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Chief Administrative Office, Facilities Division, recommending the Board:
1) Authorize the Facilities Division Manager to sign the attached letter terminating the current Lease Agreement 7564 (3883 Ponderosa Road, Building B, Shingle Springs) between the County of El Dorado and GHD, Inc. in accordance with Paragraph 16.1(a), Default Remedies; and
2) Waive six (6) months of lease payments (October 2023 through March 2024), at $4,379.56 per month.
FUNDING: N/A
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DISCUSSION / BACKGROUND
On September 20, 2022, the Board directed the Facilities Division to negotiate the purchase of 3883 Ponderosa Road, Shingle Springs, to house the Registrar of Voters for election operations.
A third party, GHD Inc., holds a lease for a portion of the building space until March 31, 2024, with the tenant having the right and option to extend the lease term for an additional three (3) years.
On January 24, 2023, the Board authorized the Chair to sign the Purchase and Sale Agreement (PSA) No. 7029, acquiring the property at 3883 Ponderosa Road. On March 21, 2023, as part of the escrow transaction, the seller assigned its lease agreement with GHD, Inc. to the County. Concurrent with the lease assignment, the Board approved a lease amendment to update and identify the lessor as the County. This amendment also reduced GHD’s space and set the rent at $4,379.56 per month.
On May 31, 2023, GHD informed the County that their operations at this location would soon cease; they would be vacating the building; and that they would like to terminate their lease. The Registrar of Voters was in need of additional storage space, and there were no options for the storage at this building with the current tenant. However, once vacated the space could be used for this purpose. As the space would be useful to the Registrar of Voters, Facilities agreed to pursue termination of the lease by mutual agreement of both parties, without seeking compensation or other affirmative relief. County ...
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