TO: Board of Supervisors
FROM: Steven Lederer, Director of Public Works
REPORT BY: Leigh Sharp, Deputy Director of Public Works
SUBJECT: Approve Lease Agreement No. 260113B with Gateway Partners 1, LLC at 555 Gateway Drive for use by the Probation Department and Child Support Services
RECOMMENDATION
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Approve and authorize Agreement No. 260113B with Gateway Partners 1, LLC 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 and authorize the Chief Executive Officer to execute the Commencement Date Memorandum and any Subordination, Nondisturbance and Attornment Agreement required during the term. (Fiscal Impact: $516,000 Expense; General Fund; Budgeted; Discretionary).
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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. Movement of Child Support Services to leased space opens needed space for the District Attorney in 1127 First Street and movement of the Probation Department opens the Reentry Facility for mandated Behavioral Health programs.
Staff from Probation, Child Support Services, and Public Works have utilized the services of the County's contracted real estate agent to seek available office space for lease. 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. With tenant improvements to be made by the Land...
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