HomeMy WebLinkAboutAgenda - 06-23-2005-5rORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 23, 2005
Action Agenda
Item No. J`-
SUBJECT: Authorization to Exercise Lease Extension: Parks Operations Base
DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No
Services, Recreation & Parks
ATTACHMENT(S): INFORMATION CONTACT:
Pam Jones, (919) 245-2652
Lori Taft, (919) 245-2660
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
PURPOSE: To consider authorizing the extension of the current lease for the Parks Operations
base for a period not to exceed one year, pursuant to the lease agreement.
BACKGROUND: In June 2004, the Board directed staff to pursue the design and development
of a storage facility and parks operations base at the public works facility on Highway 86 North.
The County retained Corley Reelfoot Zack (CRZ) to begin programming for the facility soon
thereafter. Preliminary cast estimates for development by CRZ indicated that the approximately
$600,000 budgeted for the entire project would allow the County to build approximately 7,000
square feet of space, 4,000 of which would be for the parks operations base and 3,000
dedicated to storage. In particular, the amount of square footage that would be available for
storage would serve only the most critical needs for bulky storage items, such as voting
equipment and EMS equipment, but would offer no storage opportunities for most other
departments. Further, since that time the cost of steel and concrete, two primary building
products that would be used in the construction, have surged even higher in cost, bringing into
question whether even the original square footage estimate could be built within the budgeted
amount.
As the planning for this joint parks/storage facility was progressing, two separate opportunities
emerged that may better address the storage and parks operations base needs. The space
study presented to the Board in March 2005 recommends that the Recreation and Parks
administrative offices, as well as the parks operations base, be relocated to the County-owned
building on Valley Forge Road, previously occupied by Orange Enterprises. The County
assisted Orange Enterprises in the recent acquisition of a building on Elizabeth Brady Road,
Hillsborough to which its operations are to be moved. Acquisition of a facility that would
address the long-term storage needs for the County is currently under negotiation.
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A one-year extension of the existing lease is recommended in order to allow for final decisions
and upfit of the Valley Forge Road site for the operations base, The landlord of the current
parks operations base has indicated a willingness to work with the County to re-lease the
current site if the upfit of the Valley Forge site is ready for occupancy prior to the July 31, 2006
lease expiration.
The terms of the lease approved by the Board in 2004 provide that the lease may be extended
far one-year with a 3% escalation in the current lease amount (currently $33,000 per year going
to $33,990 per year). All other terms remain the same,
FINANCIAL IMPACT: Funds to support the lease extension are included in the 2005-2006
Manager's Recommended. Budget,
RECOMMENDATION(S): The Manager recommends that the Board authorize the extension
of the current lease for the parks operations base through June 30, 2006 at a rental fee of
$33,990 per year, Hating that lease may be terminated earlier per mutual agreement between
the County and the Landlord.