Approval of Option to Extend Lease Agreement, Department of Public Social Services (DPSS), 65753 Pierson Boulevard, Desert Hot Springs

On May 14, 2013, the County of Riverside (County) entered into a Lease Agreement with Pierson Professional Plaza, L.P., predecessor-in-interest to Pierson Holdings, LLC (Lessor), for the construction and subsequent lease of approximately 38,084 square feet of office space located at 65753 Pierson Boulevard, Desert Hot Springs, California 92240 (Lease), for use by DPSS. The Lease provided for an initial 10-year term following completion of construction and commencement of the Lease. The Lease was subsequently amended by a First Amendment dated September 9, 2014 (M.O. 3.17), a Second Amendment dated August 18, 2015 (M.O. 3.25), and a Third Amendment dated April 5, 2016 (M.O. 3.16). These amendments addressed and revised provisions related to Delays in Delivery as construction of the facility extended beyond the originally anticipated schedule. The Lease was further amended by a Fourth Amendment dated October 25, 2016 (M.O. 3.7), which revised the tenant improvement budget to account for increased construction costs and unforeseen delays experienced during development of the facility. The facility has since been completed and continues to meet the operational needs of DPSS while supporting the delivery of essential public services to the surrounding community. Accordingly, DPSS intends to exercise the first of its two options to extend the Lease term. The approval of the option to extend the Lease Agreement with Pierson Holdings, LLC is defined as the proposed project under the California Environmental Quality Act (CEQA). The project is the extension of term involving existing facilities; no expansion of the existing facility will occur. The operation of the facility will continue to provide public health services. No additional direct or indirect physical environmental impacts are anticipated.