HomeMy WebLinkAbout2015-10-20 e-packet s REGULAR MEETING
OVERSIGHT BOARD FOR THE
SUCCESSOR AGENCY TO THE CITY OF
SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
CITY HALL
LARGE CONFERENCE ROOM, TOP FLOOR
400 GRAND AVENUE
TUESDAY, OCTOBER 20, 2015
2:00 P.M.
PEOPLE OF SAN MATEO COUNTY
You are invited to offer your suggestions. In order that you may know our method of conducting
Board business, we proceed as follows:
The regular meetings of the South San Francisco Oversight Board for the Successor Agency to the
City of South San Francisco Redevelopment Agency are held on the third Tuesday of each month at
2:00 p.m. in the in the Large Conference Room, Top Floor at City Hall, 400 Grand Avenue, South
San Francisco, California.
In accordance with California Government Code Section 54957.5, any writing or document that is a
public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a
regular meeting will be made available for public inspection in the City Clerk's Office located at City
Hall. If, however, the document or writing is not distributed until the regular meeting to which it
relates, then the document or writing will be made available to the public at the location of the
meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San
Francisco, California 94080.
In compliance with Americans with Disabilities Act, if you need special assistance to participate in
this meeting, please contact the South San Francisco City Clerk's Office at (650) 877-8518.
Notification 48 hours in advance of the meeting will enable the City to make reasonable
arrangements to ensure accessibility to this meeting.
Chairperson: Selected by:
Neil Cullen Largest Special District of the type in H&R
Code Section 34188
Vice Chair: Selected by:
Michael Krause San Mateo County Superintendent of Schools
Assistant Superintendent, Business Services
South San Francisco Unified School District
Alternate: Vacant
Superintendent, South San Francisco Unified School District
Board Members: Selected by:
Mark Addiego Mayor of the City of South San Francisco
Councilmember, City of South San Francisco
Barbara Christensen Chancellor of California Community College
Director of Community/Government Relations,
San Mateo County Community College District
Reyna Farrales San Mateo County Board of Supervisors
Deputy County Manager, San Mateo County
Paul Scannell San Mateo County Board of Supervisors
(Public Member)
Billy Gross Mayor of the City of South San Francisco
Senior Planner, City of South San Francisco
Counsel
Craig Labadie
Advisory:
Jim Steele, Assistant City Manager, City of South San Francisco
Richard Lee—Finance Director, City of South San Francisco
Alex Greenwood—Director of Economic and Community Development, City of South San Francisco
Steve Mattas —City Attorney, City of South San Francisco
Krista Martinelli—City Clerk, City of South San Francisco
Armando Sanchez—Redevelopment Consultant, City of South San Francisco
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
COMMUNICATIONS FROM STAFF
OVERSIGHT BOARD REGULAR MEETING OCTOBER 20,2015
AGENDA PAGE2
PUBLIC COMMENTS
Comments from members of the public on items not on this meeting agenda. The Chair may set time
limit for speakers. Since these topics are non-agenda items, the Board may briefly respond to
statements made or questions posed as allowed by the Brown Act (Government Code Section
54954.2). However, the Board may refer items to staff for attention, or have a matter placed on a
future agenda for a more comprehensive action report.
MATTERS FOR CONSIDERATION
1. Motion to approve the Minutes of the Regular Meeting of September 15, 2015.
2. Resolution approving an amendment to the Lease Agreement with the County of San
Mateo for the facility at 306 Spruce Avenue and authorizing the Successor Agency
Executive Director to execute the Lease Amendment. (Armando Sanchez, ECD
Housing Consultant).
3. Resolution approving an amendment to the Lease Agreement with Sitike Counseling
Center for the facility at 306 Spruce Avenue and authorizing the Successor Agency
Executive Director to execute the Lease Amendment. (Armando Sanchez, ECD
Housing Consultant).
4. Resolution approving the Lease Agreement with the County of San Mateo for the
ground floor space at 306 Spruce Avenue and authorizing the Successor Agency
Executive Director to execute the Lease Agreement. (Armando Sanchez, ECD
Housing Consultant).
FUTURE AGENDA ITEMS
a. Terms of a Revenue Sharing Agreement for commercial space at 636 El Camino Real and
direction to staff to draft a Revenue Sharing Agreement.
ADJOURNMENT
OVERSIGHT BOARD REGULAR MEETING OCTOBER 20,2015
AGENDA PAGE3
MINUTES
Q REGULAR MEETING
fl
OVERSIGHT BOARD FOR THE
� zr o�''' SUCCESSOR AGENCY TO THE CITY OF
SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY
P.O. Box 211 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
CITY HALF,
LARGE CONFERENCE ROOM, TOP FLOOR
400 GRAND AVENUE
TUESDAY, SEPTEMBER 15, 2015
2:00 P.M.
CALL TO ORDER TIME: 2:00 P.M.
ROLL CALL PRESENT: Boardmembers Addiego, Farrales and
Gross*, Vice Chair Krause and Chair
Cullen.
*Boardmernber Gross arrived at 2.01
P.M.
ABSENT: Boardmembers Scannell and Christensen.
PLEDGE OF ALLEGIANCE Led by Vice Chair Krause.
AGENDA REVIEW
No Changes.
COMMUNICATIONS FROM STAFF
None.
PUBLIC COMMENTS
None.
MATTERS FOR CONSIDERATION
1. Motion to approve the Minutes of the Regular Meeting of August 18, 2015,
Motion — Boardmember Farrales/Second — Boardmember Addiego. to approve the Minutes of the
Regular Meeting of August 18, 2015. Approved by the following Roll Call Vote: AYES:
Boardmembers Addiego, Farrales and Gross, and Chair Cullen. NOES. None. ABSENT:
Boardmembers Christensen and Scannell. ABSTAIN: Vice Chair Krause.
2. Resolution No. 06-2015 approving a license in favor of the City of San Francisco and
the San Francisco Public Utilities Commission to enter and use portions of property
identified as Assessor's Parcel 093-312-060 for access purposes related to the SFPUC
Regional Groundwater Storage and Recovery Project, (Armando Sanchez, Housing
Consultant).
Housing Consultant Armando Sanchez specified this temporary license agreement would grant the
San Francisco Public Utilities Commission (SFPUC) access to a parcel of land owned by the
Successor Agency until the Long Range Property Management Plan is approved, at which point staff
will return with information to approve the sale of an easement for the property. Sanchez assured the
Board this transfer would not jeopardize any development plans or development value for the
Successor Agency. He proceeded with a recommendation to amend the Resolution omitting all
Assessor's Parcel Numbers since the SFPUC has failed to provide a consistent reference number for
the property.
Motion—Boardmember Addiego/Second—Boardmember Gross: to approve Resolution No. 06-2015.
Approved by the following Roll Call Vote: AYES: Boardmembers Addiego, Farrales and Gross, Vice
Chair Krause and Chair Cullen. NOES: None. ABSENT: Boardmembers Christensen and Scannell.
ABSTAIN: None.
3. Resolution No. 07-2015 approving submittal to the Successor Agency Oversight
Board of a Recognized Obligation Payment Schedule (ROPE 15-1613) for the period
January through June 2016. (Richard Lee, Director of Finance).
Senior Financial Analyst Joe Martin detailed the expenses listed under the Recognized Obligation
Payment Schedule which came to an estimated total of$6,300,000. Boardmembers asked clarifying
questions, and no further direction was given.
Motion — Boardmember Addiego/Second — Boardmember Farrales: to approve Resolution No. 07-
2015. Approved by the following Roll Call Vote: AYES: Boardmembers Addiego, Farrales and
Gross, Vice Chair Krause and Chair Cullen. NOES: None. ABSENT: Boardmembers Christensen
and Scannell. ABSTAIN: None.
OVERSIGHT BOARD REGULAR MEETING SEPTEMBER 15,2015
MINUTES PAGE 2
ADJOURNMENT
Being no further business Chair Cullen adjourned the meeting at 2:16 P.M.
Submitted by: Approved by:
k
le dra Tupper, D pi ty City Clerk Neil Cullen, Chairperson of the Oversight Board
of South San Fr nci City of South San Francisco
OVERSIGHT BOARD REGULAR MEETING SEPTEMBER 15,2015
MINUTES PAGE 3
redevelopment Successor Agency Oversight Board
0 Ntaff Report
DATE: October 20, 2015
TO: Members of the Oversight Board
FROM: Alex Greenwood, Director of Economic and Community Development
SUBJECT: ADOPT A RESOLUTION APPROVING AN AMENDMENT TO THE LEASE
AGREEMENT WITH THE COUNTY OF SAN MATEO FOR THE FACILITY AT
306 SPRUCE AVENUE
RECOMMENDATION
That the Oversight Board adopt a resolution authorizing an amendment to the lease agreement with
County of San Mateo for the facility at 306 Spruce Avenue and authorizing the Successor Agency
Executive Director or his designee to execute the Lease Amendments.
BACKGROUND
The medical facility located at 306 Spruce Avenue/472 Grand Avenue, is a 14,000 square foot parcel
containing a three story building and an adjacent parking lot. The facility also has a dedicated parking lot
at 468 Miller Avenue. The basement level of the building contains vacant office space, the building's
mechanical systems (electrical, fire alarms, HVAC and boiler) and restrooms. The San Mateo County
Health Center occupies the second floor and Sitike Counseling Center occupies the first floor. The roof of
the building contains cell tower equipment installed by Sprint and the building's exhaust fans.
Sitike's tenant space is partitioned into office spaces and counseling rooms, with an entry lobby, kitchen,
child care facility, two disabled accessible restrooms, and access to an outdoor patio. 'Their lease includes
four (4) on-site parking spaces and seven (7) spaces at the Miller Avenue parking lot.
The Health Center is a primary care medical facility with exam rooms, a large office area, counseling
rooms, a lobby, a computer server room, a meeting room and kitchen, and two disabled (men's and
women's) accessible restrooms. The Health Center lease includes five (5) parking spaces in the adjacent
lot and eleven (11) spaces in the lot on Miller Avenue
DISCUSSION
The San Mateo County Health Center and Sitike Counseling Center have held leases for 18 years and 19
years respectively, The Lease Agreements for both tenants require the Lessees to pay for all their utilities
and to provide janitorial services while landscaping and all maintenance and repairs are the responsibility
of the Successor Agency (Lessor). On September 23, 2014, the Oversight Board approved one year lease
responsibility
utilities 9
ti" 'eq
,jbll.ty
le _
a.,e
extensions for Sitike and the Health Center and the California State Department of Finance (DOF)
affirmed the lease extensions. Sitike's current lease expired on August 31, 2015 and the County's lease
will expire on October 31, 2015.
Staff Report
Subject: Sitike Lease Amendment for 306 Spruce Avenue
Page 2 of 2
The property at 306 Spruce Avenue is still subject to the provision of AB 1484 which requires the DOF's
approval of a Long Range Property Management Plan (LRPMP). On October 1, 2015 DOF approved the
LR_PMP. According to the approved L.RPMP, the Successor Agency is authorized to transfer the property
to the County of San Mateo, or to the City of South San Francisco if the County is not interested in taking
ownership. Because it will take several months to determine the owner of the property and transfer it, it is
necessary to enter into a short term lease with Sitike and the Health Center, Therefore, staff recommends
that the Oversight Board approve one-year Lease Amendments for both Sitike and the Health Center.
Sitike will continue to pay a rent of$1.03 per square foot for a total payment of$5,858.64 per month. The
County will continue to pay $1,34 per square foot for a total rent payment of$8,370.89 per month. Staff
believes that the rental rate of $1.03 to $1,34 per square foot is reasonable for an older building in the
downtown core.
CONCLUSION
That the Oversight Board adopt a resolution authorizing an amendment to the lease agreement with San
Mateo County for the facility at 306 Spruce Avenue and authorizing the Successor Agency Executive
Director or his designee to execute the Lease Amendment.
Sitike will continue to pay $5,858.64 per month and the Health Center $8,370.89 per month. Funds will be
deposited into the Redevelopment Property Tax Trust Fund (RPTTF) until the property is transferred to the
County of San Mateo or the City of South San Francisco.
Ile
By: By:
Alex Greenwood �Mlke Futrell
Director of Economic and Executive Director
Community Development
Attachments: Resolution
San Mateo Lease Amendment
OVERSIGHT RESOLUTION NO.
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE CITY OF SOUTH SAN
FRANCISCO REDEVELOPMENT AGENCY
A RESOLUTION OF THE SOUTH SAN FRANCISCO OVERSIGHT
BOARD APPROVING AN AMENDMENT TO THE LEASE
AGREEMENT WITH THE COUNTY OF SAN MATEO FOR THE
FACILITY AT 306 SPRUCE AVENUE
WHEREAS, on March 13, 2013, the Lessor acquired that certain real property located
at 306 Spruce Avenue in South San Francisco, California ("Property") from the City of
South San Francisco pursuant to Resolution No. 6-2013.
WHEREAS, the Property succeeded to and was acquired by the Successor Agency to the
City of South San Francisco Redevelopment Agency ("Successor Agency") pursuant to ABx I
26 and AB 1484; and
WHEREAS, pursuant to Health and Safety Code ("HSC") 34191.5(b) the Successor
Agency prepared a Long Range Property Management Plan ("L1?,PMP"') and submitted it to the
California Department of Finance ("D OF") on November 21, 2013 and a revised LRPMP on
May 22, 2015; and DOF approved the LRPMP on October 1, 2015; and
WHEREAS, a portion of the Property is leased to the County of San Mateo ("Lessee")
for a Health Center, pursuant to that certain Retail Lease Agreement dated April 4, 2000, as
amended from time to time ("Lease Agreement"); and
WHEREAS, the original term of the Lease expired on September 30, 2011 and was
extended four times for a period of one year each with the last extension ending on October
31, 2015.
WHEREAS, the Successor Agency and Lessee desire to extend the term of the Lease
Agreement for an additional year, to and including October 31, 2016; and
WHEREAS, the Successor Agency recommends amending the Lease Agreement,
including extending the term of the Lease Agreement for one (1) year at the current rent.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of the Successor Agency
to the City of South San Francisco Redevelopment Agency hereby resolve as follows:
1. Approves an amendment to the lease agreement with the County of San Mateo for
the facility at 306 Spruce, and
2. Authorize the Successor Agency's Executive Director or designee to (i)execute the
1
Amendment to the Lease Agreement on behalf of the Successor Agency subject to
the approval of the Oversight Board;(ii)take such other actions reasonably necessary
to carry out the intent of this Resolution.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Oversight Board for the Successor Agency to the City of South San Francisco
Redevelopment Agency at a meeting held on the 20t" day,of October, 2015by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
Successor Agency Clerk
2
AMENDMENT TO LEASE
THIS AMENDMENT TO LEASE ("Amendment") is entered into effective as of
November 1, 2015("Effective Date"), by and between the Successor Agency to the City of
South San Francisco Redevelopment Agency, a public entity ("Lessor" Or "Successor Agency")
and the County of San Mateo, a political subdivision of the State of California("Lessee").
I,essor and Lessee are hereinafter collectively referred to as the "Parties".
RECITALS
A. On March 13, 2013, the Lessor acquired that certain real property located at 306 Spruce
Avenue in South San Francisco, California ("Property") from the City of South San Francisco
pursuant to Resolution No. 6-2013.
B. The Property is subject to that certain Lease Agreement ("Lease") dated April 4, 2000 by
and between the Agency and the County of San Mateo ("County") pursuant to which the County
leased the second floor of that certain building located on the Property ("Premises") f to operate
a health services clinic.
C. The original term of the Lease expired on September 30, 2011 and was extended four
times for a period of one year each with the last extension ending on October 31, 2015.
D. The Parties now desire to further amend the Lease pursuant to the terms and conditions
set forth in this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:
1. Term of the Lease. The Term of the Lease shall be extended for one (1) year, commencing
on November 1, 2015 and continuing through October 31, 2016 under the same terms and
conditions as contained in the Lease and any amendment thereto except as specifically set
forth herein.
2. Rent. Commencing on the Effective Date, the Base Rent shall be $8,370.89 per month.
3. Parties. The term "Agency" as used in the Lease shall mean the Successor Agency as the
Redevelopment Agency's and City's successor in interest.
4. Amendment. The Lease may be further amended or modified only by a written instrument
executed by the Parties.
5. Construction. The section headings and captions used herein are solely for convenience and
shall not be used to interpret this Amendment.
1
6. Action or Approval. Whenever action and/or approval by Lessor is required under this Lease
as amended hereby, Lessor's Executive Director or his or her designee may act on and/or
approve such matter unless specifically provided otherwise, or unless the Executive Director
determines in his or her discretion that such action or approval requires referral to Lessor's
Governing Board for consideration.
7. Counterparts. This Amendment may be executed in one or more counterparts, each of which
shall be an original and all of which taken together shall constitute one instrument.
8. Severability. If any term, provision, or condition of this Amendment is held by a court of
competent jurisdiction to be invalid or unenforceable, the remainder of this Amendment shall
continue in full force and effect unless an essential purpose of this Amendment is defeated by
such invalidity or unenforceability.
9. No Third Party Beneficiaries. Nothing contained in this Amendment is intended to or shall
be deemed to confer upon any person, other than the Parties and their respective successors
and assigns, any rights or remedies hereunder.
10. Entire Aagement. This Amendment contains the entire agreement between the Parties with
respect to the subject matter hereof and supersedes all prior oral or written agreements
between the Parties with respect thereto.
11, Authorization. The undersigned each hereby represent and warrant that each is duly
authorized to execute this Amendment.
12, Effectiveness of Lease. Except as expressly set forth in this Amendment, the Lease remains
unmodified and in full force and effect.
SIGNATURES ON F OLL OWING PAGE.
2
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the
date first written above.
Successor Agency to the Redevelopment Agency
of the City of South San Francisco,
a public entity
By:
Its:
ATTEST:
By:
Agency Clerk
APPROVED AS TO FORM:
By-,
Agency Attorney
County of San Mateo,
a political subdivision of the State of California
By:
Its:
ATTEST:
By:
County Clerk
APPROVED AS TO FORM:
By:
County Counsel
3
Redevelopment Successor Agency Oversight Board
Z Laff Rei)ort
DATE: October 20, 2015
TO: Members of the Oversight Board
FROM: Alex Greenwood, Director of Economic and Community Development
SUBJECT: ADOPT A RESOLUTION APPROVING AN AMENDMENT TO THE LEASE
AGREEMENT WITH SITIKE COUNSELING CENTER FOR THE FACILITY AT
306 SPRUCE AVENUE
RECOMMENDATION
That the Oversight Board adopt a resolution authorizing an amendment to the lease agreement with
Sitike Counseling Center for the facility at 306 Spruce Avenue and authorizing the Successor
Agency Executive Director or his designee to execute the Lease Amendment.
BACKGROUND
The medical facility located at 306 Spruce Avenue/472 Grand Avenue, is a 14,000 square foot parcel
containing a three story building and an adjacent parking lot. The facility also has a dedicated parking lot
at 468 Miller Avenue, The basement level of the building contains vacant office space, the building's
mechanical systems (electrical, fire alarms, HVAC and boiler) and restrooms, The San Mateo County
Health Center occupies the second floor and Sitike Counseling Center occupies the first floor. The roof of
the building contains cell tower equipment installed by Sprint and the building's exhaust fans.
Sitike's tenant space is partitioned into office spaces and counseling rooms, with an entry lobby, kitchen,
child care facility, two disabled accessible restrooms, and access to an outdoor patio. Their lease includes
four (4) on-site parking spaces and seven (7) spaces at the Miller Avenue parking lot.
The Health Center is a primary care medical facility with exam rooms, a large office area, counseling
rooms, a lobby, a computer server room, a meeting room and kitchen, and two disabled (men's and
women's) accessible restrooms. The Health Center lease includes five (5) parking spaces in the adjacent
lot and eleven (11) spaces in the lot on Miller Avenue
DISCUSSION
The San Mateo County Health Center and Sitike Counseling Center have held leases for 18 years and 19
years respectively. The Lease Agreements for both tenants require the Lessees to pay for all their utilities
and to provide janitorial services while landscaping and all maintenance and repairs are the responsibility
of the Successor Agency (Lessor). On September 23, 2014, the Oversight Board approved one year lease
extensions for Sitike and the Health Center and the California State Department of Finance (DOF)
affirmed the lease extensions. Sitike's current lease expired on August 31, 2.015 and the County's lease
will expire on October 31, 2015,
Staff Report
Subject: Sitike Lease Amendment for 306 Spruce Avenue
Page 2 of 2
The property at 306 Spruce Avenue is still subject to the provision of AB 1484 which requires the DOF"s
approval of a Lang Range Property Management Plan (LRPMP). On October 1, 2015. DOF approved the
L1ZPMP. According to the approved LRPMP, the Successor Agency is authorized to transfer the property
to the County of San Mateo, or to the City of South San Francisco if the County is not interested in taking
ownership. Because it will take several months to determine the owner of the property and transfer it, it is
necessary to enter into a short term lease with Sitike and the Health. Center. Therefore, staff recommends
that the Oversight Board approve one-year Lease Amendments for both Sitike and the Health Center.
Sitike will continue to pay a rent of$1.03 per square foot for a total payment of$5,858.64 per month. The
County will continue to pay $1.34 per square foot for a total rent payment of $8,370.89 per month. Staff
believes that the rental rate of $1.03 to $1.34 per square foot is reasonable for an older building in the
downtown core.
CONCLUSION
That the Oversight Board adopt a resolution authorizing an amendment to the lease agreement with Sitike
Counseling Center for the facility at 306 Spruce Avenue and authorizing the Successor Agency Executive
Director or his designee to execute the Lease Amendment.
Sitike will continue to pay $5,858.64 per month and the Health Center $8,370.89 per month. Funds will be
deposited into the Redevelopment Property Tax Trust Fund (RPTTF) until the property is transferred to the
County of San Mateo or the City of South San Francisco.
By: 4L^'x' [_ By:
Alex Greenwood ike Futrell
Director of Economic and Executive Director
Community Development
Attachments: Resolution
Sitike Lease Amendment
RESOLUTION NO
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE CITY OF ,SOUTH SAN
FRANCISCO REDEVELOPMENT AGENCY
A RESOLUTION OF THE SOUTH SAN FRANCISCO OVERSICHT BOARD
APPROVING AN AMENDMENT TO THE LEASE AGREEMENT WITH THE
SITIKE COUNSELING CENTER FOR THE FACILITY AT 306 SPRUCE.
AVENUE
WHEREAS, on March 13, 2013, the Lessor acquired that certain teal property located at
306 Spruce Avenue in South San Francisco, California ("Property") from the City of South San
Francisco pursuant to Resolution No. 6--2013.
WHEREAS, the Property succeeded to and was acquired by the Successor Agency to the
City of South 'San Francisco Redevelopment.Agency ("Successor Agency") pursuant to ABx 1
26 and AB 1.484; and
WIJEREAS, pursuant to Health and Safety Code ("HSC") 34191.5(b) the Successor agency
prepared a Lang Range Propert3. 1`Janagement Plan ("LR.PMP") and submitted it to the California
Department of Finance ("1I OF") on November. 21, 2013 and a revised LRPMP on May 22, 2015
and DOF approved the LRPMP on October 1, 2015; and
WHEREAS, a portion of the Property is leased to the Sitike Counseling Center
("Lessee") pursuant to that certain Retail Lease Agreement dated December 2, 1996, as amended
from time to time ("Lease Agreement"); and
WHEREAS, in 2007 Lessee exercised its option to extend the term of the Lease
Agreement for five (5) years through February 28, 2012; and,
WHEREAS, in 2012 the Lease was amended to extend the terra thereof for one year,
commencing on September 1, 2012, through August 31, 2013.
WHEREAS, the Lease was extended an additional two times for a period of one year
each with the last extension ending on August 31, 2015.
WHEREAS, the Successor Agency and Lessee desire to extend the term of the Lease
Agreement for an additional year, to and including August 31, 2016; and
WHEREAS, the Successor Agency recommends amending the Lease Agreement,
including extending the term of the Lease Agreement for one (1) year at the current rent.
1
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of the Successor Agency
to the City of South San Francisco Redevelopment Agency hereby resolve as follows:
1. Approves an amendment to the lease agreement with the Sitike Counseling Center
for the facility at 306 Spruce, and
2. Authorize the Successor Agency's Executive Director or designee to (i) execute the
Amendment to the Lease Agreement on behalf of the Successor Agency subject to
the approval of the Oversight Board;(ii)take such other actions reasonably necessary
to carry out the intent of this Resolution.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Oversight.Board for the Successor Agency to the City of South San Francisco
Redevelopment Agency at a meeting held on the 20"' day of October, 2015 by the following
vote:
AYES:
NODES:
ABSTAIN:
ABSENT:
ATTEST:
Successor Agency Clerk
2
AMENDMENT TO LEASE AGREEMENT
THIS AMENDMENT TO LEASE AGREEMENT ("Amendment") is entered into
effective as of September 1, 2015 ("Effective Date"), by and between the Successor Agency to
the City of South San Francisco Redevelopment Agency, a public entity ("Lessor") and Sitike
Counseling Center, a California nonprofit public benefit corporation ("Lessee"). Lessor and
Lessee are hereinafter collectively referred to as the "Parties".
RECITALS
A. The Lessee and Janet Siniora entered into that certain Retail Lease Agreement dated
December 2, 1996 (the "Lease") pursuant to which Lessee leases the entire first floor (the
"Premises") of that certain building located at 306 Spruce Avenue, South San Francisco, CA
(the "Building").
B. On March 13, 2013, the Lessor acquired fee ownership of that certain real property
located at 306 Spruce Avenue in South San Francisco, California ("Property") from the City of
South San Francisco pursuant to Resolution No. 6-2013.
C. The original term of the Lease expired February 28, 2007,
D. Lessee exercised its option to extend the term of the Lease for an additional period of five
(5) years commencing March 1, 2007, through February 28, 2012.
E. In 2012 the Lease was amended to extend the term thereof for one year, commencing on
September 1, 2012, through August 31, 2013.
F. The Lease was extended an additional two times for a period of one year each with the
last extension ending on August 31, 2015,
G. The Parties now desire to further amend the Lease pursuant to the terms and conditions
set forth in this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:
1. Term of the Lease. Notwithstanding anything to the contrary contained in the Lease, as
amended from time to time, the term of the Lease shall be extended for one (1) year,
commencing on September 1, 2015 and continuing through August 31, 2016under the same
terms and conditions as contained in the Lease and any ai-nendment(s) thereto except as
specifically set forth herein.
2. Rent. Commencing on September 1, 2015 the monthly rental payment shall be $5,858,64.
1
3. Parties. The term "Agency" as used in the Lease shall mean the Successor Agency as the
Redevelopment Agency's and City's successor in interest.
4. Amendment, The Lease may be further amended or modified only by a written instrument
executed by the Parties.
S. Construction. The section headings and captions used herein are solely for convenience and
shall not be used to interpret this Amendment.
6. Action or Approval. Whenever action and/or approval by Lessor is required under this Lease
as amended hereby, Lessor's Executive Director or his or her designee may act on and/or
approve such matter unless specifically provided otherwise, or unless the Executive Director
determines in his or her discretion that such action or approval requires referral to Lessor's
Governing Body for consideration.
7. Counterparts. This Amendment may be executed in one or more counterparts, each of which.
shall be an original and all of which taken together shall constitute one instrument.
8. Severability. if any term, provision, or condition of this Amendment is held by a court of
competent jurisdiction to be invalid or unenforceable, the remainder of this Amendment shall
continue in full force and effect unless an essential purpose of this Amendment is defeated by
such invalidity or unenforceability.
9. No Third Party Beneficiaries. Nothing contained in this Amendment is intended to or shall
be deemed to confer upon any person, other than the Parties and their respective successors
and assigns, any rights or remedies hereunder.
10. Entire Ap-reement. This Amendment contains the entire agreement between the Parties with
respect to the subject matter hereof and supersedes all prior oral or written agreements
between the Parties with respect thereto.
11, Authorization. The undersigned each hereby represent and warrant that each is duly
authorized to execute this Amendment.
12. Effectiveness of Lease. Except as expressly set forth in this Amendment, the Lease remains
unmodified and in full force and effect.
SIGNATURES ON FOLL0WING PAGE.
2
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the
date first written above.
Successor Agency to the Redevelopment Agency
of the City of South San Francisco,
a public entity
By
Its:
ATTEST:
By
Agency Clerk
APPROVED AS TO FORM:
By
Agency Attorney
Sitike Counseling Center,
a California nonprofit public benefit corporation
By
Its
3
Redevelopment Successor Agency Oversight Board
rs
0 Staff,,,.,RQoft
DATE: October 20, 2015
TO: Members of the Oversight Board
FROM: Alex Greenwood, Director of Economic and Community Development
SUBJECT: ADOPT A RESOLUTION APPROVING THE LEASE AGREEMENT WITH THE
COUNTY OF SAN MATEO FOR THE GROUND FLOOR SPACE AT 306 Spruce
AVENUE, AUTHORIZING THE SUCCESSOR AGENCY EXECUTIVE DIRECTOR
TO EXECUTE THE LEASE AGREEMENT
RECOMMENDATION
It is recommended that Oversight Board adopt a resolution approving the lease agreement with the
County of San Mateo for the ground floor space at 306 Spruce Avenue and authorizing the
Successor Agency Executive Director or his designee to execute the lease agreement.
BACKGROUND
The medical facility located at 306 Spruce Avenue/472 Grand Avenue, is a 14,000 square foot parcel
containing a three story building and an adjacent parking lot. The facility also has a dedicated parking lot
at 468 Miller Avenue. The basement level of the building contains vacant office space, the building's
mechanical systems (electrical, fire alarms, HVAC and boiler) and restrooms. The San Mateo County
Health Center occupies the second floor and Sitike Counseling Center occupies the first floor.
The Health Center is a primary care medical facility with exam rooms, a large office area, counseling
rooms, a lobby, a computer server room, a meeting room and kitchen, and two disabled (men's and
women's) accessible restrooms. The Health Center lease includes five (5) parking spaces in the adjacent
lot and eleven (11) spaces in the lot on Miller Avenue. The County of San Mateo wants to increase the
services it provides to South San Francisco residents and would like to expand the clinic into the vacant
space in the basement area.
DISCUSSION
The San
to County Health Center has held a lease for 18 years. The County proposes to lease an
additional 1,000 square feet in the basement area pursuant to the attached lease agreement ("Lease
Agreement"). The basement space is built out as office space and has separate access through Grand
Avenue. An appraisal conducted on the property concluded that "in general, basement space rents for a
substantial discount from upper floors; in our experience, basement rents tend to rent at a discount of about
50% to 70% of upper floor market rent, depending on height, lighti , layout, finishes etc." The appraisal
r floor in r t t' ep
r 0
LLtii'lates th Of upment could be rented for up to $0.50 per sq. ft., a discounted rental rate to 58% of first
'00 to 00°/®
es ates e basement could be ented f r '
fl floor r t T Co ty propos s to p y
oor rates. The County proposes to pay a base rent of$400 per month ($0.40 per sq. ft.), a rate lower than
Staff Report
Subject: SAN MATE O COUNTY LEASE FOR BASEMENT AT 306 Spruce AVENUE
Page 2 of 2
the appraisal indicate but still within the 50% to 70% discounted rate range. Additional lease terms are as
follows:
• The to of the lease would be for twelve months with two additional twelve on options.
• The premises shall be used for medical office and related use.
• County shall pay for all separately metered utilities provided to the Premises for the benefit of
County.
• Landlord shall make improvements necessary to the Premises to remediate any hazardous
materials, meet all CCR Title 24, ADA, Life Safety and other building codes, and to ensure that
the building systems are adequate to provide quality heating, ventilation and air-conditioning to
the Premises.
• Landlord shall also replace missing flooring, drywall, and ceiling finishes throughout the
Premises.
The property at 306 Spruce Avenue is subject tote provision of AB 1484 which requires the DOF's
approval of a Long Range Property Management Plan (LRPMP). On October 1, 2015 DOF approved the
LRPMP. According to the approved LRPMP, the Successor Agency is authorized to transfer the property
to the County of San Mateo, or to the City of South San Francisco if the County is not interested in taking
ownership. Because it will take several months to determine the owner of the property and transfer it, it is
necessary t o e nter into a short term lease with County. Therefore, staff recommends that the Oversight
Board approve a one-year lease with two additional twelve month options.
CONCLUSION
It is recommended that Oversight Board adopt a resolution approving the lease agreement with the County
of San
to for the ground floor space at 306 Spruce Avenue and authorizing the Successor Agency
Executive Director or his designee to execute the lease agreement. The final form of the Lease Agreement
is subject to Successor Agency Counsel approval.
.......... By:
By,
Alex Greenwood e Futrell
Director of Economic and �xecutive Director
Community Development
Attachments: Resolution
San Mateo County Lease
OVERSIGHT RESOLUTION
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE CITY
SAN FRANCISCO ENT AGENCY
RESOLUTION T BOARD APPROVING A
AGREEMENT LEASE SUCCESSOR
AGENCY AND THE COUNTY OF SAN MATEO
LEASETHE GROUND FLOOR SPACE AT 306 SPRUCE
AVENUE AND AUTHORIZING THE EXECUTIVE
TO CUTE SAID LEASE AGREEMENT
WHEREAS, on y 2, 2011, the City of South San Francisco ("City") acquired
that certain real property located at 306 Spruce Avenue in South San Francisco,
California("Property") from the former City of out Francisco Redevelopment
Agency ("Agency"); and
e Property succeeded to and was acquired by the Successor
Agency tote City of u Francisco Redevelopment Agency ("Successor
Agency")pursuant to x 126 and AB 1484; and
pursuant to Health and Safe e (" ") 34191.5(b)the
Successor Agency prepared a Long Property Management Plan(" ") and
submitted it to the California Department of Finance (" ") on November 1, 2013
and a revised on May 22, 2015 DOF approved the LRPMP on ctoer 1, 2015;
WHEREAS,and
a portion of e Property is leased to the County of teo
("Lessee") fora Health Center, pursuant to a lease agreement dated April 4, 2000, as
amended time to time ("Original Lease Agreement"); and
e Successor Agency and Lessee desire to enter into a new lease
agreement("Lease Agreement")where the Lessee would lease an additional 1,000 square
feet of space n the ground floor of the Property for medical office and related uses for
one-ye term; and
WHEREAS, the Successor Agency recommends approving the Lease Agreement
and authorizing the Executive Director of the Successor Agency to execute the Lease.
Agreement.
NOW, THEREFORE, e Oversight Board, does hereby:
Approves the Lease Agreement with the County of t ,
conditioned on Lessee's timely execution and submission of all required
documents.
2. Authorizes the Successor Agency's Executive Director or designee to (i)
execute the Lease Agreement on behalf of the Successor Agency, (ii)
subject to the approval of the Successor Agency Attorney, make revisions
to the Lease Agreement that do not materially or substantially increase the
Successor Agency's obligations thereunder; and (iii) take such other
actions reasonably necessary to carry out the intent of this Resolution.
hereby certify that the foregoing Resolution was regularly introduced and
adopted by the Oversight Board for the Successor Agency tote City of South San
Francisco Redevelopment Agency at a meeting held on the 20th day of October, 2015 by
the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST-
Successor Agency Clerk
2514833.1
OFFICE LEASE
between
THE SUCCESSOR AGENCY T
THE CITY OF SOUTH SAN FRANCISCO L AGENCY
as Landlord
and
COUNTY OF SAN MATEO
as Tenant
For the lease of
472 Grand Avenue
South n Francisco, California
, 2015
Lease No. xxx
OFFICE LEASE
Table of Contents
l. BASIC LEASE INFORMATION .....................................................................................—.l
%. PREMISES................................................................................. .------.--.----.3
2.1. Lease Premises..........................................................................................................3
2.2. Common Areas..........................................................................................................g
2.3. ...............................................................................................................3
3' TERM...................................................................................................................----.....3
3.1. Term of Lease............................................................................................................3
3.2. Effective Date, Commencement Date and Expiration Date......................................3
3.3. Delay in Delivery of Possession................................................................................4
34. Extension Options.--..---~.....--...--..—.—~.----...--.—....4
4. RENT....------.—....-----......-----.~--.,..--..—...---.—./4
4.1' Base Rent...................................................................................................................4
l []SE .—...-.----...—.---.—.^'^—^--^—~—..----'.-----..--.—.—.../4
5.1. Permitted Use............................................................................................................4
5.2. Observance of Rules and Regulations..—.—..----.-.._,,----__..—,..5
5.3, Interference with Access...........................................................................................5
6. LEASEHOLD IMPROVEMENTS.......................................................................................5
6.1. Landlord's Obligation to Construct Base Building Improvements...........................5
8.2. Installation of Telecommunications and Other Equipment.......................................6
7. ALTERATIONS............................................... __,,,,,_,,,_., 6
7.1' Alterations by County __,,_,~,,,~_______,_,,___,__,._.,,_.,,..6
7.2. Title to Improvements--....----..~--,~___.,__,,______,,__.6
7.3. County's Personal Property......------,,,,___,_,_~__.,_.,__,__6
7.4. Alteration 6v Landlord..............................................................................................7
8' REPAIRS AND MAIN7]EN/\NCE—........—....—......—.~.........---.......7
8.1. Landlord's Repairs.............. .....................................................................................7
8.2. m Repairs.....—........~......---~~..—.---.........—..._..7
8.3' Liens..........................................................................................................................7
9. UTILITIES AND SERVICES------^^^^^^^—^^---'^^^^--..—.....----..7
10. COMPLIANCE WITH LAWS; PREMISES CONDITION................................................#
lCLl. Premises Condition and Landlord's Compliance with Laws; Indemnity,,,,,_,_8
10.2. s Compliance with Laws..............................................................................#
10.3. m Compliance with Insurance Requirements................................................8
}l. SUBORDINATION ...............................................................................................................8
12. DAMAGE AND DESTRUCTION........................................................................................g
13. EMINENT DOMAIN ...........................................................................................................l0
13.2. General ....................................................................................................................l0
13.3. Total Automatic Termination ....................................................................lO
13/4. Partial ;Election to Terminate............................... .....................................lO
13.5. Rent; Award ............................................................................................................lO
13.6. Partial Taking.. Continuation nf Lease.....................................................................ll
13.7. Temporary Taking-----.---.....--------'.-...—........—..11
14. ASSIGNMENT AND SUBLETTING................................................................................ll
15. DEFAULT; REMEDIES.....................................................................................................ll
15.1. Events nf Default 6w County...................................................................................ll
15.2. Landlord's Remedies...............................................................................................l2
15.3. Landlord's Default ..................................................................................................l2
lGiINDEMNITIES.....................................................................................................................l2
16.1. m Indemnity....—.-------.....------,------------I2
16.2L Landlord's Indemnity-------.........--.---,-.....................I2
16.3. Concurrent Negligence.--...—..........—.------.....—.......--.13
17. INSURANCE.......................................................................................................................l3
17J. m ...—......—..-------.---.---.—..—....l3
18. ACCESS BY LANDLORD.................................................................................................l3
19. ESTOPPEL CERTIFICATES ...........................................................................................l3
ZO' SURRENDER OF PREMISES.........................................................................................l4
21. HAZARDOUS MATERIALS..............................................................................................l4
21lDefioitionmm...............................................................................................................l4
21.2, Landlord's Representations and Covenants .....—.....-------------..l4
21.3. Landlord's Environmental Indemnity.....................................................................}5
21/4. County's Covenants ................................................................................................l5
21.5' m Environmental Indemnity--.............—,.-..—..............l5
22. SPECIAL PROVISIONS....................................................................................................l5
23. GENERAL PROVISIONS .................................................................................................I5
23.1. Notices.....................................................................................................................l5
23.2. No Implied Waiver..................................................................................................l5
23.3. Amendments...................—.---------..---.-------..,I6
23/4. Authority ----.............--........-----.--...................16
23.5, Parties and Their ; Approvals.....-------.—.—.—......---....l6
23.6. Interpretation of Lease.............................................................................................I6
23.7. Successors and Assigns........—.---.......--.,.—.......—.......—.l7
23.8. Brokers ....................................................................................................................l7
23.9\ Severability................-------..—.—.—...-.--...........—.,...l7
23.10. Governing Law........................................................................................................l7
23.11. Entire Agreement ............----........_—..-.............,.....17
23.12. Holding Over...........................................................................................................l7
23]3. Cumulative Remedies..............................................................................................l8
23.14, Time of Essence ......................................................................................................l0
ii
23.15. Survival of Indemnities...........................................................................................18
23.16. Signs........................................................................................................................18
23.17. Quiet Enjoyment and Title......................................................................................18
23.18. Bankruptcy..............................................................................................................18
23.19. Transfer of Landlord's Interest................................................................................18
23.20. Non-Liability of County Officials, Employees and Agents....................................1
23.21. Counterparts ...........................................................................................................19
23.22. Certification by Landlord........................................................ ...............................19
LIST OF EXHIBITS:
EXHIBIT A--Floor Plan(s)of Premises
EXHIBIT B—Notice of Commencement Date
EXHIBIT C is and Regulations
EXHIBIT D County's ADA Work Plan
iii
OFFICE LEASE
Lease No. xxx
THIS OFFICE LEASE (this "Lease"), dated for reference purposes only as of June 11, 2015 is by
and between THE SUCCESSOR AGENCY TO THE CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY, a public entity ("Landlord"), and the COUNTY OF SAN MATE O, a political
subdivision of the State of California("County" or"Tenant").
Landlord and County hereby agree as follows:
BASIC LEASE INFORMATION
The following is a summary of basic lease information (the"Basic Lease Information"). Each it
below shall be deemed to incorporate all of the terms in this Lease pertaining to such item. In the event
of any conflict between the information in this Section and any more specific provision of this Lease, the
more specific provision shall control.
1.1 Lease Reference Date: June 11, 2015
1.2 Landlord: THE SUCCESSOR AGENCY TO THE CITY OF
SOUTH SAN FRANCISCO REDEVL
AGENCY
1.3 Tenant: COUNTY OF SAN MATEO
1.4 Building (Section 2.1): Assessors Parcel Number 012-302-140, together
with the improvements thereon, and commonly
known as 306 Spruce Avenue, South San
Francisco, California.
1.5 Premises(Section 2.1): A portion of the basement of that certain three-story
office building commonly known as 306 Spruce
Avenue, South an Francisco, California, known as
472 Grand Avenue.
1.6 Parking County shall have the non-exclusive right to park in
the Building's parking facilities, in common with
other tenants of the Building, provided that County
agrees not to use in excess of its proportionate
share of parking facilities, which is approximately
3.0 spaces for each 1,000 rentable square feet of
the Premises, and agrees to cooperate with
Landlord and the other tenants in the use of the
parking facilities.
1.7 Rentable Area of Premises(Section 2.1): Approximately 1,000 rentable square feet, subject
to final measurement in accordance with BOMA
standards pursuant to Section 2.1
1.8 Initial Term (Section 3): Twelve (12) full calendar months, plus the partial
month, if any, at the commencement o ^the term.
The Effective Date shall be as set forth in
Section 3.2 hereof.
Estimated Commencement Date: August 1, 2015
Estimated Expiration date: July 31, 2016
1.9 Extension Option (Section 3.4): Two(2) additional terms of twelve(12) months
each exercisable by County by notice to Landlord
given not less than ninety(90)days in advance, at
the same terms.
1.10 Base Rent(Section 4.1): Base Rent of$400.00/mo. or$4,800.00/yr. ($0.40
per sq.ft. per mo. or$4.80 per sq.ft. per year)
payable in monthly installments. Said Base Rent is
on a gross basis.
1.11 Use(Section 5.1): The premises shall be used for medical office and
related use.
1.12 Improvements (Section 6) Landlord shall, at Landlord's sole cost and
expense, make improvements necessary to the
Premises to remediate any hazardous materials,
meet all CCR Title 24, ADA, Life Safety and other
building codes, and to ensure that the building
systems are adequate to provide quality heating,
ventilation and air-conditioning to the Premises.
Landlord shall also, at Landlord's sole cost and
expense, replace missing flooring, drywall, and
ceiling finishes throughout the Premises.
1.13 Utilities(Section 9.1): County shall pay for all separately metered utilities
provided to the Premises for the benefit of County.
1.14 Services (Section 9.2): one
1.15 Notice Address of Landlord City of out San Francisco Finance Department
(Section 23.1): 400 Grand Avenue, P.O. Box 711
South San Francisco, California 94080
Fax No.: (650) 829-6614
1.16 Key Contact for Landlord: Armando Sanchez
Landlord Contact Telephone No.: (650)829-6620
1.17 Notice Address for Tenant (Section 23.1): Deputy County Manager
400 County Center
Redwood City, CA 94063
Fax No.: (650) 363-4832
1.18 Key Contact for Tenant: Real Property Services Manager
Tenant Contact Telephone No.: (650)363-4047
1.1 Brokers (Section 23.8): one
2. PREMISES
2.1. Lease Premises
Landlord leases to County and County leases from Landlord, subject to the provisions of this
Lease, those premises in the building identified in the Basic Lease Information (the"Building') and shown
on the floor plan(s) attached hereto as Exhibit A (the "Premises"). The Premises contain the rentable
area and are located on the floor(s) of the Building specified in the Basic Lease Information. As used in
this Lease, the term "rentable area" shall mean that measurement of interior floor area, including County's
pro rata share of the Building Common Areas as defined in Section 2.2, computed in accordance with the
"Standard Method for Measuring Floor Area in Office Buildings, the American National Standard" (ANSI
Z65.1 2010), adopted by the Building Owners and Managers Association (BOMA). The Building, land
upon which the Building is located and all other improvements on or appurtenances to such land are
referred to collectively as the"Property."
County shall have the right, within thirty(30) days following acceptance of the Premises,to cause
the Premises to be remeasured in accordance with the BOMA standards specified above, to confirm the
rentable area of the Premises. If as a result of such remeasurement the Premises contain more or less
than the total rentable square feet specified in the Basic Lease Information, and Landlord reasonably
agrees with such determination, the Base Rent shall be adjusted accordingly. Landlord and County
agree to enter into an amendment to this Lease confirming any such adjustment. In the event Landlord
disagrees with such determination, Landlord and County shall use their best efforts to meet and confer
with one another in an attempt to agree upon the proper measurement of the Premises within thirty (30)
days thereafter. If, following such period, Landlord and County are still unable to agree, Landlord and
County shall jointly select an independent consultant, experienced in measurements of leased space
under BOMA standards, to remeasure the space, and the determination of such consultant shall be
binding upon the parties. Landlord and County shall share equally the cost of such consultant.
2.2. Common Areas
County shall have the non-exclusive right to use, together with other tenants in the Building, the
lobbies, corridors, elevators, stairways and other public areas of the Building and the Property
(collectively, the"Common Areas"), and the non-exclusive right of access to and from the Premises by the
in entrances to the Building and the Property.
2.3, Parking
County shall have the non-exclusive right to park in the Building's parking facilities, in common
with other tenants of the Building, provided that County agrees not to use in excess of its proportionate
share of parking facilities, which is approximately 3.0 spaces for each 1,000 rentable square feet of the
Premises, and agrees to cooperate with Landlord and the other tenants in the use of the parking facilities.
3. TERM
3.1. Term of Lease
The Premises are leased for an initial to (the"Term") commencing on the date specified in the
Basic Lease Information as the estimated commencement date (the "Estimated Commencement Date"),
or such later date as the County Board of Supervisors authorizes the execution of this Lease. The term of
the Lease shall end on the expiration date specified in the Basic Lease Information, or such earlier to
on which this Lease terminates pursuant to the provisions of this Lease.
3.2. Effective Date, Commencement Date and Expiration Date
The
to on which this Lease shall become effective (the"Effective Date") is the to upon which
(i)the County Board of Supervisors, in its sole and absolute discretion, adopts a resolution approving this
Lease in accordance with all applicable laws and (H)this Lease is duly executed by the parties hereto.
3
The dates on which the Term commences and terminates pursuant hereto are referred to
respectively as the"Commencement Date" and the"Expiration Date." If the Commencement Date occurs
on a date other than the Estimated Commencement Date, then promptly thereafter Landlord shall deliver
to County a notice substantially in the form of Exhibit B attached hereto, confirming the actual
Commencement Date and the Expiration Date, bLTt-Landlord's failure to do so shall not affect the
commencement of the Term. County shall countersign a copy of said notice confirming the
Commencement Date and Expiration Date.
3.3. Delay in Delivery of Possession
Landlord shall use its best efforts to deliver possession of the Premises with all of the Base
Building Improvements substantially completed and accepted by County Manager of the County of San
Mateo, or the County Manager's designee, pursuant to Section 6.1 (Landlord's Obligation to Construct
Improvements) on or before the Commencement Date. However, if Landlord is unable to deliver
possession of the Premises as provided above, then, subject to the provisions of this Section below, the
validity of this Lease shall not be affected by such inability to deliver possession. If Landlord is unable to
deliver possession of the Premises to County as required hereunder within ninety (90) days after the
Commencement Date, then County may, at its option, terminate this Lease, without any further liability
under this Lease, upon written notice to Landlord.
3.4. Extension Options
County shall have the right to extend the Initial Term of this Lease (the "Extension Options") for
the additional terms specified in the Basic Lease Information (the "Extended Terms"). Such Extension
Options shall be on all of the terms and conditions contained in this Lease except that there shall be no
additional option t o e xtend. County, at its sole discretion, may exercise the Extension Options, if at all, by
giving written notice to Landlord no later than 90 days prior to expiration of the prior term; provided,
however, if County is in material default under this Lease on the date of giving such notice and fails to
cure such default as set forth in Section 15.1, Landlord may reject such exercise by delivering written
notice thereof to County promptly after such failure to cure, The Extension Options are personal to the
County and shall not be exercisable by any assignee of this Lease or by any subtenant under a Sublease
that requires Landlord's prior written consent under Section 14.
4. RENT
4.1.13ase Rent
Beginning on the Commencement Date, County shall pay to Landlord during the Term the Base
Rent specified in Section 1.11 of the Basic Lease Information (the "Base Rent"). The Base Rent shall be
payable in equal consecutive monthly payments on or before the first day of each month, in advance, at
the address specifi ed for Landlord in Section 1.17 of the Basic Lease Information, or such other place as
Landlord may designate in writing upon not less than thirty (30) days' advance notice. County shall pay
the Base Rent it any prior demand and without any deductions or setoff except as otherwise
provided in this Lease. If the Commencement Date occurs on a day other than the first day of a calendar
month or the Expiration Date occurs on a day other than the last day of a calendar month, then the
monthly payment of the Base Rent for such fractional month shall be prorated based on a thirty (30) day
month. The Base Rent is on a gross basis.
5. USE
5.1. Permitted Use
County may use the Premises for medical office use and such other uses as may be specified in
the Basic Lease Information, and for no other use without the prior written consent of Landlord, which
shall not be unreasonably withheld or delayed.
4
5.2. Observance of Rules and Regulations
County shall observe Landlord's reasonable rules and regulations for the Building subject to the
provisions of this Lease. County acknowledges and agrees to the current Building rules and regulations
attached hereto as Exhibit Q (the "Rules and Regulations"). Landlord may make reasonable additions or
modifications thereto,—which shall be binding upon County within a reasonable implementation period
upon Landlord's delivery to County of a copy thereof, provided that such additions or modifications shall
not reduce Landlord's obligations hereunder nor interfere with County's business in the Premises, and
such additions or modifications must be applicable to the other Building tenants are not in conflict with the
provisions of this Lease, do not materially increase the burdens or obligations upon County, do not
impose a change upon County for services which this Lease expressly states are to be provided to
County at no charge, and do not materially adversely affect the conduct of any business in the Premises
which County is permitted to conduct pursuant to Section 5.1 hereof. Landlord shall administer the Rules
and Regulations in a fair and nondiscriminatory manner and use reasonable efforts to cause other
Building tenants to comply with the County shall be entitled upon request to any waiver or special
dispensation granted by Landlord to any other tenant in the Building with respect to the is and
Regulations, and Landlord shall notify County of any such waiver or special dispensation.
5.3. Interference with Access
Landlord shall provide to County at all times use of the Premises and uninterrupted access
thereto to the maximum extent possible, including, without limitation, during any power outages affecting
the Premises or any portion of the Building; provided, however, that Landlord may, after consultation with
the Deputy County Manager, interrupt County's access to the Premises or the Building in the event of an
immediate risk of danger to the Premises, the Common Areas or any other portion of the Building being
rendered unsafe for human occupancy. If County's use of any of the Premises or access thereto is
interrupted as a result of the Premises, the Common Areas or any other portion of the Building being
rendered unsafe for human occupancy due to Landlord's failure to comply with its obligations under this
Lease or for any other reason other than County's default hereunder, then Landlord shall immediately
undertake all necessary steps to correct such condition. In the event such condition continues for more
than twenty-four (24) hours after written notice from County to Landlord and substantially impairs
County's ability to carry on its business in the Premises, the Rent payable hereunder shall be abated
based on the extent to which such condition interferes with County's ability to carry on its business at the
Premises. If any such condition shall continue for thirty (30) days or more after County gives Landlord
written notice that County's use is interrupted and substantially impairs County's ability to carry on its
business in the Premises, then County shall have the dght, without limiting any of its other rights under
this Lease to terminate this Lease, unless Landlord supplies County with evidence reasonably
satisfactory to County that County's normal and safe use will be restored within sixty(60) days of the to
County's use was interrupted, and such use is actually restored within such 60-day period. Nothing in
this Section shall limit County's rights with respect to any disruption due t o o asualty pursuant to Section
12(Damage and Destruction) hereof.
6. LEASEHOLDIMPROVEMENTS
6.1.1-andlord's Obligation to Construct Base Building Improvements
Landlord, through its general contractor, shall construct certain improvements, perform the work
and make the installations in the Premises and the Common Areas ("Base Building Improvements") at
Landlord's sole cost, which cost shall not be subject to reimbursement. The Base Building Improvements
shall include, without limitation, any improvements required in order to make the Building, Common
Areas, Parking and path of travel compliant with the Americans with Disabilities Act ("ADA"), Title 24 of
the California Code of Regulations ("CCR Title 24"), Life Safety and other building codes. Landlord shall
also, at Landlord's sole cost and expense, replace missing flooring, drywall, and ceiling finishes
throughout the Premises.
5
6.2.1installatin of Telecommunications and Other Equipment
County shall be responsible for the installation of telecommunications, data and computer cabling
facilities and equipment, provided that Landlord shall furnish access to County and its consultants and
contractors to the main telephone service serving the Premises and all other parts of the Property for
which access is needed for proper installation of all such facilities and equipment including, but not limited
to, wiring. County shall have the right to enter the Premises and such other portions of the Property at
reasonable times during the course of construction of the Base Building Improvements in order to install
such facilities and equipment. County and Landlord shall use their good faith efforts to coordinate any
such activities to allow the Base Building Improvements and the installation of such facilities and
equipment to be completed in a timely and cost-effective manner.
7. ALTERATIONS
7.1. Alterations by County
County shall not make or permit any alterations, installations, additions or improvements
(collectively, "Alterations") to the Premises without first obtaining Landlord's written consent, which
Landlord shall not unreasonably withhold or delay. However, the installation of furnishings, fixtures,
equipment or decorative improvements, none of which affect the Building Systems or structural integrity
of the Building, and the repainting and recarpeting of the Premises shall not constitute Alterations
requiring Landlord's consent. Any Alterations permitted hereunder shall be made at County's cost in
compliance with applicable Laws as defined in Section 15. Landlord shall, without cost to itself,
cooperate with County in securing building and other permits and authorizations needed in connection
with any permitted Alterations. Landlord shall not be entitled to any construction or other administrative
fee in connection with any Alteration. County shall not be required to remove any Alterations upon the
expiration or earlier termination of this Lease unless Landlord notifies County in writing at the time
Landlord approves such Alterations that they must be removed at the Expiration to in which event
County shall, at County's sole cost and expense, remove such Alterations an or before the Expiration
Date and restore the Premises to its condition prior to the construction of the Alterations, normal wear and
tear excepted.
7.2. it to Improvements
Except for County's Personal Property (as defined in the next Section), all appurtenances,
fixtures, improvements, equipment, additions and other property permanently installed in the Premises as
of the Commencement Date or during the Term by either Landlord or County shall be and remain
Landlord's property. County may not remove such property unless Landlord consents thereto in writing.
7.3. County's Personal Property
All furniture, furnishings, equipment, trade fixtures and articles of movable personal property
installed in the Premises by or for the account of County and that can be removed without structural
damage to the Premises (collectively, "County's Personal Property") shall be and remain County's
property. At any time during the Term or at the expiration thereof, County may remove any of County's
Personal Property provided County shall repair any damage to the Premises resulting therefrom. Upon
the expiration or earlier termination of this Lease, County shall remove County's Personal Property from
the Premises in accordance with Section 20 (Surrender of Premises), below. Landlord acknowledges
that some of County's Personal Property may be financed by an equipment lease financing otherwise
subjected to a security interest, or owned by an equipment company and leased to County. Landlord,
upon County's reasonable request, shall execute and deliver any document required by any supplier,
lessor, or lender in connection with the installation in the Premises of any it of County's Personal
Property, pursuant to which Landlord waives any rights it may have or acquire with respect to County's
Personal Property, so long as the supplier, equipment lessor or lender agrees that it (i) will remove the
Property from the Premises within thirty (30) days after the Expiration Date (but if it does not remove
County's Personal Property within such time it shall have waived any rights it may have had to County's
Personal Property), and (ii)will repair any damage caused by the removal of County's Personal Property.
Landlord shall recognize the rights of an supplier, lessor or lender who has an interest in any items of
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County's Personal Property to enter the Premises and remove such property at any time during the Term
or within thirty(30)days after the Expiration Date.
7.4. Alteration by Landlord
Landlord shall use its best efforts to minimize interference with or disruption to County's use and
occupancy of the Premises during any alterations, installations, additions or improvements to the
Building, including without limitation any leasehold improvement work for other tenants in the Building.
Landlord shall promptly remedy any such interference or disruption upon receiving County's notice
thereof.
8. REPAIRS AND MAINTENANCE
8.1. Landlord's Repairs
Landlord shall repair and maintain, at its cost and in first-class condition, the exterior and
structural portions of the Building, including, without limitation, the roof, foundation, bearing and exterior
walls and subflooring, and the heating, ventilating, air conditioning, plumbing, electrical, fire protection, life
safety, security and other mechanical, electrical and communications systems of the Building (collectively,
the"Building Systems") and the Common Areas. Without limiting the foregoing, Landlord shall maintain
the Building in a clean, safe and attractive manner and shall not permit any other tenants of the Building
to disturb or interfere with County's use of the Premises or permit to be done in or about the Building or
anything that is illegal, is dangerous to persons or property or constitutes a nuisance.
8.2. County's Repairs
Subject to Landlord's warranty under Section 10.1 (Premises Condition and Landlord's
Compliance), any construction warranties or guaranties received in connection with Landlord's completion
of the Leasehold Improvements, and Landlord's repair and maintenance obligations hereunder, County
shall repair and maintain at its cost the interior portions of the Premises and shall keep the Premises in
good working order and in a safe and sanitary condition, except for ordinary wear and tear and damage
by casualty. County shall make any such required repairs and replacements that Landlord specifi es in
writing (i) at County's cost, (H) by contractors or mechanics selected by County and reasonably approved
by Landlord, (iii) so that same shall be at least substantially equal in quality, value and utility to the
original work or installation prior to damage thereof, (iv) in a manner and using equipment and materials
that will not materially interfere with or impair the operations, use or occupation of the Building or the
Building Systems, and (v) in compliance with all applicable Laws, including, without limitation, any
applicable contracting requirements under the Ordinance Code or the Charter of the County of San
Mateo. At all times during the Term of the Lease, Landlord shall, upon reasonable notice by County,
afford County and its Agents with access to those portions of the Building which are necessary to
maintain or repair the telecommunications and data and computer cabling facilities and equipment
installed by County.
8.3. Liens
County shall keep the Premises free from liens arising out of any work performed, material
furnished or obligations incurred by County during the Term. Landlord shall have the right to post on the
Premises any notices permitted or required by law or that are needed for the protection of Landlord, the
Premises, or the Building, from mechanics' and material suppliers' liens. County shall give Landlord at
least ten (1 0) days' prior written notice of commencement of any repair or construction by County on the
Premises.
9. UTILITIES AND SERVICES
County shall pay for all separately metered utilities provided to the Premises for the benefit of
Tenant, including water, gas, heat, light, power, telephone, trash, recycling and other utilities and services
requested by or provided for the benefit of Tenant,together with any taxes thereon.
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10. COMPLIANCE WITH LAWS; PREMISES CONDITION
10.1. Premises Condition and Landlord's Compliance with Laws; indemnity
Landlord represents and warrants to County that, to the best of Landlord's knowledge, the
Building is in compliance with all applicable building safety codes and regulations and that all portions of
the Property and the Building along the path of travel to the Premises (including, but not limited to, the
Building entrances, Common Areas, restrooms, elevators, lobbies, telephone banks, drinking fountains
and parking areas are now, or as of the completion of the Base Building Improvements will be, in
compliance with the requirements of the Americans With Disabilities Act of 1990 as amended by the ADA
Amendments Act of 2008 and Title 24 of the California Code of Regulations and all other applicable
federal, state, local and administrative laws, rules, regulations, orders and requirements intended to
provide equal accessibility for persons with disabilities (collectively, "Disabilities Laws"). To best of
Landlord's knowledge, the Building Systems are in working order and there are no material latent
structural defects in the Building, the Premises or the Property which would render the Building or the
Premises unsafe for occupancy.
10.2. County's Compliance with Laws
County shall use the Premises during the Term In compliance with applicable Laws, except that
County shall not be required to make any structural alterations, additions or other modifications in order to
comply therewith unless such modifications are necessary solely because of any Alterations to the
Premises made by County pursuant to Section 7 her and such modifications are not otherwise
Landlord's responsibility under this Lease. County shall be responsible for complying with any
requirement of the Disabilities Laws relating to the placement of County's furniture or other County
Personal Property and the operation of any programs in the Premises, other than any requirement
relating to the physical structure, fixtures and permanent improvements of the Premises or portions of the
Property or Building along the path of travel to the Premises, which are Landlord's obligation as provided
in Section 10.1 above.
10.3. County's Compliance with Insurance Requirements
County shall not conduct any use in or out the Premises that would: (a) invalidate or be in
conflict with any fire or other casualty insurance policies covering the Building or any property located
therein, (b) result in a refusal by fire insurance companies of good standing to insure the Building or any
such property in amounts reasonably satisfactory to Landlord or the holder of any mortgage or deed of
trust encumbering the Building, (c) cause an increase in the fire insurance premium for the Building
unless County agrees to pay such increase, or (d) subject Landlord to any liability or responsibility for
injury to any person or property by reason solely of any business operation being conducted by County in
the Premises; provided, however, Landlord shall provide County with reasonable prior written notice of
any applicable insurance requirements and no such insurance requirements shall materially and
adversely interfere with County's normal business in the Premises.
11. SUBORDINATION
This Lease is and shall be subject and subordinate to the following (each an "Encumbrance"): (a)
any reciprocal easement agreements and ground leases or other underlying leases that may now exist or
hereafter be executed affecting Landlord's interest in the Property, or any portion thereof, and (b)the lien
of any mortgage or deed of trust that may now exist or hereafter be executed by Landlord in any amount
for which any part of the Property, any ground leases or underlying leases, or Landlord's interest or estate
therein, is specified as security; provided that as a condition to any such Encumbrance, the holder of the
Encumbrance shall, at County's request, enter into a subordination and non disturbance agreement with
County in a for then commercially reasonable. Notwithstanding the foregoing, Landlord shall have the
right to subordinate or cause to be subordinated to this Lease any Encumbrance. In the event that any
ground lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed
or a conveyance in lieu of foreclosure is made for any reason, County shall pay subsequent Rent and
afforn to and become the tenant of such successor Landlord, at the option of such successor-in-interest,
provided that County has received proper written notice of such succession and the name and address of
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the successor landlord, and further provided that, in the case of any Encumbrance hereafter executed, as
a condition to such attornment the holder of such Encumbrance shall, at County's request, agree that so
Ion g as County is not in default hereunder, such holder shall recognize this Lease and shall not disturb
County in its possession of the Premises for any reason other than one that would entitle Landlord to
terminate this Lease or otherwise dispossess County of the Premises in accordance with the terms
hereof. The provisions of this Section shall be self-operative and no further instrument shall be required
other than as provided in this Section. County agrees, however, to execute upon request by Landlord
and in a for commercially reasonable, any additional documents evidencing the priority or subordination
of this Lease with respect to any such Encumbrance as provided herein.
Landlord shall use its best efforts to provide to County, before the Effective Date, executed non-
disturbance and aftornment agreements from the holder of any existing Encumbrance. The form of such
agreement shall be subject to County's reasonable approval.
12. DAMAGE AND DESTRUCTION
If the Premises, the Building or any Building Systems are damaged by fire or other casualty,
Landlord shall repair the same without delay (and if Landlord is then carrying insurance on the Leasehold
improvements or if County at its sole option makes funds available to Landlord, Landlord shall also repair
the Leasehold Improvements), provided that such repairs can be made under applicable laws within a
reasonable period after Landlord obtains all necessary permits for such repairs but not later than two
hundred ten (21 0) days after the date of such damage (the "Repair Period"). In such event, this Lease
shall remain in full force and effect, except that County shall be entitled to an abatement of Rent it
such repairs are in made based upon the extent to which such repairs interfere with County's use of
the Premises. Such abatement in Rent shall be based upon the extent to which such damage and the
making of such repairs interfere with County's business in the Premises. Landlord's repairs shall not
include, and the Rent shall not be abated as a result of, any damage by fire or other cause to County's
Personal Property or any damage caused by the negligence or willful misconduct of County or its Agents.
Within twenty (20) days after the date of such damage, Landlord shall notify County whether or
not, in Landlord's reasonable judgment made in good faith, such repairs can be made within the Repair
Period. If such repairs cannot be made within the Repair Period, then either party hereto may, by written
notice to the other given within thirty (30) days after the date of such damage, terminate this Lease as of
the date specified in such notice, which date shall be not less than thirty (30) nor more than sixty (60)
days after notice is given by Landlord. In case of tennination, the Rent shall be reduced by a
proportionate amount based upon the extent to which such damage interferes with the conduct of
County's business in the Premises, and County shall pay such reduced Rent up to the date of
termination. Landlord shall refund to County any Rent previously paid for any period of time subsequent
to such to of termination.
Notwithstanding the foregoing, in the event the Premises are damaged or destroyed by reason of
flood or earthquake, and such damage or destruction is not fully covered by insurance proceeds payable
under the insurance policies Landlord is required to carry hereunder (excluding any deductible, for which
Landlord shall be responsible), Landlord may terminate this Lease by written notice to County within thirty
(30) days of the date Landlord receives written notice that such damage is not covered by insurance.
Such notice from Landlord shall include adequate written evidence of the denial of insurance coverage. If
Landlord does not elect to terminate this Lease as provided above, the Lease shall remain in full force
and effect, and Landlord shall repair and restore the Premises as provided in this paragraph.
If at any time during the last six (6) months of the Term of this Lease there is substantial damage
that Landlord would be required to repair hereunder, Landlord or County may, at the respective option of
each,terminate this Lease as of the to such damage occurred by giving written notice to the other party
of its election to do so within thirty (30) days after the to of such damage; provided, however, Landlord
may terminate this Lease only if it would take more than thirty(30)days to repair such damage.
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The parties intend that the provisions of this Section govern fully their rights and obligations in the
event of damage or destruction, and Landlord and County each hereby waives and releases any right to
terminate this Lease in whole or in part under Section 1932, subdivision 2, Section 1933, subdivision 4,
and Sections 1941 and 1942 of the Civil Code of California or under any similar law, statute or ordinance
now or hereafter in effect,to the extent such rights are inconsistent with the provisions hereof.
13, EMINENT DOMAIN
Definitions
(a) "Taking"means a taking or damaging, including severance damage, bye in t
domain, inverse condemnation or for any public or quasi-public use under law. A Taking may occur
pursuant to the recording of a final order of condemnation, or by voluntary sale or conveyance in lieu of
condemnation or in settlement of a condemnation action.
(b) "Date of Taking"means the earlier of(i)the date upon which title to the portion of
the Property taken passes to and vests in the condemnor or(ii)the date on which Tenant is
dispossessed.
(c) "Award" means all compensation, sums or anything of value paid, awarded or
received for a Taking,whether pursuant to judgment, agreement, settlement or otherwise.
13.2. General
If during the Term or during the period between the execution of this Lease and the
Commencement Date, there is any Taking of all or any part of the Premises or any interest in this Lease,
the rights and obligations of the parties hereunder shall be determined pursuant to this Section. County
and Landlord intend that the provisions hereof govern fully in the event of a Taking and accordingly, the
parties each hereby waive any right to terminate this Lease in whole or in part under Sections 1265.110,
1265.120, 1265.130 and 1265.140 of the California Code of Civil Procedure or under any similar law now
or hereafter in effect.
13.3. Total Taking; Automatic Termination
If there is a total Taking of the Premises, then this Lease shall terminate as of the Date of Taking.
13.4. Partial Taking; Election to Terminate
(a) If there is a Taking of any portion (but less than all) of the Premises, then this
Lease shall terminate in its entirety if all of the following exist: (A)the partial Taking, in County's
reasonable judgment, renders the remaining portion of the Premises untenantable or unsuitable for
continued use by County for its intended purposes or otherwise matedally adversely affect County's
normal operations in the Premises, (B)the condition rendering the Premises untenantable or unsuitable
either is not curable or is curable but Landlord is unwilling or unable to cure such condition, and (C)
County elects to terminate.
(b) in the case of a partial taking of a substantial portion of the Building, and if
subsection (a)above does not apply, County and Landlord shall each have the right to terminate this
Lease by written notice to the other within thirty(30)days after the Date of Taking, provided that, as a
condition to County's right to terminate, the portion of the Building taken shall, in County's reasonable
judgment, render the Premises unsuitable for continued use by County for its intended purposes or
otherwise materially adversely affect County's normal operations in the Premises.
(c) Either party electing to terminate under the provisions of this Section 13.4 shall
do so by giving written notice to the other party before or within thirty(30)days after the Date of Taking,
and thereafter this Lease shall terminate upon the later of the thirtieth (30th)day after such written notice
is given or the Date of Taking.
13.5. Rent;Award
Upon termination of this Lease pursuant to an election under Section 13.4 above, then: (i)
County's obligation to pay Rent shall continue up until the date of termination, and thereafter shall cease,
except that Rent shall be reduced as provided in Section 13.6 below for any period during which this
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Lease continues in effect after the Date of Taking, and (ii) Landlord shall be entitled to the entire and in
connection therewith, except that County shall receive any Award made specifically for County's
relocation expenses, the interruption of or damage to County's business, County's improvements
pertaining to realty or damage to County's Personal Property.
13.6. Partial Taking; Continuation of Lease
If there is a partial Taking of the Premises under circumstances where this Lease is not
terminated in its entirety under Section 13.4 above, then this Lease shall terminate as to the portion of the
Premises so taken, but shall remain in full force and effect as to the portion not taken, and the rights and
obligations of the parties shall be as follows: (a) Rent shall be reduced by an amount that is in the same
ratio to the Rent as the area of the Premises taken bears to the area of the Premises prior to the to of
Taking, and (b) Landlord shall be entitled to the entire Award in connection therewith, provided that
County shall receive any Award made specifically for County's relocation expenses or the interruption of
or damage to County's business or damage to County's Personal Property.
13.7. Temporary Taking
Notwithstanding anything to contrary in this Section, if a Taking occurs with respect to the
Premises for a limited period of time not in excess of sixty(60) consecutive days, this Lease shall remain
unaffected thereby, and County shall continue to pay Rent and to perform all of the terms, conditions and
covenants of this Lease. In the event of such temporary Taking, County shall be entitled to receive that
portion of any and representing compensation for the use or occupancy of the Premises during the
Term up to the total Rent in by County for the period of the Taking.
14. ASSIGNMENT AND SUBLETTING
Except as provided in this Section below, County shall not directly or indirectly sell, assign,
encumber, pledge or otherwise transfer or hypothecate all or any part of its interest in or rights with
respect to the Premises or its leasehold estate hereunder or permit all or any portion of the Premises to
be occupied by anyone other than itself or sublet all or any portion of the Premises, without Landlord's
prior written consent in each instance, which shall not be unreasonably withheld or delayed; provided that
the Extension Option granted to the County in Section 3.4 shall not be exercisable by any assignee of this
Lease or by any subtenant under a sublease that requires Landlord's prior written consent. The County
her agrees that the foregoing limitation is reasonable. County shall have the right from time to time,
upon notice to but without the consent of Landlord, to transfer this Lease or use and occupancy of all or
any of the Premises to any department, commission or agency of the County of San to for uses
permitted under this Lease.
15. DEFAULT; REMEDIES
15.1. Events of Default by County
Any of the following shall constitute an event of default by County hereunder:
(a) County's failure tom any timely payment of Rent and to cure such
nonpayment within five(5) business days after receipt of written notice thereof from Landlord, provided
that for the first monthly payment of Rent at the beginning of the Term and for the first monthly payment
of Rent after the beginning of each new fiscal year for County, County shall have twenty(20) days to cure
any such nonpayment after written notice thereof from Landlord;
(b) Count)(s abandonment of the Premises(within them nin of California Civil
Code Section 1951.3); or
(c) County's failure to perform any other covenant or obligation of County hereunder
(not involving the payment of money) and to cure such non-performance within thirty(30)days of the date
of receipt of notice thereof from Landlord, provided that if more than thirty(30) days are reasonably
required for such cure, no event of default shall occur if County commences such cure within such period
and diligently prosecutes such cure to completion.
Landlord's Remedies
Upon the occurrence of any event of default by County that is not cured within the applicable
grace period as provided above, Landlord shall have all rights and remedies available pursuant to law or
granted hereunder, including the following:
(a) The rights and remedies provided by California Civil Code Section 1951.2
(damages on termination for breach), including, but not limited to,the right to terminate County's right to
possession of the Premises and to recover the worth at the time of and of the amount by which the
unpaid Rent for the balance of the Term after the time of award exceeds the amount of rental loss for the
same period that County proves could be reasonably avoided, as computed pursuant to subsection (b)of
such Section 1951.2.
(b) The rights and remedies provided by California Civil Code Section 1951.4
(continuation of lease after breach and abandonment), which allows Landlord to continue this Lease in
effect and to enforce all of its rights and remedies under this Lease, including the right to recover Rent as
it becomes due,for so long as Landlord does not terminate County's right to possession, if County has
the right to sublet or assign, subject only to reasonable limitations.
15.3. Landlord's Default
If Landlord it to perform any of its obligations under this Lease, then (without limiting any of
County's other cure rights under this Lease) County may, at its sole option, cure such default at
Landlord's expense if such default continues after thirty (30) days from the to County gives notice to
Landlord of County's intention to perform such cure. However, in the case of a default which for causes
beyond Landlord's control (excluding any financial inability to perform) cannot with due diligence be cured
within such 10-day period, such 10-day period shall be extended if Landlord, promptly upon receipt of
County's notice, advises County of Landlord's intention to take all steps required to cure such default, and
Landlord promptly commences such cure and diligently prosecutes the same to completion. Subject to
the other provisions of this Lease relating to abatement of Rent, if Landlord fails to cure any default within
the cure period provided above, then, whether or not County elects to cure Landlord's default as provided
herein, the Base Rent and any other charges hereunder shall be abated based on the extent to which
such default interferes with County's ability to carry on its business at the Premises. Notwithstanding the
foregoing, if any such default by Landlord continues for sixty (60) days and impairs County's ability to
carry on its business in the Premises, then County shall have the right to terminate this Lease upon
written notice to Landlord within thirty (30) days after the expiration of such 60-day period. County's
rights hereunder and under Section 3.3 (Delay in Delivery of Possession), Section 5.3 (interference with
Access), and Section 9.4 (Disruption in Essential Services), shall not limit in any way any of its other
rights and remedies hereunder or at law or in equity.
16. INDEMNITIES
16.1. County's Indemnity
County shall indemnify, defend and hold harmless ("Indemnify") Landlord and its Agents from and
against any and all claims, costs and expenses (collectively, "Claims"), incurred as a result of(a)County's
use of the Premises, (b) any default by County in the performance of any of its material obligations under
this Lease, or(c)any negligent acts or omissions of County or its Agents in, on or out the Premises or
the Property; provided, however, County shall not be obligated to Indemnify Landlord or its Agents to the
extent any Claim arises out of the negligence or willful misconduct of Landlord or its Agents. County shall
have the right to control the defense and to determine the settlement or compromise of any action or
proceeding, provided that Landlord shall have the right, but not the obligation, to participate in the
defense of any such Claim at its sole cost. County's obligations under this Section shall survive the
termination of the Lease.
16.2. Landlord's Indemnity
Landlord shall Indemnify County and its Agents against any and all Claims incurred as a result of
(a) any default by Landlord in the performance of any of its obligations under this Lease or any material
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breach of any representations or warranties made by Landlord under this Lease, or(b) any negligent acts
or omissions of Landlord or its Agents in, on or about the Premises or the Property; provided, however,
Landlord shall not be obligated to Indemnify County or its Agents to the extent any Claim arises out of the
negligence or willful misconduct of County or its Agents. In any action or proceeding brought against
County or its Agents by reason of any Claim Indemnified by Landlord hereunder, Landlord may, at its sole
option, elect to defend such Claim by attorneys selected by Landlord. Landlord shall have the right to
control the defense and to determine the settlement or compromise of any action or proceeding, provided
that County shall have the right, but not the obligation, to participate in the defense of any such Claim at
its sole cost. Landlord's obligations under this Section shall survive the termination of the Lease.
16.3. Concurrent Negligence
In the event of concurrent negligence of County, its officers and/or employees, and Landlord, its
officers and/or employees, then the liability for any and all claims for injuries or damage to persons and/or
property which arise out of terms and conditions of this Agreement shall be apportioned according to the
California theory of comparative negligence.
17. INSURANCE
17.1. County's Self-insurance
Landlord acknowledges that County maintains a program of self-insurance and agrees that
County shall not be required to carry any insurance with respect to this Lease. County assumes the risk
of damage to any of County's Personal Property, except for damage caused by Landlord or its Agents.
County is presently self-insured in the amount of $300,000 each occurrence giving rise to
personal injury and property damage liabilities for which County could be held responsible. In addition,
County presently has in force excess insurance in the amount of $4,750,000 per occurrence with an
annual aggregate of $54,750,000. Said self-insurance and excess insurance provide coverage for
personal injury and property damage liabilities arising out of the acts and/or omissions of Tenant, its
officers, agents, contractors and employees, while on the Premises. Tenant upon request of Landlord
shaII furnish Landlord with a Certificate of Insurance which shall provide that Landlord of receive ten
(10) days' prior notice of cancellation, change in scope or modification in coverage of such coverage.
Nothing herein shall be interpreted to require Tenant or its insurer to provide a defense for, to provide
insurance for,or to indemnify Landlord except as may be otherwise required by law.
18. ACCESS BY LANDLORD
Landlord reserves for itself and any designated Agent the right to enter the Premises at all
reasonable times and, except in cases of emergency (in which event Landlord shall give any reasonable
notice), after giving County at least twenty four(24) hours' advance written or oral notice, for the purpose
of (i) inspecting the Premises, (ii) supplying any service to be provided by Landlord hereunder, (iii)
showing the Premises to any prospective purchasers, mortgagees or, during the last six(6) months of the
Term of this Lease, tenants, (iv) posting notices of non-responsibility, and (v) altering, improving or
repairing the Premises and any portion of the Building, and Landlord may for that purpose erect, use and
maintain necessary structures in and through the Premises where reasonably required by the character of
the work to be performed, provided that the entrance to the Premises shall not be blocked thereby, and
her provided that County's use shall not be interfered with.
19. ESTOPPEL CERTIFICATES
Either party, from time to time during the Term upon not less than ten (10) days' prior written
notice from the other party, shall execute, acknowledge and deliver to the other party, or such persons or
entities designated by such other party, a certificate stating: (a) the Commencement Date and Expiration
Date of this Lease, (b) that this Lease is unmodified and in full force and effect (or, if there have been
modifi cations, that the Lease is in full force and effect as modified and stating the modifications), (c) that
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there are no defaults under this Lease(or if so, specifying the same), (d)the date to which Rent has been
paid, and (e)any other information that may be reasonably required.
20. SURRENDER OF PREMISES
Upon the expiration or sooner termination of this Lease, County shall surrender the Premises to
Landlord in good order and condition, reasonable use and wear and damage by fire or other casualty
excepted. Within ten (1 0) days after the Expiration Date, County shall remove from the Premises all of
County's Personal Property, County's telecommunications, data and computer facilities and any
Alterations County desires or is required to remove from the Premises pursuant to the provisions of
Section 7.1 (Alterations by County), above; and with respect to Alterations that County is required to
remove pursuant to Section 7.1, County shall restore the Premises to substantially the condition existing
prior to such Alterations, reasonable wear and tear excepted. County shall repair or pay the cost of
repairing any damage to the Premises or the Building resulting from such removal. Notwithstanding
anything to the contrary in this Lease, County shall not be required to demolish or remove from the
Premises any of the Leasehold Improvements. County's obligations under this Section shall survive the
expiration or earlier termination of this Lease.
21. HAZARDOUS MATERIALS
21.1. Definitions
As used in this Lease, the following terms shall have the meanings hereinafter set forth:
(a) "Environmental Laws" shall can any federal, state, local or administrative law,
rule, regulation, order or requirement relating to industrial hygiene, environmental conditions or
Hazardous Material, whether now in effect or hereafter adopted.
(b) "Hazardous Material"shall can any material that, because of its quantity,
concentration or physical or chemical characteristics, is deemed by any federal, state or local
governmental authority to pose a present or potential hazard to human health or safety or to the
environment. Hazardous Material includes,without limitation, any material or substance defined as a
"hazardous substance," or"pollutant"or"contaminant" pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 ("CERCLA", also commonly known as the"Superfund"
law), as amended, (42 U.S.C. Sections 9601 et§Lg se .), or pursuant to Section 25316 of the California
,
Health&Safety Code; any"hazardous waste"listed pursuant to Section 25140 of the California Health &
Safety Code; any asbestos and asbestos containing materials whether or not such materials are part of
the structure of the Building or are naturally occurring substances on or about the Property; and
petroleum, including crude oil or any fraction thereof, natural gas or natural gas liquids.
(c) "Release"when used with respect to Hazardous Material shall include any actual
or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, or disposing into or inside the Building, or in, on, under or about the Property.
21.2. Landlord's Representations and Covenants
Landlord represents and warrants to County that, to the best of Landlord's knowledge, the
following statements are true and correct and will be true and correct as of the Commencement Date: (a)
the Property is not in violation of any Environmental Laws; (b) the Property is not now, nor has it been,
used for the manufacture, use, storage, discharge, deposit, transportation or disposal of any Hazardous
Material, except for the use of such substances in such limited quantities as are customarily used in
offices, which limited use has been and is in compliance with Environmental Laws; (c) the Property does
not consist of any landfill or contain any underground storage tanks; (d) the Building does not consist of
any asbestos-containing materials or building materials that contain any other Hazardous Material, nor do
the Premises or the common areas of the Building contain any lead-based paints; (e)there has been and
is no Release of any Hazardous Material in the Building or in, on, under or about the Property; and (f)the
Property is not subject to any claim by any governmental regulatory agency or third party related to the
Release of any Hazardous Material, and there is no inquiry by any governmental agency (including,
without limitation, the California Department of Toxic Substances Control or the Regional Water Quality
14
Control Board) with respect to the presence of Hazardous Material in the Building or in, on, under or
about the Property, or the migration of Hazardous Material from or to other real property. Subject to
County's obligations under this Section below, Landlord shall maintain the Property, at its cost,
throughout the Term in compliance with all Environmental Laws that could affect the health, safety and
welfare of County's employees or County's use, occupancy or enjoyment of the Premises for their
intended purposes.
21.3. Landlord's Environmental Indemnity
Without limiting Landlord's Indemnity in Section 16.2 (Landlord's Indemnity), above, Landlord
shall Indemnify County and its Agents against any and all Claims arising during or after the Term of this
Lease (a) as a result of any breach of any of Landlord's representations, warranties or covenants in the
preceding Section, or (b) in connection with any presence or Release of Hazardous Material in the
Building or on, under or about the Property, unless County or its Agents, or some other third party, other
than Landlord or Landlord's agents, caused such Release.
21.4. County's Covenants
Neither County nor its Agents shall cause any Hazardous Material to be brought upon, kept,
used, stored, generated or disposed of in, on or about the Premises or the Property, or transported to or
from the Premises or the Property, in violation of any Environmental Laws, provided that County may use
such substances in such limited amounts as are customarily used in offices so long as such use is in
compliance with all applicable Environmental Laws.
21.5. County's Environmental Indemnity
If County breaches its obligations contained in the preceding Section 21.4, or if County or its
Agents cause the Release of Hazardous Material from, in, on or about the Premises or the Property, then
County shall Indemnify Landlord against any and all Claims arising during or after the Term of this Lease
as a result of such Release, except to the extent Landlord or its Agents is responsible for the Release.
The foregoing Indemnity shall not include any Claims resulting from the non-negligent aggravation by
County, its Agents or Invitees of physical conditions of the Premises, or other parts of the Property,
existing prior to County's occupancy.
22. SPECIAL PROVISIONS
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23. GENERAL PROVISIONS
Notices
Except as otherwise specifically provided in this Lease, any notice given under this Lease shall
be in writing and given by delivering the notice in person or by commercial courier, or by sending it by
first-class mail, certified mail, return receipt requested, or Express Mail, return receipt requested, with
postage prepaid, to: (a) County at Tenant's address set forth in the Basic Lease Information; or (b)
Landlord at Landlord's address set forth in the Basic Lease Information; or (c) such other address as
either Landlord or County may designate as its new address for such purpose by notice given to the other
in accordance with this Section. Any notice hereunder shall be deemed to have been given and received
two (2) days after the date when it is mailed if sent by first-class, certified mail, one day after the date
when it is mailed if sent by Express Mail, or upon the date personal delivery is made. For convenience of
the parties, copies of notices may also be given be telefacsimile to the telefacsimile number set forth in
the Basic Lease Information or such other number as may be provided from time to time; however,
neither party may give official or binding notice by telefacsimile.
23.2. No Implied Waiver
No failure by either party to insist upon the strict performance of any obligation of the other party
under this Lease or to exercise any right, power or remedy consequent upon a breach thereof shall
15
constitute a waiver of any such breach or of such term, covenant or condition, No acceptance of full or
partial Rent by Landlord while County is in default hereunder shall constitute a waiver of such default by
Landlord. No express written waiver of any default or the performance of any provision hereof shall affect
any other default or performance, or cover any other period of time, other than the default, performance
or period of time specified in such express waiver. One or more written waivers of a default or the
performance of any provision hereof shall not be deemed to be a waiver of a subsequent default or
performance. The consent of Landlord or County given in one instance under the terms of this Lease
shaII not relieve the other party of any obligation to secure the consent to any other or future instance
under the terms of the Lease.
23.3. Amendments
Neither this Lease nor any terms or provisions hereof may be changed, waived, discharged or
terminated, except by a written instrument signed by the party against which the enforcement of the
change, waiver, discharge or termination is sought. No waiver of any breach shall affect or alter this
Lease, but each and every term, covenant and condition of this Lease shall continue in full force and
effect with respect to any other then-existing or subsequent breach thereof. Whenever this Lease
requires or permits the giving by County of its consent or approval, the Deputy County Manager, or his or
her designee shall be authorized to provide such approval, except as otherwise provided by applicable
law, including the County's Ordinance Code and Charter. Any amendments or modifications to this
Lease, including, without limitation, amendments to or modifications to the exhibits to this Lease, shall be
subject to the mutual written agreement of Landlord and County and may be made upon the sole
approval of the Deputy County Manager, or his or her designee; provided, however, material
amendments or modifications to this Lease (i) changing the legal description of the Premises, (ii)
increasing the Term, (iii) increasing the Rent, (iv) changing the general use of the Premises from the use
authorized under Section 5.1 of this Lease, and (vi) any other amendment or modification which
materially increases the County's liabilities or financial obligations under this Lease shall additionally
require the approval of the County's or of Supervisors.
23.4. Authority
Landlord represents and warrants to County that the execution and delivery of this Lease by
Landlord has been duly authorized and does not violate any provision of any agreement, law or regulation
to which Landlord or the Property is subject.
23.5. Parties and Their Agents; Approvals
If applicable, the or "Landlord" as used in this Lease shall include the plural as well as the
singular. As used in this Lease, the term "Agents'when used with respect to either party shall include the
agents, employees, officers and contractors of such party, and the to "Invitees"when used with respect
to County shall include the clients, customers, invitees, guests, licensees, assignees or subtenants of
County. All approvals, consents or other determinations permitted or required by County under this
Lease shall be made by or through County's Deputy County Manager unless otherwise provided in this
Lease, subject to any applicable limitations in the Ordinance Code or the Charter of the County of San
Mateo.
23.6. Interpretation of Lease
The captions preceding the articles and sections of this Lease and in the table of contents have
been inserted for convenience of reference only and such captions shall in no way define or limit the
scope or intent of any provision of this Lease. This Lease has been negotiated at arm's length and
between persons sophisticated and knowledgeable in the matters dealt with herein and shall be
interpreted to achieve the intent and purposes of the parties, without any presumption against the party
responsible for drafting any part of this Lease. Except as otherwise specifically provided herein,wherever
in this Lease Landlord or County is required or requested to give its consent or approval to any matter or
action by the other, such consent or approval shall not be unreasonably withheld or delayed and the
reasons for disapproval of consent shall be stated in reasonable detail in writing. Provisions in this Lease
relating to number of days shall be calendar days, unless otherwise specified, provided that if the last day
of any period to give notice, reply to a notice or to undertake any other action occurs on a Saturday,
16
Sunday or a bank or County holiday, then the last day for undertaking the action or giving or replying to
the notice shall be the next succeeding business day. Use of the or "including" or similar words shall
not be construed to limit any general term, statement or other matter in this Lease, whether or not
I anguage of non-limitation, such as"without limitation" or similar words, are used.
23.7. Successors and Assigns
Subject to the provisions of Section 14 relating to assignment and subletting, the terms,
covenants and conditions contained in this Lease shall bind and inure to the benefit of Landlord and
County and, except as otherwise provided herein, their personal representatives and successors and
assigns. There are no third-party beneficiaries to this Lease.
23.8. Brokers;
Neither party hash any contact or dealings regarding the leasing of the Premises, or any
communication in connection therewith, through any licensed real estate broker or other person who
could claim a right to a commission or finder's fee in connection with the lease contemplated herein,
except for the broker, if any, identified in the Basic Lease Information, whose commission, if any is due,
shall be the sole responsibility of Landlord pursuant to a separate written agreement between Landlord
and such broker, and County shall have no liability therefor. In the event that any other broker or finder
perfects; a claim for a commission or finder's fee based upon any such contact, dealings or
communication, the party through whom the broker or finder makes his claim shall be responsible for
such commission or fee and shall Indemnify the other party from any and all Claims incurred by the
indemnifi ed party in defending against the same. The provisions of this Section shall survive any
termination of this Lease,
23.9. Sever ability
If any provision of this Lease or the application thereof to any person, entity or circumstance shall,
to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such
provision to persons, entities or circumstances other than those as to which it is invalid or unenforceable,
shall not be affected thereby, and each other provision of this Lease shall be valid and be enforceable to
the full extent permitted by law.
23.10. Governing Law
This Lease shall be construed and enforced in accordance with the laws of the State of California.
23.11. Entire Agreement
The parties intend that this Lease(including all of the attached exhibits, which are made a part of
this Lease) shall be the final expression of their agreement with respect to the subject matter hereof and
may not be contradicted by evidence of any prior or contemporaneous written or oral agreements or
understandings. The parties further intend that this Lease shall constitute the complete and exclusive
statement of its terms and that no extrinsic evidence whatsoever (including prior drafts hereof and
changes therefrom) may be introduced in any judicial, administrative or other legal proceeding involving
this Lease.
23.12. Holding Over
Should County hold over in possession of the Premises after the expiration of the Term with
Landlord's consent, such holding over shall not be deemed to extend the Term or renew this Lease, but
such tenancy thereafter shall continue as a month-to-month tenancy. Such tenancy shall be on all the
terms and conditions set forth in this Lease and at the monthly Base Rent in effect during the last month
of the Term of the Lease or such other rental as Landlord and County may mutually agree in writing as a
condition to Landlord's consent to such holding over, and County shall continue as a month-to-month
tenant until the tenancy shall be terminated by Landlord giving County or County giving Landlord at least
thirty(30) days' prior written notice of termination. The County shall not be permitted to hold over without
Landlord's consent and Landlord reserves the right to commence eviction proceedings Should County
of the rent payable by County during the period of such holding over shall be one hundred ten percent
17
(110%) of the monthly Base Rent in effect during the last month of the Term of this Lease, and Such
tenancy shall otherwise be on the terms and conditions contained herein.
23.13. Cumulative Remedies
All rights and remedies of either party hereto set forth in this Lease shall be cumulative, except as
may otherwise be provided herein.
23.14. Time of Essence
Time is of the essence with respect to all provisions of this Lease in which a definite time for
performance is specified.
23.15. Survival of Indemnities
Termination of this Lease shall not affect the right of either party to enforce any and all
indemnities and representations and warranties given or made to the other party under this Lease, nor
shaII it effect any provision of this Lease that expressly states it shall survive termination hereof, Each
party hereto specifically acknowledges and agrees that, with respect to each of the indemnities contained
in this Lease, the indemnitor has an immediate and independent obligation to defend the indemnitees
from any claim which actually or potentially falls within the indemnity provision even if such allegation is or
may be groundless, fraudulent or false, which obligation arises at the time such claim is tendered to the
indemnitor by the indemnitee and continues at all times thereafter.
23.16. Signs
County may erect or post signs on or about the Premises subject to Landlord's prior approval as
provided below. Landlord reserves the right to review the placement, design, and plan for any such sign
prior to its erection or posting and agrees that the approval thereof shall not be unreasonably withheld or
delayed.
23.17. Quiet Enjoyment and Title
Landlord covenants and represents that it has full right, power and authority to grant the
leasehold estate hereunder, and covenants that County, upon paying the Rent hereunder and performing
the covenants hereof, shall peaceably and quietly have, hold and enjoy the Premises and all
appurtenances during the full Term of this Lease as against all persons or entities claiming by and
through Landlord or on account of any action, inaction or agreement of Landlord or its Agents. Without
limiting the provisions of Section 16.2 (Indemnities), Landlord agrees to Indemnify County and its Agents
against Claims arising out of any assertion that would interfere with County's right to quiet enjoyment as
provided in this Section.
23.18. Bankruptcy
Landlord represents and warrants to County that Landlord has neither filed nor been the subject
of any filing of a petition under the federal bankruptcy law or any federal or state insolvency laws or laws
for composition of indebtedness or for the reorganization of debtors, and, to the best of Landlord's
knowI edge, no such filing is threatened. Landlord and County agree that County's leasehold estate
created hereby includes, without limitation, all rights to receive and enjoy all services, facilities and
amenities of the Premises and the Building as provided herein, and that if any of such services, facilities
or amenities are terminated, or materially limited or restricted on account of any such case or proceeding,
or for any other reason, County shall have the right to (i) contract directly with any third-party provider of
such services, facilities or amenities to obtain the same, and (H) offset against the Base Rent or other
charges payable hereunder any and all reasonable costs and expenses incurred by County in obtaining
such services,facilities or amenities.
23.19. Transfer of Landlord's Interest
Landlord shall have the right to transfer its interest in the Property, the Building or this Lease to
any other financially responsible person or entity. In the event of any such transfer, Landlord shall be
18
relieved, upon notice to County of the name and address of Landlord's successor, of any obligations
accruing hereunder from and after the to of such transfer.
23.20. Non-Liability of County Officials, Employees and Agents
Notwithstanding anything to the contrary in this Agreement, no elective or appointive board,
commission, member, officer, employee or agent of County shall be personally liable to Landlord, its
successors and assigns, in the event of any default or breach by County or for any amount which may
become due to Landlord, its successors and assigns, or for any obligation of County under this Lease.
23.21. Counterparts
This Lease may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same instrument.
23.22. Certification by Landlord
By executing this Lease, Landlord certifies that Landlord is not suspended, debarred or otherwise
excluded from participation in federal assistance programs. Landlord acknowledges that this certification
of eligibility to receive federal funds is a material term of this Lease.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, LANDLORD
ACKNOWLEDGES AND AGREES THAT NO OFFICER OR EMPLOYEE OF COUNTY HAS
AUTHORITY TO COMMIT COUNTY HERETO UNLESS AND UNTIL THE COUNTY'S BOARD OF
SUPERVISORS SHALL HAVE DULY ADOPTED A RESOLUTION OR ENACTED AN ORDINANCE
APPROVING THIS LEASE AND AUTHORIZING CONSUMMATION OF THE TRANSACTION
CONTEMPLATED HEREBY. THEREFORE, ANY OBLIGATIONS OR LIABILITIES OF COUNTY
HEREUNDER ARE CONTINGENT UPON ADOPTION OF SUCH A RESOLUTION, AND THIS LEASE
SHALL BE NULL AND VOID UNLESS COUNTY'S BOARD OF SUPERVISORS APPROVE THIS
LEASE, IN THEIR RESPECTIVE SOLE AND ABSOLUTE DISCRETION, AND IN ACCORDANCE WITH
ALL APPLICABLE LAWS. APPROVAL OF THIS LEASE BY ANY DEPARTMENT, COMMISSION OR
AGENCY OF COUNTY SHALL NOT BE DEEMED TO IMPLY THAT SUCH RESOLUTION WILL BE
ADOPTED NOR WILL ANY SUCH APPROVAL CREATE ANY BINDING OBLIGATIONS ON COUNTY.
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Landlord and County have executed this Lease as of the date first written above.
LANDLORD: Successor Agency to the Redevelopment Agency
of the City of South San Francisco, a public entity
BY:
Armando Sanchez
Development Consultant
COUNTY. COUNTY OF SAN MATEO,
a political subdivision of the State of California
BY:
Carole Groom
President, Board of Supervisors
ATTESTED:
Clerk of Said Board
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OFFICE
EXHIBIT
FLOOR ( )
CONSISTING F PAGE(S)
EXHIBIT B
[Date]
Mr. Michael Callagy
Deputy County Manager
County of San to
400 County Center
Redwood City, CA 94063
RE: Acknowledgement of Commencement Date, Lease Between the Successor Agency of the City of
out San Francisco Redevelopment Agency(Landlord), and the COUNTY OF SAN MATEO
(Tenant),for the premises known as 306 Spruce Avenue, South San Francisco.
Dear Mr. Callagy:
This letter will confirm that for all purposes of the Lease, the Commencement Date (as defined in
Section 3.2 of the Lease) is 2015.
Please acknowledge your acceptance of this letter by signing and returning a copy of this letter.
Very truly yours,
By
Title
Accepted and Agreed:
By
Deputy County Manager
EXHIBIT C
BUILDING L REGULATIONS
PROVIDED TO BE I L
EXHIBIT
County's ®r Plan
2514832.1