HomeMy WebLinkAboutAgenda - 05-08-2002 - 8l A �
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Dale: May 8, 2002
Action Agenda
Rem No. �_L
SUBJECT: Lease Renewal: Moody Building
DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No
Services
ATTACHMENT(S): INFORMATION CONTACT:
Pam Jones (919)245-2552
Lease Renewal
TELEPHONE NUMBERS:
Hillsborough 7324181
Chapel Hill 8684501
Durham US-7331
Mebane 336.22]4!031
PURPOSE: To consider approving the renewal of a lease for the Moody Building at 103 Laurel
Avenue, Cariboro, NC through June 30, 2005.
BACKGROUND: The approximal 4800 square feet contained in this building has been
leased by me County since 1987. It is currenlly occupied by Court support offices, including
Iwo sections of Probation and Parole. The State sub-leases a portion of the building for
Probation and Parole offices for which they are responsible (see separate agenda item for
renewal of that sublease). The sublease with the State coincides with the term of the County's
lease with the Owner.
The owner of the facility has agreed to renew the lease with the County under the following
terms and conditions:
• Lease renewal commences July 1, 2002 and terminates June 30,2005.
• Lease rates as follows; (reflects a 3% per year increase):
o July 1. 2002 through June 30, 2003: $44,150
o July 1, 2003 through June 30, 2004: $45,475
o July 1, 2004 through June 30, 2005: $46,839
The County will continue In reimburse the Owner for real estate taxes assessed against
the leased premises. Property taxes in 2001 were approximately$7,000.
• The County will continue to maintain the building in the following manner:
• Paint interior
• Repair HVAC equipment($2,000 annual maximum)
• Perform normal plumbing maintenance (excludes repairs to water, drainage and
Sewer lines)
• Perform normal minor electrical maintenance ($500 per repair maximum)
• Maintain the floor coverings
2
The Owner will continue to maintain the building in the following manner:
• Repair and maintain the exterior of the building, including roof, exterior walls,
foundations, gutters and downspouts, sidewalks, drainage and sewer pipes
• Perform repairs and maintenance W HVAC, plumbing and electrical facilities that
exceed the County's annual maintenance maximum
• Maintain parking areas
• Note: The Owners improvements during the previous renewal period exceeded
$27,000
• All other terms of the lease remain the same.
This building continues to address a critical need for space in which b locate Court offices in
the southern part of the County at an affordable nuts. Considering the tax contribution and the
base rent, the square foot rate recommended in this lease will range from approximately $10.88
to approximately $11.02 per square foot. In addition, the opportunity W co-locate the other
court offices with the Intensive Probation/Parole function adds considerable operational
efficiency.
FINANCIAL IMPACT: Funds for this expenditure are budgeted in the Courbel-ease account.
The State's sublease for ProbahonlPamle once apace will offset the County's contribution by
approximately$18,000 annually.
RECOMMENDATIONfSf: The Manager recommends that the Board approve the lease
renewal for the Moody Building through June 30, 2005 under the terms and conditions as
slated: and autlwrize 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 sil day of July, 1987, by
and between the County of Orange, (the County)and Grey Mostly (the Owner)for space to be
used as offices for County and Court functions at 103 Laurel Avenue, Canborc, North Carolina;
WHEREAS, the County and Me Owner mutually agree to the fallowing:
1. The lease agreement will be continued for a penotl of three yeas commencing on
July 1, 2002 and ending at 12:00 midnight on June 39, 2005
2. Section 3 (b), Rent Schedule, shall read as follows:
Rent during the three year renewal shall be payable in monthly installments on the first
day of each month during the term of this lease renewal pursuant to the following schedule:
July 1, 2002 through June 30, 2003: $44,150 ($3,6]9.1] monthly)
July 1, 2003 through June 30,2004: $45,475 ($3,]89.58 monthly)
July 1,2004 through June 30, 2005: 546,839 ($3,903.25 monthly)
3. The County shall continue to reimburse the Owner for real estate taxes assessed
against the leased premises within 30 days of receipt of invoice from the Owner and proof of
payment by the Owner.
4. All other terms and conditions shall remain the same.
This agreed to the day of . 2002.
Grey Mostly, Owner
County:
Barry Jacobs, Chair
Orange County Board of Commissioners
ATTEST:
Beverly A. Blythe, Clerk to the Boat
4
NORTH CAROLINA
ORANGE COUNTY
I, , a Notary Public of said State and County do
hereby ceNfy that Grey B. Moody 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 ,2002.
Notary Public
My Commission expires:
NORTH CAROLINA
ORANGE COUNTY
I, a Notary Public far said County and State,do hereby
certify that Beverly A. Blythe 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 ad of Orange County,the foregoing instrument was signed in its name by
Bany Jacobs, Chair, sealetl with its official seal, and allested by hersafi as its Clerk.
Witness my hand and official seal, this the_tlay of . 2002
Notary Public
My Commission expires: