Agenda - 01-21-20 8-l - Lease of 308 W. Franklin Street and Suite 101 at the Europa Center, and Approval of Budget Amendment #4-C

Browse Search

2 of access for all abilities as well as architectural elements that create a warm welcome for all. The lease will cost $137,005 (excludes a two month rent reduction provided by landlord) during the first 12-month period and has a 3% escalation each year after. The landlord has agreed to provide a reduction in rent equal to the first two months' rent, $20,828, to be used for renovations. The total cost of renovations is $242,416 and will include significant updates to the interior and exterior of the facility. The Department of Social Services (DSS) has identified a new location within the Europa Center (100 Europa Drive) in Chapel Hill to house the Skills Development Center. Suite 101 within the Europa Center is a 10,650 square foot space that provides ample parking and a modern look that will provide a good space for working with local businesses. The lease is a 3-year term, with options for two additional one-year terms. The rent for the first 12 months will be $222,915, with a 3% escalation for each year thereafter. As the space is currently designed for offices, some renovations will be necessary to prepare the space for classrooms. The budget for the renovations is $254,953. Guardian ad Litem, which is part of the North Carolina Administrative Office of the Courts, may be re-located to the Europa Center or to another space. This decision will be based on input from the staff of Guardian ad Litem and DSS once the selected architectural firm has provided different options for design of the space. FINANCIAL IMPACT: The FY 2019-20 lease cost of $20,944 and renovations of $242,416 for 308 West Franklin Street will be funded through the Visitors Bureau Fund, outside of the General Fund. This Budget Amendment #4-C provides for a fund balance appropriation of $184,036 from the Visitors Bureau Fund to cover the lease cost and a portion of the renovations for FY 2019-20 at 308 West Franklin Street. The remaining portion of $79,324 needed for renovations will be debt financed and will be included in the upcoming Spring 2020 financing package. The Visitors Bureau will budget for the associated debt service beginning in FY 2020- 21. The reason for the debt financing amount is to adhere to the Visitors Bureau's fund balance policy of 15% policy of FY2019 expenditures, which equates to $311,735. The FY 2019-20 lease cost of $74,305 and renovations of $254,953 for the Europa Center will be funded through the General Fund. This Budget Amendment #4-C also provides for a fund balance appropriation of $74,305 from the General Fund for the lease cost for FY 2019-20 at the Europa Center. The renovations cost of $254,953 for the Europa Center will be debt financed, and will be included in the upcoming Spring 2020 financing package. It is anticipated that the lease and renovations costs associated directly with the Department of Social Services functions, currently estimated at 20% of the space, will receive 50% revenue reimbursement. Funds of $150,642 will be budgeted in the Visitors Bureau Fund for the lease cost in FY 2020- 21, and funds of $225,144 will be budgeted in the General Fund for the lease cost in FY 2020- 21, with the lease funds associated directly with Social Services functions receiving 50% revenue reimbursement. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item.