Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: November 6, 2008 <br />Action Age~a <br />Item No. ~_ <br />SUBJECT: Lease Renewal: Sawyer Buildin <br />DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Pam Jones, (919) 245-2652 <br />Lease <br />Letter from County Attorney (Under <br />Separate Cover) <br />PURPOSE: To consider approving afour-year lease renewal for the Sawyer Building to be <br />used as offices for Child Support Enforcement through December 1, 2012 in the amount of <br />$49,650 per year for each of the first two years of renewal and $51,801.50 for years three and <br />four of the renewal. <br />BACKGROUND: The County first leased the Sawyer Building in 1987. The building is <br />occupied by the Child Support Enforcement Department.. While the County has found it fiscally <br />advantageous to own property versus maintaining long-term leases, the 66% State <br />reimbursement for the lease amount minimizes the County's expenditure for providing the <br />space. That said, however, this lease is structured in a manner that will allow the office to be <br />relocated to the Hillsborough Commons facility in 2012 should the County choose to exercise its <br />option to purchase and further determine Hillsborough Commons is the better location for the <br />Child Support operations. <br />The renewal terms offered by the Landlord are summarized as follows: <br />• The renewal period will be December 1, 2008 through November 30, 2012. <br />• The gross annual rent will be $49,650 through November 30, 2010; and $50,801.50 per year <br />December 1, 2010 through November 30, 2012. The County's share would be <br />approximately $16,881/$17,273 per year. <br />• This equates to approximately $15.03/$15.38 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 roof. <br />• Six parking spaces are provided for exclusive use by the County. <br />In the interest of full disclosure, the County Attorney has provided the attached letter that <br />declares his interest in the ownership of the leased premises. <br />