Item:
Title
Approval of Budget Ordinance Amendment No.26BCC033 Appropriating $130,000 of General Fund Fund Balance to Open Space and Real Estate to Cover Rent Payments to 300 East Main, LLC, a Subsidiary of Laurel Street Residential, for the Sub-lease of the Future Childcare Center at the 300 East Main Street Affordable Housing Project
Body
Date of BOCC Meeting: November 10, 2025
Request for Board Action:
Agenda Text
The Board is requested to approve Budget Ordinance Amendment No.26BCC033 appropriating $130,000 of General Fund Fund Balance to Open Space and Real Estate for rent payments to 300 East Main, LLC, a subsidiary of Laurel Street Residential, for the sub-lease of the future childcare center at the 300 East Main Street Affordable Housing Project. The total includes an estimated amount for common area maintenance and minimal heating and cooling of the space.
The County is the fee simple owner of the 300 East Main Street Affordable Housing Project property. The 2021 Master Development Agreement (MDA) with the Developer, Laurel Street Residential, LLC, gives control of portions of the property, including the childcare space, to the developer for 40 years through a Ground Lease.
The County and Developer amended the MDA in 2023 to include an agreement for the County to sub-lease the childcare space from the development company due to the significant rise in construction costs and the County's interest in seeking a childcare operator to lease a portion of the ground floor of the building. This is codified in the First Amendment to the Master Development Agreement including the attached Sub-lease Agreement. Due to project construction delays, the intended rent commencement date of November 1, 2024 was delayed to November 1, 2025.
The 2023 Sub-lease Agreement outlines the terms of the rental agreement, including a 15-year initial term at the starting annual rate of $169,500 with a 2% annual escalation, and other terms as noted in the Sub-lease.
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