Agenda

Return

C. 24

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	April 27, 2021

Contra

Costa

County

Subject:

Lease Amendment for Employment & Human Services located at 300, 400 and 500 Ellinwood Way, Pleasant Hill.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/27/2021

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
Karen Mitchoff, 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: April 27, 2021
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a lease amendment with Pleasant Hill CA I SGF, LLC, to extend the initial term through September 30, 2035, and modify rents for approximately 137,232 square feet of office space for the Employment and Human Services Department, located at 300, 400, and 500 Ellinwood Way, Pleasant Hill, at an annual rent of $3,491,160 with rent increases thereafter.

FISCAL IMPACT:

20% Children and Family Services, 10% Aging and Adult Services, 70% Workforce Services.

BACKGROUND:

The County entered into a lease for the property at 300, 400, and 500 Ellinwood Drive, Pleasant Hill, in 2008. These buildings are centrally located in the county and are essential to Employment and Human Services Department (EHSD) service delivery. Each building houses different services such as Administrative Support functions in the 300 building, customer service for CalWORKS, CalFresh, and MediCal in the 400 building, and Children and Family Services in the 500 building. The buildings are fully occupied and are part of EHSD’s long-term space needs.

BACKGROUND: (CONT'D)

The property was sold on September 3, 2020, and is reassessable for property tax purposes as of that date. Extending the initial rental period through September 30, 2035 returns the lease term to 35+ years, including extensions as of the date of change in ownership, which maintains the County’s eligibility for non-tax status for property taxes.

CONSEQUENCE OF NEGATIVE ACTION:

The County will no longer qualify for non-tax status and will have to pay property taxes where they do not currently.