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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 19, 2024 <br /> Action Agenda <br /> Item No. 8-f <br /> SUBJECT: Renewal of the Lease for the Dickson House <br /> DEPARTMENT: Asset Management Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> 1.) Lease Amendment Alan Dorman, Assistant Director of Asset <br /> 2.) Original Lease Management Services, 919-245-2627 <br /> 3.) Resolution Steven Arndt, Director of Asset <br /> Management Services, 919-245-2658 <br /> PURPOSE: To adopt a resolution approving an amendment for a lease renewal with The Alliance <br /> for Historic Hillsborough, Inc. for the Dickson House, and to authorize the Chair to sign the lease <br /> upon final review of the County Attorney. <br /> BACKGROUND: The Dickson House encompasses a 0.79-acre parcel located at 150 E. King <br /> Street in downtown Hillsborough. This property includes the Historic Alexander Dickson House, <br /> built around 1790, and two outbuildings. Since 1999, The Alliance for Historic Hillsborough has <br /> leased the Dickson House and grounds from the County, utilizing the premises to foster <br /> community engagement and education through visitor services and programming initiatives. <br /> Originally, the lease stipulated an annual rent of $2,760. Since the original term, the lease has <br /> been extended several times, with the last term ending in December 2020. Since then, the Alliance <br /> has been on a month-to-month tenancy based on the current lease agreement. The proposed <br /> lease amendment extends the lease for an additional three years and three months, commencing <br /> on April 1, 2024, and ending on June 30, 2027. <br /> A review of the ongoing maintenance expenses was undertaken, including the costs associated <br /> with the long-term capital needs of the property. Based on this review, it was determined that an <br /> annual rate of $6,240 would be sufficient to cover both the annual maintenance and capital <br /> expenditures required for the long-term upkeep of the property. <br /> FINANCIAL IMPACT: The total rent due to the County per year would increase to $6,420, an <br /> increase of$3,660 per year over the current annual amount. The additional revenue should offset <br /> the current operational expenses associated with supporting the property and its long-term capital <br /> needs. <br />