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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: October 3, 2023 <br /> Action Agenda <br /> Item No. 8-g <br /> SUBJECT: Five-Year Lease Extension for Hillsborough Commons <br /> DEPARTMENT: Asset Management Services; <br /> Social Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1) Five-Year Lease Extension Alan Dorman, Assistant Director of Asset <br /> Management Services, 919-245-2627 <br /> Steven Arndt, Director of Asset <br /> Management Services, 919-245-2628 <br /> PURPOSE: To approve a five-year extension of the lease of Hillsborough Commons, a 66,444 <br /> square foot building that houses the Department of Social Services. <br /> BACKGROUND: The County began leasing Hillsborough Commons in 2008 for the Department <br /> of Social Services (DSS). The original lease allowed for several options to extend the lease, with <br /> the first option approved in September 2019 and expiring on January 21, 2024. The current base <br /> lease rate is $71,705 per month, or $860,000 per year. If the second option period is approved, <br /> the lease will extend through January 21, 2029, with a base rate of$77,740 per month or$932,880 <br /> per year. <br /> FINANCIAL IMPACT: Funds for extending the lease for the balance of FY 2023-24 were already <br /> approved as part of the FY 2023-24 budget, so no additional funding would be necessary. <br /> Currently, DSS can receive at least 50% administrative reimbursement on rental costs and other <br /> related operating costs such as utilities. <br /> SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goals associated with <br /> this item. <br /> ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal <br /> impacts associated with this item. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve the five-year lease <br /> extension for Hillsborough Commons (Attachment 1) and authorize the Chair to sign upon final <br /> review by the County Attorney. <br />