Department
Real Estate and Asset Management
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval of Second Amendment to Master Lease between David L. Kuniansky, Douglas Kuniansky and Amy Kuniansky (Lessor) and Fulton County, Georgia (Lessee), to extend the Lease term for 109,226 square feet of warehouse space at 1365 English Street, Atlanta, Georgia, for the continued operations of the Fulton County Sheriff’s Office, Office of the District Attorney, Department of Registration & Elections, and the Clerk of Superior Court; to authorize the Chairman to execute the Lease Amendment; to authorize the County Attorney to approve the Lease Agreement as to form and make necessary modifications as necessary prior to execution; and for other purposes. The initial Lease extension term shall commence January 1, 2022 and end December 31, 2022 with automatic renewal options for two (2) one (1) year terms from January 1, 2023 through December 31, 2024, unless terminated sooner as permitted within the Master 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 lease extension rental terms with David L. Kuniansky, Douglas Kuniansky and Amy Kuniansky for 109,226 square feet of warehouse space at 1365 English Street, Atlanta, Georgia. The subject warehouse space is presently in use by the Fulton County Sheriff’s Office, Office of the District Attorney, Department of Registration & Elections, and the Clerk of Superior Court for daily operations.
Approval of the Fulton County Board of Commissioners is being requested for a Second Amendment to Master Lease Agreement with David L. Kuniansky, Douglas Kuniansky and Amy Kuniansky for the purpose of extending the lease term for an additional (3) three, one year term, subject to annual renewals. Unless extended the current lease agreement will expire December 31, 2021.
The initial Lease extension term shall commence January 1, 2022 and end December 31, 2022 with automatic renewal options for two (2) one (1) year terms from January 1, 2023 through December 31, 2024, unless terminated sooner as permitted within the Master 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 TERM YEARS |
ANNUAL MINIMUM RENT |
MONTHLY MINIMUM RENT |
|
1-3 |
$708,000.00 |
$59,000.00 |
Community Impact: Approval of the lease extension with David L. Kuniansky, Douglas Kuniansky and Amy Kuniansky will not negatively impact current operations provided by the user departments that occupy warehouse space at this location and approval is consistent with County’s initiative that all people trust that government is fiscally sound and efficient.
Department Recommendation: The Department of Real Estate and Asset Management recommends approval of approval of Second Amendment to Master Lease Agreement between David L. Kuniansky, Douglas Kuniansky and Amy Kuniansky and Fulton County to extend the current lease term for 3, one year terms, commencing January 1, 2022 and expiring December 31, 2024, if all renewals are exercised, for 109,226 square feet of warehouse space at 1365 English Street, Atlanta, Georgia.
Project Implications: The approval of the Fulton County Board Commissioners of the Second Amendment to Master Lease Agreement is required to formalize the rental terms in which the Fulton County can remain at the current leased location.
Community Issues/Concerns: None
Department Issues/Concerns: None
History of BOC Agenda Item: The Fulton County Board of Commissioners previously approved Agenda Item #06-0855 at the Board of Commissioners’ Meeting on August 16, 2006 and on December 21, 2016, the Board of Commissioners approved the First Amendment to Master Lease that extended the lease term through December 31, 2021, as Agenda Item #16-1165.