103
AGENDA ITEM BACKGROUND
TO: GOVERNING BOARD
DATE
FROM: PRESIDENT
February 6, 2012
SUBJECT:
Lease Agreement Amendment: Scotts Valley Center,
January 2012 – June 2015
REASON FOR BOARD CONSIDERATION
ACTION
ITEM NUMBER
ENCLOSURE(S)
Page 1 of 3
C.6
BACKGROUND:
At the September 2006 meeting, the Governing Board authorized a three-year lease agreement with
Scotts Valley Partners that was extended for two additional years beginning in 2009 for 7,350 square
feet at 104 Whispering Pines Drive, Scotts Valley. Due to the difficult economic times, District
approached Scotts Valley Partners regarding options to lower the rent. Scotts Valley Partners agreed
to lower the rent.
The lease is currently up for renewal and has been amended to extend for three and a half additional
years beginning January 1, 2012 and will terminate as of June 30, 2015. In addition, the District is
responsible for utility and custodial costs.
Based on the new amended lease agreement the estimated costs for the next three and a half years
would be:
Year Six (2012):
Year Seven (2013):
Year Eight (2014):
Year Nine (2015):
$123,000 plus custodial and utilities
$127,500 plus custodial and utilities
$132,000 plus custodial and utilities
$ 66,000 plus custodial and utilities
FISCAL IMPACT:
$148,578 per year
RECOMMENDATION:
It is recommended that the Governing Board authorize the District to enter into a lease agreement
amendment with Scotts Valley Partners for 7,350 square feet at 104 Whispering Pines Drive,
Scotts Valley from January 2012 thru June, 2015.
Administrator Initiating Item:
Serena Muindi
Victoria Lewis
Academic and Professional Matter
If yes, Faculty Senate Agreement
Senate President Signature
 Yes  No
 Yes  No
Final Disposition
Approved
104
AMENDMENT # 2012-2 TO THAT CERTAIN LEASE DATED SEPTEMBER
11, 2006, BETWEEN SCOTTS VALLEY PARTNERS, A CALIFORNIA
GENERAL PARTNERSHIP (LANDLORD) AND CABRILLO COLLEGE
(TENANT) FOR THOSE CERTAIN PREMISES LOCATED AT 104
WHISPERING PINES, SCOTTS VALLEY, CA.
Landlord and Tenant, by their signatures below, amend the Lease as set out
below. In the event of a conflict between this Amendment and the Lease
agreement, this Amendment shall control.
1. Reference Paragraph 1. Term:
The lease termination date shall be extended to June 30, 2105.
Tenant shall have the right to terminate as of June 30 of 2013 and June 30, of
2014, by completing each of the following conditions:
a) Tenant shall serve written notice to Landlord on or before February
15 of the terminating year, and
b) With its notice, Tenant to pay to landlord $8,000.00 as unamortized
leasing commissions and costs for a June 2013 termination and
$4,000.00 as unamortized leasing commissions for a June 2014
termination.
2. Reference Paragraph 2. Base Rent:
The monthly base rent schedule is as follows:
January 1, 2012 to June 30, 2013:
July 1, 2013 to June 30, 2015:
$10,250.00
$11,000.00
RENT
(BASE & COMMON
AREA)
CALENDAR YEAR
UTILITIES
TOTAL
2012 (Jan – Dec)
$
10,250.00
$
2,131.50
$
12,381.50
2013 (Jan - June)
$
10,250.00
$
TBD
$
12,381.50*
2013 (July - Dec)
$
11,000.00
$
TBD
$
13,131.50*
2014
$
11,000.00
$
TBD
$
13,131.50*
2015 (Jan-June)
$
11,000.00
$
TBD
$
13,131.50*
*Estimated
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This base rent has hereby been amended to include the building operating expenses,
as set forth in the Lease dated September 11, 2006, with Lessee additionally paying
for certain utilities, maintenance and janitorial as originally agreed upon in the Lease.
READ AND APPROVED AND RECEIPT OF A COPY IS HEREBY ACKNOWLEDGED:
LANDLORD
TENANT
DATE:_______
DATE:_______
___________________
Scotts Valley Partners
__________________
Victoria Lewis,
Vice President, Administrative Services