Agenda - 03-06-2008-6c - Laserfiche WebLink

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3 Option D (added at February 7, 2008 worksession): • Lease 56,000 square feet at Hillsborough Commons for a period of ten years. Current lease costs are based on a lease period of 10 years to allow amortization of some upfit costs by the Landlord. While a lease period of less than 10 years may be possible it has not been negotiated as such and the lease rate would be increased to reflect the shorter lease period. o As a condition of the lease, the Landlord would likely require the County to return the building to retail status at expiration. Creating the natural light in the facility would entail structural work (windows, for example), which would be expensive to replace to the original condition. • Renovate approximately 30,000 square feet of the 59,000 square feet in Whiffed Building for Health Department operations; • Add approximately 25,000 square feet at SHSC in order to allow the following allocation of space: o DSS retains existing space at SHSC (10,000 sf) o SHSC addition for Health (about 25,000 sf) o Includes 10,000 S.F. still retained by DSS plus the 8,000 space deficit citied by Health making a total of 18,000 additional S. F. for Health. • No space for DSS after the 10-year lease period (2018) is specified in this option. Presumably the lease would be renewed or new space would be constructed. If the Board opted to renew the lease, the Landlord has previously quoted a cost of $729,456 ($364,728 w/State reimbursement) per year for years 11-15. If the. Board opted to construct a new 50,000 square foot facility to replace the leased premises, the cost estimates would be commensurate with the 2017 development cost cited in Option C. Conclusion Of the options identified, Option A appears to provide the best overall solution to the space needs for the long term. It will provide approximately 108,000 square feet for human services program space and an additional 10 acres of land in a good location for human services delivery. DSS and Health Department needs in Central/Northern Orange, as well that of other human services departments can be met for the long-term at this facility. Option A will most quickly meet the needs of DSS, who continue to violate State mandated facility requirements. Further, the Board has previously stated the strong desire to avoid leasing property for an extended period of time where possible. Option A requires the County to lease property for the shortest period of time, while still providing adequate program space for its departments. The recommendation further requests approval to move forward with an architect (not yet selected) who can, in collaboration with DSS staff, develop a program and subsequent , construction documents to deliver the space as expediently as possible. Staff will analyze the merits of using the Construction-Manager-at-Risk method of contracting to deliver the space and provide the appropriate approval requests to the Board as quickly as practicable. As demonstrated by the attached letters, both the DSS and Health Boards are in support of Hillsborough Commons as service locations for their respective departments. Asa #inal.observation, Option A will allow the long term space needs in southern Orange to be met at the SHSC through a smaller addition to the building (15,000 s.f. vs. 25,000 s.f. as proposed in the Space Needs Study).