County Social Services Leaving Carousel Mall

(April 22)  The county of San Bernardino’s Children and Family Services Division will pull up its stakes in the Carousel Mall in Downtown San Bernardino at the end of next month.
On March 29, 2005  the board of supervisors approved a ten-year lease agreement with two five-year options to extend for 28,892 square feet of office space at 128 Carousel Mall, Building G, in San Bernardino for use by the Children and Family Services Division. The original term of the lease was from September 1, 2005 through August 31, 2015. In the nine years since the lease was originally executed, the board has approved two amendments reflecting ownership changes from Placo San Bernardino, LLC, to the Redevelopment Agency of the city of San Bernardino  to the San Bernardino Economic Development Corporation.
Because of the dissolution of the RDA, the San Bernardino Economic Development Corporation transferred title to Carousel Mall, LLC, a California limited liability company, on December 19, 2011. The city of San Bernardino has acquired management and control of the property on behalf of the Carousel Mall, LLC. At the direction of the city of San Bernardino, the county of San Bernardino has been tendering rental payments to the city of San Bernardino as successor agency for the redevelopment agency of the city of San Bernardino on behalf of the Carousel Mall, LLC.
The original lease provided for $624,067 in tenant improvements to be amortized over the initial ten-year term ending August 31, 2015. Upon early termination, the lease states that any unamortized tenant improvement costs will be due the landlord.
The county has found another location for the San Bernardino office of the Children and Family Services division at 1094 South E Street.
According to Janet Lowe, the assistant director of the county’s  Real Estate Services Department, the county has agreed to a lease of the South E Street property “and we anticipate the tenant improvements will be completed by the end of May.”
This week the board of supervisors approved a third amendment to the lease agreement with Carousel Mall, LLC to reflect a change in ownership effective December 19, 2011, modify the 90-day right to terminate provision of the lease to provide for 40-days’ notice to terminate effective May 31, 2014, and specify that $78,008 will be due the landlord for early termination of the lease which is the amount of unamortized tenant improvement costs for 28,892 square feet of office space in San Bernardino for Children and Family Services.
Upon the board’s approval of that amendment, the director of the County Real Estate Services Department delivered a 40-day termination notice on April 22, 2014 to terminate the lease agreement effective May 31, 2014.

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