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5 <br /> N <br /> �. <br /> p � 1 <br /> On January 21, 2020 the Board of County Commissioners (BOCC) approved the relocation of <br /> both the Skills Development Center and Visitors Bureau from the existing Franklin Street location. <br /> In March 2020, the Skills Development Center moved its operations to the Europa Center in <br /> Chapel Hill. The BOCC has since approved locating the Skills Development Center into the 203 <br /> South Greensboro, Carrboro facility when it is completed. The Visitors Bureau has also relocated <br /> its operations to 308 West Franklin Street in Chapel Hill. For these reasons the properties to be <br /> leased are not needed for Orange County operations during the term of the Lease. <br /> FINANCIAL IMPACT: The economic development considerations for this project are contained <br /> in two agreements. The first is a lease agreement with Well Dot, Inc. that provides favorable short <br /> term lease terms to the Company with options to purchase during the course of the lease. The <br /> lease relieves the County of any ongoing maintenance or operating expenses during its term. The <br /> second is a performance agreement that would provide initial funding to upfit the space based on <br /> employment and wage targets. <br /> Lease Agreement <br /> The initial lease is for a term of ten (10)years. The lease allows for an extension for two additional <br /> five year periods with mutual consent. The company may exercise an option to purchase the <br /> facility each year on the anniversary date of the lease agreement. The purchase price will be <br /> determined according to the appraised value of the property at the time of purchase less the value <br /> of the initial deposit and rent paid up to the date of closing. <br /> According to the financial terms of the lease, Well Dot would make a non-refundable, initial deposit <br /> of $250,000 to the County. The company would then make monthly rent payments totaling <br /> $404,576.04 annually to the County for the first six years of the lease. Beginning in year seven, <br /> the rent would be adjusted to market rate based on prevailing commercial lease rates at that time. <br /> This provides an incentive for Well Dot to exercise the option to purchase on or before the seventh <br /> year of the lease. Annual rent increase of two percent (2%) would begin in year eight. Any <br /> renewal will reflect similar base rental fees and increases. <br />