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HomeMy WebLinkAboutAgenda - 01-16-1996 - X-E i 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No x� ACTION AGrNDA ITEM ABSTRACT Meeting Date: January 16, 1996 SUBJECT: Skill Development Center Lease Opportunity ----------------------------------------------------------------------- DEPARTMENT Economic Development/ PUBLIC HEARING YES NO x Purchasing & Central Services ------------------------------- BUDGET AMENDMENT REQUIRED YES NO x -------------------------------- ------------------------------- ATTACHMENT(S) INFORMATION CONTACT 12/19/95 Staff Memo Ted Abernathy, ext 2325 Pam Jones, ext 2650 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 ----------------------------------------------------------------------- PURPOSE: To discuss a possible lease of space for a Skill Development and Small Business Facility in Chapel Hill . BACKGROUND: In a December 19, 1995 memo, Ted Abernathy and Pam Jones outlined an opportunity which has arisen to lease space on West Franklin Street in Chapel Hill as a site for a Skill Development and Small Business Facility. Staff needs direction from the Board as to whether the County is interested in pursuing such a lease . The landlord has indicated'-that it may have to offer the space to another prospective tenant if the County does not indicate now its intent to lease the space . If the Board wishes to arrange a lease, it could be brought back for formal approval by the Board of Commissioners at the February 5 meeting. RECOMMENDATION: The Manager recommends that the Board discuss the information included in the December 19 memo and provide appropriate direction to staff. i 2 MEMORANDUM- TO: BOARD OF COUNTY COMMISSIONERS JOHN LINK, COUNTY MANAGER FROM: TED ABERNATHY AND PAM JONES RE: POTENTIAL LOCATION(S) FOR SKILL DEVELOPMENT AND SMALL BUSINESS FACILITY DATE: DECEMBER 19, 1995 On December 4, 1995 you received the final report from the Skill Development Board. One of the recommendations cited in the report was that permanent, consistently available spaces for training be obtained. Since the time the report was issued we have been presented with an opportunity to lease a building in Chapel Hill. The building itself so closely parallels the physical needs of the training and small business facility, and those buildings are so rare in Southern Orange County, that we felt the need to bring it to your attention immediately. Some specific information about the building is as follows: • Located on West Franklin Street in the Midway area; • Total of 12,793 square feet; • The configuration of the space (see attached floor plan) as required by the current tenant (a printing company) includes large open areas, such as what would be needed for our computer lab and industry training functions. The area is served by a roll-up door, which would be particularly advantageous when considering the movement of equipment and materials necessary for the industry training component. • Although it would require some reconfiguration, there are areas already established for offices, thereby hopefully minimizing upfit costs. • There are approximately 40 parking spaces which would be part of the lease. Although we have by no means finalized any lease terms, the discussions about lease rates seem to indicate that it will fall between $6.50-$8.50 per square foot. This would not include utilities, which the present tenant indicates have historically been around $1,100 per month. Nor would this include any cost for upfit, which amount would be pure speculation at this point. As you ponder the possibilities of this venture, it would be interesting to note that the Capital Improvements Plan includes $25,000 this year, $25,000 next year, $50,000 in 1997-98 and $105,000 in 1998-99 for a Skill Development Center. As a reminder, the Skill Development and Small Business Facility would include, but not be limited to, programs such as: • Computer training; and • Industry training (Includes clerical skills, early childhood care, EMT training, GED, etc.); and • Possibly Health Tech and Telemarketing training. We have identified several entities as potential partners in the this endeavor. To date, they include: • Durham Tech; Orange County satellite campus • *"Employment Security Commission (ESC); • ""Small Business Technology Development Center(SBTDC) • "The J.O.B.S. program through DSS; and • ""JTPA through JOCCA. f 3 Others to consider include Good Work and Midway Development Corporation. The entities designated by" carry with them a POTENTIAL revenue stream which could help offset the cost of space and facility operation. It is notable, that while Durham Tech cannot provide direct monetary support, they may be able to provide other services which are yet to be identified. It is our understanding that the Board will include discussions about the training/small business facility on the January 11 worksession agenda. We will be prepared to present more definitive information at that point, but did want to provide preliminary information as early as possible. If the Board chooses to pursue a lease for the aforementioned property, it is likely that we would need to give the owner some indication of that fact through formal action within a few weeks. Space is limited in Chapel Hill and we expect that this building will not be available for long. Although there is no decision required at this point, the Board should be aware that the Chapel Hill facility is only one component of the Training/Small Business facility. Discussions are on- going with the Orange County School Superintendent regarding the possibility of a"satellite" facility being included at the Hillsborough Elementary School site. The offerings at the Hillsborough site could include such programs as computer training, adult GED and paralegal. Additional information should be available for the January 11 worksession as well. Should you have questions regarding any of this, please feel free to call either Ted or Pam.