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HomeMy WebLinkAboutAgenda - 11-05-2003-8dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 5, 200:1 Action Agen~da~ Item No. SUBJECT: Lease Extension: 110 S. Churton Street DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): Lease Extension 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 extending the lease at 110 S. Churton Street, Hillsborough through June 30, 2004. BACKGROUND: Orange County has leased the building at 110 S. Churton Street since 1993 to house the Human Rights and Relations/Commission for Women Department and the Family Counseling Division of Orange-Person-Chatham Mental Health. Due to program changes of OPC Mental Health, coupled with a significant space allocation at Whiffed for OPC, it appears that OPC can consolidate both the Adult Day Treatment Program and the Family Counseling Program into the space at Whiffed previously occupied by Adult Day Treatment. In order to allow sufficient time to collaborate with the proposed occupants on a floor plan after the Whiffed HVAC project has concluded, it is requested that the lease at the present Family Counseling location be extended through June 30, 2004. The Human Rights and Relations Department occupies the first floor of the leased premises and is proposed to be relocated to the County's 501 W. Franklin Street building in the suite previously occupied by the Visitor's Bureau. Several factors contribute to this recommendation, including the Chapel Hill-Carrboro location better lends itself to serving a larger and more diverse population base with improved access to parking and adjacency to related human services housed at the Skills Development Center. As the Board may recall, the debt service payments for the 501 W. Franklin Street facility are offset by revenues from rent. Although no rent will be assessed directly to the Human Rights and Relations Department, the reduction in rent from the 110 S. Churton Street building will provide a revenue offset and keep the basic premise of the 501 W. Franklin payment plan intact. The Human Rights and Relations Department would be relocated to 501 W. Franklin 2 Street at such time the Adult Day Treatment program, presently located in the destination suite, is moved back to the Whiffed Building. The rent at 110 S. Churton Street has remained static over the past few years. A six percent (6%) increase in the present rent amount is therefore suggested, thereby increasing the present $5,251 per month ($63,012/year) to $5,566 per month ($66,793/year). The Board is reminded that this is a triple net lease in which all expenses of the site are included in the rent, including utilities and cleaning services. FINANCIAL IMPACT: Rent in the amount of $5,566 per month would begin effective December 1, 2003 and be paid through June 30, 2004. Funds are available in the Central Services budget to cover the additional $2,205 needed to support this action. RECOMMENDATION(S): The Manager recommends that the Board: • Approve a lease extension at 110 S. Churton Street through June 30, 2004 at a lease rate of $5,566 per month, which represents a 6% increase in the current lease amount; and • Endorse the relocation of the Family Counseling Division of OPC Mental Health to the Whiffed Building (in conjunction with the Adult Day Treatment Program); and the relocation of the Human Rights and Relations Department to 501 W. Franklin Street, Chapel Hill; and • Authorize the Chair to sign on behalf of the Board. NORTH CAROLINA COUNTY OF ORANGE LEASE AGREEMENT EXTENSION WHEREAS a lease agreement was made and entered into as of the 4T" day of October, 1993 by and between the County of Orange, (the County) and the Horton Enterprises, LLC, and subsequently transferred to David L Rhodes (the Owner) effective May 6, 1999 upon sale of property, for a building at 110 S. Churton Street, Hillsborough, NC to be used for County office space; WHEREAS, the County and the Owner mutually agree to the following: The lease agreement will be continued for a period of seven months commencing on December 1, 2003 and ending at 12:00 midnight on June 30, 2004. 2. Section 3 "Guaranteed Minimum Rent" shall be modified to read: The County agrees to pay to the Owner at the office of the Owner or other address as may be designated, an amount equal to $5,566 per month. 3. All other terms and conditions shall remain the same. This agreed to the County of Orange By: day of , 2003. Margaret W. Brown, Chair Attest: Donna S. Baker, Clerk to the Board Owner By: David A. Rhodes Witness: 4 STATE OF NORTH CAROLINA COUNTY OF ORANGE 1, , a Notary Public of said State and County do hereby certify that David A. Rhodes 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 . , 2003. STATE OF NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for 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 Margaret M. Brown, Chair, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of My Commission expires: Notary Public 2003.