Agenda - 10-21-2003-8e - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 21, 2003 Action Agenda Item No. ~ - ~ SUBJECT: Lease Renewal: Driver License Office at Carrboro Plaza DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): Memorandum of Understanding with Division of Motor Vehicles Lease Renewal with Carrboro Plaza Owners INFORMATION CONTACT: Pam Jones, (919) 245-2652 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving a lease renewal for space used by the NC Division of Motor Vehicles (DMV) for a Driver License office at Carrboro Plaza. BACKGROUND: The State of North Carolina has previously indicated that it provides only one Driver License office per County. Orange County has provided space resources for a second office in the southern portion of the County for many years. The office has been located at Carrboro Plaza since 1986 through a lease paid for by the County. This action will extend the lease for an additional five years through January 31, 2009. The shopping center has continually been improved over the past several years and now experiences close to full occupancy. The square footage rate negotiated for this renewal is $13.86 per square foot, with a 2.5% annual increase for years two through five. In addition, the County is billed for taxes, insurance and common area maintenance (TICAM) charges of approximately $2.50 per square foot. The TICAM charges are adjusted annually according to the amount paid out on such things as taxes, insurance, grounds care, etc. The Carrboro Driver License office continues to experience significant growth in the number of citizens served. Further, it is staffs understanding that DMV has received funding for an additional position to help accommodate this volume. However, the existing 1,200 square foot area will not adequately support the additional staff. The Leasing Agent has offered to lease a 1,600 square foot space toward the east end of the Center (Unit GG) at the $13.86/sf rate. The State has indicated that if the County will execute the lease for the 1,600 square foot space, it will pickup all costs associated with leasing the additional 400 square feet (rent, CAM's, up-fit, etc.). This agreement is reflected in the attached Memorandum of Understanding that DMV is required to execute prior to the lease with the Carrboro Plaza owners being executed by the