AMENDMENT NUMBER FOUR TO THE LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND VANIR TOWER BUILDING, INC.
This Amendment Number Four ("Fourth Amendment'') is entered into by and between the City of San Bernardino, a charter city organized under the laws of the State of California (hereinafter the "City"), and Vanir Tower Building, Inc. (hereinafter the "Landlord") as of March 1, 2024.
City and Landlord are at times referred to individually as "Party" and collectively as the "Parties."
WHEREAS, City and Landlord entered into a Lease Agreement dated February 8, 2017 for the City's lease of office space at Landlord's property located at 290 North "D" Street, San Bernardino, CA 92401, as further set out therein; and WHEREAS, City and Landlord entered into Amendment Number One to the Lease Agreement Between the City of San Bernardino and Vanir Tower Building, Inc., on March 6, 2017 ("First Amendment") and City subsequently exercised two six-month extension options available to it under the Lease Agreement, as amended; and WHEREAS, City and Landlord entered in to Amendment Number Two to the Lease Agreement Between the City of San Bernardino and Vanir Tower Building, Inc., on July 1, 2020 ("Second Amendment'') extending the Term of the Lease Agreement through June 30, 2021 and reducing the amount of space leased effective August 1, 2020; and WHEREAS, City and Landlord entered in to Amendment Number Three to the Lease Agreement Between the City of San Bernardino and Vanir Tower Building, Inc., on March 15, 2021 ("Third Amendment'') extending the Term of the Lease Agreement through June 30, 2024 and increasing the amount of space leased effective March 15, 2021; and WHEREAS, the Parties now desire to. extend the Term of the Lease Agreement, as amended, through June 30, 2026, to increase the amount of space leased to include Suite 101B on the 1st Floor effective April 1, 2024, and to include one 2-year option to extend the Lease at the City’s sole discretion.
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:
1. 30, 2026.
Term. The term of the Lease Agreement, as amended, is extended through June
2. Monthly Rent. Effective April 1, 2024, the monthly rent will be increased from Forty-one Thousand, Five Hundred and Forty-Eight dollars ($41,548) to Fifty-Four Thousand, One Hundred and Twelve Dollars ($54,112.00) to reflect the increased in leased space further described in Section 3 of this Fourth Amendment. The monthly rent from July 1, 2024, through June 30, 2025, shall be at the per square foot cost of $2.10 monthly and the City shall pay monthly rent in the amount of Fifty-Six Thousand, Eight Hundred and Seventeen Dollars and Sixty Cents ($56,817.60). Effective July 1, 2025, through June 30, 2026, monthly rent shall be at the per square foot cost of $2.21 monthly and the City shall pay monthly rent in the amount of Fifty-Nine thousand, Seven Hundred and Ninety-Three Dollars and Seventy-Six Cents ($59,793.76).
3. Square Footage. Effective April 1, 2024, the Premises shall be amended to reflect the addition of 4,956 square feet of rentable space on the 1st Floor (Suite 101B) for a total of 27,056 square feet of rentable space on the 1st and 3rd and 8th Floors. The additional 4,956 square feet of rentable space is described and depicted on Exhibit A, attached hereto and incorporated herein by this reference. Landlord approved Tenant Improvements construction and cost shall be the City’s full responsibility.
4. Option to Extend Term. Landlord gives City the option to extend the term of the Lease on the same provisions and conditions for one (1) Two-Year Option (“extended term”) following the expiration of the Fourth Amendment by City giving notice of its intention to exercise the option to Landlord no less than 60-days prior to expiration of the current term. Monthly rent for the extended term shall be as follows, effective July 1, 2026 through June 30, 2027 shall be at the square foot cost of $2.32 and the City shall pay monthly rent in the amount of Sixty-Two Thousand, Seven Hundred and Sixty-Nine Dollars and Ninety-Two Cents ($62,769.92) and effective July 1, 2027, through June 30, 2028 shall be at the square foot cost of $2.44 and the City shall pay monthly rent in the amount of Sixty-Six Thousand, and Sixteen Dollars and Sixty-Four Cents ($66,016.64).
5. Effect on Other Provisions. All other provisions of the Lease Agreement, as amended, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed the day and year first above written.
CITY LANDLORD
Charles A. Montoya, City
Manager
ATTEST:
James Smith, President
Genoveva Rocha, City Clerk
EXHIBITA
DESCRIPTION AND DEPICTION OF SUITE 101B
Suite 101B located on the 1st Floor of the Vanir Tower includes 4,956 square feet of rentable space comprised of offices, conference room, supply and equipment storage areas, and a restroom. The area included in Suite 101B is represented by the shadowed area on the attached diagram.