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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: February 16, 2021 <br /> Action Agenda <br /> Item No. 8-d <br /> SUBJECT: Designation of 401 Valley Forge Road, Hillsborough, NC as Surplus Property <br /> DEPARTMENT: Asset Management Services <br /> (AMS) <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1) Aerial View of Property Steven Arndt, 919-245-2658 <br /> 2) 2017 Lease Modification <br /> PURPOSE: To: <br /> 1. Approve the designation of 401 Valley Forge Road, Hillsborough, NC as surplus property; <br /> 2. Approve the selection of Marcus & Millichap Real Estate Investment Services to market <br /> and solicit offers necessary to sell this property; and <br /> 3. Authorize the County Manager to sign a contract with Marcus & Millichap Real Estate <br /> Investment Services. <br /> BACKGROUND: The County owns a 12.68 acre property located at 401 Valley Forge Road in <br /> Hillsborough. The property is zoned general commercial and contains a 105,000 square foot <br /> warehouse and distribution facility. The property was acquired in 1997 as the result of the <br /> retirement of revenue bonds owned by the Orange County Industrial Development Corporation. <br /> The intent of the purchase was to foster economic development and job creation. Attachment 1 <br /> provides an aerial view of the property. <br /> The property and buildings were subsequently leased to Builders FirstSource, Inc., a Fortune 500 <br /> company that is a manufacturer and supplier of building materials. The company is headquartered <br /> in Dallas, Texas and is the largest supplier of building products, prefabricated components and <br /> value-added services in the US. <br /> Builders FirstSource, Inc. has continuously operated from this location since 1997. A lease <br /> modification was approved by the Board of County Commissioners in 2017, providing a ten year <br /> lease extension with two, five year renewal options for the County. The lease has an expiration <br /> date of September 30, 2027. Exercising the two renewal options would extend the lease until <br /> September 30, 2037. The rent for the current ten year lease period is $24,500 monthly, $294,000 <br /> annually, with a full term value of $2,940,000. A copy of the lease modification is provided at <br /> Attachment 2. Approximately 90 people are employed at the facility. <br />