TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
FROM: Kecia N. Parker, NCCP, Real Estate Manager
DATE: June 10, 2024
RE:
Title
Resolution Authorizing a Lease for the Cross Creek District Office of the Police Department
end
COUNCIL DISTRICT(S):
Council District(s)
7
b
Relationship To Strategic Plan:
Goal I - Safe and Secure Community
Executive Summary:
The City has had a lease agreement for the property located at 6147 Raeford Road for the Cross Creek District Office of the Police Department since July 1, 2014. The current lease is for approximately 4,175 square feet of office space, a 1,200 square feet outbuilding and a parking area. The current lease expires on June 30, 2024 and the City would like to continue leasing the space and enter into a new five-year agreement.
Background:
The Cross Creek District Office has leased a portion of the property located at 6147 Raeford Road since July 1, 2014. The current term of that lease expires June 30, 2024 and the City would like to remain in the space for another five years. The new lease includes a five-year term beginning on July 1, 2024 for approximately 4,175 square feet of office space and a 1,200 square feet outbuilding. The rent will be $6,904.78 monthly for the first year with a 2% escalation annually. The taxes and insurance portions of the rent will have a 20% increase annually. As a part of the negotiations the City requested a list of repairs and alterations be made to the building. The landlord agreed and has made all the repairs except for the interior painting as this repair was costly. The landlord has received the quote and agreed to the painting once the City signs the new lease.
Issues/Analysis:
None
Budget Impact:
The annual lease cost of $82,857.36 along with operational costs and staff costs has been included in the budget.
Options:
• Approve the lease agreement and authorize the City Manager to execute said lease on behalf of the City.
• Do not approve the lease agreement.
Recommended Action:
Staff recommends City Council approve the lease agreement and allow the City Manager to execute the document on behalf of the City.
Attachments:
Lease
Resolution