ARLINGTON COUNTY, VIRGINIA - PDF Free Download

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. 2176 at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC# 14-059-035)(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. 2176 at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC# 14-059-035)( 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

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, 2015. 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, 2015. 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. 3072 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 2004. 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. 2176 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 2011. 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, 2013. 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, 2015. 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 -

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, 2013. The Fourth Amendment to Sublease extended the sublease term for an additional sixteen (16) months until February 28, 2015. 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 $68,908.80 annually or $5,742.40 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 $27,049.80. 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, 2015. 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. - 3 -

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. 2176 at Ballston Common Mall, 4238 Wilson Blvd., Arlington, Virginia (RPC #14-059-035); and (ii) the attached Fifth Amendment to Sublease Agreement with Saint Coletta, both as set forth in Exhibits A and B hereto. - 4 -

Exhibit A

Exhibit B

670 660 850 900 N. STUART ST. Attachment 1 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program / Elipse Handmade Crafts 4238 Wilson Blvd LSON BLVD. 4201 4121 WILSO 4238 4200 14059PAA Woodmont Weavers ^ 701 671 N. RANDOLPH ST. N. GLEBE RD. 603 0 100 Feet Pursuant to Section 54.1-402 of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for 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 2014 4217 ARLIN SPRINGS RD. 650 / 665

900 1133 4519 1135 4517 4515 4501 4513 901 1174 1170 1166 4511 1108 1104 1100 N. VERMONT ST. 1117H 1031 1001 N. VERMONT ST. 746 THRU 742 490 1117F 486 1117E 494 801 4535 4521 483 4519 1136 495 1134 4420 4517 1114 1112 4401 851 N. GLEBE RD. 4515 1110 1108 4411 4409 4400 713 711 1106 4407 1104 4405 1124 1118 1116 1102 4403 1100 4401 1024 1111 1109 1107 1105 1103 1101 1113 1045 1115 1121 1117 448 438 1119 1119A 4325 4433 446 4405 4401 444 434 420 4401 428 424 422 426 4350 4311 430 506 442 440 4309 500 4307 4301 4305 4303 1110 1104 1102 YLOR ST. 4301 1050 4301 1117 1101 920 421 429 900 655 4300 423 427 425 647 909 4427 1114 4245 4250 4425 1110 1106 4421 4423 1100 1050 532 4419 11 11 A N. STUART ST. 11 11 B 1053 1049 1041 4417 1045 11 11 C 1029 4223 4415 4413 4411 11 11 D N. STUART ST. 900 4409 1113E 11 13 D 11 13 C 11 13 B 1113A 1051 901 1047 1043 4218 4223 4216 4219 1114C 4212 1114A 4215 1114D 1114B 4210 4213 4200 1110D 1052 1050 1110C 1110B 1048 1044 4201 1110A 4201 FORD ST. 1040 1038 4238 1036 1034 1032 1030 1020 1101 4139 4137 1021 950 900 4126 4124 4122 4135 N. STAFFORD ST. 4200 4133 1011 935 4131 4108 4110 4121 1108 1106 1104 4100 1000 1001 900 850 901 4040 601 875 4030 4075 4019 4022 4020 4012 4040 4001 4000 1040 4001 1020 4004 888 1015 419 818 4000 801 901 3912 4005 4006 4004 4003 3929 4002 3924 4001 3900 3920 3933 3901 4000 3931 3932 880 820 3921 3923 3916 3921 3930 3917 3833 3914 3915 3919 3912 3926 3924 3911 3909 3910 3850 3920 3835 3830 3911 3908 3811 3918 3905 3909 603 3914 3901 3903 3902 556 548 544 3903 532 528 3901 3900 3901 1176 1172 1168 1106 1102 N. VERMONT ST. 1117G 1132 1117A 1117B 1117C 1117D 11TH ST. N. 1122 1120 N. UTAH ST. 1116-1112 1108 1106 1111-1103 1109-1101 4223-4215 4226 4224 4222 4220 11TH ST. N. 4211-4203 4208 4206 4204 4202 1046 1042 1108-1100 1105 1103 4116 4120 4118 4114 4112 1055 THRU 1025 11TH ST. N. 4126 THRU 4100 N. RANDOLPH ST. 1054 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. 4510 WILSON BLVD. 750 728 726 WILSON BLVD. WILSON BLVD. N. TAZEWELL ST. VA. ROUTE 120 N. STUART ST. 3865 730 Woodmont Weavers 14059PAA ^ 750 3910 N. POLLARD ST. 3902 612 702 N. PIEDMONT ST. 615 611 607 619 623 627 629 782 THRU 772 N VERMONT ST 748 768 770 764 THRU 750 740 THRU 726 720 733 716 729 734 727 725 715 730 723 719 721 728 726 722 724 720 4425 718 4423 4421 4419 4417 4427 4415 4413 4409 4411 4403 4429 4407 700 4338 4336 4334 4332 4330 7TH ST. N. 701 671 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. 670 675 650 545 555 4431 4435 706 4404 4400 628 657 653 649 645 639 635 631 627 660 665 535 711 705 4515 4511 4509 7TH ST. N. 702 4502 701 639 4424 4422 4420 4418 4412 4410 4408 624 622 620 618 616 624A 622A 620A 618A 616A 614 608A 608 606 604 N. CARLIN SPRINGS RD. 650 5TH RD. N. 5TH PL. N. 703 612 N. WAKEFIELD ST. N. WAKEFIELD ST. 7TH ST. N. 4516 4512 4508 616 608 601 651 643 641 4217 616 617 613 605 601 620 604 606A N. CARLIN SPRINGS RD. 612 610 604A 600A 4322 602A 4320 4318 602 625 623 619 615 611 607 603 637 633 621 617 613 609 605 601 4221 4219 604 600 516 512 511 507 710 4437 4406 4402 709 635 600 4402 540 550 540 536 621 608 609 600 4309 4307 N. TAZEWELL ST. 4305 4303 4301 4225 4314 4312 4300 4218 640 N. GLEBE RD. 624 616 625 615 600 603 501 N. RANDOLPH ST. 585 505 5TH RD. N. 4013 4011 N. QUINCY ST. 521 5TH RD. N. 514 518 522 N. POLLARD ST. 525 5TH ST. N. 4509 4503 525 521 519 4517 4513 523 517 4615 4611 4607 4603 4521 N. CARLIN SPRINGS RD. 4604 4600 499 4516 4514 4510 4506 4502 512 N. PARK DR. 505 503 501 526 528 530 N. THOMAS ST. 4106 410 VA. ROUTE 120 4TH ST. N. 3912 3908 4607 4605 4TH RD. N. 4503 N. PARK DR. 437 435 433 431 524 522 520 518 514 513 511 509 507 503 505 4104 3935 4610 4631 4615 4617 4619 4621 4613 4623 4611 4609 4527 4525 4501 4509 4507 4511 504G 504H 478 476 504I 504J 504F 504E 504K 504D 504L 504C 515 501 415 411 4629 491 0 350 Feet 487 4531 4529 4505 436 432 Pursuant to Section 54.1-402 of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for 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 2014 4533 4513 / 480 504B 4407 504A 4405 474 472 4403 470 469 4301 461 HENDERSON RD. 4225 432 434 436 438 424 422 423 4116 4202 4204 4200 417 421 4141 HENDERSON RD. N. THOMAS ST. 415 4116 411 4114 4117 4112 4115 4119 4108 4121 4203 4201 4113 4111 4TH ST. N. 4200 4107 4114 408 4105 4112 4103 4TH ST. N. 4106 4117 4104 4115 4111 N. GLEBE RD. N. GLEBE RD. 383 374 373 359 369 381 367 364 362 4109 4105 4103 360 4101 3RD RD. N. 363 4102 4100 351 357 353 346 349 347 N. QUEBEC

660 850 900 N STUART ST Attachment 3 Vicinity Map Ballston Common Mall - Store 2176 Woodmont Weavers Program / Elipse Handmade Crafts 4238 Wilson Blvd WILSON BLVD 4201 4121 WILSON BLVD 4238 4200 14059PAA Woodmont Weavers ^ 670 701 671 N GLEBE RD N RANDOLPH ST 603 0 100 Feet N CARLIN SPRINGS RD / 665 N GLEBE RD Pursuant to Section 54.1-402 of the Code of Virginia, any determination of topography or contours, or any depiction of physical improvements, property lines or boundaries is for 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 2014 4217 650