County to relocate Fallbrook HHSA offices to new location

The Fallbrook Family Resource Center operated by the county’s Health and Human Services Agency will be moving.

The Fallbrook Family Resource Center will be at 202 West College Street once the relocation is complete. A 5-0 San Diego County Board of Supervisors vote June 24 approved a five-year lease with Citrus Equities, LLC, which includes two five-year extension options, and the supervisors also appropriated $598,400 for the construction of improvements at the new building. The Health and Human Service Agency (HHSA) will move into the new building once those improvements are completed; the current estimate is Nov. 1.

“This new site will be a great asset to the community and will make it easier for our Health and Human Services Agency to provide valuable assistance to residents in need,” said Supervisor Bill Horn.

The county has been leasing 3,000 square feet of space at 127 Hawthorne Street. HHSA also occupies 2,920 square feet of a county-owned building at 130 East Alvarado Street which was constructed in 1958.

The 5,930 square foot total of the two buildings is no longer sufficient for HHSA needs. The lease with Carlisle and Beatriz Gallimore, who own the Hawthorne Street property, expired on April 30 and is on holdover status; a short-term lease agreement between the director of the county’s Department of General Services (DGS) and the Gallimores will allow sufficient time for the county to complete the tenant improvements at the College Street facility.

On Feb. 25, the county supervisors approved a new lease agreement for the HHSA mental and behavioral health facility in El Cajon while also approving in principle a lease of 8,000 to 10,000 square feet in Fallbrook and authorizing the DGS director to negotiate a lease for board consideration at a subsequent meeting. HHSA had requested that DGS conduct a preliminary site search for a single location which would be more functional and better able to serve Fallbrook’s needs.

The site search for replacement office space which met the size and space configuration needs, offered competitive rates and terms, and was within close proximity of the existing Fallbrook Family Resource Center identified the Citrus Equities property.

A Board of Supervisors policy authorizes a 10 percent adjustment allowance, so the 10,880 square feet is within the 8,000-10,000 square foot range authorized in the search. The Citrus Equities site was the only vacant property identified with a suitable location. A space validation was completed for the 880 square feet in excess of the search parameters; that additional space will allow HHSA to reconfigure working spaces and create a more functional office space layout.

“It’s like one-stop shopping. The consolidation of the Fallbrook Family Resource Center and other related health programs means services will be available in one convenient location,” Horn said.

DGS and Citrus Equities, LLC, negotiated an initial rental rate of $1.90 per square foot, or $20,672 per month, with an annual 3.0 percent increase. The county will also pay any utility costs above $0.25 per square foot and any custodial costs above $0.07 per square foot with Citrus Equities providing the base utility and custodial costs as well as maintenance costs.

The lease also includes a $25 per rentable square foot tenant improvement allowance of $272,000, with the county paying additional costs. The $598,400 appropriation, which was derived from the county’s general fund, will cover the remainder of the estimated $870,400 costs for the tenant improvements.

The rate comparison revealed a 60-month lease for 4,689 square feet at 835-55 South Main Avenue for $2.71 per square foot (including $2.13 for rent along with other charges paid for by Citrus Equities in the College Street building), a 38-month lease for 1,410 square feet at 1328-82 South Mission Road for $2.23 per square foot (including $1.65 for rent), and a 36-month lease for 1,350 square feet at 232 South Main Avenue for $2.31 per square foot (including $1.70 for rent). None of the other three sites in the comparison indicated a tenant improvement allowance.

The lease at 127 Hawthorne Street costs the county $1.28 per square foot, or $3,845 per month, in rent along with $675 per month ($0.22 per square foot) for common area charges and $662 per month ($0.22 per square foot) for custodial costs. The county’s occupancy cost for the 130 East Alvarado Street is $2,657 per month, which equates to $0.91 per square foot.

The 202 West College Street lease includes 38 unreserved parking spaces. The 127 Hawthorne Street arrangement includes 20 unreserved spaces while the county-owned 130 East Alvarado Street building has 15 unreserved spaces.

The county may terminate the lease with Citrus Equities after 36 months with a 180-day notice and payment of an early termination charge.

In addition to the tenant improvement costs, one-time costs of approximately $450,000 include furniture, fixtures and other equipment, moving costs, and the lease and occupancy cost for the existing facilities until they are vacated.

The county has no record of any major updates to the 130 East Alvarado Street building since its 1958 construction. Once that building is vacated by HHSA, it will be offered to all county departments and agencies for potential use. If no county use is identified, the property will be declared surplus and will be offered for sale.

Leave a Reply

Your email address will not be published.