The URL can be used to link to this page

Home My WebLink AboutAgenda - 05-20-2008-4tORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 20, 2008 Action Agenda Item No. ~{- - ~" SUBJECT: Lease Renewal: Moody Building -103 Laurel Avenue, Carrboro DEPARTMENT: Purchasing and Central Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Lease Renewal INFORMATION CONTACT: Pam Jones (919) 245-2652 PURPOSE: To consider approving the renewal of a lease for the Moody Building at 103 Laurel Avenue, Carrboro, NC through June 30, 2011. BACKGROUND: The approximately 4,800 square feet contained in this building has been leased by the County since 1987. It is currently occupied by Court offices, for which the County is mandated to provide space, including Juvenile Services and Probation and Parole. In addition, several years ago, the County and the State's Intensive Probation and Parole office negotiated asub-lease for a portion of the space to allow for the more efficient service delivery of both divisions of Probation and Parole by allowing their co-location. A renewal of that sub- lease is included in a separate agenda item. The owner of the Moody Building has agreed to renew the lease with the County under the following terms and conditions: • Lease renewal commences July 1, 2008 and terminates June 30, 2011. • Lease rates as follows (reflects a 4% per year increase, which is consistent with CPI adjustments for this area): July 1, 2008 through June 30, 2009: $53,232 ($4,436/month/$11.09/s.f.) July 1, 2009 through June 30, 2010: $55,356 ($4,613/month/$11.53/s.f.) July 1, 2010 through June 30, 2011: $57,576 ($4,798/month/$12.00/s.f.) • The County will continue to reimburse the Owner for real estate taxes assessed against the leased premises. Property taxes in 2007 were $10,185 (approximately $2.12/square foot). • The County will continue to maintain the building. in the following manner: o Paint interior o Repair HVAC equipment ($2,000 annual maximum) o Perform normal plumbing maintenance (excludes repairs to water, drainage and sewer lines) o Perform normal minor electrical maintenance ($500 per repair maximum) o Maintain the floor coverings • The Owner will continue to maintain the building in the following manner: o Repair and maintain the exterior of the building, including roof; exterior walls, foundations, gutters and downspouts, sidewalks, drainage and sewer pipes. o Perform repairs and maintenance to HVAC, plumbing and electrical facilities that exceed the County's annual maintenance maximum. o Maintain parking areas. • All other terms of the lease remain the same. This building continues to address a critical need for space in which to locate Court offices in the southern part of the County at an affordable rate. Gonsidering the tax contribution and the base rent, the square foot rate recommended in this lease will range from approximately $13.21 to approximately $14.12 per square foot. Economic Development staff reports average rent of $17.50 - $20.00 per square foot in the Chapel Hill/Carrboro area. FINANCIAL IMPACT: Funds for this expenditure are budgeted in the General Fund Courts- ~ease account. The State's sublease for Probation/Parole office space will offset the County's contribution by approximately $19,183 annually. RECOMMENDATION(S): The Manager recommends that the Board approve the lease renewal for the Moody Building through June 30, 2011 under the terms and conditions as stated; and authorize the Chair to sign on behalf of the Board. 0 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, 2008 and ending at 12:00 midnight on June 30, 2011. 2. Section 3 (b), Rent Schedule, shall read as follows: Rent during the three year renewal shall be payable in monthly installments on the first day of each month during the term of this lease renewal pursuant to the following schedule: July 1, 2008 through June 30, 2009: $53,232 ($4,436/month) July 1, 2009 through June 30, 2010: $55,356 ($4,613/month) July 1, 2010 through June 30, 2011: $57,576 ($4,798/month) 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 day of , 2008. Grey Moody, Owner County: Barry Jacobs, Chair ATTEST: Donna S. Baker, Clerk to the Board Pre-Audit Stamp Here: 0 NORTH CAROLINA ORANGE COUNTY I, , a Notary Public of said State and County 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 day of , 2008. Notary Public My Commission expires: NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Donna S. Baker personally appeared before me this date and acknowledged that she is the Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as the act of Orange County, the foregoing instrument was signed in its name by Barry Jacobs, Chair, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of Notary Public 2008. My Commission expires: