2001 NS Purchasing - Terradotta.com Lease Status at 501 W. Franklin Street, Chapel Hill

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3 Memorandum TO: John Link, County Manager From: Pam Jones, Director of Purchasing and Central Services RE: Coldwell Banker's Imminent Lease Expiration at 501 W. Franklin Street Date: October 11, 2001 Purpose: The purpose of this memorandum is to discuss options regarding the use of space currently leased from the County by Coldwell Banker at 501 W. Franklin Street, Chapel Hill. This matter is time sensitive in respect to the notice that we should give the tenant if we choose not to renew their lease. Background As you are aware, the largest rental suite at 501 West Franklin Street is the only one with street-front exposure and is occupied by Coldwell Banker. Their lease expires February 28, 2002. When the County purchased this property, which is adjacent to the Skills Development Center, the Board of Commissioners expressed a desire to see the property eventually convert to rent-paying public purpose tenants. Various suites have become available during the approximately six years in which the County has owned the property, however, no eligible agency has chosen to relocate to this space. With the impending opportunity to move the overall site tenancy closer to the Board's long-term wishes, in April 2001 1 contacted the Town of Chapel Hill, the Orange County Visitor's Bureau, Orange Community Housing, Inter-faith Council and Habitat for Humanity, to test their interest in the leased space. Inter-Faith Council inquired about the space in passing, but has not shown further interest since that time. With the exception of the Visitor's Bureau, the others declined. The Visitor's Bureau has expressed formal interest in occupying the suite at such time Coldwell's lease terminates. Per my conversations with Joe Blake, they have a need for additional space to accommodate not only their existing operation, but also the eventual integration of a Visitor's Center with the Bureau. Further, the street-front location would be a real boost to the visitor's ease of access, which is critical for effective Bureau service delivery. It is my belief and understanding that the Visitor's Bureau Board has formally supported this position and is prepared to execute a lease for approximately 3800 square feet of space. Since the subject was discussed in the context of the Visitor's Bureau budget and since the Board of Commissioners approved the renovation and increased rent funds in the Visitor's Bureau budget, I presume that the Board would endorse the use of the space for the Visitor's Bureau. However, prior to giving formal notice to Coldwell Banker I wanted to confirm that assumption.