LA County Board

23. Department of Mental Health Lease Agreement\nRecommendation: Authorize the Chief Executive Officer to execute the\nproposed 10-year lease with Welcome to the Depot, LLC, a Delaware limited\nliability company (Landlord), for the Department of Mental Health’s (DMH’s) use\nof approximately 35,667 sq ft of space, comprised of 30,449 sq ft of office\nspace and 5,218 sq ft of patio space, with 105 on-site parking spaces located\nat 3609 South 10th Avenue, Los Angeles (Premises) (2), with an estimated\nmaximum first-year base rental amount of $2,044,000, with a four-month rent\nabatement of $681,000, which will equal $1,363,000, and an estimated total\nproposed lease amount, including parking, tenant improvements (TIs), and\nlow-voltage of $33,738,000 over the 10-year term, with rental costs to be funded\nwith Mental Health Services Act and other State and Federal funds that are\nalready included in DMH’s existing budget; and additional Net County Cost will\nnot be requested for this action; find that the proposed lease is exempt from the\nCalifornia Environmental Quality Act; and take the following actions:\nAuthorize the Chief Executive Officer to reimburse the Landlord up to\n$4,262,860 for the County’s TI contribution, if paid in a lump sum, or\n$5,186,126 if amortized over five years at 8% interest per annum;\nAuthorize the Director of Mental Health to contract with a\nTelecommunication Services Master Agreement vendor, in coordination\nwith the Chief Executive Officer for the acquisition and installation of\ntelephone, data, and low-voltage systems and vendor installation of\nLow-Voltage Items at a total cost not to exceed $2,284,000, with the cost\nfor the Low-Voltage Items to be in addition to the rental costs and the\nCounty’s TI contribution payable to the Landlord; and\nAuthorize the Chief Executive Officer to execute any other ancillary\ndocumentation necessary to effectuate the terms of the proposed lease,\nand to take actions necessary and appropriate to implement the\nproposed lease, including, without limitation, exercising any early\ntermination rights. (24-0227)