ARLINGTON COUNTY, VIRGINIA

Transcription

1 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of September 19, 2015 DATE: September 10, 2015 SUBJECT: Fourth 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 for Store No at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC# )(Leased Premises); and Sixth 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 Fourth 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 for Store No at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC# )( Leased Premises ); and (ii) the attached Sixth 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, Department of Environmental Services, or his designee, to execute on behalf of the County Board, the attached Fourth Amendment to Deed of Lease to extend the lease term, and the attached Sixth 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 May 31, 2016, the County Board is requested to take the recommended actions. There are no issues related to this Board item. County Manager: ##### County Attorney: ***** 21. Staff: Betsy Herbst, DES, Real Estate Bureau

2 SUMMARY: Upon County Board approval and execution of the Fourth 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 five (5) months beginning January 1, The County will continue to pay rent until expiration of the extended Lease term on May 31, 2016, unless the lease is terminated sooner upon ninety (90) days written notice from the County to the Landlord. Following expiration of the Lease, the County will have up to an additional thirty (30) days from the expiration date to move out of the Leased Premises. The Landlord has indicated that there will be no further extensions of the lease because it intends to proceed with the anticipated redevelopment of the mall property. As with the Amended Lease, following County Board approval and execution of the Sixth Amendment to the Saint Coletta Sublease, Saint Coletta would continue to sublet the Premises, beginning January 1, 2016 and expiring on May 31, Saint Coletta uses the Premises to operate the Woodmont Weavers program for persons with developmental disabilities. BACKGROUND: Until September 2002, the County operated the Woodmont Weavers Program on the County's real property located at 2422 N. Fillmore St. 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, 2 and 3). 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 On October 13, 2007, the County Board, as Tenant, approved a Lease for Store No from 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. In 2012, the County Board approved a First Amendment to Deed of Lease that 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 that further extended the lease term for an additional 15 months until February 28, On December 13, 2014, the County Board approved a Third Amendment to Deed of Lease that further extended the lease term for an additional ten (10) months from March 1, 2015 to December 31, The Saint Coletta Sublease does not contain an option to renew, so it is necessary that the County enter into a Sixth 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, The Fifth Amendment to Sublease - 2 -

3 extended the sublease term for an additional ten (10) months from March 1, 2015 to December 31, If approved, the Sixth Amendment to Sublease will extend the Sublease until May 31, 2016, unless otherwise terminated by notice from the County to Saint Coletta. DISCUSSION: The Fourth Amendment to Deed of Lease to extend the term of the lease for an additional five (5) months is attached as Exhibit A. The Landlord has agreed to extend the lease term without any increase in the annual rent under the terms of the original Deed of Lease. The fixed minimum rent currently being paid by the County, which will continue to be paid through May 2016, is $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 $13, In the event the County decides to move the program to a new location before the end of the extended term, the Fourth Amendment will also allow the County to terminate its lease by giving the Landlord at least ninety (90) days notice of termination. The Fourth 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 not renewed. The Sixth 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 five (5) months, beginning January 1, 2016 and ending at 11:59 p.m. on May 31, All other terms of the Saint Coletta Sublease will remain the same. 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. This five (5) month lease term extension is expected to be the last extension of the lease. The Landlord anticipates the commencement of a major redevelopment of Ballston Common Mall, which will require relocating the Woodmont Weavers store to a new location. County staff has been searching for the past two years looking for appropriate space and have found no viable, affordable options. Similarly sized commercial retail space, which also satisfies certain program requirements (i.e., designated restroom, changing room, lunchroom space, and retail sales display area), is difficult to find and the rental rates far exceed the rate the County has been paying. Also, additional funding will be required to build-out space in a new location, possibly twice, if both temporary and permanent relocation spaces are necessary. One of the primary goals, and a federal and state expectation, of the program is to integrate and intermingle the clients served by the program with the community at large. Some County-owned facilities are being considered as a possible relocation site. In addition, County staff and the Landlord s leasing representatives are discussing the possibility of the County program returning to the mall upon completion of the redevelopment. However, even if space is available in three - 3 -

4 years, it will be necessary for the program to relocate during the construction period, and then a second move will be required to return to the mall. FISCAL IMPACT: The amounts 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 2016 adopted budget. CONCLUSION: It is recommended that the County Board approve: (i) the attached Fourth 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 for Store No at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC # ); and (ii) the attached Sixth 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. Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program 4238 Wilson Blvd Attachment 1 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 1110C 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 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program 4238 Wilson Blvd THRU TH ST. N THRU 4100 N. QUINCY ST. Attachment 2 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

55 900 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program 4238 Wilson Blvd Attachment 3 N STUAR T ST 850 WILSON BLVD 4201 WILSON BLVD PAA Woodmont Weavers ^ N RANDOLPH ST N 67 0 G LE BE RD N / G LE 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 Feet SP N C RI AR NG L S IN RD BE RD