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

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 20, 2008 Action Agenda Item No. ~}- - i/ SUBJECT: Lease Renewal: Carr Mill Mall -Dental Clinic and Public Defender's Office DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Lease Renewal INFORMATION CONTACT: Pam Jones (919) 245-2652 PURPOSE: To consider renewing a lease for space used as a Dental Clinic and Public Defender's office at Carr Mill Mall, Carrboro through June 30, 2011. BACKGROUND: The Landlord has agreed to renew this lease for an additional three-year period for $17.75 per square foot, a 2.8% rent increase plus net taxes over the life of the renewal. This lease is the County's only full-service lease, which includes all utilities, cleaning services, insurance costs as well as interior and exterior maintenance. The County began leasing space at this site for a Health Clinic in March 1979 and for an expanded dental clinic later that same year. Upon completion of the Southern Human Services Center and subsequent relocation of the Health Department clinic operations in 1998, the space was revamped to expand the dental clinic and to create separate offices for the Public Defender, who had outgrown leased space at another leased location. Recently, the Board discussed the construction of a new dental clinic at the Southern Human Services Center, with a targeted timeframe of completion contemporaneous to the expiration of this lease renewal. Further, the Board may also recall that buildings being vacated in Hillsborough as a result of the various County campus relocations included planned offices for the Public Defender. FINANCIAL IMPACT: Annual rental costs of $99,048 reflect a 2.8% increase over the 2003 renewal. Estimated taxes are assessed over and above the lease rate, bringing the anticipated annual cost to an estimated $113,000. Rent costs and taxes will be prorated between the Dental Clinic and Courts operating accounts, 52% and 48% respectively. RECOMMENDATION(S): The Manager recommends that the Board approve athree-year renewal of approximately 5,580 square feet of space used as a Dental Clinic and Public Defender's office through June 30, 2011 at the terms cited in the renewal; and authorize the Chair to sign on behalf of the Board.