Tulare County approves long-term lease with Kaweah Delta Health Care District

The Tulare County Board of Supervisors convened on April 8, 2025, to discuss significant developments regarding a new lease agreement with Kaweah Delta Health Care District, aimed at enhancing local healthcare services and providing stability for the county's facilities.

During the meeting, Jacqueline Wells from the General Services Agency presented the finalized lease agreement for office space at the Tulare Acres Professional Center (TAPC) in Visalia. This agreement comes after the board previously approved a preoccupancy arrangement allowing Kaweah Delta early access to the space for necessary renovations. The new lease is retroactive to January 15, 2025, and spans a total of ten years, with an initial preoccupancy period not exceeding twelve months.

Key terms of the lease include a starting base rent of $1.50 per square foot, with a 2.5% annual increase. The county will also provide a tenant improvement allowance of $520,000, alongside a potential reimbursement of up to $3 million for further enhancements. This financial structure is designed to ensure that the county can recover its investment while generating revenue to maintain and improve the TAPC.

The agreement also grants Kaweah Delta exclusive rights to use the facility for medical services until January 2027, with the possibility of extending this exclusivity if they expand their leased space. This move is expected to bolster healthcare access in the region, providing long-term stability for both the healthcare provider and the county.

In addition to the lease approval, the board voted to terminate the previous preoccupancy agreement, which will now be superseded by the new lease. The meeting concluded with the authorization of a real estate broker's commission related to the agreement, ensuring that all procedural aspects are in place for the successful transition to the new lease.

This decision marks a significant step forward in enhancing healthcare infrastructure in Tulare County, reflecting the board's commitment to supporting local health services and improving community well-being.