Item Coversheet
April 14, 2020

IRS Rucker Building lease update (SR 20-031; S. Frederick)

Administration / Shawn Frederick, Administrative Officer 
Prior Board Review:
Administration Committee, 4/24/19; Executive Committee, 4/24/19, 4/10/20 


The IRS has been a tenant in the Rucker Building since 2002, occupying 9,882 square feet of office and related space. Their current lease, managed by General Services Administration (GSA), began December 1, 2012, and continues through November 30, 2022. On January 5, 2018, Health District staff received notice that the IRS intended to partially reduce space effective April 19, 2019, by 7,302 rentable square feet, leaving 2,478 occupied.


Beginning May 31, 2018, the IRS began moving staff out of the Rucker Building while continuing to occupy all 9,882 square feet. On March 28, 2019, SHD staff was contacted by GSA requesting a space reconfiguration, which would accomplish the planned reduction in the occupied space. GSA originally requested that SHD take on responsibility for the project. Staff consulted with Weed, Graafstra & Associates, Inc., to determine legal considerations of SHD doing the project or allowing the government permission. Ultimately, the Board determined SHD would not take responsibility for the tenant improvement project opting to allow GSA and the IRS to independently contract for the needed tenant improvement work.


On April 6, 2020, staff was contacted by the GSA, which is putting together a cost-benefit analysis to evaluate their future options for the IRS office currently located at the Rucker Building. They had several questions, including our interest to participate in a competitive process for a new long-term lease, availability of providing a tenant-improvement allowance, paying a brokerage commission to GSA’s representative broker, and general questions around rent. They are not currently requesting formal proposals.


Staff will continue to monitor the situation closely and work with Rucker Building Task Force to meet SHD goals related to the Rucker Building.

Board Authority

Consistent with Resolution 19-20 and the revised Division of responsibilities (10/08/19), the Board of Health is responsible for building purchase, construction, renovation, and leasing, and retains contract authority for non-legal services greater than $50,000/year or $100,000/total contract.

Recommended Motion

No action required. Briefing only.