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ORANGE.000NTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 20, 2007 <br />Action Agenda <br />Item No.J?- j <br />SUBJECT: Gateway Building Unit 200 and Unit 300 T <br />DEPARTMENT: Purchasing PUBIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Pam Jones, 919-245-2652 <br />Lease with Option to Purchase Geof Gledhill, 919-732-2196 <br />Condominium Declaration (Under <br />Separate Cover) <br />PURPOSE: To approve (1) a lease with option to purchase for approximately 22,846 square <br />feet of space in Unit 200 and Unit 300 of the Gateway Center Condominium, Hillsborough; and <br />(2) to approve the Condominium Declaration for the Gateway Center Condominium. <br />BACKGROUND: In November 2006 the Board approved the downtown Hillsborough county <br />"campus" project, which includes an office building and library building, to be owned by the. <br />County. The "campus" also includes condominium units (Unit 200 and Unit 300) comprising the <br />second and third floors of the Gateway Center Condominium. The County will lease Unit 200 <br />and Unit 300 for one year plus one day beginning on the "commencement date." The <br />commencement date is defined in the lease as the date as of which all of the following occur: (1) <br />the building is substantially complete, (2) the Premises Upfit is substantially complete (to be <br />completed by the Lessor per Premises Upfit plans and specifications approved by the County <br />and the Lessor, (3) the Plat and Plans of the Gateway Center Condominium and the <br />Condominium Declaration have been recorded in the office of the Orange County Register of <br />Deeds, (4) the Lessor has obtained the issuance of a Certificate of Occupancy for Condominium <br />Unit 200 and Condominium Unit 300, and (5) the Lessor has delivered possession of <br />Condominium Unit 200 and Condominium Unit 300 to the County. A copy of the lease with <br />option to purchase is attached. <br />Other substantive terms of the lease with option to purchase are as follows: <br />• Current construction schedules indicate completion should be around November 2007. <br />• Monthly lease payments equal $47,120 ($565,224 annual); the County is responsible <br />during the lease term for all utilities and the repair and maintenance of the leased <br />condominium units. <br />• Lessor is responsible for providing 45 parking spaces during that portion of the lease <br />period that precedes completion of the parking deck. During construction some of the <br />parking spaces may be provided off-site at a conveniently located parking area. <br />• Upon completion of the parking deck (April 2008 estimated), 89 spaces will be provided <br />on site, in the parking deck or otherwise on the premises. The County will be assessed <br />an estimated $65 per parking deck space per year for parking deck maintenance.