Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
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Request approval of a Resolution approving a Fourth Amendment to Master Lease Agreement for Facilities between Fulton County (Tenant), and KDI ATLANTA MALL, LLC (Landlord), for the purpose of expanding the leased space and extending the lease term for the operations of the Fulton County Tax Commissioner at 2841 Greenbriar Parkway, Atlanta; authorizing the Chairman to execute a Fourth Amendment to Master Lease Agreement for Facilities and related documents; authorizing the County Attorney to approve a Fourth Amendment to Master Lease Agreement for Facilities and related documents as to form and to make any modifications thereto prior to execution; and for other purposes. (APPROVED UPON ADOPTION OF THE CONSENT AGENDA)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
Pursuant to O.C.G.A. §§ 36-10-1 and 36-60-12 and Fulton County Code § 102-394, the County is authorized to enter into multiyear lease contracts for real property and such contracts shall be in writing and entered on its minutes.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
All Districts ☒
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District 2 ☐
District 3 ☐
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District 6 ☐
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Summary & Background (First sentence includes Agency recommendation. Provide an executive summary of the action that gives an overview of the relevant details for the item.)
Scope of Work: The Office of the Fulton County Tax Commissioner and the Department of Real Estate Asset Management have negotiated mutually acceptable terms with KDI ATLANTA MALL, LLC to expand the leased space and extend the lease term for the operations of the Fulton County Tax Commissioners at 2841 Greenbriar Parkway, Atlanta, Georgia. Approval of the Fulton County Board of Commissioners is being requested for a Fourth Amendment to Master Lease Agreement for Facilities with KDI ATLANTA MALL, LLC for the purpose of expanding the current leased space from 4,315 square feet to 10,740 square feet and extending the lease term for ten (10) additional years. The Initial Lease Term shall be from the “Relocation Date”, defined in the Fourth Amendment to Master Lease Agreement for Facilities as “the earlier of (i) the date Tenant opens for business to the general public within the Relocation Premises, or (ii) the date which is sixty (60) days after the Relocation Delivery Date provided that the certificate of occupancy has been achieved” with automatic renewal options for ten (10) one (1) year terms from January 1, 2022 through December 31, 2031, unless earlier terminated. During the initial lease term and the permitted renewal terms, the monthly rental rate shall be
|
LEASE TERM YEARS |
ANNUAL MINIMUM RENT |
MONTHLY MINIMUM RENT |
|
1- 5 6- 10 |
$ 209,430.00 $ 230,373.00 |
$17,452.50 $19,197.75 |
The Lease includes an early termination fee if the County terminates the Lease during any of the first five (5) years of the Extension Terms based on the Landlord’s unamortized construction expenses.
Community Impact: The Tax Commissioner will remain at its current location and improve customer efficiency levels within the Greenbriar Mall location, therefore, the approval of the lease extension will not negatively impact property owners that utilized this location for the payment of their ad valorem taxes.
Department Recommendation: Project Implications: The Fourth Amendment to Master Lease Agreement for Facilities is required to formalize the rental terms under which the Fulton County Tax Commissioner can remain at the current leased location while KDI ATLANTA MALL, LLC, the landlord completes the required construction necessary to relocate and expand the leased space for the operations of the Fulton County Tax Commissioners at Greenbriar Mall.
Community Issues/Concerns: None
Department Issues/Concerns: None
History of BOC Agenda Item: The original full service lease agreement was approved as Agenda Item #05-1056 at the Board of Commissioners’ Meeting of September 21, 2005. On December 21, 2016, the Board of Commissioners approved the First Amendment to the original lease, extending the term through December 31, 2017, as Agenda Item #16-1164. The Second Amendment to Master Lease Agreement for Facilities was approved December 19, 2018 as Agenda Item 18-0988, The Third Amendment to Master Lease Agreement for Facilities was approved at the November 4, 2020 as Agenda Item 20-0786.