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HomeMy WebLinkAboutAgenda - 08-22-2006-5qORANGE COUNTY BOARD OF COMMIS51ONER5 ACTION AGENDA ITEM ABSTRACT Meeting Date August 22, 2006 Action Age a Item No. SUBJECT: Lease Renewal: Central DEPARTMENT: Purchasing and Central Services & Department on Aging Senior Center Space at the Meadowlands PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Draft Lease Renewal INFORMATION CONTACT: Pam .)ones, (919) 245-2652 Jerry Passmore, (919) 245-2000 PURPOSE: To consider approving a lease renewal for space being used as the Central Orange Senior Center at the Meadowlands, Hillsborough. BACKGROUND: In August 2001, the Board approved afive-year lease for 4,000 square feet of space at the Meadowlands as the site of the Central Orange Senior Center. In 2004, the Board approved a lease far an additional 2,000 square feet in order to expand the Center and to provide space for the Adult Day Health Program, As the Board is aware, this Center will be relocated to a new Senior Center, which will be opened at the Sportsplex within the next 12 to 18 months. The lease renewal proposed by this action keeps in place the same terms and conditions of the previous lease, with the exception of the rental amount and the term. The term has been defined as a two-year period, through August 31, 2008, with a no-penalty early termination, upon six-months notice to the landlord. As a reminder, highlights of the lease are as follows: • Lease renewal term begins September 1, 2006 and expires on August 31, 2008. However, the County may terminate the lease without penalty by providing notice to the Landlord six months prior to the intended early expiration date. • Rent through August 31, 2007 will be $7,000 per month - $84,000 per year ($14 per square foot); effective September 1, 2007 rent will be $7,080 per month - $84,960 per year ($14.16 per square foot). • Utilities are the responsibility of the County. As a reminder, the Friends of the Central Orange Senior Center support much of the cost for utilities; • The County will provide normal maintenance to the interior of the facility; Landlord will be responsible for all exterior components of the leased premises; Parking is included; Janitorial services are the responsibility of the County. FINANCIAL IMPACT: Funding for the lease amount is included in the 2006-07 Department on Aging operations budget. RECOMMENDATION(S): The Manager recommends that the Board approve a lease renewal, subject to final review by staff and the County Attorney, for space at the Meadowlands currently used as the Central Orange Senior Center per the terms and conditions cited herein; and authorize the Chair to sign on behalf of the Board. a~ NORTH CAROLINA Or COUNTY OF ORANGE LEASE AGREEMENT RENEWAL WHEREAS a lease agreement was made and entered into as of the 12th day of July, 2001 and amended in May 2004, by and between the Ccunty of Orange, (County) and Horton Enterprises, LLC (Landlord) far a total of 6,000 square feet of space to be used as the Central Orange Senior Genter at 515 Meadowlands Drive, Suite 400, Hillsborough, North Garolina~ WHEREAS, the County and the Owner mutually agree to the following: Section 1 (b)-• PREMISES AND TERMS shall be modified to read as follows: (b) The term of this renewal shall be for 24 months beginning on September 1, 2006, except that the County may terminate the lease prior to expiration upon six-months notice to the Landlord. Section 2-• ANNUAL NET RENT shall be modified to read as follows: Beginning September 1, 2006, Tenant will pay Annual Net Rent of $84,000, which is due and payable on the first day of each year of the Lease.. However, for and in consideration of the Tenant's faithful performance of all of its obligations pursuant tc this Lease, the Landlord hereby agrees that Tenant may pay the Annual Net Rent in 12 equal monthly installments of $7,000 due on the first day of each month, Beginning September 1, 2007 Tenant will pay Annual Rent of $84,960, due and payable in monthly installments of $7,080 on the first day of each month. For Landlords remedies for late payments and other defaults, see Paragraph 21. Payments are to be made to Landlord's office, George Horton Enterprises, L.L..C., 960 Corporate Drive, Suite 102, Hillsborough, NC 27278, without prior demand by Landlord, without further notice from Landlord, and/or without set off by Tenant, Section 3~•CPI ADJUSTMENTS is deleted in its entirety. 4. All other terms and conditions shall remain the same.. This agreed to the day of , 2006.. County: Barry Jacobs, Chair Landlord: George A Horton III Attest: Donna S, Baker. Clerk to the Board