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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 4, 2021 <br /> Action Agenda <br /> Item No. 6-a <br /> SUBJECT: Authorization to Proceed with New Orange County Arts Commission Office and <br /> Arts Space and Associated Lease Agreement with Hedgehog Holdings <br /> DEPARTMENT: Orange County Arts Commission <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Eno River Arts Mill Project Outline Katie Murray, 919-245-2335 <br /> PURPOSE: To receive information on the proposed Eno Arts Mill Project and approve the Orange <br /> County Arts Commission (OCAC) and staff to move forward by authorizing the Manager to sign a <br /> lease agreement with Hedgehog Holdings for Suite 17 at the Eno River Mill in Hillsborough. <br /> BACKGROUND: To address the identified needs of the arts community, the OCAC received <br /> BOCC approval in October 2019 to enter into a lease agreement with Hedgehog Holdings, a <br /> family-run, historic preservation development firm based in Raleigh and owner of the Eno River <br /> Mill in Hillsborough. The partnership allowed the OCAC to offer eleven studio workspaces for local <br /> artists. The spaces opened in February 2020, and proved successful and profitable in the first <br /> year, exceeding projections even despite the pandemic. <br /> In July 2020, the OCAC entered into "Phase 2" of the original plan and began renting Suite 29, a <br /> large, open space for classes, exhibits, and events. Suite 29 is connected to the current OCAC <br /> office. Due to the inability to host gatherings, the space was instead rented by three large-format <br /> artists. In early 2021, two front-facing office suites (17 A&B) very close to the artist studios became <br /> available. At the same time, owners of the Eno Mill were approached by a tenant interested in <br /> renting Suite 29 and the OCAC office. <br /> Hedgehog Holdings has offered 17 A&B to the OCAC at the extremely generous rate of $1 per <br /> square foot. The space, which is just under 7,000 square feet and ideally situated in an easily <br /> accessible location, will allow the OCAC to expand its offerings to the community in ways that will <br /> fundamentally change the arts landscape of Orange County and provide real solutions to the <br /> identified challenges facing the arts. Suite 17 will offer class space, exhibits and event space, a <br /> welcoming office for the OCAC, and affordably-priced offices for local cultural organizations. <br /> FINANCIAL IMPACT: Conservative budget projections predict Suite 17 will be self-sustaining <br /> and profitable, continuing to support additional accessible programs and space. An initial upfit <br /> expense of $70,000 will be needed to install additional doors and a small kitchenette. The OCAC <br /> has incorporated this cost, as well six-months operating expense, into a larger proposal <br /> requesting allocation of American Rescue Plan funding to the arts industry. Hedgehog Holdings <br /> has offered to pay for any upfit expense in excess of $70,000 as well as the expense of paint, <br />