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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: