Title
Development Agreement and Lease Agreement - The Umbrella Center
Action
ACTION:
(A) Authorize the County Manager to negotiate the terms and conditions to execute a Development Agreement ("DA") between Mecklenburg County, CharMeck Family Justice Center Inc., and Safe Alliance Inc. and all necessary documents and related transaction agreements contemplated by the DA for the design and construction of The Umbrella Center to be located on Tax Parcels 133-011-45 & 133-011-50 at 4822 & 4830 Albemarle Road.
(B) Authorize the County Manager to negotiate the terms and conditions to execute a Lease Agreement between Mecklenburg County and Safe Alliance Inc. for the lease of the Umbrella Center building and site located on Tax Parcels 133-01-45 & 133-01-150 at 4822 & 4830 Albemarle Road.
Staff Contact: Mark Hahn, Director, Asset and Facility Management Department
Presentation: No
BACKGROUND/JUSTIFICATION:
Mecklenburg County approved the allocation of $10,000,000 for a joint development with CharMeck Family Justice Center, Inc. ("CFJC") and Safe Alliance, Inc. for the purchase and renovation/expansion of an existing building and site at 4822 Albemarle Road (The Umbrella Center). The County purchased the building and site at 4822 Albemarle Road for approximately $5.66 Million in January 2023, and CFJC and Safe Alliance subsequently purchased the site at 4830 Albemarle Road to expand the property. The Board has approved conveyance of the 4830 Albemarle Road property to the County, so the entire property will be under one single ownership.
The property will be used as a Family Justice Center, also referred to as “The Umbrella Center.” A Family Justice Center is a nationally recognized best practice model for the delivery of services to victims and survivors of abuse. The facility will serve as a single point of access for victims and survivors of abuse to receive services that are trauma informed, utilizing a victim-centered approach. This approach involves co-locating various governmental agencies and non-profit organizations together for creation of a single intake process to provide services.
The approximate 55,000 SF existing building and site need to be renovated and expanded to meet the needs of The Umbrella Center. The total project cost is estimated at $45,000,000 with the County contributing $10,000,000 (inclusive of the purchase price of the Property of $5.66 Million), the City of Charlotte contributing $5,000,000, and CJFC and Safe Alliance responsible for providing the balance of the funds. The County's Asset and Facility Management Department will manage the project for the building renovation and site improvements with active participation in the process from CFJC and Safe Alliance. The Development Agreement describes general requirements for CFJC and Safe Alliance to secure funding for their portion of the project and provide documentation of such funding commitments to the County. Once the new building renovation and expansion are complete, Safe Alliance will lease the building & site from the County. The County will continue to own, maintain, and secure the property, and Safe Alliance will provide program operations. Safe Alliance will pay rent to the County to cover the County’s cost of maintaining and securing the property, and CFJC will execute a guaranty for the rent obligations of Safe Alliance under the lease.
DEVELOPMENT AGREEMENT:
The County Manager will negotiate a Development Agreement consistent with the following major business terms.
The County shall be responsible for managing the design and construction of the building renovation/expansion and site improvements for The Umbrella Center to be located at 4822 & 4830 Albemarle Road (the “Project”). The County’s contribution shall not exceed $10,000,000 (inclusive of the purchase price of the property of approx. $5.66 Million). The County shall enter into all contracts for the design and construction of the facility.
The County shall not permit the project to proceed beyond the final Guaranteed Maximum Price bidding phase until such time as CFJC and Safe Alliance have provided the County with documentation evidencing that CFJC and Safe Alliance have procured all funding (and/or funding commitments) necessary to provide the funding in excess of the County contribution of $10,000,000 and the City of Charlotte contribution of $5,000,000 required to pay the full cost of the design and construction of the Project.
LEASE AGREEMENT:
The County Manager will negotiate a Lease Agreement consistent with the following major business terms.
Property: Approximate 3.45 acre site with surface parking and an approximate 87,000 SF building located at 4822 & 4830 Albemarle Road
Rent: Total cost of monthly facility maintenance & utilities and all expenses incurred by Mecklenburg County for repairs (not exceeding $5,000 per repair occurrence), including the costs of physical security. CFJC will execute a guaranty providing for payment of all rent and expenses should Safe Alliance fail to make such payments.
Term: The initial term of the lease for the premises shall be for a period of forty (40) years. Following the 40-year initial period, the lease will automatically renew annually unless terminated by either the County or Safe Alliance. At the end of the initial term, Safe Alliance shall have the option to purchase the premises from the County for $1.00 and negotiate terms and conditions for continued provision of facilities maintenance and security provided by the County. After the tenth year of the Lease, Safe Alliance shall have the unilateral right to terminate the Lease upon 12 months prior notice to the County.
Assignment: Any time after the tenth year of the Lease, Safe Alliance will have the right to assign its rights and obligations as the Tenant under the Lease to another nonprofit (to be approved by the County) providing similar program services. Under an assignment of the Lease, the CFJC guaranty for rent obligations will remain intact.
Program Operations and Sub-leasing: Safe Alliance will provide day-to-day program operations of The Umbrella Center, including responsibility for sub-leasing of space to 3rd party service providers & government agencies and management of such sub-leases. Safe Alliance will receive the revenue from the sub-leases.
Maintenance: County will provide for routine/preventive maintenance and repairs, payment of water, sewer, gas, electric services, and connectivity for the County network (for which Safe Alliance will pay expense as rent). The County will be responsible for the cost of all repair items exceeding $5,000.
Security: County will provide for security guard services and any rental (if needed) of security screening equipment (for which Safe Alliance will pay expense as rent).
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A