Board approves 10-year lease with Kaweah Delta at Tulare Acres Professional Center; county to amortize tenant improvements

The Tulare County Board of Supervisors on April 8 approved a lease with Kaweah Delta Health Care District for space at the county‑owned Tulare Acres Professional Center (TAPC) in Visalia, a move county staff said will stabilize occupancy and allow Kaweah to begin tenant improvements.

The lease covers roughly 13,000 square feet on the TAPC first floor, is retroactive to Jan. 15, 2025, and includes a total initial term of 10 years plus two separate five‑year renewal options. Under the agreement, base rent starts at $1.50 per square foot with a 2.5% annual escalator; operating expenses are payable and subject to an annual true‑up with a 5% cap on controllable costs.

County negotiators said the lease also provides a tenant improvement package and repayment terms. “County will provide a tenant prudent allowance of $40 per square foot or $520,000 and an amortized tenant improvement allowance up to $3,000,000 reimbursable to the county over the initial 10 year term at 5% interest,” Jacqueline Wells, General Services property manager, reported in the staff presentation.

The lease grants Kaweah the right of first refusal if the county offers roughly 59,000 square feet of vacant second‑floor space, and provides an exclusivity period for medical care, imaging or surgical services through Jan. 14, 2027; that exclusivity can extend to Jan. 14, 2029, if Kaweah leases an additional minimum of 15,000 square feet.

Board action and vote: The board approved termination of an earlier preoccupancy agreement and the final lease, and authorized payment of the real estate broker’s commission to MD Graham & Associates not to exceed $61,499.04. The motion passed 4–0 with Supervisor Pete Vanderpool recused.

Board members asked staff questions about the tenant’s planned use and the anticipated opening timetable. County staff said Kaweah requested early access to begin demolition and construction and that Kaweah hoped to open by Aug. 1. Matt Graham, the county-contracted real estate broker, was present; Kaweah Delta’s representative was not available for the hearing.

Why it matters: County staff said the lease provides long‑term occupancy stability, enables the county to recover its investment in tenant improvements over time and produces ongoing revenue to support TAPC maintenance and future improvements.

Sources: Staff presentation by Jacqueline Wells, General Services Agency; remarks by Matt Graham (MD Graham & Associates); Tulare County Board of Supervisors meeting, April 8, 2025.