Item:
Title
Approval of a Pre-Development Services Contract Amendment, for the amount of $48,000 to Development Finance Initiative (DFI), for the future Redevelopment of County Owned Property at 220 East Main St. (Former Durham County DSS Building)
Body
Date of BOCC Meeting: January 22, 2024
Request for Board Action:
Agenda Text
The Board is requested to approve a pre-development services contract amendment for the amount of $48,000 to Development Finance Initiative (DFI), for the redevelopment of county owned property at the former Durham County DSS building located at 220 East Main Street. Nearly four years ago, Durham County began evaluating options for the redevelopment of the County-owned property at 220 East Main Street known as DSS Main. The nearly 50,000 square foot building stands on 0.4 acres at the critical intersection of East Main Street and South Roxboro Street. Currently vacant, DSS Main was built in 1967 to house Durham County Social Services and to complement the adjacent historical Durham County Courthouse. The funding for this contract will come from the existing Capital Project 47302635DC148 - DSS Main St. Renovation.
The Development Finance Initiative (DFI) was engaged by Durham County in November 2020 to provide pre-development services for the site. The pre-development process involved several key components - public engagement, a parcel analysis to understand current conditions downtown, a site-specific market analysis, site planning, and a financial feasibility analysis. The project stalled for a variety of reasons including the impact of the COVID-19 pandemic on the commercial real estate market.
There is however renewed interest in redeveloping the property which, as a result of the changing real estate landscape, will require an updated market analysis. Under the proposed contractual amendment, DFI would be paid $48,000 to conduct the analysis which would include the following:
• Market analysis with assumptions that reflect present day conditions to assess the demand for development, to include an evaluation of market feasibility and demand drivers for different uses for the Project including retail, residential, office, and uses identified as County priorities through the initial community input process.
• Update of the 2021 site constraints analysis with new development programs based on current market needs and updated financial assumptions to determine what the site can actually support, given current conditions and other limitations and to test fit potential development programs for the Project.
• Update the 2021 financial feasibility analysis with assumptions that reflect present day conditions, preparing a financial model (i.e., development budget, operating cash flows, sources of capital, etc.) for the Project to determine financial feasibility for private partners and the scale of public investment, if necessary.”
Alignment with Strategic Plan: Goal 4: Environmental Stewardship and Community Prosperity - Protect natural resources and support and promote community and economic vitality for all residents of Durham County. Goal 5: Accountable, Efficient and Visionary Government - An effective organization committed to continuous innovation, exceptional customer service, transparency, and fiscal responsibility.
Resource Persons: Maurice Jones, Deputy County Manager for External Affairs and Julio Delgado, Assistant County Manager - Community Stewardship.
County Manager’s Recommendation: The County Manager recommends that the Board approve the contract amendment for DFI’s pre-development services for the County property at 220 E. Main Street.
Signature
County Manager: ____________________________