TO: Board of Supervisors
FROM: Steve Lederer, Director of Public Works
REPORT BY: Leigh Sharp, Deputy Director of Public Works
SUBJECT: 555 Gateway Lease Amendment
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Lease Agreement No. 260113B with Gateway Partners 1, LLC increasing the contract amount by $375,156 for tenant improvements with no change to the monthly lease amount and a Budget Amendment. (Fiscal Impact: $375,156 Expense; 2011 Realignment Local Community Corrections Non-Operating Special Revenue Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
On June 3, 2025, the Board received an update on the Facilities Master Plan, made the strategic decision to indefinitely pause implementation of the plan, and directed instead to move forward with short-term improvements to address critical facility and department space needs. Among these short-term actions was an item to lease office space for the Probation Department and Child Support Services.
Staff evaluated several properties and identified approximately 40,000 square feet of space in a single building located at 555 Gateway Drive as the most cost-effective available property to meet the space needs. On December 31, 2025 the Board approved and authorized Agreement No. 260113B with Gateway Partners 1, LLC (Landlord) to lease 40,000 square feet for a 10-year period with the option to extend the term for two consecutive five-year periods with an initial base rent of $86,000 per month and an escalation of 3% per year for use by the Probation Department and Child Support Services for office space. Under the Lease, the Landlord is required to make certain tenant improvements (Phase I) prior to the County's occupancy of the building. On January 27, 2026, the Board approved Phase II which includes the installation of systems furniture and all other furniture to complete the facility for Probation and Child Support Services to begin operations.
The Probation Department...
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