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HomeMy WebLinkAboutAgenda - 05-01-2001-8gORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 1, 2001 Action Age Item No. SUBJECT: Lease Extension for Senior Center Space at ArtsCenter ~ __ DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Pam Jones (919) 245-2652 Lease Renewal Agreement TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 33fi-227-2031 PURPOSE: To consider extending the lease through December 31, 2001 for space at the ArtsCenter used as a Senior Center by the Department on Aging. BACKGROUND: The County has leased space for a senior center. at the ArtsCenter since 1987. Discussions between the Department on Aging and the Town of Carrboro staffs indicated a potential liaison between the two functions in the new Carrboro Century Center. However, the delayed completion and the subsequent desire by Carrboro to operate the facility without commitments to specific organizations for a year after opening leads the Department on Aging to remain at the ArtsCenter until December 31, 2001. The ArtsCenter staff have expressed a desire to receive increased revenue for the leased space, citing increased janitorial services necessitated by the Senior Center as well as the taxes which are prompted by the presence of the Senior Center as justification for the increased costs. The ArtsCenter spends approximately $100 per week for increased janitorial services. Tax law prohibits tax exempt status for the portion of a facility upon which non-profit organizations receive rental income. Taxes are therefore assessed on the portion of the facility utilized by the County. The tax obligation this year is approximately $1,568. A base rent of $1,890 per month is recommended for the nine-month period from April 1, 2001 through December 31, 2001. The base rent would cover the increased cast of janitorial services, however the taxes would be reimbursed separately. The estimated $10.68 per square foot cost yielded by this action is well within market expectations for rental space in the area. 2 FINANCIAL IMPACT: The estimated total commitment through December 31, 2001 is $18,578, including the tax reimbursement. Funding through June 30, 2001 is included in the Department an Aging operating budget. Funding July 1 through December 31, 2001 would be included in the 2001-2002 operating budgef for Department on Aging. RECOMMENDATION(S): The Manager recommends that the Board approve the extension of the lease for senior center space at the ArtsCenter through December 31, 2001 at the terms and conditions cited above; 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 29"' day.of June, 2000 by and between the County of Orange, hereinafter referred to as The County and The ArtsCenter, Inc., a North Carolina not-for-profit corporation organized under the laws of the State of North Carolina, hereinafter referred to as "Landlord", for space to be used as a Senior Center through the County's Department on Aging. WHEREAS, the County and the Landlord mutually agree to the following: 1. The term of this lease agreement renewal will be from April 1, 2001 and will end at 12:00 midnight on December 31, 2001. 2. Section 3 shall be modified to read as follows: RENT: All rent payable by Tenant shall be without previous demand therefor by Landlord shall be paid in advance in equal monthly installments of $1,890. Rent amount includes costs associated with increased daily janitorial services necessitated by the Senior Center. Each monthly installment of rent shall be payable on or before the first day of each calendar month during the term of this Lease Renewal. Monthly installments shall be paid to the Landlord by United States mail sent to The ArtsCenter, Inc., 300-G East Main Street, Carrboro, North Carolina, 27510. 3. The County shall reimburse the Landlord for real estate taxes assessed against the leased premises within 30 days of receipt of invoice from the Landlord and proof of payment by the Landlord. 4. All other terms and conditions shall remain the same. This agreed to the 1 s~ day of May, 2004. ArtsCenter: Attest: Colin Bissett, Executive Director County: Stephen Halkiotis, Chair NORTH CAROLINA ORANGE COUNTY Witness Attest: Beverly A. Blythe, Clerk I, , a Notary Publicfor said County and State, do hereby certify that ,personally appeared before me this day and acknowledged the due, execution of the foregoing instrument. Witness my hand and official seal, this the day of , 2001. Notary Public My commission expires: NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Beverly A. Blythe personally came before me this day and acknowledged that she is 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 Stephen Halkiotis, Chair, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of , 2001. Notary Public My commission expires: