This resolution allows the Director of Property to amend a lease for office space at 650-5th Street, with an annual rent of $122,400 that increases by 3% each year, lasting until July 31, 2031, with an option to extend for five more years. It also gives the Director the authority to make necessary changes and execute related documents for the lease.
Resolution approving and authorizing the Director of Property, on behalf of the Department of Public Health, to execute a second amendment to the lease of real property located at 650-5th Street, Suites 307-309 from Townsend Associates, LLC, at an annual base rent of $122,400 with 3% annual increases, for an initial term commencing upon full execution of the lease amendment and expiring on July 31, 2031, plus one five-year option to extend; and authorizing the Director of Property to execute documents, make certain modifications and take certain actions in furtherance of the lease, as amended, and this Resolution.
How it got here
This legislation originated from the need to extend the lease for the Department of Public Health's Jail Health Services Administration Center.
The City entered into an original lease agreement with Townsend Associates, LLC for office space at 650-5th Street for Jail Health Services.
The original lease was amended to adjust terms, extending the lease for the Department of Public Health's use of the premises.
The current lease is set to expire, and the City is currently a holdover tenant at the premises.
The Real Estate Division, in consultation with the Department of Public Health and the City Attorney, negotiated a second amendment to extend the lease term to July 31, 2031.
The resolution for the second amendment to the lease was received from the Department of Public Health.
The resolution was received and assigned to the appropriate committee for further action.
Reconstructed from attached documents & the official record
This resolution allows the Department of Public Health to amend its lease for a property at 650-5th Street, setting a base rent of $159,200 per year with annual increases of 3%, and extending the lease until June 30, 2026, with options for two additional one-year extensions. It also authorizes the Director of Property to make necessary changes and execute related documents.