HomeMy WebLinkAboutAgenda 05-21-24; 8-c - Lease Renewal for 110 E. King Street to the NC Department of Adult Correction 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 21, 2024
Action Agenda
Item No. 8-c
SUBJECT: Lease Renewal for 110 E. King Street to the NC Department of Adult Correction
DEPARTMENT: Asset Management Services
(AMS)
ATTACHMENT(S): INFORMATION CONTACT:
1.) Lease for 110 E. King Street Alan Dorman, AMS Interim Director,
2.) Resolution 919-245-2627
PURPOSE: To:
1) review a lease renewal to the NC Department of Adult Correction for 110 E. King Street,
Hillsborough;
2) adopt the resolution approving the lease renewal; and
3) authorize the Manager to sign the lease renewal upon final review by the County Attorney.
BACKGROUND: The North Carolina Department of Adult Correction's Division of Probation and
Parole and the North Carolina Department of Public Safety's Division of Juvenile Justice and
Delinquency have occupied Court Street Annex at 110 E. King Street since 2011. These agencies
are responsible for the care, custody, and supervision of all adults and youth sentenced in Orange
County after disposition for violations of North Carolina law.
North Carolina General Statute 15-209 requires the county commissioners in each County in
which a community corrections office exists to provide, in or near the courthouse, suitable office
space for those probation officers and court counselors assigned to the County who have
probationary caseloads and their administrative support.
The County and the Department of Adult Correction have agreed to renew the lease, originally
entered into on June 1, 2021. The lease term for the new lease will be three (3) years, beginning
June 1, 2024, and ending on May 31, 2027, at an annual rate of$1 per year.
FINANCIAL IMPACT: There will be no direct financial impact as the County has provided office
space to the Department of Correction for many years. However, the County has invested
significantly in the building over the recent years, including a $188,600 renovation funded in the
FY 2019-20 Capital Investment Plan (CIP) and a $160,000 upgrade to the building's electrical
system funded in the FY 2022-23 CIP.
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SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: CREATE A SAFE COMMUNITY
The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang
activity, substance abuse and domestic violence.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution
approving the lease renewal for 110 E. King Street, and authorize the Manager to sign the lease
upon final review by the County Attorney.
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THIS LEASE DOES NOT BECOME EFFECTIVE UNTIL EXECUTED
BY THE NORTH CAROLINA DEPARTMENT OF ADULT CORRECTION
STATE OF NORTH CAROLINA
LEASE AGREEMENT
COUNTY OF ORANGE
THIS LEASE AGREEMENT, made and entered into this the day of
, 2024, by and between, COUNTY OF ORANGE, hereinafter designated as
Lessor, and the STATE OF NORTH CAROLINA, hereinafter designated as Lessee;
WITNESSETH:
THAT WHEREAS, authority to approve and execute this lease agreement was delegated to the
Department of Administration by resolution adopted by the Governor and Council of State on the 1st
day of September 1981; and as amended on September 8, 1999 and December 7th, 1999, and October
6, 2020 and
WHEREAS, the parties hereto have mutually agreed to the terms of this lease agreement as
hereinafter set out,
NOW THEREFORE, in consideration of the rental hereinafter agreed to be paid and the terms
and conditions hereinafter set forth, Lessor does hereby let and lease unto Lessee and Lessee hereby
takes and leases from Lessor for and during the period of time and subject to the terms and conditions
hereinafter set out certain space in the City of Hillsborough, County of Orange, North Carolina,
more particularly described as follows:
Being approximately+5,637 net square feet of office space located at 110 E. King Street; Orange
County; Hillsborough,North Carolina, and further described in the floor plan, Exhibit "A".
(NC DEPARTMENT OF ADULT CORRECTION, COMMUNITY SUPERVISION,
DIVISION 2,DISTRICT 14)
THE TERMS AND CONDITIONS OF THIS LEASE AGREEMENT ARE AS FOLLOWS:
1. The term of this lease shall be for a period of three (3) years, commencing on 11t day of
June 2024, or as soon thereafter as the leased premises are ceded to the Lessee and terminating on the
31St May 2027.
2. During the term of the lease, the Lessee shall pay to the Lessor as rental for said premises
the sum of$1.00 dollar per annum, said rental to be payable within 15 days from receipt of invoice.
The Lessee agrees to pay the aforesaid rental to the Lessor at the address specified, or, to such other
address as the Lessor may designate by a notice in writing at least 15 days prior to the due date.
3. Lessor agrees to furnish to the Lessee, as a part of the consideration for this lease, the
following services, and utilities to the satisfaction of the Lessee.
A. Heating facilities, air conditioning facilities, adequate electrical facilities, adequate
lighting fixtures and sockets, hot and cold water facilities, and adequate toilet facilities.
B. Maintenance of lawns, sidewalks, shrubbery, parking, paved areas and common areas
and disposal of trash is required.
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C. Lessor provides required fire extinguishers and servicing, pest control, and outside
trash disposal, including provision for the handling of recyclable items such as
aluminum cans, cardboard, and paper. All pesticides must be applied by a licensed
technician.
D. All utilities except telecommunications.
E. Daily janitorial service and supplies.
F. Parking (as available).
G. If applicable elevator service.
H. The leased premises are generally accessible to persons with disabilities. This shall
include access to the premises from the parking areas (where applicable), into the
premises via any common areas of the building and access to accessible restroom.
I. Any fire or safety inspection fees, stormwater fees, or land transfer tax/fees.
J. All other terms and conditions of the signed "Proposal to Lease to the State of North
Carolina" Form PO-28 incorporated herein by reference and the "Specifications for
Non-advertised Lease" (Exhibit B).
4. During the lease term, the Lessor shall keep the leased premises in good repair and
tenantable condition, to the end that all facilities are kept in operative condition. Maintenance shall
include but is not limited to furnishing and replacing electrical light fixture ballasts, air conditioning
and ventilating equipment filter pads, if applicable, and broken glass. In case Lessor shall, after notice
in writing from the Lessee in regard to a specified condition, fail, refuse, or neglect to correct said
condition, or in the event of an emergency constituting a hazard to the health or safety of the Lessee's
employees, property, or invitees, it shall then be lawful for the Lessee in addition to any other remedy
the Lessee may have, to make such repair at its own cost and to deduct the amount thereof from the
rent that may then be thereafter become due hereunder. The Lessor reserves the right to enter and
inspect the leased premises, at reasonable times, and to make necessary repairs to the premises.
5. It is understood and agreed that Lessor shall, at the beginning of said lease term as
hereinabove set forth, have the leased premises in a condition satisfactory to Lessee, including repairs,
painting, partitioning, remodeling, plumbing and electrical wiring suitable for the purposes for which
the leased premises will be used by Lessee.
6. The Lessee shall have the right during the existence of this lease, with the Lessor's prior
consent, to make alterations, attach fixtures and equipment, and erect additions, structures, or signs in
or upon the leased premises. Such fixtures, additions, structures, or signs so placed in or upon or
attached to the leased premises under this lease or any prior lease of which this lease is an extension or
renewal shall be and remain the property of the Lessee and may be removed therefrom by the Lessee
prior to the termination of this lease or any renewal or extension thereof, or within a reasonable time
thereafter. The Lessee shall have no duty to remove any improvement or fixture placed by it on the
premises or to restore any portion of the premises altered by it. In the event Lessee elects to remove
his improvements or fixtures and such removal causes damage or injury to the demised premises,
Lessee will repair only to the extent of any such damage or injury.
7. If the said premises are destroyed by fire or other casualty without fault of the Lessee, this
lease shall immediately terminate, and the rent shall be apportioned to the time of the damage. In case
of partial destruction or damage by fire or other casualty without fault of the Lessee, so as to render the
premises untenantable in whole or in part, there shall be an apportionment of the rent until the damage
has been repaired. During such a period of repair, Lessee shall have the right to obtain similar office
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space at the expense of Lessee or the Lessee may terminate the lease by giving 15 days written notice
to the Lessor.
8. Lessor shall be liable to Lessee for any loss or damage suffered by Lessee which is a direct
result of the failure of Lessor to perform an act required by this lease, and provided that Lessor could
reasonably have complied with said requirement.
9. Upon termination of this lease, the Lessee will peaceably surrender the leased premises in as
good order and condition as when received, reasonable use and wear and damage by fire, war, riots,
insurrection, public calamity, by the elements, by act of God, or by circumstances over which Lessee
had no control or for which Lessor is responsible pursuant to this lease, excepted.
10. The Lessor agrees that the Lessee, upon keeping and performing the covenants and
agreements herein contained, shall at all times during the existence of this lease peaceably and quietly
have, hold, and enjoy the leased premises free from the adverse claims of any person.
11. The failure of either parry to insist in any instance upon strict performance of any of the
terms and conditions herein set forth shall not be construed as a waiver of the same in any other
instance. No modification of any provision hereof and no cancellation or surrender thereof shall be
valid unless in writing and signed and agreed to by both parties.
12. Any hold over after the expiration of the said term or any extension thereof, shall be
construed to be a tenancy from month to month, and shall otherwise be on the terms and conditions
herein specified, so far as applicable; however, either party shall give not less than 60 days written
notice to terminate the tenancy.
13. The parties to this lease agree and understand that the continuation of this lease agreement
for the term period set forth herein, or any extension or renewal thereof, is dependent upon and subject
to the appropriation, allocation, or availability of funds for this purpose to the agency of the Lessee
responsible for payment of said rental. The parties to this lease also agree that in the event the agency
of the Lessee or that body responsible for the appropriations of said funds, in its sole discretion,
determines, in view of its total local office operations that available funding for the payment of rents
are insufficient to continue the operation of its local offices on the premise leased herein, it may choose
to terminate the lease agreement set forth herein by giving Lessor written notice of said termination,
and the lease agreement shall terminate immediately without any further liability to Lessee.
14. All notices herein provided to be given, or which may be given by either party to the other,
shall be deemed to have been fully given when made in writing and deposited in the United States
mail, certified and postage prepaid and addressed as follows:
To the Lessor:
Orange County
300 West Tryon Street
Hillsborough,North Carolina 27278
w/copy to: N/A
To the Lessee:
NC Department of Adult Correction (DAC),Purchasing Office
3512 Bush Street(MSC 5227)
Raleigh,North Carolina 27609-5227
with a copy to:
State Property Office
Attn: Leasing Manager and Space Planning Section
1321 Mail Service Center
Raleigh,North Carolina 27699-1321
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Nothing herein contained shall preclude the giving of such notice by personal service. The address to
which notices shall be mailed as aforesaid to either party may be changed by written notice.
15. Within 30 days of Commencement Date, Lessor agrees to construct, upfit, repair and
maintain the Premises in accordance with (a) the approved floor plan attached hereto as Exhibit A and
(b) the applicable regulation and building code provisions of the governmental authority having
jurisdiction over the Premises.
16. N.C.G.S. § 133-32 and Executive Order 24 prohibit the offer to, or acceptance by, any
State Employee of any gift from anyone with a contract with the State, or from any person seeking to
do business with the State. By execution of any response in this procurement, you attest, for your
entire organization and its employees or agents, that you are not aware that any such gift has been
offered, accepted, or promised by any employees of your organization.
IN TESTIMONY WHEREOF, this lease has been executed by the parties hereto, in duplicate
originals, as of the date first above written.
The rest of this page is intentionally left blank.
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LESSEE:
STATE OF NORTH CAROLINA
By: (SEAL)
Joanne Rowland,Director
DAC Purchasing Office
STATE OF NORTH CAROLINA
COUNTY OF
I, , a Notary Public in and for the County and
State aforesaid, do hereby certify that Joanne Rowland personally appeared before me this date and
acknowledged the due execution by s/he of the foregoing instrument as Director of Purchasing Office
of the Department of Adult Correction of the State of North Carolina, for the purposes therein
expressed.
IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal this the day of
2024.
Notary Public
Printed Name:
My Commission Expires:
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LESSOR:
ORANGE COUNTY
By: (SEAL)
Bonnie B. Hammersley
Orange County Manager
STATE OF NORTH CAROLINA
COUNTY OF
I, , a Notary Public in the County of
and State aforesaid, do hereby certify that Bonnie B. Hammersley personally
came before me this day and acknowledge the due execution of the foregoing instrument on behalf of
the limited liability company and for the purposes stated herein.
IN WITNESS WHEREOF, I have hereunto set my hand and Notarial Seal this the day of
, 2024.
Notary Public
Printed Name:
My Commission Expires:
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Exhibit A
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Exhibit B
SPECIFICATIONS FOR NON-ADVERTISED LEASE
1. The floor plan should show building exits for the proposed space. Also,provide the year the
building was constructed.
2. This facility must provide an environment that is barrier-free and easily accessible to
physically disabled staff, visitors and clientele. Compliance with the State Building Code
and the Americans with Disabilities Act(ADA)is required. Toilet facilities shall be ADA
accessible and code compliant.
3. The air conditioning and heating system shall be maintained by Lessor including frequent
filter cleaning and replacement. Year-round ventilation shall be provided to prevent stale air
problems and unacceptable CO2 content. Waiting areas, LAN rooms and conference
room(s) may require additional HVAC.
4. Telecommunication room temperature should be within a range of 65' to a maximum of
75°. This is a 24-hour per day, 7-days per week requirement. A separate HVAC system
may be required to maintain this temperature range.
5. All lighting and electrical maintenance shall be furnished by Lessor including the
replacement of ballasts, light tubes, and replacement bulbs.
6. The Lessor shall provide required fire extinguishers and servicing, pest control (by a licensed
technician) and outside trash disposal including provision for the handling of recycling items
such as aluminum cans, cardboard, and paper. Frequent trash and recycling pick-up required.
Year-round maintenance is required to maintain a neat and professional appearance of the
site at all times.
7. Lessor shall provide internal and external signs that will provide easy identification of the
office by the general public (if applicable NC DAC request please work to be performed
by Correction Enterprises).
8. Locking hardware is required on all storage rooms, equipment rooms, files rooms and LAN
room. Supply storage closets require shelving.
9. The Lessor shall provide sufficient window coverings shall be provided to control glare
within the space (venetian blinds or acceptable equivalent).
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10. The Lessor shall provide vinyl tile or other floor covering acceptable to the State in all
finished areas. Prefer carpeting for all offices and conference rooms. If floors are carpeted,
they should be commercial grade 26 oz or 24 oz carpet squares preferred, acceptable to the
Lessee. LVT the is preferred in the waiting area, LAN room(s), kitchenette, restrooms and
hallways. LAN room tile should be anti-static. New or like-new carpet is preferred. If not new,
carpet must be professionally cleaned and all stains removed before occupancy. High traffic
areas will require frequent cleaning and replacement of floor finishes to maintain a neat, clean,
high-quality finish and will be at the State Property Office's discretion.
11. Lessor shall shampoo all carpet and clean the outside of the building windows annually.
12. Lessor shall be responsible for snow and debris removal as quickly as possible to avoid
work delays.
13. The per square foot price proposal is based on the floor plan and repair lists agreed upon by
the State of North Carolina and includes but it not limited to all partitions, demolition, and
up fitting costs: building and grounds maintenance; property taxes; insurance; fire and safety
inspection fees; stormwater fees; land transfer tax; common area maintenance and other
building operational costs.
14. The number of keys to be provided to the State for each lockset shall be reasonably
determined by the State prior to occupancy, at no cost to the State.
15. All parking areas shall be adequately lighted and located within a reasonable distance
of the office.
16. Lessor shall provide all conduits and pull strings from above the ceiling to outlet boxes.
State to install wiring and cover plates.
17. Lessor is responsible for providing all cleaning supplies,paper and soap products for
kitchen and bathrooms regardless of who contracts for janitorial services.
The lessor is in agreement with the above conditions and the conditions of the also signed
"proposal to Lease to the State of North Carolina" Form PO-28.
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RES-2024-029 Attachment 2
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION LEASING PROPERTY FOR THREE YEARS
Whereas, Orange County owns the County Street Annex, a building located at 110 E
King Street, Hillsborough, NC, comprising approximately 8,500 square feet, located near
the Orange County Courthouse; and
Whereas, the Division of Probation and Parole within the North Carolina Department of
Adult Correction desires to lease the Court Street Annex to provide offices for probation
and parole officers and juvenile court counselors who work for the Division of Juvenile
Justice and Delinquency with the North Carolina Department of Public Saftey; and
Whereas, the North Carolina General Statute 15-209 requires the county commissioners
in each county in which a community corrections office exists to provide, in or near the
courthouse, suitable office space for those probation officers and court counselors
assigned to the county who have probationary caseloads and their administrative support;
and
Whereas, North Carolina General Statute 160A-274 authorizes the lease or sale of
county-owned property to another governmental unit with or without consideration; and
Whereas, the North Carolina Department of Public Safety desires to lease for a term of
three years, beginning June 1, 2024 and ending on May 31, 2027; and
Whereas, the Division has the responsibility for the care, custody and supervision of all
adults and youth sentenced in Orange County after disposition for violations of North
Carolina law; and
Whereas in consideration of the valuable services provided by the Division of Adult
Correction and Juvenile Justice with the North Carolina Department of Public Safety, the
Board of Orange County Commissioners desires to lease Court Street Annex to the North
Carolina Department of Public Safety, and the Board of Commissioners is convened at a
regular meeting;
THEREFORE BE IT RESOLVED, that the Board of Orange County Commissioners
hereby approves the lease of the County property described above to the North Carolina
Department of Adult Correction, for a term of three years commencing June 1, 2024 for
a term of three (3) years, ratifies the signed lease, and directs the execution, registration,
and filing of all necessary instruments accordingly.
This the 21 st Day of May, 2024.
Jamezetta Bedford, Chair
Orange County Board of Commissioners