Attachment 4 AGENCY: Department of General Services State LEASE No.: L-1805 Block 224, State Parking Garage PROJECT: Capitol Area Development Authority (CADA) AMENDMENT NO. 1 TO SUBLEASE This Amendment No. 1 to Sublease, dated for reference purposes only, June 26, 2017, made by and between the State of California, acting by and through its Director of General Services (DGS), hereinafter referred to as STATE, the Capitol Area Development Authority (CADA), a Joint Powers Authority of the City of Sacramento, hereinafter referred to as LESSEE. STATE and LESSEE may also be referred to as Party or Parties. This Lease is subordinate and subject to a Facility Lease, dated December 1, 2000, as it may be amended or restated, hereinafter referred to as SPWB Facility Lease, by and between the State Public Works Board (SPWB) as Lessor, and the DGS, as Lessee. The SPWB is not a party to this Lease; however, LESSEE acknowledges that SPWB shall enjoy the same protections and rights enjoyed by, but not the responsibilities, obligations, and liabilities of, STATE under this Lease. A copy of the SPWB Facility Lease is available upon request. W I T N E S S E T H: WHEREAS, STATE and LESSEE hereto entered into that certain Sublease dated January 25, 2010, under which LESSEE is Subleasing from STATE certain Premises known as, Capitol East End Complex, Block 224, State Parking Garage, 1522 14 th Street, City of Sacramento, State of California, 95814; and WHEREAS, STATE and LESSEE have agreed that LESSEE shall make certain improvements to the Premises, described in Exhibit A4.0 to this Amendment No. 1, for which LESSEE shall receive rent credit pursuant to Section 1 of this Amendment No. 1; and WHEREAS, STATE and LESSEE hereto desire to amend said Sublease to adjust the rent schedule, extend the Sublease Term, and identify the improvements to be constructed by LESSEE; and NOW, THEREFORE, it is mutually agreed between the parties hereto as follows: 1. Clause 1 DESCRIPTION of the Sublease is deleted in its entirety and replaced with the following: State does hereby lease to the LESSEE, and LESSEE hereby hires from STATE, upon the terms, agreements, and conditions hereinafter set forth, those certain Premises located at 1522 14 th Street situated in the City and County of Sacramento, State of California as outlined on the attached floor plan designated as Exhibit A consisting of one (1) page, which is incorporated herein and by this reference made a part hereof and more particularly described as follows: Approximately 6,172 net square feet of office space, 329 net square feet of storage space; together with common use with the STATE of those areas designated as Custodial/Mechanical Room, Trash Room, connecting rear hallway, and Landscape Service Home Run Room, located in the southeast corner of the first floor of the building located at 1522 14 th Street, Sacramento, California. The Premises shall further constitute that portion of the public corner of 14 th Street and P Street, as outlined and notated on Exhibit A, but shall exclude the landscaping being the palm trees. LESSEE shall have the non-exclusive unobstructed use of five (5) parking spaces in the parking structure located at 1301 P Street at a monthly rate equivalent to the rate charged to other month-tomonth parkers for similar spaces, and upon those parking conditions which may be hereinafter set forth by the Office of Fleet Administration (OFA). STATE will attempt but shall have no obligation to 1598011.2 10080-001 Item 10. Attach 4 -LEASE L-1805 Amendment No.1 Page 1 of 5 RESD
locate all five (5) spaces on the first floor of the adjacent parking structure, and to designate each as reserved for LESSEE. In addition to the Premises, STATE has provided without additional charge to LESSEE a quantity of work-stations in as is condition consisting of used modular systems furniture (MSF) being the Premises model by Haworth, or its equivalent, and which are in the STATE s current inventory. The MSF shall remain the property of the State provided that the LESSEE shall have the exclusive right to use such MSF in another location or until LESSEE ceases to exist as a joint powers agency. STATE does not warrant that the MSF in current inventory is sufficient to meet the complete needs of LESSEE, nor will the STATE be liable for damages arising out of LESSEE s use or maintenance of the MSF. It is mutually agreed that the cost to transport the MSF from storage, design an office layout, and install the MSF at the Premises or any new location shall be at the LESSEE s sole cost and expense. LESSEE will install two (2) lean benches and one (1) bicycle repair station in the portion of the public corner of 14 th Street and P Street. Upon expiration or earlier termination of this Lease for any cause, LESSEE will be responsible for removing the lean benches and bicycle repair station at LESSEE s sole cost and expense and restore the Premises to its condition prior to the installation of the lean benches and bicycle repair station. Should LESSEE fail to remove said property within thirty (30) days after expiration or termination of the Lease, STATE may do so at the risk of LESSEE. Upon written demand by STATE, LESSEE shall immediately pay all costs and expenses associated with the removal of LESSEE s property. 2. Clause 2 RENT of the Sublease is deleted in its entirety and replaced with the following: (a) LESSEE shall make rental payments for the Premises monthly, in advance, on the first day of each month, beginning on the Commencement Date pursuant to the following rent schedule: Remainder of Initial 10yr Lease Second 5 year option 2/1/2017 1/31/2018 $8,172.00 /mo 2/1/2025 1/31/2026 $6,402.00 /mo 2/1/2018 1/31/2019 $8,172.00 /mo 2/1/2026 1/31/2027 $6,402.00 /mo 2/1/2019 1/31/2020 $8,172.00 /mo 2/1/2027 1/31/2028 $6,402.00 /mo Beginning of $1,956/mo Credit 2/1/2028 1/31/2029 $6,402.00 /mo First 5 year option 2/1/2029 1/31/2030 $6,402.00 /mo 2/1/2020 1/31/2021 $6,216.00 /mo 2/1/2021 1/31/2022 $6,216.00 /mo 2/1/2022 1/31/2023 $6,216.00 /mo 2/1/2023 1/31/2024 $6,216.00 /mo 2/1/2024 1/31/2025 $6,216.00 /mo STATE acknowledges LESSEE s significant contribution to STATE and the Premises, referenced as Exhibit A4.0, together known as LESSEE s Contribution, in the form of absorbing all costs associated with the repair, replacement, and upgrades of capital improvements to include, but not limited to, Heating, Ventilation, Air Condition, Electrical, and Plumbing work. LESSEE s capital improvement costs will be amortized during the option periods by reducing the rent by $1956.00 per month as identified above, effective February 1, 2020, ending January 31, 2030. All payments are to be made to Department of General Services and must include the following information: 1) State s Sublease Number L-1805; 2) Cost Center Code: Cost Center 77607526 and 2) Revenue Code: 4172500. Payments are to be made directly to the following address: Department of General Services Accounts Receivable 10 th Floor 1598011.2 10080-001 Item 10. Attach 4 -LEASE L-1805 Amendment No.1 Page 2 of 5 RESD
(for the Benefit of the State Public Works Board Lease Revenue Bonds and Refunding Bonds) P.O. Box 989053 West Sacramento, CA 95798-9053 STATE agrees to provide the amortized Rent Credit for as long as LESSEE satisfies the commitment to make improvements as agreed. If at any time during the term of the Sublease, STATE shall discover that LESSEE has failed to provide the contributions as defined, said failure shall constitute a forfeiture by LESSEE of the amortized rent credit, or a portion thereof. Upon written notice by STATE of forfeiture, LESSEE shall pay rent identified above including the amortized credit amount of $1,956 per month during the remainder of the Sublease term. LESSEE acknowledges that rent and past due rent shall be due and payable to STATE whether or an actual invoice is sent by STATE or received by LESSEE. LESSEE may make payments by electronic funds transfer upon prior arrangement with the STATE. 3. Clause 4 TERM is deleted in its entirety and replaced with the following: (a) The Initial Term of the Lease shall commence February 1, 2010, ending January 31, 2020 with LESSEE having two (2) successive five (5) year options to extend the Term of the Sublease. (b) Unless LESSEE gives prior written notice within sixty (60) days of the end of a five (5) year term that it will not exercise its option, the Sublease will automatically extend for an additional five (5) years. If fully extended, the Sublease will expire January 31, 2030. 4. Clause 5 EARLY TERMINATION is deleted in its entirety and replaced with the following: The parties hereto agree that either party may terminate this Lease at any time after January 31, 2025 by giving notice to the other party in writing 50 days prior to the date of when such termination shall become effective. 5. Clause 9 SUBORDINATION is deleted in its entirety and replaced with the following: Notwithstanding any provision in this Lease, the Lease and all rights of control, use, occupancy and enjoyment of the Premises by LESSEE are subordinate and subject to the liens, rights, covenants and obligations as set forth in the SPWB Facility Lease. 6. Clause 15. REPAIR AND MAINTENANCE is amended by inserting the following paragraph at the end of the clause. The remaining paragraphs of Clause 15 shall remain the same. LESSEE will make substantial improvements to the premises, as described in Exhibit A4.0, to repair, replace, and upgrade major building systems including but not limited to, plumbing, electrical, heating, ventilation and air conditioning. The cost for these improvements is the responsibility of STATE under the Sublease dated December 1, 2000. STATE shall reimburse LESSEE for these costs by reducing rent by $1956 per month commencing February 1, 20120 and ending January 31, 2030, as further described in Section 1 of this Amendment No. 1. Following completion of construction, responsibility for maintenance of the improvements constructed by LESSEE shall be as described previously in this Clause 15. 7. To the extent of any actual conflict between the terms of the Sublease and the terms of this Amendment No. 1, the conflicting provisions shall first be reconciled with one another to the maximum extent possible and then, to the extent of any remaining inconsistency, the terms of this Amendment No. 1 shall control. Except as expressly amended herein, all of the terms and conditions of said Lease shall remain unchanged and in full force and effect. 1598011.2 10080-001 Item 10. Attach 4 -LEASE L-1805 Amendment No.1 Page 3 of 5 RESD
THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK 1598011.2 10080-001 Item 10. Attach 4 -LEASE L-1805 Amendment No.1 Page 4 of 5 RESD
IN WITNESS WHEREOF, this Amendment No. 1 to Sublease has been executed by the parties to be effective as of the date written below: STATE OF CALIFORNIA APPROVED: DIRECTOR OF DEPARTMENT OF GENERAL SERVICES LESSEE: CAPITOL AREA DEVELOPMENT AUTHORITY, a Joint Powers Authority of the City of Sacramento TONY PSIHOPAIDAS, Manager State Owned Leasing and Development Date Executed: WENDY SAUNDERS Executive Director Date: APPROVAL RECOMMENDED: STATE OWNED LEASING AND DEVELOPMENT CONSENT: DEPARTMENT OF GENERAL SERVICES FACILITIES MANAGEMENT DIVISION KIMBERLEY TSUMURA Senior Real Estate Officer CHRISTOPHER PORTER Building Manager Capital East End Complex CONSENT: STATE PUBLIC WORKS BOARD SALLY LUKENBILL Deputy Director JEMAHL ÄMEN Deputy Director Facilities Management Division Headquarters 1598011.2 10080-001 Item 10. Attach 4 -LEASE L-1805 Amendment No.1 Page 5 of 5 RESD