ARLINGTON COUNTY, VIRGINIA

Transcription

1 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of December 13, 2014 DATE: November 24, 2014 SUBJECT: Third Amendment to Deed of Lease between The County Board of Arlington County, Virginia, as Tenant, and FC Ballston Common, LLC, as Landlord, to Extend the Lease Term and Modify Other Terms of the Lease for Store No at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC# )(Leased Premises); and Fifth Amendment to Sublease Agreement between The County Board of Arlington County, Virginia, as Tenant, and Saint Coletta of Greater Washington, Inc., as Subtenant, Extending the Term for the Leased Premises. C. M. RECOMMENDATIONS: A. Approve: (i) the attached Third Amendment to Deed of Lease between The County Board of Arlington County, Virginia, as Tenant, and FC Ballston Common, LLC, as Landlord, to Extend the Lease Term and Modify Other Terms of the Lease for Store No at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC# )( Leased Premises ); and (ii) the attached Fifth Amendment to Sublease Agreement between The County Board of Arlington County, Virginia, as Tenant, and Saint Coletta of Greater Washington, Inc., as Subtenant, Extending the Term for the Leased Premises. B. Authorize the Real Estate Bureau Chief, or his designee, to execute on behalf of the County Board the attached Third Amendment to Deed of Lease to extend the lease term and modify other terms of the lease and the attached Fifth Amendment to Sublease Agreement, subject to approval of such Amendments as to form by the County Attorney. ISSUES: In order to extend the term and modify other terms of the County s lease at Ballston Common Mall (the Lease ) with FC Ballston Common, LLC ( Landlord ) and to extend the term of the County s sublease with Saint Coletta of Greater Washington, Inc. ( Saint Coletta ), both through December 31, 2015, the County Board is being requested to take the recommended actions. There are no issues related to this Board item. County Manager: ##### County Attorney: ***** 17. Staff: Betsy Herbst, DES, Real Estate Bureau

2 SUMMARY: Upon County Board approval and execution of the Third Amendment to Deed of Lease ( Amended Lease ), the County s lease for retail space consisting of 3,119 square feet, more or less, Store No. 2176, located on the 2 nd floor of Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia, will be extended for an additional ten (10) months beginning March 1, The County will continue to pay rent until expiration of the extended Lease term on December 31, 2015, unless otherwise terminated sooner upon ninety (90) days written notice from the County to the Landlord. At the expiration of the extended term, if the County desires to continue to occupy the store at Ballston Common Mall, then a new or amended lease would need to be negotiated with the Landlord and approved by the County Board. Similarly, following County Board approval and execution of the Fifth Amendment to the Saint Coletta Sublease, Saint Coletta would continue to sublet the Premises, beginning March 1, 2015 and expiring on December 31, Saint Coletta uses the Premises to operate the Woodmont Weavers program for persons with development disabilities. BACKGROUND: Until September 2002, the County operated the Woodmont Weavers Program on the County's real property located at 2422 N. Fillmore St. Thereafter, the program was relocated to Ballston Common Mall in January 2003 to increase visibility, and to enable the program to more fully involve and integrate the community. (See Vicinity Maps attached hereto as Attachments 1 and 2). The County and Ballston Common Associates entered into a License Agreement that granted permission for the County to use Store No at Ballston Common Mall for a nominal fee. The County's Department of Human Services ( DHS ) selected Saint Coletta to operate the Woodmont Weavers Program in Saint Coletta's staff has many years of experience working with persons with developmental disabilities. In 2007, the Woodmont Weavers Program was relocated to Store 2176 in order to provide larger retail space. On October 13, 2007, the County Board, as Tenant, approved a Lease for Store No between FC Ballston Common, LLC, as Landlord, and approved a sublease between the County Board and Saint Coletta, for an initial term of three (3) years. The original Lease contained an option to renew under the same terms and conditions for two additional one-year terms upon at least 90 days prior written notice from the County to the Landlord of the County s intent to renew the Lease term which was exercised by the County in 2010 and In 2012, the County Board approved a First Amendment to Deed of Lease which extended the lease term for an additional year until October 31, On September 21, 2013, the County Board approved a Second Amendment to Deed of Lease which further extended the lease term for an additional 15 months until February 28, There was no increase in rent contained in the First Amendment to Deed of Lease. However, on November 1, 2013, the rent increased by two percent (2%) under the escalation clause of the original Deed of Lease. If the County desires to continue to occupy the store at Ballston Common Mall after the expiration of the renewal term in December, 2015, then a new lease will need to be negotiated with the Landlord and approved by the County Board. At this time, the Landlord is currently - 2 -

3 unable to extend the lease term for more than ten (10) months because it is anticipated that the mall will be undergoing redevelopment beginning in early 2016, which will likely require relocating the store to a new location within the mall. The Saint Coletta Sublease does not contain an option to renew, so it is necessary that the County enter into a Fifth Amendment to Sublease with Saint Coletta to extend the term of the Saint Coletta Sublease. The Sublease was amended in 2012 to extend the sublease term for one year until October 31, The Fourth Amendment to Sublease extended the sublease term for an additional sixteen (16) months until February 28, If approved, the Fifth Amendment to Sublease will extend the Sublease until December 31, 2015, unless otherwise terminated by notice from the County to Saint Coletta. DISCUSSION: The Third Amendment to Deed of Lease to extend the term of the lease for an additional ten (10) months is attached as Exhibit A. The Landlord has agreed to extend the lease term without any increase in the annual rent, which effectively waives the automatic escalation that would have otherwise occurred on November 1, 2014, under the terms of the original Deed of Lease. The fixed minimum rent currently being paid by the County, and which will continue to be paid through December 2015, is in the amount of $68, annually or $5, per month. In addition, the County will continue to pay additional rent as required under the Lease to cover expenses for utilities and taxes. During the extended term, the additional rent for reimbursement to the Landlord for real estate taxes, electricity, HVAC and water is estimated to be approximately $27, In the event the County decides to move the program to a new location, the Third Amendment will also allow the County to terminate its lease at the mall by giving the Landlord at least ninety (90) days notice of termination. The Third Amendment to Deed of Lease will also provide that, during the extended term, the County may assign the Sublease Agreement to a new service provider in the event that the service agreement between the County Board and Saint Coletta is terminated or no longer renewed. The Fifth Amendment to Sublease between the County Board and Saint Coletta, attached as Exhibit B, extends the term of the Saint Coletta Sublease for an additional ten (10) months, beginning March 1, 2015 and ending at 11:59 p.m. on December 31, All other terms of the Saint Coletta Sublease will remain the same, including the payment of nominal rent for the purpose of administering the Woodmont Weavers Program in the Premises. Under state law, localities may donate real or personal property, or money, to nonprofit recreational associations or organizations, provided that the association or organization is not controlled in whole or in part by any church or sectarian society. Saint Coletta is a nonsectarian, non-profit organization that operates school and adult day programs for children and adults with intellectual and developmental disabilities. FISCAL IMPACT: The expenses to be paid by the County to the Landlord for rent and reimbursable real estate taxes, as required under the terms of the Lease between FC Ballston Common, LLC and the County, are included in the Fiscal Year 2015 adopted budget

4 CONCLUSION: It is recommended that the County Board approve: (i) the attached Third Amendment to Deed of Lease between The County Board of Arlington County, Virginia, as Tenant, and FC Ballston Common, LLC, as Landlord, to extend the lease term and modify other terms of the lease for Store No at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC # ); and (ii) the attached Fifth Amendment to Sublease Agreement with Saint Coletta, both as set forth in Exhibits A and B hereto

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53 N. STUART ST. Attachment 1 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program / Elipse Handmade Crafts 4238 Wilson Blvd LSON BLVD WILSO PAA Woodmont Weavers ^ N. RANDOLPH ST. N. GLEBE RD Feet Pursuant to Section of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for general information only and shall not be used for the design, modification, or construction of improvements to real property or for flood plain determination. Aerial Photography 2013 Commonwealth of Virginia Map prepared by Arlington County GIS Mapping Center Produced and October ARLIN SPRINGS RD. 650 / 665

54 N. VERMONT ST. 1117H N. VERMONT ST. 746 THRU F E N. GLEBE RD A YLOR ST A N. STUART ST B C D N. STUART ST E D C B 1113A C A D 1114B D C 1110B A 4201 FORD ST N. STAFFORD ST N. VERMONT ST. 1117G A 1117B 1117C 1117D 11TH ST. N N. UTAH ST TH ST. N THRU TH ST. N THRU 4100 N. RANDOLPH ST THRU 1020 N. QUINCY ST. Attachment 2 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program / Elipse Handmade Crafts 4238 Wilson Blvd 10TH ST. N. N. UTAH ST. FAIRFAX DR. FAIRFAX DR. FAIRFAX DR. FAIRFAX DR. N. RANDOLPH ST. N. QUINCY ST. N. POLLARD ST. N. TAYLOR ST. 9TH ST. N. N. TAYLOR ST. N. TAYLOR ST. 9TH ST. N. 9TH ST. N. N. GLEBE RD. 9TH ST. N. 800 N. GLEBE RD. WILSON BLVD WILSON BLVD WILSON BLVD. WILSON BLVD. N. TAZEWELL ST. VA. ROUTE 120 N. STUART ST Woodmont Weavers 14059PAA ^ N. POLLARD ST N. PIEDMONT ST THRU 772 N VERMONT ST THRU THRU TH ST. N N. RANDOLPH ST. N. QUINCY ST. 6TH ST. N. 7TH ST. N. N. GLEBE RD. 544 N. PIEDMONT ST. N. VERMONT ST. N. VERMONT ST TH ST. N A 622A 620A 618A 616A A N. CARLIN SPRINGS RD TH RD. N. 5TH PL. N N. WAKEFIELD ST. N. WAKEFIELD ST. 7TH ST. N A N. CARLIN SPRINGS RD A 600A A N. TAZEWELL ST N. GLEBE RD N. RANDOLPH ST TH RD. N N. QUINCY ST TH RD. N N. POLLARD ST TH ST. N N. CARLIN SPRINGS RD N. PARK DR N. THOMAS ST VA. ROUTE 120 4TH ST. N TH RD. N N. PARK DR G 504H I 504J 504F 504E 504K 504D 504L 504C Feet Pursuant to Section of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for general information only and shall not be used for the design, modification, or construction of improvements to real property or for flood plain determination. Aerial Photography 2013 Commonwealth of Virginia Map prepared by Arlington County GIS Mapping Center Produced and October / B A HENDERSON RD HENDERSON RD. N. THOMAS ST TH ST. N TH ST. N N. GLEBE RD. N. GLEBE RD RD RD. N N. QUEBEC

55 N STUART ST Attachment 3 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program / Elipse Handmade Crafts 4238 Wilson Blvd WILSON BLVD WILSON BLVD PAA Woodmont Weavers ^ N GLEBE RD N RANDOLPH ST Feet N CARLIN SPRINGS RD / 665 N GLEBE RD Pursuant to Section of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for general information only and shall not be used for the design, modification, or construction of improvements to real property or for flood plain determination. Aerial Photography 2013 Commonwealth of Virginia Map prepared by Arlington County GIS Mapping Center Produced and October