HomeMy WebLinkAboutAgenda - 02-07-2023; 8-h - Two-Year Extension of the Lease for Suite 101 in the Europa Center 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 7, 2023
Action Agenda
Item No. 8-h
SUBJECT: Two-Year Extension of the Lease for Suite 101 in the Europa Center
DEPARTMENT: Asset Management Services
(AMS)
ATTACHMENT(S): INFORMATION CONTACT:
Two-Year Lease Extension Steven Arndt, AMS Director, 919-245-
2628
Alan Dorman, AMS Assistant Director,
919-245-2627
PURPOSE: To approve a two-year lease extension for Suite 101 at the Europa Center and
authorize the Manager to sign the extension upon final review by the County Attorney.
BACKGROUND: The original lease for Suite 101 in the Europa Center began in March 2020 and
ends in February 2023. The suite is used by the Skills Development Center, Guardian Ad Litem,
and Durham Tech until the facility at 203 Greensboro in Carrboro is completed. As 203
Greensboro is not scheduled to be completed until July 2024, a two-year extension of Suite 101
lease is proposed.
The cost of the extension for the remainder of this fiscal year will be $81,195. However, it should
be noted that the FY 2022-23 budget included funds to cover this extension. The projected costs
for FY 2023-24 and FY 2024-25 will be $246,021 and $167,261, respectively, with the lease
ending in February 2025. The Department of Social Services can be reimbursed through the State
for 20% of the rental expenses.
FINANCIAL IMPACT: The additional cost for the current fiscal year will be $81,195. The FY
2022-23 budget included funds to cover the lease extension. The costs for FY 2023-24 and FY
2024-25 would be $246,021 and $167,261, respectively, and will be included in the Asset
Management Services Department's annual budget requests.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board approve the two-year lease
extension for Suite 101 at the Europa Center and authorize the Manager to sign the extension
upon final review by the County Attorney.
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Is#LEASE MODIFICATION AGREEMENT
AND
EXERCISE OF OPTION
This 1st Lease Modification Agreement and Exercise of Option made and entered into as of
12022, by and between EUROPA CENTER, LLC,herein represented by its duly authorized
agent,AVISON YOUNG—NC,LLC, 100 Europa Dr.,Suite 190,Chapel Hill,NC 27517,hereinafter,"Landlord"
and ORANGE COUNTY,a NC political subdivision,hereinafter,"Tenant
Whereas Tenant and Landlord entered into that certain Lease(the"Lease")dated March 1st,2020 for Suite 101 in
the Europa Center office building,and
Whereas Tenant wishes to extend its occupancy in the Leased Premises under the terms and conditions as stated in
the Lease,and
Whereas Tenant has provided Landlord with adequate notice in order to exercise its Option to Renew (the
"Option")as provided in Section 3(b)of the Lease,and
Whereas Tenant acknowledges that the Option provides for the exercise of Two(2)One(1)year terms and desires
to exercise both One(1)year terms simultaneously,and
Therefore,the parries hereto do mutually agree and covenant as follows:
1. The Tenant hereby exercises its Option ror both One(1)year terms to expire February 28,2025,
2. The Base Rent due under the Lease shall be payable as shown in Section 4(a)of the Lease and repeated as
rollows:
Optlon Term' N of Mordhs Stan Dale End Date sr PSF Rafe SIM rAh Total S
1 12.00 OM1123 02r2W4 10.615 $22.95 $20.298.77$243.58524
1 1200. 03JO1124 02r2W5 10.615 $23.64 $20.907,73$250.892.80
3. Alt other terms and conditions of said Lease to the extent not expressly modified hereby shall remain
unchanged and in full force and effect.
IN WITNESS WHEREOF,Landlord and Tenant have duly executed this Ist Lease Modification Agreement and
Exercise of Option as of the day and year first above written.
Landlord:
EUROPA CENTER, LLC herein represented by its duly
authorized agent, AVISON YOUNG — NC, LLC, 100 Europa
Dr.,Suite 190,Chapel Hi11,NC 27517
Attest:
By: (SEAL)
John P.Graham,Principal
Tenant:
ORANGE COUNTY,a NC political subdivision
Attest:
By: (SEAT.)
Bonnie B.Hammersley,County Manager
THE EUROPA CENTER Lease
Landlord Tenant
Initials Initials
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EXHIBIT A
LEASE MODIFICATION &RENT SUMMARY
TYPE OF LEASE: ❑New ❑ Extension D Expansion X Option ❑Change/Adj.
BUSINESS NAME: Orange County
TENANT: Orange County
CONTACT: Alan Dorman
Email;adormanoorangecountync.gov
Phone:919.619.8859
PROPERTY ADDRESS: The Europa Center-Suite 101,100 Europa Dr.,Chapel Bill,NC 27517
LANDLORD: EUROPA CENTER,LLC
NOTICE ADDRESS: AVISON YOUNG—NC,LLC I00 Europa Dr—Suite 190,Chapel Hill,NC 27517
EXTENSION TERM: 24 Months RENTABLE SQ.FTG: 10,615
MODIFICATION SIGNED: 2022 EFFECTIVE: Upon execution
RENT COMMENCES: See below SECURITY DEPOSIT: None
LEASE EXPIRES: February 28,2025 OPER.EXP.BASE YEAR: 2020
RENT ADJUSTMENTS: See below
Option Temr 0 of MorLths Start Date End Date $F PSF Rate $Iwnrh Total S
t 12.00 0310123 02r29124 10.615 $22.95 $20298.77$243,585.24
1 12.00 03101r24 02QB125 10,615 $23.64 $20.907,73$250,892.80
THE EUROPA CENTER Lcasc
Landlord Tenant
Initials Initials