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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 19, 2002 <br />Action Agenda <br />Item No. ~_ <br />SUBJECT• -Lease Renewal -Sawyer Building, 110 N. Churton Street <br />DEPARTMENT: Purchasing and Central Services PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />INFORMATION CONTACT: <br />Pam Jones, (919) 245-2652 <br />Lease <br />TELEPHONE N <br />Hillsborough <br />Chapel Hill <br />Durham <br />Mebane <br />UMBERS: <br />732-8181 <br />968-4501 <br />688-7331 <br />336-227-2031 <br />PURPOSE: To consider renewing a lease for property at 110 N. Churton Street, Hillsborough, <br />currently used as office for the Child Support Enforcement Department. <br />BACKGROUND: The County first leased this building in 1987. The building is now occupied <br />completely by the Child Support Enforcement Department. While the County has found it <br />fiscally advantageous to own property vs. maintaining long-term leases, this represents the sole <br />exception where leasing is more prudent. As the Board may recall, the Space Study Task <br />Force Report proposed continued use of this building for Child Support since the cost of the <br />lease is eligible for approximately 66% reimbursement by the State as a departmental operating <br />expense. The net cost of the lease continues to be significantly less than the cost of owning <br />and maintaining a separate building. <br />The renewal terms offered by the Landlord are summarized as follows: <br />• The renewal period will be December 1, 2002 through November 30, 2008. <br />• The gross annual rent will be $45,500 through November 30, 2005; and $47,300 per year <br />December 1, 2005 through November 30, 2008. The County's share would be <br />approximately $15,000/$15,600 per year. <br />• This equates to approximately $13.75/$14.29 per square foot. <br />• The County provides utilities and interior maintenance. <br />• The County provides janitorial services. <br />• The Landlord provides maintenance to all exterior items including, but not limited, to the <br />roof. <br />Six parking spaces are provided for exclusive use by the County. <br />FINANCIAL IMPACT: Funds to support the estimated $15,000 lease cost are included in the <br />2002-2003 Child Support Enforcement operating budget. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the renewal and <br />authorize the Chair to sign the Lease and the Memorandum of Lease, which will be recorded <br />with the Register of Deeds. <br />