Title
Lease of Office and Warehouse Space for Charlotte Water Customer Service
Action
Action:
A. Approve a ten-year lease with FIVF III NC 1, LLC for office and warehouse space located at 2200 Executive Street for use by Charlotte Water, and
B. Authorize the City Manager to execute any documents necessary to complete this transaction and to seek approval from the Local Government Commission for the lease.
Body
Staff Resource(s):
Angela Charles, Charlotte Water
Jon Behrendt, Charlotte Water
Explanation
§ Charlotte Water needs additional office and warehouse space to provide efficient service to customers in central and northwestern Charlotte and to relieve crowding at its Customer Service facility.
§ A long-term lease is the preferred option for this need with the ability to purchase the facility.
§ The proposed lease is for a ten-year term with an option to purchase office and warehouse space for Charlotte Water staff at 2200 Executive Street, Charlotte, North Carolina (Council District 2).
§ This site will be used by Charlotte Water’s Customer Service Division to provide services such as meter calibration, meter testing, and equipment storage.
§ The lease is for approximately 23,000 square feet of combined office and warehouse space, and parking on 2.64 acres with direct access to Interstate-85.
§ The proposed terms of the lease agreement are as follows:
- A ten-year (120 month) term with annual rent increase of three percent,
- Rent in the amount of $24,875 monthly (base $13.00/square foot),
- Estimated monthly taxes, insurance, common-area maintenance in an amount up to $4,420, and
- A security deposit of $29,295 (one-month base rent plus tax, insurance, and common-area maintenance).
Fiscal Note
Funding: Charlotte Water Capital Investment Plan and Charlotte Water Operating Budget