the first year of occupancy, the base rent will equal $49,428 per month and operating expenses are anticipated to be $13,919 per month, for a total of $63,347 per month. Under the terms of the lease, the County will have four options to renew the lease for a term of five years for each option.

CONSEQUENCE OF NEGATIVE ACTION:

The Sheriff’s Office would have to discontinue training activities and programs until another suitable location could be found.