Title
Purchase of 5516 Central Avenue for Innovation and Technology Staff Consolidation
Action
Action:
Approve the purchase of a 3.89-acre parcel with a 36,865 square foot building located at 5516 Central Avenue (parcel identification number 103-021-02) for the amount of $2,400,000.
Body
Staff Resource(s):
Jeff Stovall, Innovation and Technology
Brad Dunkle, Innovation and Technology
Mike Davis, Engineering and Property Management
Tony Korolos, Engineering and Property Management
Explanation
§ This purchase is consistent with the City-Owned Real Estate and Facilities Policy, adopted by City Council in June 2017.
§ Currently, more than 130 Innovation and Technology (I&T) staff are located in three separate facilities and on five floors within the Charlotte-Mecklenburg Government Center. Consolidation into a single facility will improve operational efficiency, customer service, and employee morale.
§ The FY 2018-2022 Community Investment Plan includes $5,400,000 to be used for I&T Consolidation.
§ The parcel at 5516 Central Avenue is 3.89 acres, zoned O-1, and includes a 36,865 square foot building. The building has been vacant for approximately two years, and has been listed for sale since July 2016.
§ The property is a good option to facilitate the consolidation because the building is large enough to accommodate current I&T staff as well as growth projections, includes 150 surface parking spaces, and will have access to the proposed CityLYNX Gold Line streetcar. The presence of a City facility will also promote community safety through increased activity and demonstrate the City’s commitment to economic development in East Charlotte.
§ The terms of purchase are:
- Purchase price of $2,400,000 based on negotiation,
- Due Diligence Period of 90 days, which will be used to assess the building condition and construction costs,
- Earnest Money Deposit in the amount of $120,000 of which $5,000 will be non-refundable to the City. The remaining $115,000 will become non-refundable after the expiration of the due diligence period, and
- Closing shall occur no later than 60 days after the expiration of the Due Diligence Period.
§ Staff will ask City Council to approve design, furniture, and construction contracts at a later date. Planned capital improvements include a new roof and HVAC system.
§ This transaction has been to the Planning Commission as part of the Mandatory Referral process and a recommendation to proceed was approved on October 17, 2017.
Fiscal Note
Funding: General Community Investment Plan
Attachments
Attachment(s)
Map