Property Appraiser and Property Appraiser and Tax CollectorTax Collector

Office Space UpdateOffice Space Update

July 8, 2014

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

Background

• March 25, 2014 Updated Board

• Presented Construction Options• Presented Lease Options• Presented Purchase Option

• Board Direction to Pursue Purchase

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

Summary of Options

Build Options CostWest Colonial Drive (tilt wall) $22.0M• Includes cost of SunTrust renewal

Lease Options (ten year)SunTrust (49,307 SF) $13.5MMaguire (72,167 SF) $14.6M

Purchase Option3660 and 3670 Maguire $11.3M

Summary of Options

Build Options CostWest Colonial Drive (tilt wall) $22.0M• Includes cost of SunTrust renewal

Lease Options (ten year)SunTrust (49,307 SF) $13.5MMaguire (72,167 SF) $14.6M

Purchase Option3660 and 3670 Maguire $11.3M

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

Purchase Negotiations

•Reviewed documents presented by the owner regarding condition of buildings

• Report showed roof was in fair condition and only minor repairs needed ($2,500)

• Report Showed 40% remaining life for HVAC systems

•Negotiated a Price for the buildings

Purchase Negotiations

• Owner agreed to build out space to our specification up to $1.0M (paid by County)

• Complete build out by early December 2014

Purchase Negotiations

•Purchase contract contained provisions for us to perform due diligence inspections prior to any construction beginning

• Roof Inspection• HVAC Inspections• Electrical Inspections• Plumbing Inspections• Building Envelope Inspections• Environmental Inspections• Code and ADA Compliance

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

Due Diligence Results

•Our due diligence showed:

• Roofs at end of useful life and need immediate replacement

• HVAC systems at end of useful life and need immediate replacement (including duct work)

• Bathrooms do not meet current code

• ADA access issues with the buildings

Due Diligence Results

•Our due diligence showed:

• Fire sprinkler system in one building does not meet current code

• Exterior of buildings shows signs of deterioration and not draining properly

•Not enough weep holes or they are clogged

•Evidence of water damage on interior walls and ceilings

Due Diligence Results

•Our due diligence showed:

• Cost to cure these issues estimated to be between:

$3.8M and $4.7M

• This does not include the build out of office space nor the additional time it will take to complete the work

Summary of Options

Build Options CostWest Colonial Drive (tilt wall) $22.0M• Includes cost of SunTrust renewal

Lease Options (ten year)SunTrust (49,307 SF) $13.5MMaguire (72,167 SF) $14.6M

Purchase Option3660 and 3670 Maguire $11.3M

Summary of Options

Build Options CostWest Colonial Drive (tilt wall) $22.0M• Includes cost of SunTrust renewal

Lease Options (ten year)SunTrust (49,307 SF) $13.5MMaguire (72,167 SF) $14.6M

Purchase Option3660 and 3670 Maguire $15.1M to $16.0M

Due Diligence Results

Based on this information we could not recommend the purchase of these buildings

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

Discussions with Owner

•We were contacted by UP Development

• At their cost they agreed to:

•Replace both roofs

•Replace both HVAC systems including duct work

•Repair building envelope issues

•Repair/Replace other issues

•Have us moved in by December

Discussions with SunTrust

•Signed Letter of Intent June 30th •Received proposal yesterday

• Five year term• Tenant Improvement allowance

•$15/SF

• 5 months free rent• $25.00/SF

•Subject to Board Approval

• Background

• Summary of Options

• Purchase Negotiations

• Due Diligence Results

• Discussions with Owner

• Next Steps

Presentation Outline

Next Steps

Authorize the Mayor or her designee to negotiate and execute the reinstatement of the

contract to include the necessary amendments to require the seller to make all necessary repairs as outlined in this presentation

and authorization to perform all actions necessary and

incidental to closing

Property Appraiser and Property Appraiser and Tax CollectorTax Collector

Office Space UpdateOffice Space Update

July 8, 2014