Title
Lease Amendment - Dental Clinic
Action
ACTION:
Authorize the County Manager to negotiate and execute a lease amendment with the Charlotte-Mecklenburg Hospital Authority ("Atrium Health Navicent” formerly Atrium Health), extending the current lease for dental office space for the Public Health Department's Pediatric Dental Program for an additional three years with two one-year renewal options.
Staff Contact: Anne-Rose Michel, Real Estate Coordinator - Asset and Facility Management Department
Presentation: No
BACKGROUND/JUSTIFICATION:
The Public Health Department’s Pediatric Dental Program leases 4,962 square feet of clinic space at Atrium Health Navicent, 1801 Rozzelles Ferry Road, and will remain there until construction of the new County-funded East Community Resource Center are completed.
The current lease ends on June 30, 2026. The Public Health Department would like to continue its operation at this location and Atrium Health Navicent has agreed to extend the lease for an additional three (3) years, inclusive of two one-year option to renew. The dental program provides preventive and comprehensive treatment to children between the ages of 1 to 17 years old. Some of the services provided include exams, x-rays, cleanings, sealants, fluoride treatments, and nutritional counselling.
Proposed Major Business Terms:
Location - 1801 Rozzelles Ferry Road, Suite 310 (4,962 RSF)
Lease Term - Third Floor: 36 months
Renewal Options - Two one-year options with payments on a month-to-month basis
Base Rent - $20.91/RSF
Monthly Payment - $8,646.29
First year’s payment - $103,755.42
Operating Expense - $4,130.86/SF
Rent Escalations - 3% annually
Services - Full Service; Landlord to provide electricity, cold and tempered water, natural gas, general building maintenance, landscaping, janitorial, and HVAC
Improvements - Landlord will provide a Tenant Improvement Allowance (TIA) of $24,810, allowing the County to hire a contractor to complete the following property upgrades - new flooring, repainting of interior walls, kitchen upgrades, and renovation of the lobby to meet ADA requirements per Chapter 11 of the N.C. Building Code (Accessibility Section 1103.1)
Parking - The lease includes availability of parking spaces in the parking lot.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
The lease will be paid from the department’s operational budget