HomeMy WebLinkAboutAgenda - 12-15-2015 - 6c - Authorization for County Manager to Execute Leases of County Property 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 15, 2015
Action Agenda
Item No. 6-c
SUBJECT: Authorization for County Manager to Execute Leases of County Property
DEPARTMENT: County Manager, County PUBLIC HEARING: (Y/N) No
Attorney, Asset Management
Services ("AMS")
ATTACHMENT(S): INFORMATION CONTACT:
Third Party Tenancy and Outleasing Policy Bonnie Hammersley, 919-245-2306
Travis Myren, 919-245-2308
John Roberts, 919-245-2318
Jeff Thompson, 919-245-2658
PURPOSE: To consider delegating authority to the County Manager to execute Leases of
County Property up to $90,000 in total initial lease term revenue according to the Manager's
Third Party Tenancy and Outleasing Policy (attached).
BACKGROUND: The Board of Orange County Commissioners currently authorizes the Board
Chair to execute Leases of County Property. This proposed delegated authority will authorize
the County Manager to execute lease agreements of available property not required by County
operations up to $90,000 in total lease revenue during the initial term of the lease.
The Manager intends to manage this authority according to the attached Third Party Tenancy
and Outleasing Policy, which 1) provides third party use for underutilized spaces while providing
flexibility for future County needs; 2) identifies appropriate spaces available for lease; 3) adopts
a fair and equitable process to solicit and select prospective Tenants; and 4) provides
preferential status to existing and prospective Tenants directed by the Board of Orange County
Commissioners.
FINANCIAL IMPACT: None
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
RECOMMENDATION(S): The Manager recommends the Board delegate authority to the
County Manager to execute Leases of County Property up to $90,000 in total initial lease term
revenue according to the Manager's Third Party Tenancy and Outleasing Policy (attached).
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COUNTY MANAGER'S OFFICE
200 South Cameron Street Phone(919)245-2300
Post Office Box 8181 Fax(919)644-3004
Hillsborough, North Carolina 27278
TO: Board of Orange County Commissioners, Department Directors
FROM: Bonnie Hammersley
Orange County Manager
DATE: December 15, 2015
RE: Orange County Third Party Tenancy and Outleasing Policy
A major finding of the Space Study Work Group ("SSWG")presented to the Board of Orange
County Commissioners ("BOCC")in April, 2015 is that approximately 8% of County
administrative office space is considered"Opportunity Space"—spaces that are not being
utilized at their highest and best use. Many of these opportunity spaces are small and dispersed
(an office here, a storage room there)but some are larger, self-contained spaces. Many of these
spaces are available to support future growth in County services; however much of this space
today is either unoccupied, currently leased to non-government third parties, or is being used as
storage space.
With the aim of optimizing the use of the current and future suitable Opportunity Spaces through
a standardized process of leasing identified spaces, and with the recommendation of the SSWG, I
hereby adopt a Third Party Tenancy and Outleasing Policy that will allow organizations that are
not units of County Government to have an opportunity to lease County space at a fair term and
price. This policy will allow these spaces to be occupied following an equitable process until
such time that the County needs the space for the support of its mission or when the space is no
longer useful to the County.
The County Manager is authorized to execute Leases whose total lease revenue to the County
does not exceed $90,000 over the term of the original Lease. All other Leases are to be approved
by the Orange County Board of County Commissioners and executed by the Board Chair.
Definitions:
Third Party Tenancy. A Tenant relationship for the use of County space by a Third Party
Tenant that is not directly affiliated with County Government according to an executed Lease
Agreement reviewed by the County Attorney and authorized by the Third Party Tenancy and
Outleasing Policy. The Third Party Tenant could be an individual, a not-for-profit organization,
a for-profit organization, or another government entity (i.e. Federal, State, or Municipal).
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Opportunity Spaces for Lease. Identified self-contained interior spaces and related parking
capacity approved by the County Manager.
Letter of Interest Solicitation. All efforts related to advertising or communicating the
availability of an Opportunity Space for Lease.
Selection Criteria. A set of Tenant criteria identified within the Board adopted Facilities Use
Policy designed to standardize the prioritization of prospective tenants. The selection criteria
would form the basis of a transparent quantitative scoring and ranking process. The criteria are
to be included in the Letter of Interest Solicitation. This scoring and ranking will be considered
in the final selection decisions made by the County Manager.
Staff Responsibility and Process:
The responsibility for the administration and oversight of Orange County Third Party Tenancy
and Outleasing Policy belongs to the Asset Management Services ("AMS") Director under the
direction of the County Manager or his/her designee. This Policy will be incorporated into the
County Facilities Use Policy.
For both existing and contemplated Leases governed by this Policy, the AMS Director's duties
shall be to provide standard oversight and procedures, guidance, and assistance for all associated
parties. Such guidance shall include but not be limited to:
1) Overseeing and reporting a current inventory (in consultation with staff) of
specific Opportunity Spaces that could be made available for a period of 1 month to
5 years for use by a Third Party Tenant;
2) Collaborating with County departments, the Manager's Office and the SSWG as
part of the ongoing Capital Investment Plan ("CIP") process as well as the
Operations needs and budgeting process to match departmental needs with
available underutilized spaces;
3) Overseeing staff in appraising current market values for leased properties and
tracking the operational costs of the underutilized County spaces;
4) Maintaining and administering an equitable solicitation, application, and
evaluation system for Third Party Tenant selection;
5) Working with the County Attorney's office to ensure standard lease documents
are compliant with applicable law and are updated and available to interested
parties in accordance with the solicitation process; and
6) Working with the County Office of Economic Development to market the spaces in
accordance with the solicitation process.
The maximum lease duration will be one year with a single one-year extension opportunity. This
maximum lease term is designed to ensure the near-term availability of the space for County use.
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Letter of Interest Solicitations will occur upon the identification and approval of the Opportunity
Spaces for Lease. All terms of the Lease will be stated within the Letter of Interest Solicitation.
Respondent's letters of interest will be evaluated by a staff team on a rolling basis using the
following grading criteria:
1. Respondents' status as an affiliated non-profit, non-affiliated non-profit, or for-profit
organization as defined by the Facilities Use Policy;
2. Mission and use of the space that aligns with the published goals of the Board of Orange
County Commissioners;
3. The ability of the respondent to meet the terms of the lease within the solicitation.
County Spaces that support existing Leases and Licenses approved by the Board of Orange
County Commissioners involving Third Party Tenants that either a) originated as County
operations; or b) receive at least 50% of its operating budget from the County are grandfathered
and are exempt from this policy. These Spaces and Tenants/Licensees are identified as
grandfathered in the current roster of Opportunity Spaces attached.
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Current Self Contained Opportunity Spaces Within Orange County Subject To Tenancy Policy
Updated 11/29/2015
Opportunity Area Facility Inventory
Facility Name Address Current Occupant/Operator Within Facility Gross SQ.FT. Report Page Current Status Additional Notes
1914 New Hope Church 1914 New Hope Church Orange County Entire Facility 6,000 C1 Leased Renewal Date:12/31/2031
Road* Rd,Chapel Hill Schools
401 Valley Forge Road 401 Valley Forge Road, guilders First Source Entire Facility 105,000 C3 Leased Renewal Date:9/30/2017
Hillsborough
501 West Franklin 501 West Franklin St., Terra Dotta LLC Suites 105,106, 2,500 C5 Leased Renewal Date:04/30/2016
Chapel Hill &200
Piedmont Food and Ag. 500 Valley Forge Rd, PFAP Entire Facility 10,400 C95 Leased Renewal Date:August 31,
Processing Center* Hillsborough 2017
Rogers Road Community 101 Edgar Rd.Chapel Hill Rogers-Eubanks Entire Facility 3,960 C105 Leased/Operating
Center* Neighborhood Assoc. Agreement Renewal Date:06/30/2016
101 Meadowlands Drive Recreation Factory Management Automatic Renewal Date:
Orange County SportsPlex' Hillsborough Partners, LLC Entire Facility 80,903 C91 Agreement 07/01/2018;5 years-
terminates 6/30/2023
Soltys Adult Day Health 105 Meadowlands Drive, Soltys Adult Day Entire Facility 2,690 C-15 Leased Renewal Date: 2/1/2018
Center* Hillsborough Health Center
*"Grandfathered"Tenants