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HomeMy WebLinkAboutAgenda - 05-06-1998 - 9iORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. 9- ~ ACTION AGENDA ITEM ABSTRACT Meeting Date: May 6, 1998 SUBJECT: Lease renewal; 103 Laurel Ave, Carrboro DEPARTMENT: PURCHASING AND Public Hearing: No CENTRAL SERVICES Budget Amendment Reqd? No ATTACHMENT(S): Renewal INFORMATION CONTACT: PAM JONES, ext. 2650 Telephone Number- Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider renewing a lease for property at 103 Laurel Avenue, Carrboro. BACKGROUND: The County has leased this building since 1987. It is presently occupied by the following departments: • Public Defender • Probation and Parole (County responsibility) • Community Services (Court function) • Guardian Ad Litem (Court function) • Juvenile Court Counselor (Court function) Until recently, Housing and Community Development maintained two offices there as well. They have relocated to the recently completed Southern Human Services Center on Homestead Road. Due to the growth in Court related offices, the building has become overcrowded and can no longer accommodate all of the functions necessary. For this purpose, it is recommended that the Public Defender's office be relocated to space recently vacated by the Health Department at Carr Mill Mall. Contingent upon approval by the Board, the County would lease approximately 1,236 square feet of space in the 103 Laurel Ave. property to house the State supported Chapel Hill/Carrboro area intensive Probation and Parole teams. The State would pay the County $17,922 per year for this space. This proposal is more fully explained in a related abstract regarding lease renewal at Carr Mill Mall. The owner of 103 Laurel Avenue has expressed a desire to renew the lease with the County under the following terms and conditions: • Lease increases to $41,040 annualy, effective July 1, 1998 throughout the life of the renewal (Total 5% increase for three year period); • Lease renewal commences July 1, 1998 and terminates June 30, 2001; • County will reimburse Owner for real estate taxes paid on the property. Property taxes in 1997 were approximately $5,000. • All other terms and conditions remain the same. RECOMMENDATION: The Manager recommends that the Board approve the three year lease renewal for property at 103 Laurel Avenue, Carrboro with terms and conditions as cited; and authorize the Purchasing Director to finalize lease terms with the State; and authorize the Chair to sign leases as appropriate to each action. 3 NORTH CAROLINA 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, 1998 and ending at 12:00 midnight on June 30, 2001; 2. Section 3 (b), Rent Schedule, shall read as follows: Rent during the three year renewal shall be forty one thousand forty and 00/100 dollars ($41,040) per year, payable in monthly installments of three thousand four hundred twenty and 00/100 dollars ($3,420), each monthly installment payable on the first day of each month during the term of this lease renewal. 3. The County shall 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. The Owner hereby grants to County a right of first refusal to purchase the leased premises, which must be exercised, if at all, in the manner hereinafter set forth. In the event that the Owner receives a bona fide offer to purchase the leased premises on price, terms and conditions which it is willing to accept, it shall give prompt written notice of such offer to County ("ROFR Notice"). The ROFR Notice shall include a copy of such offer, provided that Owner may delete the name of the prospective purchaser, unless County agrees that such identity shall be held confidentially to the extent permitted by applicable law. Within ten (10) days from the date such ROFR Notice is given, County may exercise its right of first refusal by executing and delivering to the Owner a written contract containing the same price, terms and conditions as set forth in the ROFR Notice, with no material additional terms or conditions. Such contract shall be signed and accepted by Owner and the parties shall proceed to close in accordance with the terms thereof. In the event that the County fails to exercise this option as herein provided, and Owner closes the sale of the Leased premises substantially in accordance with the terms of the ROFR Notice, such option shall terminate and shall not be exercisable as to any future sale by Owner, its successors or assigns. This section shall not apply if sale is made to family member of the Owner. 5. All other terms and conditions shall remain the same. This agreed to the day of , 1998. Grey Moody, Owner County: Margaret W. Brown, Chair Seal ATTEST: Beverly A. Blythe, Clerk to the Board.