Agenda - 08-17-1999 - 8r - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 17, 1999 Action Agenda Item No. $- Ir SUBJECT: Lease approval with Alliance for Historic Hillsborough for Dickson House DEPARTMENT: Purchasing 8 Central Services PUBLIC HEARING: (YIN) No ATTACHMENT(S): • Proposed lease with Alliance for Historic Hillsborough • Original agreements regarding acquisition of the property 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 approving a lease with the Alliance for Historic Hillsborough for the Dickson House and associated property and outbuildings for the purposes of continued operation of the Visitor's Center. BACKGROUND: The County approved the purchase of the Dickson House and property from the Historic Preservation Fund of Hillsborough, Inc. in March 1993. The attached agreement between the County and the Preservation Fund (the Fund) reflects a number of conditions that affect the disposition and use of the property and structures. One such condition is that for a period of ten years from March 1, 1993 the property be "made available to the Hillsborough Area Chamber of Commerce, Inc, or to some other organization for operation as a visitor's center and allied uses for the Town of Hillsborough and Orange County..." . This stipulation would seem to preclude use of the facility for County needs unrelated to a visitor's center at this time. However, the proposed lease is scheduled to expire on June 30, 2003, which is a few months after the fulfillment of the County's obligation to allow the building to be used as a Visitor's Center -The County would then be in a position to assess the value of the property for County use against its value as a Visitor's Center and make decisions accordingly. As the Board is aware, the Hillsborough Chamber of Commerce operated the visitor's center at the time the agreement was executed with the Fund. However, several years ago, the Alliance for Historic Hillsborough (the Alliance) was formed and has since that time operated the visitor's center in the Dickson House under a sublease with the Chamber. The Chamber relocated their offices when their lease expired on July 31, 1999, thereby requiring a new lease to be executed between the Alliance and the County. The proposed rent has been calculated using the square footage of the Dickson House as its basis. The house is approximately 2,713 square feet. The Alliance has expressed the need to have use of the entire house for their programs. At $12 per square foot, the annual lease amount is $32,556. The Executive Director has indicated that the limited budget of the Alliance (approximately $150,000 annual total) is insufficient to take on the full responsibility of the rent. In fact, their anticipated expenses for operating the Center fall short of the anticipated revenues by at least $1,500 without considering any payment of rent. Assuming that the Board supports the continuation of the Visitor's Center under the direction of the Alliance, the staff has proposed a cost and responsibility sharing arrangement that would have the