Department
Real Estate and Asset Management
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval of a Resolution authorizing a Third Amendment to a Commercial Lease Agreement between Fulton County, Georgia (Tenant), and Heritage Place Manager, LLC (Landlord), for the purpose of extending the lease term at 3155 Royal Drive, Suite 125, Alpharetta, Georgia, for the Fulton County Board of Health to provide health services to Fulton County residents; to authorize the Chairman to execute a Third Amendment to Commercial Lease Agreement and related documents; to authorize the County Attorney to approve a Third Amendment to Commercial Lease Agreement and related documents as to form and to make any modifications thereto prior to execution. The initial lease extension term shall commence January 1, 2022 and end December 31, 2022 with automatic renewal options for four (1) one-year terms from January 1, 2023 through December 31, 2026, unless terminated sooner as permitted within the lease agreement. (APPROVED UPON ADOPTION OF THE CONSENT AGENDA)
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 shall be 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: The Department of Real Estate Asset and Management has negotiated mutually acceptable rental terms with Heritage Place Management LLC to extend the leased term for 14,625 square feet of medical office space at 3155 Royal Drive, Suite 125, Alpharetta, Georgia. The subject office space is presently being used by the Fulton County Board of Health to provide health services to Fulton County residents and unless extended the current lease agreement will expire December 31, 2021. Approval of the Fulton County Board of Commissioners is being requested for a Third Amendment to Commercial Lease Agreement with Heritage Place Management LLC for the purpose of extending the lease term for an additional (5) five, one-year terms. The initial lease extension term shall commence January 1, 2022 and end December 31,2022 with automatic renewal options for four (1) one year terms from January 1, 2023 through December 31, 2026, unless terminated sooner as permitted within the lease agreement. In accordance with the County Policy the approval of the Board of Commissioners is required to modify or extend contractual agreements in which Fulton County is a party to the agreement.
During the initial lease renewal term and all permitted renewal terms, the monthly rental rate shall be:
Lease Period Rate Footage Monthly Payment Annual Payment
|
1/1/22-12/31/22 |
$18.79 |
14,901 |
$23,332.48 |
$279,989.76 |
|
1/1/23-12/31/23 |
$19.33 |
14,901 |
$24,003.03 |
$288,036.36 |
|
1/1/24-12/31/24 |
$21.63 |
14,901 |
$26,859.05 |
$322,308.60 |
|
1/1/25-12/31/25 |
$22.26 |
14,901 |
$27,641.35 |
$331,696.20 |
|
1/1/26-12/31/26 |
$22.91 |
14,901 |
$28,448.49 |
$341,381.88 |
|
|
|
|
Cumulative Total |
$1,563,412.80 |
Funding Source: 100-520-5201-1121: General, Real Estate and Asset Management, Rental/Lease
Community Impact: Approval of the lease extension will allow the Fulton County Board of Health to continue to provide health services to include but not limited to the enforcement of environmental health services, child dental services, preventative care services, child and adult immunizations, vaccinations for international travel and health and supplemental nutrition services for pregnant women from the same centralized and easily accessible location.
Department Recommendation: The Department of Real Estate and Asset Management recommends approval of a Third Amendment to Commercial Lease Agreement with Heritage Place Management LLC, for the purpose of extending the current lease term an additional 5 years inclusive of renewal options.
Project Implications: Approval of the Third Amendment to Commercial Lease Agreement is required to formalize the rental terms in which the Fulton County Board of Health can continue its occupancy at 3155 Royal Drive Suite 125 Alpharetta, Georgia.
Community Issues/Concerns: None
Department Issues/Concerns: None
History of BOC Agenda Item: Original full service lease agreement was approved as Agenda Item #05-1056 at the Board of Commissioners’ Meeting of September 21, 2005. On March 2, 2016, the Board of Commissioners approved the First Amendment to the original lease as Agenda Item 16-0182, extending the lease term from March 1, 2016 to December 31, 2016, as Agenda Item #16-1091, the Second Amendment to Commercial Lease Agreement was approved December 7, 2016, that extended the lease term from January 1, 2017 to December 31,2021.