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HomeMy WebLinkAboutAgenda 04-20-1999 - 8eORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ~ =C ACTION AGENDA ITEM ABSTRACT Meeting Date: April 20, 1999 SUBJECT: Lease Renewal: Moody Building; 103 Laurel Avenue, Carrboro DEPARTMENT: Purchasing and Central Services PUBLIC HEARING: No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, ext. 2650 Lease Renewal TELEPHONE NUMBER: Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider renewing a lease for the Moody Building, located at 103 Laurel Avenue, Carrboro, NC. BACKGROUND: The County has leased this property since 1987. Up until last year the building housed the Public Defender, Probation and Parole, Guardian ad Litem, Community Service office and Housing and Community Development. Housing and Community Development and Child Support Enforcement relocated to the Southern Human Services Center upon its completion in March 1998. Growth in the Public Defender's office prompted the County to relocate them in June 1998 to space vacated by the Health Department in Carr Mill Mall. Around this same time, the State approached us desiring to lease space from the County such that the two Probation and Parole functions could be consolidated in one location. In May 1998, the Board authorized a lease between the State and the County for approximately 1,236 square feet of space in the 103 Laurel Ave, which allowed such a consolidation to occur. The State pays the County $17,922 per year for this space. The lease with the State was approved through June 30, 1999, with renewals, which will be brought forward for Board consideration in the near future. For your information, the lease with the State for Probation offices coincides with our term of the lease with the 103 Laurel Avenue Owner. Last year the Owner advised that negotiations to sell the building were ongoing. The Owner has since advised us that those negotiations have ceased and he is now prepared to agree to a three-year renewal of the lease. The owner has expressed a desire to renew the lease with the County under the following terms and conditions: / Lease increases to $42,864 annually, effective July 1, 1999 throughout the life of the renewal (total 7% increase for three-year period). / Lease renewal commences July 1, 1999 and terminates June 30, 2002. / The County will continue to reimburse the Owner for real estate taxes assessed against the leased premises. Property taxes in 1998 were approximately $5,000. / The County will continue to maintain the building in the following manner: / Paint interior / Repair HVAC equipment ($2,000 annual maximum) / Perform normal plumbing maintenance (excludes repairs to water, drainage and sewer lines) / Perform normal minor electrical maintenance ($500 per repair maximum) / Maintain the floor coverings / The Owner will continue to maintain the building in the following manner: / Repair and maintain the exterior of the building, including roof, exterior walls, foundations, gutters and downspouts, sidewalks, drainage and sewer pipes; / Perform repairs and maintenance to HVAC, plumbing and electrical facilities that exceed the County's annual maintenance maximum. / Maintain parking areas. / All other terms of the lease remain the same. FINANCIAL IMPACT: Funds for this expenditure are budgeted in the Courts/Lease account. The net cost of the lease to the County is approximately $25,000 per year. RECOMMENDATION(S): The Manager recommends that the Board approve the three year lease renewal for the Moody Building at 103 Laurel Avenue, Carrboro with terms and conditions as cited; and authorize the Chair to sign on behalf of the Board. c3K~~~it`~TAl. SIGNATCTRES ~~ ~D- 99 ~' cc~~Y # _...~. 3 NORTH CAROLINA DIST: ~QC-~-~ - COUNTY OF ORANGE LEASE AGREEMENT RENEWAL WHEREAS a lease agreement was made and entered into as of the sixth day of July, 1987, by and between the County of Orange, (the County) and Grey Moody (the Owner) for space to be used as offices for County and Court functions at 103 Laurel Avenue, Carrboro, North Carolina; WHEREAS, the County and the Owner mutually agree to the following: 1. The lease agreement will be continued for a period of three years commencing on July 1, 1999 and ending at 12:00 midnight on June 30, 2002; 2. Section 3 (b), Rent Schedule, shall read as follows: Rent during the three year renewal shall be forty two thousand eight hundred sixty four and 00/100 dollars ($42,864 per year), payable in monthly installments of three thousand five hundred seventy two and 00/100 dollars ($3,572), each monthly installment payable on the first day of each month during the term of this lease renewal. 3. The County shall continue to reimburse the Owner for real estate taxes assessed against the leased premises within 30 days of receipt of invoice from the Owner and proof of payment by the Owner. 4. All other terms and conditions shall remain the same. This agreed to the 1~~~ L- day of/_ ~~/~L-.s 1999. Grey Moody, Ow er County: lsl.C~--~ Seal Alice M. Gordon, Chair ATTE Beverly A. BI he, Clerk to th oard NORTH CAROLINA ORANGE COUNTY ,~,----'y I 'SuZahh~ J~~ ~ I , a Notary Public of said State D~'a'~ - andCounty do hereby certify that Grey B. Moody personally appeared before me this day and acknowledged the due execution of the foregoing Lease. Witness my hand and official seal, this the ~ T day of r~ , 1999. e Public My commission expires: _ JZ'"~ ~~~~3 NORTH CAROLINA ORANGE COUNTY r~: ~TAq~, .~ . ~. ~ ~®t~.1G This, the day of l ~ , 1999, personally came before the Beverly A. Blythe, who, being by me duly sworn, say that she knows the common seal of Orange County and is acquainted with Alice M. Gordon, who is Chair to the Board of Commissioners of Orange County, and that she, said Beverly A. Blythe, signed her name in attestation of the execution of said instrument in the presence of said Chair of said Board of County Commissioners. Witness my hand and official seal, this the ~ day of / , 1999. ~ ~~~~ N Public My commission expires: ~~ .j d3