HomeMy WebLinkAboutAgenda - 10-05-1999 - 8nORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 5, 1999
Action Agenda
Item No. g_ h
SUBJECT: Temporary Lease Adjustment; 501 West Franklin Street, Suite 105
DEPARTMENT: Purchasing 8~ Central Services PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Pam Jones extension 2652
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 336-227-2031
PURPOSE: To consider amending the lease amount for Rental Resources for a period of six-months.
BACKGROUND: Rental Resources of Durham/Chapel Hill occupies suite 105 at 501 West Franklin
Street. The lease extends through May 31, 2000 at a monthly rate of $1,076.89. As we reported in a
previous abstract, the suite has flooded several times over the past two years in periods of significant
rainfall. The problem was diagnosed by engineers as being a hydrostatic water problem, with the water
source likely to be rainwater runoff that accumulated around the building. The issue was addressed as
part of the Skills Development Center renovations by providing additional drainage for the water that
accumulated around the building during periods of heavy rain. However, during the recent high wind
and heavy rain incident, the roof was damaged and the suite flooded once again to the point the interior
two rooms are not serviceable to the tenant. The roof damage allowed water to accumulate between the
two inner walls of the 501 and 503 buildings and seep into the suite.
The roof is scheduled for replacement within the next couple of years per the roof study completed last
year. However, in light of the recent problems with this suite and with the threat of significant damage to
the newly renovated Skills Development Center, compounded by the recent storm damage, we believe it
prudent to move forward with roof replacement rather than continuing to patch. Bidding of that work is
imminent.
The tenant has indicated discomfort with allowing equipment to be placed in the two offices most affected
by the water until the leak is repaired. She has requested that her rent be reduced to $800 per month
until such time that repairs are made and it is determined that this fix is permanent and she can again use
the two interior offices. We are recommending that the rent be reduced to $800 per month from
September, 1999 through March, 2000, by which time work will be completed and determination of the
success of the mitigation efforts can be verified.
FINANCIAL IMPACT: Lease revenue will decrease by approximately $1600 for FY 99-2000.
RECOMMENDATION(S):: The Manager recommends that the Board authorize adjustment of the rent
amount for Rental Resources to be $800 per month from September 1999 through March 2000.