This resolution allows the Fleet Management Department to lease a property at 1908-1950 Innes Avenue for six years starting October 1, 2025, at an annual rent of $631,800, with options for rent increases and tenant improvements. It also authorizes the Director of Property to make necessary amendments to the lease without significantly increasing costs or reducing benefits to the City.
Resolution approving and authorizing the Director of Property, on behalf of the Fleet Management Department (“Central Shops”), to execute a Lease Agreement for 1908-1950 Innes Avenue for a term of six years to commence on October 1, 2025, through September 30, 2031, with one five-year option to extend the term with Innes Group, LLC, at a base annual rent of $631,800 per year (approximately $21.60 per square foot) with three percent annual rent increases, and the City will contribute up to an additional $349,092 for tenant improvements; and authorizing the Director of Property to execute any amendments or modifications to the Lease including exercising options to extend the agreement term, make certain modifications and take certain actions that do not materially increase the obligations or liabilities to the City, do not materially decrease the benefits to the City, and are necessary to effectuate the purposes of the Lease or this Resolution.
How it got here
This legislation originated from the need for a dedicated site for the Fleet Management Department to comply with state mandates regarding fuel storage tanks.
The State Water Resources Control Board mandated that all single-wall underground fuel storage tanks must be replaced by December 31, 2025, prompting the need for a temporary fuel station.
Central Shops and the Real Estate Division conducted an extensive search for a suitable location to construct a temporary fuel station to comply with the state mandate.
A privately owned site at 1908-1950 Innes Avenue was identified as suitable for both a temporary fuel station and a dedicated site for processing the City vehicle fleet.
The Budget and Finance Committee recommended the resolution to approve the lease agreement for the Innes Avenue site.
The Board of Supervisors adopted the resolution approving the lease agreement for 1908-1950 Innes Avenue.
The Mayor approved the resolution, finalizing the lease agreement for the Innes Avenue site.
Reconstructed from attached documents & the official record