Department
Real Estate and Asset Management
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval of a Resolution of a Lease Agreement between Fulton County, Georgia (tenant) and PDA Atlanta LPIV, LLC, a Delaware limited liability company (Landlord) for the purpose of leasing warehouse space to consolidate all Fulton County warehouse operations into a single warehouse facility that is under construction on state route 92 (Campbellton Fairburn Road), Union City, Fulton County, Georgia; authorizing the Chairman to execute a Lease Agreement and related documents; authorizing the County Attorney to approve a Lease Agreement and related documents as to form and to make any modifications thereto prior to execution; and for other purposes. Subject to the provisions of O.C.G.A. § 36-60-13(a), this Lease shall be for a term of approximately fourteen (15) years and ten (4) months inclusive of annual permitted renewal options Rent is $325,000.00 per month with annual increases as specified in the Lease Agreement.
REQUEST APPROVAL OF A RESOLUTION APPROVING A LEASE AGREEMENT BETWEEN FULTON COUNTY, GEORGIA (“TENANT”) AND SOUTHPOINT FARMS LPIV, LLC, A GEORGIA LIMITED LIABILITY COMPANY (“Prime Lessee”), SOUTHPOINT FARMS VERTICAL PIV1, LLC, A DELAWARE LIMITED LIABILITY COMPANY (“PIV SUBLESSEE”), and SOUTHPOINT FARMS VERTICAL DP, LLC, A DELAWARE LIMITED LIABILITY COMPANY (“DP SUBLESSEE”) (PRIME LESSEE, PIV SUBLESSEE and DP SUBLESSEE COLLECTIVELY "LANDLORD") FOR THE PURPOSE OF LEASING WAREHOUSE SPACE TO CONSOLIDATE ALL FULTON COUNTY WAREHOUSE OPERATIONS INTO A SINGLE WAREHOUSE FACILITY THAT IS UNDER CONSTRUCTION ON STATE ROUTE 92 (CAMPBELLTON FAIRBURN ROAD), UNION CITY, FULTON COUNTY, GEORGIA; AUTHORIZING THE CHAIRMAN TO EXECUTE A LEASE AGREEMENT AND RELATED DOCUMENTS; AUTHORIZING THE COUNTY ATTORNEY TO APPROVE A LEASE AGREEMENT AND RELATED DOCUMENTS AS TO FORM AND TO MAKE ANY MODIFICATIONS THERETO PRIOR TO EXECUTION; AND FOR OTHER PURPOSES.
(APPROVED AS AMENDED)
body
Requirement for Board Action (Cite specific Board policy, statute or code requirement)
According to O.C.G.A. § 36-60-13, each County or municipality in this state is authorized to enter into multiyear lease, purchase, or lease purchase contracts of all kinds for the acquisition of goods materials, real and personal property, services and supplies.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Open and Responsible Government
Commission Districts Affected
All Districts ☒
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☐
District 6 ☐
Is this a purchasing item?
No
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: Agenda Item Number 21-0584, approved at the August 18, 2021 Board of Commissioners’ meeting, authorized the Department of Real Estate and Asset Management (“DREAM”) and the County Manager to complete due diligence and lease negotiations for the purpose of consolidating all Fulton County warehouse operations into a single facility inclusive of evidence storage space for the Office of the Fulton County District Attorney and the Fulton County Sheriff.
Legal documents from court proceedings, medical records and supplies, surplus office furniture and office supplies, computer and network equipment, election equipment, physical evidence from civil and criminal litigation all require warehouse storage space.
DREAM completed a comprehensive market search of available, recently constructed, free standing warehouse facilities with a minimum of 600,000 square feet of available warehouse space. The warehouse facility selected and being recommended for lease is under construction on State Route 92 (Campbellton Fairburn Road), Union City, Fulton County, Georgia. It is a free standing building with approximately 600,000 square feet of the warehouse space.
Presently, Fulton County leases approximately 300,000 square feet of warehouse space at multiple locations within Fulton County. Inclusive of approximately 80,000 square feet of County owned warehouse space at 79 Milton Avenue, staff occupies a total of 380,000 square feet of warehouse space for its daily operations. Efficiency levels and staff occupancy have become problematic because of major system malfunctions, deferred capital maintenance at Milton Avenue and multiple long term leased locations.
Input received from the various user departments that will utilize and occupy warehouse space was considered by DREAM to identify a preferred location to consolidate all of Fulton County’s warehouse operations. The primary evaluation criteria include but not limited to:
a. Annual Cost
b. Warehouse Size
c. Onsite Amenities
d. Physical Location
e. Rental Terms
Subject to the provisions of O.C.G.A. § 36-60-13(a), once approved this Lease shall be for a term of approximately fourteen (15) years and ten (4) months inclusive of annual permitted renewal options.
Community Impact: Approval of the Lease Agreement will be a public and formal statement of Fulton County’s commitment to maintain optimal efficiency levels with its daily operations. Because of the significant amount of warehouse space that is being allocated for the Department of Registration and Elections, the election staff will be able to expand its operations and maintain compliance with state regulations for voting.
Department Recommendation: The Department of Real Estate and Asset Management and the County Manager recommend that approval be granted to execute the Lease Agreement with PDC ATLANTA LPIV, LLC for the purpose of implementing the County’s warehouse space consolidation initiative that will improve staff efficiency, increase available warehouse space for all County operations to include the Department of Registration and Elections, the Office of District Attorney, the Fulton County Sheriff, the Department of Real Estate and Asset Management and Emergency Management Services.
Project Implications: The Board of Commissioners’ approval to execute a Lease Agreement with PDC ATLANTA LPIV, LLC is consistent with the Fulton County initiative that all people trust government to be fiscally sound and efficient.
Community Issues/Concerns: None
Department Issues/Concerns: None