Agenda - 05-20-2008-4s - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 20, 2008 Action Agenda Item No. ~{' ~' S SUBJECT• Valley Forge Road Property Lease Rate for Builder's First Source DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Original Lease Pam Jones (919) 245-2652 April 1, 2008 BOCC Meeting Abstract Aerial Photo Showing Buildings PURPOSE: To provide supplemental information to the Board regarding the recommended lease rate for property owned by the County at 401 Valley Forge Road, Hillsborough and leased to Builders First Source. BACKGROUND: Staff provided information to the Board on April 1, 2008 recommending a lease rate of $2.50/square foot for the Builders First Source renewal through September 30, 2012. The following supplemental information is provided in response to a request for additional information: Comparables used to calculate renewal rate Comparables for the lease rate were pulled from several sources, including local realtors, on- line comparisons of properties in the area and information provided by the County's Economic Development staff. Considered in the comparisons of the various properties were factors such as: size of parcel, size of buildings, condition and age of buildings, location and divisiori of responsibilities for Lessee and Lessor. Lease rates for similar type space that was available in the Triangle area at the time comparable data was being sought ran from $1.25/square foot to $3.84/square foot. Although there is no exact match for the facility being leased from the County, in general, the lower range square footage was for larger facilities, with those demanding higher per square footage costs being smaller, newer and facilities in which the Landlord participated at a higher level than does the County in the maintenance of the building. As a reminder, the Lessee is responsible for all maintenance at the Valley Forge facility. In addition, the Lessee is responsible for taxes-in-lieu, which equal the total taxes that would be paid on the property if it were privately owned. The 2007 taxes-in-lieu amount was $47,313. Acreage as it relates to the lease rate The lease rate acknowledges the acreage, but does not separately assess a rate for the land. This is a common practice for valuation of leases.