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AGENDA REPORT
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| | | | | | | | DATE:
| February 18, 2020
| TO:
| Fairfield Housing Authority Chair and Commissioners
| FROM:
| Stefan T. Chatwin, Executive Director
| | SUBJECT: | Resolution HA2020-04 of the Fairfield Housing Authority Approving the Fourth Amendment to Office Lease Between the Fairfield Housing Authority and Denis Honeychurch for Office Space Located at 823 Jefferson Street, Suite B |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | The Fairfield Housing Authority has occupied the office space at 823 Jefferson Street, Suite B (“Premises”) since 2004. The current Office Lease expires on March 31, 2020. Fairfield Housing Authority staff would like to extend the Office Lease for an additional twelve (12) months for a new termination date of March 31, 2021. |
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| | | | | | | | | DISCUSSION | The Fairfield Housing Authority has occupied the Premises since 2004. In 2013, the Fairfield Housing Authority signed a new Office Lease with Denis Honeychurch and Anthony Finkas to extend the lease term through March 31, 2018. The term was further extended per the First Amendment dated August 28, 2014, the Second Amendment dated April 13, 2018, and the Third Amendment dated February 8, 2019 (collectively, “the Office Lease”). The Office Lease is currently set to expire on March 31, 2020.
In 2016 Anthony Finkas sold all his rights to the building to Denis Honeychurch thus making Denis Honeychurch the sole owner (“Landlord”).
The Landlord has agreed to extend the lease through March 31, 2021. No increase in rent is proposed, and the rent rate would be the same as is currently being paid under the Third Agreement. The rent rate for the period of April 1, 2020 through March 31, 2021 will be $3,263.71 per month, excluding but not limited to gas and electric services.
The Office Lease includes a provision that allows the Housing Authority to terminate the Office Lease at any time with ninety (90) calendar days written notice to the Landlord.
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| | | | | | | | | FINANCIAL IMPACT | | The rent effective April 1, 2020, will be $3,263.71 per month, totaling $39,164.52 for the additional twelve months. The lease payments are paid from the Section 8 Administrative Fee Account (Fund 021, Responsibility Code 36-001-9005). |
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| | | | | | | | | CITY COUNCIL WORKPLAN | Community Safety
| Community Infrastructure | Quality of Life | | Financial and Operational Sustainability | Economic Development | Travis Air Force Base |
| City Council Goal this item supports:
Not Applicable |
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| | | | | | | | | Project: | One-time item not recommended for including in the Workplan
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | The Fairfield Housing Authority may choose not to approve the Fourth Amendment to Office Lease. However, the Fairfield Housing Authority would need to immediately vacate its office space and find another office location and/or potentially pay a higher or holdover rent. This could result in the disruption of services to clients served by the Fairfield Housing Authority. |
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| | | | | | | | | COORDINATED WITH | City Attorney's Office
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| REVIEWERS: | | Reviewer | Action | Date | | Answerer | Approved | 1/27/2020 - 11:27 AM | | Feinstein, David | Rejected | 1/30/2020 - 8:15 PM | | Answerer | Approved | 1/31/2020 - 3:05 PM | | Answerer | Approved | 1/31/2020 - 6:05 PM | | Feinstein, David | Approved | 1/31/2020 - 6:28 PM | | Answerer | Approved | 2/4/2020 - 5:09 PM | | Alexander, Amber | Approved | 2/11/2020 - 1:45 PM |
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