HomeMy WebLinkAboutAgenda 03-05-2026; 8-j - Approval of Eno Arts Mill Suite 17 Lease Amendment for Orange County Arts Commission 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: March 5, 2025
Action Agenda
Item No. 8-j
SUBJECT: Approval of Eno Arts Mill Suite 17 Lease Amendment for Orange County Arts
Commission
DEPARTMENT: County Manager
ATTACHMENT(S): INFORMATION CONTACT:
1. OCAC Suite 17A & 17B Amendment Katie Murray, Director, 919-245-2335
One
2. Eno River Mill Rental Payment
Suspension Letter
PURPOSE: To approve Amendment One to the Eno Arts Mill Suite 17 Lease.
BACKGROUND: Orange County entered into a five-year lease agreement with the Eno River
Mill on June 1, 2021 for Suite 17. The space contains the Orange County Arts Commission
(OCAC) offices, a conference room, classroom, gallery, and four (4) artist studios. The current
lease expires May 31, 2026. Amendment One (Attachment 1) provides for a five-year extension
of the lease through May 31, 2031.
Due to flooding caused by Tropical Storm Chantal in July 2025, the rent payments to the Eno
River Mill were suspended until restoration is complete and occupancy is permitted by the County
(Attachment 2). This was originally anticipated to occur in March 2026, but likely will be later due
to permitting delays.
FINANCIAL IMPACT: Orange County will pay the Eno River Mill annual rent, increasing 2.5%
per year:
BEGIN END ANNUAL MONTHLY
6/11/2026 5/31/2027 $81,461.39 $6,788.45
6/11/2027 5/31/2028 $83,497.92 $6,958.16
6/11/2028 5/31/2029 $85,585.37 $7,132.11
6/1/2029 5/31/2030 $87,725.01 $7,310.42
6/1/2030 5/31/2031 $89,918.13 $7,493.18
Rental costs of the Eno River Mill are reimbursed on an annual basis by the Orange County Arts
Alliance, the operating partner of the Eno Arts Mill, per the Memorandum of Understanding
between the Arts Alliance and the County.
ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• GOAL 2: HEALTHY COMMUNITY
2
OBJECTIVE 7. Invest in services and programs that improve the health and quality of life
of the community (e.g., recreation and public open spaces, arts, etc.)
• GOAL 6: DIVERSE AND VIBRANT ECONOMY
OBJECTIVE 1. Provide family-oriented and inclusive programming or other cultural events
for residents and visitors.
OBJECTIVE 4. Provide resources to small, creative, and agro-businesses that add
character and quality of life to our community to attract employers, employees, and visitors.
RECOMMENDATION(S): The Manager recommends that the Board approve and authorize the
Manager to sign Amendment One to the Eno Arts Mill Suite 17 Lease.
Attachment 1 3
ORANGE COUNTY
STATE OF NORTH CAROLINA
AMENDMENT ONE TO
LEASE AGREEMENT
THIS AMENDMENT ONE (hereafter "Amendment") to the Lease
Agreement dated May 25,2021 (the "Lease") for the Premises known as Suite 17A & 17B
of the Eno River Mill, 437 Dimmocks Mill Road, Hillsborough, NC which is more
particularly described in the Lease, is made and entered into on the day of December,
2025 by and between Eno River Mill, LLC, a North Carolina limited liability company
(hereinafter "Landlord"), and Orange County, a political subdivision of the State of North
Carolina corporation (hereinafter "Tenant") (hereafter the Lease and Amendments shall
be referred to as the "Lease").
WITNESSETH
Landlord and Tenant desire to extend the Term of the Lease for a period of five (5)
years. In consideration of such extension, the mutual covenants herein contained and
other good and valuable consideration, the sufficiency of which is hereby acknowledged,
Landlord and Tenant agree as follows:
1. TERM. Paragraph 3 of the lease entitled "Term" is amended to extend the
Term of the Lease for five years (the "Extension Term"). The Expiration Date as used in
the Lease shall hereafter mean May 31, 2031.
2. RENT. Rent during the extended term is shown below:
START END ANNUAL MONTHLY
6/1/2026 5/31/2027 $81,461.39 $6,788.45
6/1/2027 5/31/2028 $83,497.92 $6,958.16
6/1/2028 5/31/2029 $85,585.37 $7,132.11
6/1/2029 5/31/2030 $87,725.01 $7,310.42
6/1/2030 5/31/2031 $89,918.13 $7,493.18
ERM and OCAC Amendment One to Lease on Suite 17A& 17B
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3. ADDITIONAL RENT. Paragraph 6 of the lease entitled Additional
Rent and Exhibit D are amended to increase the cap on the Operating Expense
Differential. The Cap on the operating expense differential will increase by 2.5% per year
during the extended term.
4. MISCELLANEOUS. Except as modified herein, the terms and conditions
of the Lease are hereby ratified and affirmed. The Lease as modified by this Amendment,
represents the entire agreement between the parties and supersedes any and all prior
agreements, whether oral or written. All prior negotiations have been merged in the
Lease, as amended by this Amendment, and there are no understandings,
representations, or agreements, oral or written, expressed or implied other than those set
forth in the Lease as modified by this Amendment.
[Signature Page Follows]
ERM and OCAC Amendment One to Lease on Suite 217A&17B
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IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease in
duplicate originals, all as of the day and year first above written.
TENANT: Orange County LANDLORD: Eno River Mill, LLC
a political subdivision of the State of NC
By:
Name: Name: Frank R. Gailor
Title: Managing Member
ERM and OCAC Amendment One to Lease on Suite 317A&17B
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ORANGE COUNTY
Office of the County P.O. BOX 8181
Attorney 200 S. CAMERON STREET
HILLSBOROUGH, NC 27278
Respond To:
Joseph Herrin
919-245-2316
Via Certified Mail, Return Receipt Requested
Parcel No.
July 22, 2025
Eno River Mill, LLC
By and through its Registered Agent
The New Eno River Cotton Mill, LLC
1100 Wake Forest Road, Suite 100
Raleigh,NC 27604
Eno River Mill, LLC
Post Office Box 12929
Raleigh,NC 27605
Attn: Jocelyn Wells
Re: Land and Property Having the Address of
437 Dimmocks Mill Road
Hillsborough,NC 27217
To Whom It May Concern:
As you are aware, in May, 2021, Orange County,NC entered into a lease with
Eno River Mill, LLC, for certain property described above, being commonly referred to
as the "Eno River Mill." A copy of the lease for this property is enclosed.
Based upon recent events occurring this month, namely the arrival of Tropical
Storm Chantal on July 6, 2025, and its aftermath, the leased property is unuseable due to
flood damage that was sustained to the property. The County considers this to be a
casualty loss as is provided in Section 9 of the lease agreement and other terms and
conditions of the lease agreement. Please be advised that due to its current condition,
further payments will be suspended under the lease terms and conditions of the lease until
repairs have been made.
Once repairs have been made, the County is again willing to occupy the space and
resume payments provided it has the opportunity to inspect the property to insure that it is
safe for occupancy, and the space is free from any mold intrusion,which is a priority
concern to the County. When a satisfactory inspection has been done by the County, it
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would again resume occupancy of the property under the same terms and conditions,
contained in the lease agreement, including the original termination dates, and would
commence paying rent within 15 days after repairs have been completed to the County's
satisfaction.
We would ask that you please keep Orange County Asset Management Services
Director Alan Dorman of your intentions with the restoration of the building and the time
frames anticipated for repairs so that the County may make plans accordingly as to when
to return to the leased space and again resume payments.
Sincerely,
Joseph Herrin
Staff Attorney
Enclosures
CC: WHO YOU DEEM APPROPRIATE