Title
Resolution authorizing the City Manager to execute the Third Amendment to the lease agreement for use of the Economic Advancement Center located at 366 Grand Avenue in South San Francisco to extend the Lease until August 31, 2027, abate one month of rent, and include an additional $10,000 in tenant improvement allowances .
Body
WHEREAS, on July 21, 2021, the City entered into a Lease Agreement (“Lease”) with the Stacey S. Dobos Trust (“Property Owner”) (together referred to as the “Parties”) to lease the commercial space at 366 Grand Avenue for purposes of opening the Economic Advancement Center with a base rent of $13,115.70 and termination date of October 31, 2024, as attached hereto and incorporated herein as Exhibit A; and
WHEREAS, on July 24, 2024, the Parties executed First Amendment to the Lease to extend the termination date of the Lease to April 30, 2025, increase the rate of the base rent to $16,671 per month, and allow for the City to sublease the premises, as attached hereto and incorporated herein as Exhibit B; and
WHEREAS, on January 8, 2025, the Parties executed the Second Amendment to the Lease to extend the termination date of the Lease to August 31, 2025, as attached hereto and incorporated herein as Exhibit C; and
WHEREAS, the Parties now desire to enter into a Third Amendment to the Lease in order to extend the term of the Lease to August 31, 2027, include one month of abated rent from September 1 - September 30, 2025, and add an additional $10,000 tenant improvement allowance, as attached hereto and incorporated herein as Exhibit D; and
WHEREAS, the Lease terms would continue to maintain the current rent to be at a rate of $2.40 per square foot, would still include a monthly janitorial credit of $500, and would continue to provide the City with the ability to sublease a portion or all of the space to other economic mobility partners; and
WHEREAS, the total cost of the Third Amendment will be funded with already appropriated grant funds to the City from the Permanent Local Housing Allocation Program (PLHA) provided through the California Department of Housing and Community Development (HCD).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby takes the following actions:
1. The City Council finds that the foregoing recitals are true and correct and incorporated herein as part of this Resolution; and
2. Approves and authorizes the City Manager to execute the Third Amendment to the Lease Agreement, Exhibit D, with the Stacey S. Dobos, subject to approval as to form by the City Attorney; and
3. Authorizes the Finance Director to take all necessary budgetary actions to carry out the intent of this Resolution, which may straddle appropriations across multiple fiscal years; and
4. Authorizes the City Manager to take any other related actions necessary to carry out the intent of this Resolution.
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