Agenda - 06-01-1999 - 8k - Laserfiche WebLink

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�t ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 1, 1999 Action Agenda Item No. —R–k SUBJECT: Lease Renewal; Queue Corporation, 501 West Franklin Street, Suite 201 DEPARTMENT: Purchasing & Central Services PUBLIC HEARING: (Y /N) No ATTACHMENT(S): Lease Renewal 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 renewing a lease with Queue Corporation, 501 West Franklin Street, Suite 201, Chapel Hill. BACKGROUND: Queue Corporation has rented suite 201 at this location since 1997. The company is a computer firm whose business has been steadily growing since its 1997 inception. Their business is quickly exceeding the approximately 861 square feet leased at the 501 W. Franklin Street site. For this reason, Queue Corporation has requested only a 6 -month lease renewal, with a 6 -month extension so that they may seek larger quarters. Renewal terms recommended are as follows: • Monthly rent for the initial six -month renewal shall be $936 per month (approximately $13.04 per square foot), a 5% increase over present rent; • In the event Queue Corporation chooses to renew for a second six -month period, the rent shall remain $936 per month. • Taxes in lieu shall be assessed at $96 per month throughout the initial renewal. Should Queue Corporation choose to exercise their second six -month renewal, taxes in lieu would continue to be assessed at the $96 per month rate. • Queue Corporation will continue to pay utilities, cleaning and all interior maintenance of the leased premises as has been the case during the previous lease. FINANCIAL IMPACT: The County will receive $5,616 for the six -month renewal period and an equivalent amount should Queue Corporation choose to remain in the leased premises during the second six -month renewal period. The County would also receive their pro rata share of the $576 taxes in lieu collected for six -month renewal period and an equivalent amount should Queue choose to exercise their option to renew for the second six -month period. RECOMMENDATION(S): The Manager recommends that the Board approve the six -month lease renewal for Queue Corporation at 501 West Franklin Street Suite 201, Chapel Hill and authorize the chair to sign on behalf of the Board; and approve the second six -month option to renew and authorize the Manager to sign on behalf of the Board should Queue choose to exercise said option.