Agenda - 03-19-1996 - IX-A - Laserfiche WebLink

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2 All agencies, except DTCC, can contribute to the funding of the building through lease amounts, federal reimbursements and grants. DTCC can use state funds to hire instructors and provide instructional support. In addition, funding from two grant initiatives can contribute to the Skill Development Center. (1) The Private Industry Council (PIC) has received a $25,000 planning grant from the State Commission on Workforce Preparedness to develop an implementation grant proposal for a one-stop employment information center. The implementation grant will be submitted to the State in the Fall 1996 with grant award in January 1997. The PIC anticipates requesting $120,000 for the three county service delivery area of Orange, Alamance and Randolph. Two(2)Orange County Schools with the assistance of the County submitted on February 19, 1996 to the State Commission on Workforce Preparedness a county-wide Job Ready School-To-Work grant. Grant award is scheduled for early April 1996 and the amount requested for the County is $150,000. Funds will be used to develop a comprehensive program that will include academics, vocational education, employability training, life- coping skills, and other activities directed toward students and youth. A final lease, which incorporates the comments made by the Board during their February 6, 1996 meeting has been prepared and negotiated with the Landlord for the above mentioned property. The two primary modifications from the lease presented on February 5 include additional language to ensure that the Landlord maintains the property in a manner satisfactory to the County and the addition of a section which addresses the County's option to purchase the property. As a reminder, the lease terms negotiated are as follows: Amount of square footage included in lease: 13,232 Lease rate: $7.50/s.f. (includes all taxes) Total lease annual lease obligation: $993240 Term of lease: 5 years; 5 year renewals Escalation term: CPI Utilities: County responsibility Cleaning: County responsibility Maintenance: County provides routine maintenance for walls & ceilings (painting), floor coverings, normal plumbing repairs, minor electrical repairs. Landlord will provide all maintenance to HVAC, roof, exterior of building, sidewalks, parking lot and any other repairs which exceed the ceiling amount established as County responsibility. Upfit: The Landlord has agreed to complete the following work: Construct restrooms; and Replace HVAC equipment. An option to purchase clause has been added to the lease as well. During the February 5, 1996 Board meeting, the Board authorized Staff to pursue other options which might reduce the overall County cost. One such option appears to be outright acquisition of the facility. In order to pursue the negotiation of an offer to purchase the property, we request at the end of the regular meeting that the Board hold these discussions in closed session. RECOMNIIENDATION: The Manager recommends that the Board receive the Proposed Programming Plans as information and adjourn to closed session at the end of the regular meeting for the purposes of providing direction regarding the County's negotiating position with respect to the price and other terms of contract to acquire the property.