Agenda - 06-03-2008-4t - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 3, 2008 Action Agenda Item No. q- --~' SUBJECT: Lease Approval: Hillsborough Commons DEPARTMENT: Purchasing, Budget, County PUBLIC HEARING: (Y/N) No Attorney ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, 919-245-2652 Donna Coffey, 919-245-2151 Geof Gledhill/Brian Ferrell, 732-2196 PURPOSE: To consider approving a lease for 56,328 square feet of space at Hillsborough Commons Shopping Center for use by the Department of Social Services (DSS). BACKGROUND: On March 6, 2008, the County Commissioners approved a motion that directed staff and the County Attorney to negotiate and present the most favorable lease/purchase arrangement possible for the Hillsborough Commons Shopping Center, along with an appropriate funding plan and approvals by the Local Government Commission as may be needed. The terms of this lease are as follows: ® Lease Term: 10 years and three months, with options to renew up to 30 years. • Minimum Rent: ^ Months 1-3 are rent free ^ *Months 4-63: $59,363 ($712,356) (2012 option to purchase occurs in this lease term) ^ Months 64-123: $63,858 ($766,296) ^ **Months 124-183: $60,787 ($729,444) (reduction reflects amortization of landlord's contribution to upfit) ^ Months 184-243: $65,904 ($790,848) ^ Months 244-303: $71,537 ($858,444) ^ Months 304-363: $77,733 ($932,796) ® The County's proportionate share of the center is 52.26% and is the basis of Common Area Maintenance/Taxes and Insurance calculations. Costs of such are included in the base rent up to a total of $221,751, above which the County would be billed annually around March 1. • The County will provide interior maintenance, including maintenance of systems such as the HVAC, lighting and plumbing. • The County will be responsible for all utility costs, except those associated with exterior lighting, including parking lot lighting, which will be included in the Common Area Maintenance assessment. • The owner will be responsible for exterior maintenance of the building, including roofing and site maintenance. • The base lease includes $600,000 contribution by the Landlord toward upfit costs by the County. i411 other costs of upfit will be the responsibility of the County.