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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 20, 2018 <br />Action Agenda <br />Item No. 8 -e <br />SUBJECT: Lease Renewal Option: Department of Social Services - Hillsborough <br />Commons Campus <br />DEPARTMENT: Department of Social Services; <br />Asset Management Services <br />ATTACHMENT(S): <br />1) November 12, 2015 Lease <br />Modification <br />2) Lease Renewal Option <br />INFORMATION CONTACT: <br />Nancy Coston, 919 - 245 -2800 <br />Jeff Thompson, 919 - 245 -2658 <br />1 <br />PURPOSE: To approve a five (5) year lease renewal option of the Department of Social Services <br />spaces within Hillsborough Commons for a term beginning January 22, 2019 through January 21, <br />2024 and authorize the Chair to sign on behalf of the Board of Orange County Commissioners. <br />BACKGROUND: On September, 15, 2015, the Board of Orange County Commissioners <br />approved a lease modification (Attachment 1) for the Department of Social Services spaces <br />within the Hillsborough Commons Center at 113 Mayo Street, Hillsborough. This modification <br />allowed the expansion of the original space leased in October, 2008 with adjacent Cafe 113 and <br />OrangeWorks space. <br />The 2015 lease modification carried forward the original lease terms that included four (4) five - <br />year renewal terms for the overall space totaling 66,444 square feet and associated parking <br />areas. The current lease is scheduled to expire on January 21, 2019 unless renewed by Orange <br />County. <br />The proposed Lease Renewal Option (Attachment 2) would confirm the acceptance of the first <br />renewal option that would extend the Lease from January 22, 2019 through January 21, 2024. <br />FINANCIAL IMPACT: The current lease rate is $74,480 per month, or $893,768 annually. The <br />renewal lease rate will be $71,605 monthly, or $860,460 annually. Currently, DSS is able to <br />receive at least 50% administrative reimbursement on rental costs and other related operating <br />costs such as utilities. The funds needed for these costs are already budgeted in Social Services <br />line items for Fiscal Year 2018 -2019 and will be included future operating budgets. <br />SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to <br />this item: <br />• GOAL: ENSURE ECONOMIC SELF - SUFFICIENCY <br />