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Facilities, a division of the Chief Administrative Office, on behalf of the Department of Transportation, Planning and Building, and Environmental Management, recommending the Board approve and authorize the Purchasing Agent to sign a letter exercising Option 1 of Lease Agreement 124-L1611 with Emerald Bay Properties, LLC, extending the lease for the building located at 924 Emerald Bay Road, South Lake Tahoe, for an additional three years, commencing May 1, 2026, and ending April 30, 2029, with a 2% annual rent increase in years one, two, and three of the extension term for a total cost of $515,720.
FUNDING: Planning and Building (General Fund 54%), Department of Transportation (23%), and Environmental Management (23%).
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DISCUSSION / BACKGROUND
Lease Agreement 124-L1611 with Emerald Bay Properties, LLC provides for the County’s use of the premises located at 924 Emerald Bay Road, South Lake Tahoe. The current lease term is set to expire on April 30, 2026. The lease was originally a 10 year lease starting April 1, 2016 (Legistar file 09-1405) and includes a provision allowing the County to extend the lease for an additional three years. The Chief Administrative Office (CAO) Facilities Division, recommends exercising this option to ensure continuity of operations at this location. Although the lease was written starting April 1, 2016, the commencement date wasn't until May 1, 2016; therefore, the extension term will begin May 1, 2026, and end April 30, 2029, with a 2% increase in rent in years one, two, and three of the extension.
Tenants of this location include the Department of Transportation, Planning and Building, and Environmental Management. Should the County no longer need use of this premises, the lease does contain a 90 day termination clause that could be triggered at any time.
ALTERNATIVES
The Board could choose not to exercise the lease extension option, which would require identifying and securing an alternative location for Department ...
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