title
Resolution Authorizing a New Lease for the Fourth Floor of 115 N 3rd Street
body
Department:
Economic Development
Meeting Date:
February 4, 2025 (Continued from January 21, 2025)
Contact Name:
Aubrey Parsley
Public Hearing:
No
Contact Phone:
910-341-0188
Advertising Date/Advertised By:
December 20, 2024
Attachments:
Attachment #1: Resolution
Attachment #2: Draft Lease
PURPOSE:
The purpose of this resolution is to authorize the City Manager to enter a new lease for the fourth floor of 115 N 3rd Street.
BACKGROUND:
Attached for your consideration is a resolution authorizing the City Manager to execute a new lease agreement regarding the fourth (4th) floor of the 115 N 3rd Street building. The premises included in the lease consist of 9,665 square feet of space, representing the entirety of the rentable space on the floor. The space is currently occupied by the New Hanover Community Endowment, Inc. ("Tenant").
City staff have been in discussion with the Tenant to reach a mutually agreeable lease, which will supersede the existing lease executed in April of 2023. The high-level terms of the new full service lease include a five (5) year initial term, one option for renewal for four (4) years and 11 months, with rent of $19,330 per month for first year, escalating 2.5% each year thereafter. Additionally, the Tenant may receive rent abatement not to exceed $45,000 for improvements made by Tenant to City-owned property, which will survive the term of the lease
The City acquired 115 N 3rd Street to accommodate its then current and assumed future office space needs. However, with the acquisition of 929 N Front Street, staff wishes to present this opportunity to Council as a means to support a significant non-profit organization in the community, off-set the carrying costs of the property for the duration that the City holds it prior to its potential disposition as surplus property, and to potentially enhance the value the City receives for the pr...
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