HomeMy WebLinkAboutAgenda - 10-21-2003-8eORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 21, 2003
Action Agenda
Item No. ~ - ~
SUBJECT: Lease Renewal: Driver License Office at Carrboro Plaza
DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No
Services
ATTACHMENT(S):
Memorandum of Understanding with
Division of Motor Vehicles
Lease Renewal with Carrboro Plaza
Owners
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 a lease renewal for space used by the NC Division of Motor
Vehicles (DMV) for a Driver License office at Carrboro Plaza.
BACKGROUND: The State of North Carolina has previously indicated that it provides only one
Driver License office per County. Orange County has provided space resources for a second
office in the southern portion of the County for many years. The office has been located at
Carrboro Plaza since 1986 through a lease paid for by the County. This action will extend the
lease for an additional five years through January 31, 2009.
The shopping center has continually been improved over the past several years and now
experiences close to full occupancy. The square footage rate negotiated for this renewal is
$13.86 per square foot, with a 2.5% annual increase for years two through five. In addition, the
County is billed for taxes, insurance and common area maintenance (TICAM) charges of
approximately $2.50 per square foot. The TICAM charges are adjusted annually according to
the amount paid out on such things as taxes, insurance, grounds care, etc.
The Carrboro Driver License office continues to experience significant growth in the number of
citizens served. Further, it is staffs understanding that DMV has received funding for an
additional position to help accommodate this volume. However, the existing 1,200 square foot
area will not adequately support the additional staff. The Leasing Agent has offered to lease a
1,600 square foot space toward the east end of the Center (Unit GG) at the $13.86/sf rate. The
State has indicated that if the County will execute the lease for the 1,600 square foot space, it
will pickup all costs associated with leasing the additional 400 square feet (rent, CAM's, up-fit,
etc.). This agreement is reflected in the attached Memorandum of Understanding that DMV is
required to execute prior to the lease with the Carrboro Plaza owners being executed by the
County. The Board's approval of this item assumes that any action taken by DMV to lease the
larger suite would be expense neutral to Orange County.
As a reminder, a summary of terms of the arrangement with DMV is as follows:
• Orange County will provide funding to support rent and TICAM charges for 1,200 square
feet of space, with the State picking up the cost for the additional 400 square feet.
• Orange County provides maintenance for the space.
• The State provides staff.
• The State provides all equipment and furnishings needed for their operation.
• The State provides cleaning services.
• The State provides utilities.
• The State or the property owner will provide all upfit costs associated with moving to the
larger unit.
FINANCIAL IMPACT: The County's annual contribution for 1,200 square feet of space to be
used by the Driver License office is approximately $20,000, including rent and TICAM charges.
The funds are budgeted in the Rents and Insurance account.
The contribution by the State of North Carolina to support the additional 400 square feet in the
larger unit is approximately $6,600 for the first year of the renewal. This amount would be paid
directly to the County. Future payments by the State would include escalation in rent as
provided in the lease, as well as any increase in the TICAM charges.
RECOMMENDATION(S): The Manager recommends that the Board approve the five-year
renewal for 1,600 square feet of space to be used by the Division of Motor Vehicles for a Driver
License office located at Carrboro Plaza, contingent upon execution of the Memorandum of
Understanding by DMV; and authorize the Chair to sign the lease on behalf of the Board; and
authorize the Manager to sign the Memorandum of Understanding between the County and
DMV.
State of North Carolina
County of Orange
Memorandum of Understanding
This agreement represents a memorandum of understanding between the County of Orange
(hereinafter referred to as County" )and the State of North Carolina -Division of Motor Vehicles
(hereinafter referred to as DMV) as it respects space occupied by the Driver License Office at Carrboro
Plaza. The County and DMV agree as follows:
The County and the DMV agree to share lease costs as cited below, subject to all of the terms and
conditions of the lease between the County and the Owner of Carrboro Plaza (Owner), for Unit GG of
the Carrboro Plaza Shopping Center, located at the intersection of North Carolina Highway 54 By-Pass
and North Carolina Highway 54 Business in Carrboro.
County responsibilities shall be as follows:
a. To provide funds to lease 1,200 square feet of the 1,600 square foot unit, including Common
Area Maintenance, taxes and insurance (TICAM) charges assessed by the Owner.
b. To provide general maintenance outside of Owner's responsibilities as defined by the lease.
c. To provide parking for the Driver Licenses clients and employees to the extent provided for in the
lease between County and Carrboro Plaza owners.
2. DMV responsibilities shall be as follows:
a. To provide funds to lease 400 square feet of the 1,600 square foot unit, including Common Area
Maintenance, taxes and insurance (TICAM) charges assessed by the Owner. Funds shall be
sent to County monthly, to be received no later than the 10th of each month.
Beginning February 1, 2004, DMV shall pay to County $462 monthly for rent and $83.33 per
month for TICAM charges, total $545.33 per month. Rent shall increase annually per the
Owner's schedule reflected in the attached Amendment to Shopping Center Lease between
County and Owner. County will notify DMV of TICAM adjustments as the Owner notifies County.
DMV shall pay their proportionate share of TICAM adjustments when notified of adjustment by
County.
b. To provide any upfit costs associated with making the new unit suitable for DMV operations.
c. To pay cost of utilities, including heat, air-conditioning, telephone, lights and water; and
d. To provide janitorial services and trash removal.
3. Upon expiration or termination of this assignment, DMV may remove all equipment and
improvements placed upon the premises at its expense, provided the same can be removed without
material damage to the premises.
4. This agreement shall be in effect February 1, 2004 through January 31, 2009.
Agreed to this day of , 2003.
For Department of Motor Vehicles: For Orange County:
Wayne Hurder, Director
John M. Link, County Manager
AMENDMENT TO SHOPPING CENTER LEASE
Carrboro Plaza
104 North Carolina Highway 54 & Main Street
Carrboro, NC 27510
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THIS AMENDMENT TO SHOPPING CENTER LEASE, (Amendment), made this day of
September 2003 by and between Carrboro Shopping Center I, L.L.C. and Carrboro Shopping Center II,
L.L.C. a Georgia limited liability company (successors in interest to Carrboro Belman, S.C., L.P.)
(hereinafter called "Landlord") and County of Orange, State of North Cazolina (hereinafter called
"Tenant");
WITNESSETH:
WHEREAS, Landlord and Tenant previously entered into a written Lease Agreement for
Unit V dated the 29"' of December, 1986 with Plantation Partnership, a Florida General Partnership as
the original predecessor in interest to Carrboro Belman, S.C., L.P. through involuntary and voluntary
transfers in ownership and subsequent amendment dated, October 10th, 2000 a copy of which is
attached hereto and mazked Exhibit A; and,
WHEREAS, Landlord and Tenant each wish to amend that written Lease Agreement with
respect to the following provisions: BASE RENT, TERM, and RELOCATION
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained
herein the parties hereto agree to be bound as follows:
New Lease Terms Effective 2/1/04
1) New Monthly Rent: $1,386 for Yeaz 1
2) Next Increase: 2/1/04
3) Lease Expires: 1/31/09
1. RENT INCREASE(s): Tenant's base rent for the lease term shall be the following:
Yeaz Month Year
1 $1,386 $16,630
2 $1,420 $17,045
3 $1,456 $17,471
4 $1,492 $17,908
5 $1,530 $18,356
2. TERM: Five (5) yeazs
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3. RELOCATION: Landlord shall grant Tenant the one time option to relocate to Unit GG
(1,600-sf) at the same rental rate per square foot ($13.86 PSF), provided the Tenant
notifies Landlord on or before December ls`, 2003. The deal terms including the
Landlord and Tenant improvements, construction time and move-in period required will
be agreed to by the Parties prior to Tenant's option period expiring (12/1/03). Should
Landlord have the opportunity to lease the expansion premises prior to the expiration of
the option period, Landlord shall give the Tenant athirty-day written notice to accept
the relocation proposal or waive its right to lease said premises.
4. NO FURTHER CHANGES: Except as Herein amended, the Lease Agreement and
subsequent lease amendments between Landlord and Tenant, a copy of which is
attached hereto and marked Exhibit A is unamended and remains in full force and effect
and legally binding upon Landlord and Tenant.
IN WITNESS WHEREOF, Carrboro Shopping Center I, LLC and Carrboro Shopping Center II,
LLC has caused this Amendment to Lease to be executed in its name by its Member and Tenant has
caused this instrument to be executed in its name, if an individual by personally executing the same and
if a corporation, limited liability company or limited partnership by causing the duly authorized and
empowered officers or members to fully execute this document in a manner binding upon the Tenant.
The parties whose signatures appear below represent and warrant that they are authorized to_enter into
such Agreement and to act on behalf of The Landlord or Tenant, as the case may be.
LANDLORD:
CARRBORO SHOPPING CENTER I, LLC & CARRBORO
SHOPPING CENTER II, LLC
A Georgia limited liability company
BY:
Thomas W. Scott, III, Member
TENANT: County of Orange, State of North Carolina
By:
Name Title
Witness:
Name Title