Agenda - 05-01-2001-8g - Laserfiche WebLink

Browse Search

ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 1, 2001 Action Age Item No. SUBJECT: Lease Extension for Senior Center Space at ArtsCenter ~ __ DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Pam Jones (919) 245-2652 Lease Renewal Agreement TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 33fi-227-2031 PURPOSE: To consider extending the lease through December 31, 2001 for space at the ArtsCenter used as a Senior Center by the Department on Aging. BACKGROUND: The County has leased space for a senior center. at the ArtsCenter since 1987. Discussions between the Department on Aging and the Town of Carrboro staffs indicated a potential liaison between the two functions in the new Carrboro Century Center. However, the delayed completion and the subsequent desire by Carrboro to operate the facility without commitments to specific organizations for a year after opening leads the Department on Aging to remain at the ArtsCenter until December 31, 2001. The ArtsCenter staff have expressed a desire to receive increased revenue for the leased space, citing increased janitorial services necessitated by the Senior Center as well as the taxes which are prompted by the presence of the Senior Center as justification for the increased costs. The ArtsCenter spends approximately $100 per week for increased janitorial services. Tax law prohibits tax exempt status for the portion of a facility upon which non-profit organizations receive rental income. Taxes are therefore assessed on the portion of the facility utilized by the County. The tax obligation this year is approximately $1,568. A base rent of $1,890 per month is recommended for the nine-month period from April 1, 2001 through December 31, 2001. The base rent would cover the increased cast of janitorial services, however the taxes would be reimbursed separately. The estimated $10.68 per square foot cost yielded by this action is well within market expectations for rental space in the area.