ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of October 21, 2017

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ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of October 21, 2017 DATE: October 12, 2017 SUBJECT: Deed of Lease between James B. Mock, Trustee of the Revocable Living Trust of Betty D.

1 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of October 21, 2017 DATE: October 12, 2017 SUBJECT: Deed of Lease between James B. Mock, Trustee of the Revocable Living Trust of Betty D. Mock, as landlord, and the County Board of Arlington County, Virginia, as tenant, for real property located at 6100-A and 6104 Farrington Ave., Alexandria, Virginia (Fairfax County Tax Parcels and ). C. M. RECOMMENDATIONS: 1. Approve the attached Deed of Lease ( Deed of Lease ) between James B. Mock, Trustee of the Revocable Living Trust of Betty D. Mock ( Landlord ) and the County Board of Arlington County Virginia ( Tenant ) for 6100-A and 6104 Farrington Ave., Alexandria, Virginia; and 2. Authorize the Real Estate Bureau Chief, Department of Environmental Services, or his designee to execute the Deed of Lease and any related documents on behalf of the County Board, subject to approval as to form by the County Attorney. ISSUES: As of the date of this report, there are no outstanding material issues relating to approval of the Deed of Lease. SUMMARY: Approval and execution of the attached Deed of Lease would secure the County a heavy maintenance facility, on reasonable terms, for servicing the County s Arlington Transit ( ART ) bus fleet for the seven-year lease term. BACKGROUND: The County currently contracts with National Express to operate and maintain the County s ART bus fleet. National Express performs heavy maintenance services on the ART buses at a facility located at 6100-A and 6104 Farrington Ave. (the Premises ), which National Express leases from the Landlord. Both the National Express services contract with the County and National Express s lease of the Premises expire June 30, In order to broaden the bidder pool for the ART bus operations and maintenance service contract and to minimize risk, the County would like to control a bus heavy maintenance facility. The supply of available and appropriately-zoned potential bus heavy maintenance facility sites in Northern Virginia is extremely limited. Potential offerors without identified heavy maintenance County Manager: ##### County Attorney: ***** 34. Staff: Doug Raiden, DES Real Estate, Steve Yaffe, DES Transportation

2 facilities are unable to effectively compete for the County s ART bus operations and maintenance contract. County control of a heavy maintenance facility would promote more competition for the ART operations and maintenance contract, leading to more advantageous pricing for the County. Although the County is seeking to acquire a permanent ART bus heavy maintenance facility in another location that can accommodate expected fleet growth, it does not appear that the acquisition and build-out could be completed for at least five years. A lease is accordingly necessary to fill in the gap years. DISCUSSION: Leasing the Premises would provide the County with a maintenance facility for the seven-year term, broadening the bidder pool for bus maintenance services and buying time to secure and build out a permanent maintenance facility. These are the Lease s primary terms: Term 7 years (July 1, 2018 June 30, 2025) Permitted use Maintenance, repair, and parking of vehicles, storage, and ancillary office, warehouse, and related uses. Rentable area 10,000 square feet of building space and a 32,833-square-foot parking area. Initial base rent $178, ($10.65 per square foot of building space and $2.19 per square foot of the parking area.) Annual base rent escalations 3% Extension options None. Early termination right County may terminate Lease any time after June 30, 2023 on at least 1 year s notice. (This will enable County to align termination of Lease with availability of any new permanent bus maintenance facility.) Common-area expenses County to reimburse landlord for 9.7% of building common-area expenses and 1.45% of common-area expenses related to office park in which Premises are located. Maintenance Landlord to maintain common area and structural components of property. County to maintain nonstructural components of building space, mechanical, electrical, and plumbing systems within building space, and entire parking area. Utilities County to reimburse landlord for 9.7% of electricity, gas, and water supplied to building

3 PUBLIC ENGAGEMENT: There has been no public engagement effort. The premises are already being used by National Express for the maintenance of County buses. The County s lease will have no new impact. FISCAL IMPACT: The costs of leasing the facility are already included and paid by the County in the contract with National Express Transit, Inc, to operate and maintain Arlington Transit buses. If National Express were to have extended their lease of the property for an additional year (Fiscal Year 2019), the annual cost of $195, would have been paid by the County as part of the monthly maintenance administration fixed fee. The County s new lease agreement cost of $178, for Fiscal Year 2019 is $16,483.32, which is 8.6% less than the amount National Express Transit would have paid. In the new ART operations contract, the payment to the contractor will be reduced accordingly

32 Vicinity Map 6100 & 6104 Farrington Ave, Fairfax County Tax Parcel Number # & Parking Area FARRINGTON AVE 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 2017 Pictometry Easement Locations are Approximate. Map prepared by Arlington County GIS Mapping Center Produced and August 2017

Vicinity Map 6100 & 6104 Farrington Ave, Fairfax County Tax Parcel Number # 0812-01-001 & 0812-01-0009 Parking Area 0812010011 FARRINGTON AVE 0 150 Feet /

1-402 of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for

33 Vicinity Map 6100 & 6104 Farrington Ave, Fairfax County Tax Parcel Number # & Parking Area FARRINGTON AVE 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 2017 Pictometry Easement Locations are Approximate. Map prepared by Arlington County GIS Mapping Center Produced and August 2017

34 BIRDS VIEW LN INDIAN RUN PKWY SUMMER LEAF LN EDSALL RD COLLIERS LN SPLIT CREEK LN WINTER VIEW DR EDSALL RD PARKING LOT Vicinity Map 6100 & 6104 Farrington Ave, Fairfax County Tax Parcel Number # & EDSALL RIDGE PL PARKING LOT PARKING LOT PARKING LOT S PICKETT ST S VAN DORN ST BURNSIDE PL GWYN PL PHYLLIS LN INDIAN RUN PKWY HARVEY LN IONA WAY TERESI DR INDEPENDENCE CIR DECLARATION SQ S VAN DORN ST BREN MAR DR Parking Area I95 SB I95 SB VDOT RAMP FARRINGTON AVE MCGUIN DR SOUTH VAN DORN ST RAMP TO I95 SB OUTLET I95 NB SOUTH VAN DORN ST ARCHSTONE WAY OUTLET COVERDALE WAY SARATOGA ST TILBURY RD OAKWOOD RD DOROTHY BOLTON CT VALLEY VIEW DR PIPESTEM COBBS RD KNIGHTS RIDGE WAY CASTLETOWN WAY LANGTON DR KATELYN MARY PL FOUNDERS HILL DR HIGH MEADOW RD CROWN ROYAL DR Feet HIGHDALE CIR PIEDMONT DR / 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 2017 Pictometry Easement Locations are Approximate. Map prepared by Arlington County GIS Mapping Center Produced and August 2017

ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of May 14, 2016

ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of May 14, 2016 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of May 14, 2016 DATE: May 6, 2016 SUBJECT: Deed of Lease between NOBE I, LLC and SHCII, LLC, both Virginia limited liability companies, as landlord,