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7 <br /> Lease Terms• <br /> > Lease to begin on approx. Oct. 1, 1997, subject to the Georgia-Pacific Corp. giving the <br /> County formal notice of their intent=to renew their current lease agreement. <br /> �> 10-year initial lease term, with 2 subsequent 5-yr. renewal options. <br /> > Annual lease payments to Orange County of$105,000. <br /> > Lessee is responsible for all applicable taxes, insurance, maintenance, utilities,janitorial, and <br /> other related costs. <br /> > Lease rate increase to be negotiated for any terms after the initial 10-year term. <br /> > Lease payment offsets: available for documented, permanent leaseholder improvements to the <br /> facility & grounds; up to $150,000 total over the first 5 years, with not more than <br /> $50,000 offset in any one year. <br /> > Lessee gains first right of refusal regarding the sale of the building& property. <br /> BS&L's Economic/Community Impact: <br /> * Approx. 60-70 employees hired by BS&L during the first year of occupancy. Approx. <br /> 90-100 employees at the facility within 2-3 years of occupancy. <br /> * Wages rates are projected to average $12.80/hour for all employees; $9.13/hour when <br /> salaried managerial/supervisor positions are excluded. <br /> * Total corporate investment of approx. $8.6 million locally within the first 3 years. This <br /> includes $2.14 million in equipment and improvements; $3 million in inventory; and <br /> $3.5 million in accounts receivable. <br /> * Local (1%)sales tax revenue of approximately $220,000 projected for first year in <br /> Hillsborough. Sales tax revenue projected to increase to $340,000 by second year, <br /> and $400,000 by third year. <br /> The Board of County Commissioners' action on April 1 means that the County will not be <br /> entertaining other offers for the Georgia-Pacific building, unless for some reason we are not able <br /> to complete an agreement with BS&L. <br /> We hope that this letter is substantially in accord with your understanding of the status of this <br /> proposed lease agreement. If so, we would greatly appreciate a written notice of confirmation. <br /> Thank you again for your assistance and cooperation in this process. <br /> Sincerely, <br /> Ted Abernathy Pam Jones <br /> EDC Executive Director Director of Purchasing <br /> c: Jerry Thompson, VP-Operations, BS&L, 13234 Airpark Dr., I�lkwood, VA 22718 <br />