Jessica Cejnar / Wednesday, Nov. 13, 2019 @ 3:03 p.m. / Local Government

Supervisors Revisit, Approve Lease Termination Sans Spat


County supervisors revisited a lease termination agreement Tuesday minus the shouting match that ensued when they discussed the issue last month.

The Board voted 4-0-1 Tuesday in favor of terminating the lease agreement between the Del Norte County Department of Health and Human Services and Matthew Fearing, of Front Street Plaza LLC for property at 1279 Second Street, Suite C, effective Nov. 30. District 4 Supervisor Gerry Hemmingsen recused himself, citing a conflict of interest.

DHHS has leased the 3,310 square-foot office space at 1279 2nd Street, Suite C, since July 1, 2016 for $3,078.30 per month, according to the county’s staff report. The lease was scheduled to expire on June 30, 2026.

Under the new agreement, presented by DHHS Director Heather Snow to supervisors, the department will pay Fearing $87,000 to terminate the lease effective Nov. 30. The department’s security deposit of $3,078.30 will be forfeited, according to the county’s staff report.

The revised agreement drew praise from District 5 Supervisor Bob Berkowitz, who said Tuesday he hopes it’s an agreement all can accept.

The Board’s decision comes after it deadlocked at its Oct. 8 meeting over a 10-year lease agreement between the county and Fearing to allow the Child Support Services Department to move into the 1279 Second Street space.

Child Support Services had been searching for a new home for several years to provide private areas for interviews and family mediation, according to the county’s Oct. 8 staff report. After receiving bids from Sutton Enterprises, Northridge Electric, Frank’s Heating and Refrigeration, Stremberg Realty, G&R Construction, Rural Human Services and TAB & Associates, only Northridge Electric and TAB could provide the square footage Child Support Services needed.

The county chose on the Northridge Electric facility because of its location in a high traffic area of Crescent City, according to the Oct. 8 report.

On Tuesday, though the Board of Supervisors approved the lease termination agreement without much discussion, TAB owner Tony Barnes said supervisors could have avoided “getting themselves in the situation” by negotiating a lease that gives them an exit strategy without a large penalty.

But, Barnes said, he felt county staff failed to follow proper procedures with him when it came to negotiating both real estate issues.

“I don’t think it was properly vetted,” he said. “My numbers were adequately represented, it never went through Future Facilities or planning, yet it wound up on the agenda to approve. I remind all of you that you work for us. It’s incumbent upon you to do your job and to do your jobs properly and to follow proper procedure.”

Before voting to approve the lease termination agreement, District 1 Supervisor Roger Gitlin noted that there was an opportunity to get out of the lease for $163,000. In the last 10 months, $30,078 had been paid in rent, he said. Terminating the lease for about $87,000 is a savings of roughly $40,000 to the taxpayer, Gitlin said.


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