Standard Contract Page 1 of 3
THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY Real Estate Services Department
Department Contract Representative Terry W. Thompson, Director Telephone Number (909) 387-5252
Contractor City of Rialto
Contractor Representative Michael Milhiser, Interim City Manager
Telephone Number (909) 820-2528
Contract Term 5/1/2005 – 10/31/2030
Original Contract Amount $1,192,284
Amendment Amount $534,856
Total Contract Amount $1,727,140
Cost Center 7810001000
GRC/PROJ/JOB No. 60002096
Internal Order No.
IT
IS HEREBY AGREED AS FOLLOWS:
WH
EREAS, San Bernardino County (“COUNTY”), as tenant, and the City of Rialto (“LANDLORD”), as landlord, entered into Lease Agreement, Contract No. 05-294, as amended by the First Amendment dated May 11, 2010, as amended by the Second Amendment dated April 23, 2013, as amended by the Third Amendment dated June 16, 2015 and amended by the Fourth Amendment dated October 16, 2018, and amended by the Fifth Amendment dated September 21, 2021 (collectively, the “Lease”), wherein LANDLORD leases certain premises located at 251 West First Street in Rialto, CA, as more specifically described in the Lease, to the COUNTY for a term that is currently scheduled to expire on October 31, 2025; and, WH
EREAS the COUNTY approved one -time funding in the amount of $124,000 to cover LANDLORD costs associated with improvements for portions of the Premises; and, WH
EREAS, the COUNTY and LANDLORD now desire to amend the Lease to reflect the parties’ agreement to extend the term following the expiration of the existing term of the Lease for five (5) years for the period of November 1, 2025 through October 31, 2030, add two (2) additional five-year options, adjust the rental rate schedule, and amend certain other terms of the Lease as more specifically set forth in this amendment (the “Sixth Amendment”).
NO
W, THEREFORE, in consideration of mutual covenants and conditions, effective as of June 11, 2024, unless otherwise expressly provided herein, the parties hereto agree the Lease, is amended as follows:
Contract Number
05-294 A-6
SAP Number
1. Effective November 1, 2025, EXTEND the term of the Lease as provided in Paragraph 3, TERM, f
or Five (5) years from November 1, 2025, through October 31, 2030 (the “Sixth Extended Term”).
2. E
ffective June 11, 2024, DELETE in its entirety the existing Paragraph 4, RENT , and SUBSTITUTE therefore the following as a new Paragraph 4, RENT:
4. RE NT:
a. C
OUNTY shall pay to LANDLORD the following monthly rental payments i n ar
rears on or before the last day of each month, commencing when the Sixth Extended Term commences and continuing during the Sixth Extended Term, subject to an approximate two percent (2%) annual increase, as more specifically reflected and included in the amounts set forth below:
J
uly 1, 2024 – One-time lump sum payment for Improvement Costs of $124,000.00 July 1, 2024, to October 31, 2024 – monthly rental amount of $6,324.00 November 1, 2024, to October 31, 2025 - monthly rental amount of $6,450.00 November 1, 2025, to October 31, 2026 – monthly rental amount of $6,579.00 November 1, 2026, to October 31, 2027 – monthly rental amount of $6,711.00 November 1, 2027, to October 31, 2028 – monthly rental amount of $6,845.00 November 1, 2028, to October 31, 2029 – monthly rental amount of $6,982.00 November 1, 2029, to October 31, 2030 – monthly rental amount of $7,121.00 b. R
ent for any partial month shall be prorated based on the actual number of days of the month. LANDLORD shall accept all rent and other payments from County under this Lease via electronic funds transfer (EFT) directly deposited into the LANDLORD’s designated checking or other bank account.
LANDLORD shall promptly comply with directions and accurately complete forms provided by County required to process EFT payments.
3. Effective June 11, 2024, DELETE the existing Paragraph 5, OPTION TO EXTEND TERM, and SUBSTITUTE therefore the following as a new Paragraph 5, OPTION TO EXTEND TERM:
5. OPTION TO EXTEND TERM: LANDLORD gives COUNTY the option to extend the term of the Lease on the same provisions and conditions, except for the monthly rent, for two (2) five-year periods (“extended terms”) following the expiration of the current term, by COUNTY giving notice of its intention to exercise the option to LANDLORD prior to the expiration of the preceding term or during any holding over pursuant to Paragraph 7, HOLDING OVER . The rent for each extended term shall be adjusted by good faith negotiation of the parties to the fair market rental rate then prevailing based upon the rental rates of comparable leased property in San Bernardino County.
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4. All other provisions and terms of the Lease shall remain the same and are hereby incorporated by reference. In the event of any conflict between the Lease, and this Sixth Amendment, the terms and conditions of this Sixth Amendment shall control.
END OF SI
XTH AMENDMENT.
FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department ► ► ►
John Tubbs II, County Counsel Lyle Ballard, Real Property Manager, RESD Date Date Date
SAN BERNARDINO COUNTY CITY OF RIALTO
► By ►
Dawn Rowe, Chair, Board of Supervisors Michael Milhiser Dated:
SIGNED AND CERTIFIED THAT A COPY OF THIS
DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD
Title: Interim City Manager
Dated:
Lynna Monell Clerk of the Board of
Supervisors
of San Bernardino County
By
Deputy
ATTEST:
By:
Barbara A. McGee
Title: City Clerk
Dated:
APPROVED AS TO LEGAL FORM:
By:
Eric Vail
Title: City A ttorney
Dated:
5-14-24
5/15/24