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File #: 21-0408   
Type: Report to Council Status: Passed
Meeting Body: City Council
On agenda: 4/20/2021
Title: Extension of Lease Agreement with Sunnyvale Community Services at 725 Kifer Road
Attachments: 1. First Amendment to Lease of Real Property at 725 Kifer Road in Sunnyvale
REPORT TO COUNCIL

SUBJECT
Title
Extension of Lease Agreement with Sunnyvale Community Services at 725 Kifer Road

Report
BACKGROUND
On November 5, 2019 Council approved RTC No. 19-0881 for the acquisition of 725 Kifer Road from Sunnyvale Community Services (SCS). The transaction included a lease back of the property for one year with the option to extend for 6 months. This was to allow SCS to continue serving the community while completing tenant improvements at the new facility. SCS exercised their renewal option which expires on May 26, 2021.

EXISTING POLICY
Council Policy 5.1.1
Goal 5.1G: Enhance the provision of health and social services to Sunnyvale residents by providing opportunities for the private marketplace to meet the health and social service needs of City residents.

Policy 5.1G.1: Encourage the co-location of health and social service providers in Sunnyvale to facilitate the availability of such services.

Policy 5.1G.2: Provide incentives, such as co-location privileges or rent subsidies, to attract private agencies to provide needed health and social services.

ENVIRONMENTAL REVIEW
Approving the extension of a Lease Agreement does not constitute a "project" within the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(a), as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Any future development shall be subject to CEQA requirements.

DISCUSSION
The COVID-19 Pandemic and the Shelter in Place orders issued by the County of Santa Clara resulted in the delay of completion of tenant improvement at the new location. To ensure continuous service to the community, SCS approached the City requesting an extension of their Lease until the end of December 2021. The Lease will be extended on a month to month basis to allow the flexibility of terminating sooner, should the new facility beco...

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