TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Steven Lederer, Director of Public Works
SUBJECT: Approve Lease Agreement No. 260199B with Main Street West, L.P. at 1250 Main Street
RECOMMENDATION
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Approve and authorize Agreement No. 260199B with Main Street West, L.P. to lease approximately 13,806 square feet of office space at 1250 Main Street for a two-year period with a no cost early termination option after the first year with an initial rent of $120,617 per month that includes the cost for tenant improvements for use by the District Attorney’s Office; authorize the Chief Executive Officer to negotiate and execute an amendment to the Agreement, subject to approval as to form by County Counsel, in the additional amount of up to $130,000 for furniture relocation; and approve a Budget Amendment to increase appropriations in Fiscal Year 2025-26. (Fiscal Impact: $850,000 Expense; General Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
In 1989, the County purchased a former two-story department store building located at 1127 First Street that was constructed in the early 1970’s to co-locate some county services. The rooftop HVAC units began failing in about 5 years ago due to fifty years of use, but the replacement project was postponed while a multi-facility master plan (‘Plan’) was prepared. The Board adopted the Plan in 2024 that recommended continued use of the facility for approximately five years and they approved the related HVAC and Roof Construction Project to proceed.
In July 2025, the HVAC and roof replacement commenced at 1127 First Street. The project contemplated four departments operating through the construction; however, the Public Defender Department and Election Division’s offices operating on the second floor determined that the work was disruptive to their operations and chose to relocate to the recently vacated Hall of Justice. Unexpected delays on HVAC equipment delivery and related structural work pushed the project completion date into the Fall. On September 9th, despite a clear forecast, a brief but impactful weather event occurred while approximately half of the roof's surface was open and under construction. The storm caused significant water intrusion on the second floor, with a few leaks penetrating the first floor. A subsequent weather event occurred on the morning of September 19th, creating further water intrusion that extended to the first floor with increased severity. Public Works, working with a consultant specializing in waterproofing, determined that a temporary roofing membrane was the most effective solution to protect against future rains, and installation was completed on September 27th. Public Works suspended further work toward project completion until Spring 2026 due to the additional risk of water intrusion during construction. On October 1st, a third weather event occurred, with the roofing membrane preventing all water intrusion on the interior of the building. The quick and comprehensive mitigation efforts of Public Works have been effective in limiting damage to the building; however, operations of several departments have been impacted, and additional staff have been relocated or are working remotely. The building is intensively and continuously monitored for the safety of remaining staff. The Assessor-Recorder and Child Support Services Departments have determined they can continue operations during this construction, with the latter already slated to relocate to new offices (555 Gateway Rd.) in May 2026. The District Attorney (‘DA’) relocated approximately twenty staff to the Hall of Justice and has expressed an interest to relocate the remaining fifty staff until the project is complete. On Friday, September 26th, the CEO, District Attorney, and Public Works staff assessed the facility and determined that locating short-term office space downtown should be investigated to provide support to the DA.
The County’s contracted real estate agent was directed to seek available downtown office space for lease. Staff evaluated three available properties and identified approximately 13,806 square feet of space on the third floor of a building located at 1250 Main Street as the preferred property, accommodating all staffing space requirements, being proximal to the courthouse, and having the most favorable security conditions. With Tenant Improvements to be made by the Landlord, the space will satisfy all operational requirements for the District Attorney’s Office. The space is anticipated to be available on December 28th, 2025. This move will facilitate restarting the roofing/HVAC project in the spring, and allow tenant improvements that are planned in 1127 1st for the DA to move more quickly.
Basic lease information is included in the first pages of the lease, attached, and is summarized below. Key provisions include the following:
Premises: Approximately 13,806 square feet on the third floor of 1250 Main Street. Napa.
Term: Two years from the 12/28/25 commencement date when the County receives the improved Premises from the landlord.
Option Period: County shall have the option to terminate after 1 year at no cost.
Rent: $5.00 per square foot per month and with the following rent schedule with three months due at signing:
1st Year: $120,617 per month, $1,447,404 annual, including tenant improvements
2nd Year: $69,030 per month, $828,360 annual
Security Deposit: None
Permitted Use: Napa County District Attorney’s Office.
Tenant Improvements: Landlord shall make building improvements to accommodate occupancy by District Attorney’s Office that the County will pay cost of improvements over the first year of the lease.
Operating Expenses: Phone, internet and janitorial expenses are the responsibility of the County, other utilities are the responsibility of the Landlord; interior maintenance and repairs are the responsibility of the County, building envelope maintenance and repairs are the responsibility of the Landlord.
Late Payment: County shall pay a late charge in an amount equal to 10% of overdue amounts once ten days past due.
Interest: County shall pay interest from the 31st day past due at a rate of per annum “prime” plus five percentage points.
Security Measures: Landlord shall install four security cameras to be provided by the County. County shall be responsible for contracting with security provider for any other security measures or arrangements particular to County’s use of the premises.
Landlord Notice Prior to Listing Property for Sale: In the event that Landlord elects to list the Premises for sale during the term of the lease, Landlord shall notify County of such listing prior to making such listing public.
Upon approval of the proposed lease, additional costs are anticipated, including purchase and placement of security systems, disassembly relocation and reassembly of existing furniture and files, potential purchase of additional furniture and other department essentials, and potential additional custodial costs. Concurrently, 1127 First Street will be refurbished for the District Attorney’s office to return upon completion of the HVAC and Roof Replacement in early fall, 2026.
Staff recommend the Board delegate authority to the Chief Executive Officer to execute the Commencement Date Memorandum once the premises have been delivered to the County, and any required amendments for furniture relocation or revisions to execute this lease.
Requested Actions:
1. Approve and authorize Agreement No. 260199B with Main Street West, L.P. to lease approximately 13,806 square feet for a two-year period with a no cost early termination option after the first year with an initial rent of $120,617 per month for use by the District Attorney’s Office;
2. Authorize the Chief Executive Officer to negotiate and execute an amendment to the Agreement, subject to approval as to form by County Counsel, in the additional amount of up to $130,000 for furniture relocation; and
3. Authorize a Budget Amendment to increase appropriations totaling $850,000 in the District Attorney Rent Building/Land (1300000-52605) offset from available fund balance.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
General Fund - District Attorney |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Additional office space is needed to relocate the District Attorney’s Office to limit operational disruption while 1127 1st Steet is repaired, and construction is completed. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Base rent, additional rent, security costs, utilities additional custodial equipment and staffing, relocation of existing furniture and the purchase of new furniture |
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Consequences if not approved: |
Identification of alternative space for The District Attorney’s Office would be needed to meet operational requirements |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: It can be seen with certainty that there is no possibility the proposed action may have a significant effect on the environment and therefore CEQA is not applicable. [See Guidelines for the Implementation of the California Environmental Quality Act, 14, CCR 15061(b)(3)]