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L-324/DSS
Building 7/5610/1 s1 Amend
FIRST AMENDMENT TO LEASE AGREEMENT
This First Amendment to Lease Agreement (AGT 17-519/L-324) ("FIRST
AMENDMENT") is made and entered into this 12..� day of Jj,yy. . 2018
{"Effective Date"), by and between Pontiac 7, LLC, a California limited liability company, located
at 2780 N. Miami Ave., Suite 101, Fresno, CA 93727 { "LESSOR") and the COUNTY OF
FRESNO, a political subdivision of the State of California, 333 W. Pontiac Way, Clovis, CA
93612, { "LESSEE"). LESSOR and LESSEE may, hereinafter, be referred to collectively as
"Parties" or individually as "Party''.
W I T N E S S ET H:
WHEREAS, LESSOR and LESSEE are Parties to that certain Lease Agreement #17-
519/L-324, dated September 26, 2017 {"Lease Agreement") for lease of office space at 205 W.
Pontiac Way, Clovis, CA 93612 {the "Premises"); and
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the Parties agree as follows:
1.
2.
Section 1. PREMISES, located on page 1 (one} insert between lines 12 and 13 the
following:
1.1 PREMISES -Upon completion of Tenant Improvements, LESSOR
leases to LESSEE approximately 152,269 square feet of office space,
together with all surrounding common area parking, as depicted on
Attachment A-:1, which is attached to and incorporated by this reference.
Section 2. TERM, located on page 1 (one} lines 13 through 28 and page 2 (two) lines
1 through three is deleted and replaced with the following:
"2. TERM -The primary term of this Lease shall be from December 1, 2017 through the
completion of Tenant Improvements or June 30, 2019, whichever is earlier. Upon
completion of Tenant Improvements, this Lease shall automatically renew, July 1,
2019 or upon completion of Tenant Improvements whichever is earlier, for one (1)
nineteen-year period ("Renewal Term"), Renewal Term shall take effect as set forth
in a written acknowledgement signed by LESSOR and LESSEE's Director of Internal
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Agreement No. 17-519-1
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Fresno, California
L-324/DSS
Building 7/5610/1 51 Amend
5.
commencement of construction of such modifications, which approval shall not be
unreasonably withheld or delayed. If the modifications to Attachment E requested by
the LESSEE's director of Social Services delay the completion or cause more than
5% variation in the cost of the Tenant Improvement, then LESSEE shall be
responsible for the cost associated with those modifications to Attachment E.
LESSOR shall provide all labor, material and equipment for the complet ion of the
above-described work in accordance with Attachment E and the final Tenant
Improvement drawings, plans and specifications.
LESSOR and LESSEE agree that the total cost for the Tenant Improvements shall
not exceed the sum of twenty two million, eight hundred fifty nine thou sand, two
hundred sixty seven dollars ($22,859,267). LESSEE shall pay the cost in an amount
not to exceed $22,859,267, plus interest, upon completion of Tenant Improvements
or July 1, 2019 whichever is earlier as follows: LESSEE'S cost for Tenant
Improvements (the "Tl Rent") shall be amortized over the Renewal Term with interest
accruing at 8% percent per year as described in Attachment F, attached and
incorporated by this reference; however, LESSOR and LESSEE agree that
Attachment F is intended as a hypothetical amortization schedule and will be
replaced with an amortization schedule reflecting computation based on the actual
cost of the Tenant Improvements. LESSEE shall make monthly payments to
LESSOR for the Tenant Improvements, which shall be in addition to the Base Rent
and Additional Rent.
If LESSEE to this LEASE terminates this LEASE prior to the comp letion of the
amortization period to pay for the Tenant Improvements described in this Section,
then LESSEE shall pay to LESSOR, in one lump sum, an amount equal to the
unamortized principal balance of LESSEE's share of the cost of the Tenant
Improvements within forty-five (45) days after the LEASE termination dat e."
13.CONDEMNATION OR PROHIBITED USE -Located on Page 7 (seven) lines 6
through 15 is deleted and replaced with the following:
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L-324/DSS
Building 7/5610/1 s1 Amend
6.
"CONDEMNATION OR PROHIBITED USE -If the Premises, or any portion greater
than 25% of the rentable square footage, is appropriated, condemned, or taken by
any governmental authority or public agency other than LESSEE by use or exercise
of eminent domain proceedings or other proceedings, or any inverse condemnation,
or is sold under threat of use of exercise of eminent domain by any governmental
authority or public agency other than LESSEE, or by reason of law, ordinance,
regulation, or court judgment, LESSEE's use or occupancy of the Premises, or any
portion greater than 25% of the rentable square footage, shall be ma terially and
adversely affected for the period set forth in clause (i) below, but excluding therefrom
any day that is not a LESSEE business day ( collectively "Condemnation or Prohibited
Use"), then LESSEE shall have the right to do either of the following."
Attachment "C" to the Lease Agreement is deleted in its entirety and replaced with
new Attachment C-1, which is attached and incorporated by reference.
The Parties agree that this FIRST AMENDMENT is sufficient to amend the LEASE
AGREEMENT. The LEASE AGREEMENT is hereby amended, ratified and continued. It is the
intent of the Parties that all other provisions of the LEASE AGREEMENT shall remain
unchanged. The Parties agree that, upon execution of this FIRST AMENDMENT, the LEASE
AGREEMENT and this FIRST AMENDMENT shall together be considered the LEASE
AGREEMENT.
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COUNTY OF FRESNO
Fresno, California
L-324/DSS
Building 7/5610/1 s1 Amend
EXECUTED and EFFECTIVE as of the date first above set forth.
iability Company
Fund No. 0001
Subclass 10000
Org. No. 56107001
Acct. No. 7340/1320/7612
LESSEE:
COUNTY OF FRESNO
hairperson of the
o· ... ~-rvisors of the County
of Fresno
ATTEST:
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
By c;A. '1L ~ C • ts=
Deputy
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