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

Browse Search

4 Options Coldwell Banker Suite Options In my opinion, the following options are available to us in leasing this space: 1) Lease the space to the Visitors Bureau as per their request. a) Were the Board to support this position, it is suggested that we begin the Visitors Bureau lease at $12.50 per square foot, which is a little less than market for that area, but in view of the upfit work that the Bureau will pay for, I think a fair one. b) We would anticipate asking the Board to approve a lease for the space as with any other agency. The lease would recommend a 3% annual cost of living increase, thereby raising the cost per square foot to approximately $12-88 in year two and $13.26 in year three. 2) Allow Coldwell Banker to extend their lease for a period not to exceed three years. a) As a point of information, Coldwell Banker currently pays around $14.31 per square foot. They have requested several upgrades to the space through our agent, Steve Manton, if the County chooses to let them renew their lease. We would likely spend several thousand dollars if we honored their request. b) Exercising this option would not appear to further the County's long-term desire to see the building used by non-profit agencies with similar business interests. Existing Visitor's Bureau Suite Options If the Visitors Bureau relocates to the Coldwell Banker suite, the County will need to re-let their existing rented space in the building. Options that have been identified in that regard are as follows: 1) One option would be to market the space and rent it out to whomever shows interest in paying the rent. As referenced earlier, we have already solicited statements of interest in the space for non-profit groups who have previously shown interest and had no takers. 2) Another option is to consider establishing the satellite office of the Human Rights and Relations Department (HRR) as recommended in the Space Study at this location. That option is presently being discussed with Annette Moore, Director of Human Rights and Relations/Commission for Women, however no resolution has been reached. The reasoning for this action is as follows: a) A substantial number of the clients served by HRR are residents from the southern part of the County and HRR recognizes that there is a service need in the area. b) The specifications for the satellite office would closely correlate to the Franklin Street location being proposed (accessible, adequate parking, adequate space, etc). This move would not replace the Space Study recommendation that their Hillsborough location be moved to the Whiffed Building at such time expansion may be constructed. However, the Chapel Hill office would serve as their sole location during the period of time between expiration of the lease at their current location (December 1, 2003) and the Whitted expansion proposed in the Study. The Whitted expansion was proposed in the Study as a Level 3 project (development within 7-10 years).