Agenda - 02-07-2008-5 - Laserfiche WebLink

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AAkac,b rnenk 5 Commissioner Gordon's Request for Clarification (distributed for 1/16/08 work session) Lease/Purchase of Hillsborough Commons for Use by Social Services and Health Department Note: Staff responses to Commissioner Gordon's questions are presented in italics Numbers correlated to document distributed by Commissioner Gordon on 1/31108. 1. Assumption: Option will attempt to address long-term space needs to year 2020, for both DSS and Health Department. • Staff response: Assuming the County takes lease and occupancy of Hillsborough Commons (HC) for DSS in 2008, and assuming the County purchases HC in 2092 and upfit for Health Department occurs within the following year 2013, HC will address space needs for Health and DSS through 2020 in the NorthlCentral part of the County. Space needs at the southern end of the County would not be met entirely by this option. 2. Assumption: DSS has adopted service model for primary service delivery location to be Hillsborough, with satellite office for critical services in Chapel Hill and Carrboro. • Staff response: As presented by the DSS Director and Chair to the DSS Board, they are prepared to follow this model. Director Coston has noted the existing service model has for several years had some units located on one side of the County or the other, so this would not be a far departure from what is currently provided. 3. Assumption: Upfit Wal-Mart: 56,328 sf x $35.50 = $2,000,000; less $600,000 included in rent =$1,400,000.. • Staff response: The upfit costs as discussed with the Board during meetings up to and including the January 16, 2008 work session utilized $35.501square foot for upfit costs, but does not include significant sustainable design elements that the Board may choose to carry out if they purchase the facility. Examples: significant changes in the facade, including windows andlor skylights, parking lot improvements. Subsequent comments by some Board members would indicate the desire to purchase the facility if the lease option were chosen, which would prompt construction of additional sustainable design options thereby raising the cost of upfit. Examples include parking lot improvements and addition of natural lighting in building. 4. Assumption: Purchase price of $14,829,000=$15,489,000 (quoted by owner)- rent credit of $660,000. • Staff response: Each month of rent is $15, 000 per month offset. The rent credit amount will decline with each month rent commencement is delayed. 5. Estimated upfit costs of Health Department in new space (Hillsborough Commons) 50,000 s.f. @ $175 per s.f. =8,750,000. • Staff response: The cost for this upfit is estimated at $1751sf. This upfit occurs in Hillsborough where there is a marked difference in the amount of