Ordinance Authorizing Third Lease
Amendment for Building 35 with
Tenant, Small Size Big Minds
Corporation
June 20, 2023
Building 35: Small Size Big Minds
Background
• Located at 2450 Pan Am Way
• Use: child care center
• Premises includes 2,764 s.f. building
space, plus adjacent parking area
• Parcel area of 16,552 s.f.
• Lease started September 2018; 2-year
term; amended twice
• Lease expires August 31, 2023
• Current lease rate: $4,627 monthly
($1.67 s.f.); $55,529 annually
• aaa
Building 35 Small Size Big Minds
Discussion – New Terms
• Continue term for one year through August
31, 2024
• Renewal option for one additional year
through August 31, 2025
• Rent increases to $4,827 monthly ($1.75 s.f.);
$57,924 annually for first year
• Rent increases to $5,005 monthly ($1.81 s.f.);
$60,060 annually second year
3 Building 35 Small Size Big Minds
Discussion – Term Length:
• Use appropriate for Alameda Point
• Current location adjacent to RESHAP/West
Midway project
• Once RESHAP/West Midway construction begins
Tenant will likely be negatively impacted by
construction
• Staff assisting tenant with identifying potential
long-term relocation options at Alameda Point
• Tenant investigating new site
4 Building 35 Small Size Big Minds
Recommendation:
Introduce ordinance authorizing City Manager to execute a Third Amendment to the Lease with Tenant, Small Size Big Minds, for one-year extension term, plus one-year additional extension option, and increase in rent 5