Item:
Title
Lease Agreement with 2445 S Alston LLC for warehouse space at 2445 S. Alston Ave. for the Board of Elections essential operations and storage needs
Body
Date of BOCC Meeting: May 11, 2020
Request for Board Action:
Agenda Text
The Administration recommends approval of a lease to secure 12,744 square feet of warehouse/flex space needed to support the operation of the Durham County Board of Elections. This is a five (5) year lease, with an option to terminate after three (3) years. The Base Lease Rate is $8.48 per square foot, or $108,069.12 per year for the first year. The Base Lease Rate increases by 3% per year thereafter. The Gross Lease Rate, which includes all taxes, insurance, common area maintenance (TICAM) and all utilities is $11.48 per square foot, or $146,301.12 annually for the first year, and adjusted annually thereafter. There is a caged section of the warehouse space that is currently under lease to another tenant, but expected to become available in July, 2020. This space is 1924 square feet, contiguous to the proposed lease space, and includes a second delivery dock. This is a crucial component of the Board of Elections space plan. The Landlord has agreed to give the County first right of offer on this additional space. Since the current tenant is expected to vacate in July 2020, additional Board approval is requested now to amend this contract to include this additional space when it is available. The additional cost for this area is $22,087 for the first year, for a total gross annual lease payment of $168,388.
Durham County Board of Elections currently occupies temporary space at the Leesville Fire Station. This location is approximately 3,100 square feet. As this space was never intended to be a permanent solution to address the needs of the Board of Elections, limited improvements were made to achieve the minimum security needs of this space. With only 3,100 square feet, it is inadequate to store over 700 voting booths and 140 voting machines while allowing the appropriate floor space to test, stage, and distribute materials preceding an election event. In addition to voting equipment, the lease space will hold thousands of voted ballots, authorization documents, registration forms, and other confidential records as required by a recent federal subpoena and a retention extension policy put in place by the State Board of Elections. With each election cycle, documents will continue to accumulate, further increasing the need for adequate storage space.
Alignment with Strategic Plan: This agenda item supports Goal 5: Accountable, Efficient and Visionary Government.
Resource Persons: Derek Bowens, Director of Elections; Nancy Mitchell, Sr. Real Estate Officer; Claudia Hagar, General Manager.
County Manager’s Recommendation: The County Manager recommends that the Board approve a 5-year Lease Agreement with 2445 S Alston LLC for warehouse space at 2445 S. Alston Ave. in the amount of $146,301.12 for the first year, and to authorize the County Manager to execute the lease. The County Manager further recommends that the Board authorize the County Manager to execute an amendment to the lease to include an additional 1924 contiguous square feet when it becomes available for lease. The additional gross annual expense for this space is $22,087 for a total gross annual lease payment of $168,388.
Signature
County Manager: ____________________________