Staff Report.Lease Amendment Tait and Forbes (2)
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 02/07/2023 ITEM NO: 11
DATE: February 1, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute First Amendments to the Master
Lease Agreements with Tait Firehouse, LLC and Forbes Mill, LLC
RECOMMENDATION:
Authorize the Town Manager to execute First Amendments to the Master Lease Agreements
with Tait Firehouse, LLC and Forbes Mill, LLC.
BACKGROUND:
In March 2019, the Town Council authorized an Exclusive Negotiating Agreement with Imwalle
Asset Management, LLC, to help guide the negotiations of a Master Lease Agreement. On
August 4, 2020, the Town Council authorized the Town Manager to execute long term lease
agreements with Tait Firehouse LLC for the property located at 4 Tait Avenue (Attachment 1)
and Forbes Mill LLC for the property located at 75 Church Street (Attachment 2). The decision
was predicated on the fact that the proposal would allow the properties to remain in Town
control, maintain the historic value of the properties, require no monetary resources from the
Town, and ultimately provide an annual revenue stream to the Town.
DISCUSSION:
Since the completion of the lease agreements, the economic impacts on the commercial real
estate market associated with the pandemic significantly disrupted initial lease up plans. There
are provisions in the leases which stipulate that if lease up has not occurred within certain time
periods either party can terminate the leases.
Given the unanticipated complexities of the commercial real estate market, staff recommends
amending the lease agreements to extend these terms for an additional year. If at the
conclusion of the extension period, the properties have not been leased then Council can
PAGE 2 OF 2 SUBJECT: First Amendment Forbes Tait Lease Agreements DATE: February 1, 2023
DISCUSSION (continued):
reconsider options for the two properties at that time. Attachments 3 and 4 contain the
proposed First Amendments and the specific language within the lease agreements to be
amended. Deleted language is illustrated by strikethrough and language additions and
illustrated in red.
COORDINATION:
This report was coordinated with the Town Manager and Town Attorney.
FISCAL IMPACT:
None.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Tait Firehouse Lease Agreement
2. Forbes Mill Lease Agreement
3. First Amendment to Tait Lease Agreement
4. First Amendment to Forbes Lease Agreement