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Home My WebLink AboutAgenda - 05-17-2005-5uORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 17, 2005 Action Agenda Item No. 5-I,t SUBJECT: Lease Renewal: Moody Building - 103 Laurel Avenue, Carrboro DEPARTMENT: Purchasing and Central PUBLIC NEARING: (Y/N) No Services ATTACHMENT(S): Lease Renewal INFORMATION CONTACT: Pam Jones, (919) 245-2652 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving the renewal of a lease for the Moody Building at 103 Laurel Avenue, Carrboro, NC through June 30, 2008. BACKGROUND: The approximately 4800 square feet contained in this building has been leased by the County since 1987. It is currently occupied by Court support offices, including two sections of Probation and Parole. The State sub-leases a portion of the building for Probation and Parole offices for which they are responsible (see separate agenda item for renewal of that sublease). It should be noted that the sub-lease with the State coincides with the term of the County's lease with the Owner. The owner of the facility has agreed to renew the lease with the County under the following terms and conditions: • Lease renewal commences .July 1, 2005 and terminates June 30, 2008. • Lease rates as follows (reflects a 3% per year increase): o July 1, 2005 through June 30, 2006: $48,244 o July 1, 2006 through June 30, 2007: $49,691 o July 1, 2007 through .June 30, 2008: $51,182 • The County will continue to reimburse the Owner for real estate taxes assessed against the leased premises. Property taxes in 2004 were approximately $8,000. • 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 z • 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. Considering the tax contribution and the base rent, the square foot rate recommended in this lease will range from approximately $11.72 to approximately $12.33 per square foot. In addition, the opportunity to co-locate the other court offices with the Intensive Probation/Parole function adds considerable operational efficiency. FINANCIAL IMPACT: Funds for this expenditure are budgeted in the Courts/Lease account. The State's sublease for Probation/Parole office space will offset the County's contribution by approximately $19,000 annually. RECOMMENDATION(S): The Manager recommends that the Board approve the lease renewal for the Moody Building through June 30, 2008 under the terms and conditions as stated; and authorize the Chair to sign on behalf of the Board. 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) far 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, 2005 and ending at 12:00 midnight on June 30, 2008 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 (ease renewal pursuant to the following schedule: July 1, 2005 through June 30, 2006: $48,244 ($4,022.33 monthly) July 1, 2006 through June 30, 2007: $49,691 ($4,140.92 monthly) .luly 1, 2007 through June 30, 2008: $51,182 ($4,265.16 monthly) 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 , 2005. Grey Moody, Owner County: Moses Carey, Jr„ Chair ATTEST: Donna S. Baker, Clerk to the Board 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 , 2002. Notary Public My Commission expires: NORTH CAROLINA ORANGE COUNTY I, , a Notary Public far 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 Moses Carey, Jr., Ghair, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of , 2002. Notary Public My Commission expires: