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Commissioner Gordon's Request for Clarification (distributed for 1116/08 work session) <br />Lease/Purchase of Hillsborough Commons for Use by Social Services and <br />Health Department <br />Note: Staff responses to Commissioner Gordon's questions are presented in italics <br />Numbers correlated to document distributed by Commissioner Gordon on 1/31108. <br />1. Assumption: Option will attempt to address long-term space needs to year <br />2020, for both DSS and Health Department. <br />+ Staff response: Assuming the County takes lease and occupancy of <br />Hillsborough Commons (HC) for DSS in 2008, and assuming the County <br />purchases HC in 2092 and upfit for Health Department occurs within the <br />following year 2093, HC will address space needs for Health and DSS <br />through 2020 in the North/Central part of the County. Space needs at the <br />southern end of the County would not be met entirely by this option. <br />2. Assumption: DSS has adopted service model for primary service delivery <br />location to be Hillsborough, with satellite office for critical services in Chapel <br />Hill and Carrboro. <br />• Staff response: As presented by the DSS Director and Chair to the DSS <br />Board, they are prepared to follow this model. Director Coston has noted <br />the existing service model has for several years had some units located <br />on one side of the County or the other, so this would not be a far <br />departure from what is currently provided. <br />3. Assumption: Upfit Wal-Mart: 56,328 sf x $35.50 = $2,000,000; less $600,000 <br />included in rent =$1,400,000. <br />• Staff response: The upfit costs as discussed with the Board during <br />meetings up to and including the January 16, 2008 work session utilized <br />$35.501square foot for upfit costs, but does not include significant <br />sustainable design elements that the Board may choose to carry out if <br />they purchase the facility. Examples: significant changes in the fagade, <br />including windows andlor skylights, parking lot improvements. <br />Subsequent comments by some Board members would indicate the desire <br />to purchase the facility if the lease option were chosen, which would <br />prompt construction of additional sustainable design options thereby <br />raising the cost of upfit. Examples include parking lot improvements and <br />addition of natural lighting in building. <br />4. Assumption: Purchase price of $14,829,000=$15,489,000 (quoted by owner)- <br />rent credit of $660,000. <br />+ Staff response: Each month of rent is $15, 000 per month offset. The rent <br />credit amount will decline with each month rent commencement is <br />delayed. <br />5. Estimated upfit costs of Health Department in new space (Hillsborough <br />Commons) 50,000 s.f. @ $175 per s.f. =8,750,000. <br />• Staff response: The cost for this upfit is estimated at $1757sf. This upfit <br />occurs in Hillsborough where there is a marked difference in the amount of