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Resolution Authorizing the City Manager to Enter into a New Lease on the Fourth Floor of 115 N. Third Street with New Hanover Community Endowment, Inc.
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Department: |
Asset & Property Management |
Meeting Date: |
10/6/2026 |
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Contact Name: |
Courtney Salgado |
Public Hearing: |
No |
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Contact Phone: |
910-341-1008 |
Advertising Date/Advertised By: |
8/20/2026 - Star News |
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Attachments: |
Attachment #1: Resolution |
PURPOSE:
The purpose of this resolution is to authorize the City Manager to enter into a new lease on the Fourth Floor of 115 N. Third Street with New Hanover Community Endowment, Inc. (“the Endowment” or “Tenant”).
BACKGROUND:
Attached for your consideration is a resolution authorizing the City Manager to execute a new lease agreement with the Endowment for its continued occupancy of approximately 9,207 rentable square feet, representing the entirety of the fourth (4th) floor of the City-owned building located at 115 N. Third Street.
City staff have been in discussions with the Tenant to reach mutually agreeable lease terms that will supersede the existing lease executed on February 19, 2025. The new full-service lease will have an initial term of five (5) years, with two (2) options to renew for an additional two (2) years each. The initial annual rent will be $230,175, with 2.5% annual escalations thereafter.
The Tenant may receive rent abatement not to exceed $500,000 for improvements made by the Tenant to the City-owned property that will remain with the property beyond the lease term. The rent abatement will be applied as monthly rent credits throughout the Initial Lease Term.
The proposed lease will strengthen the City’s partnership with the Endowment, support its investment in the community, and provide for productive use and improvement of City-owned property.
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BUDGET IMPACT:
The annual rent will be used to support the operations of the building and capital needs.
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RECOMMENDATION / ACTION REQUESTED:
Passage of the attached is recommended.