AG 1997 04 21 - Laserfiche WebLink

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Issue: Purchase of Property for Area Office Back~round: The Administrative offices of the Piedmont Area Authority are currently in leased space located in Concord. An estimated 7,000 square feet is currently rented at $11.25 per square foot. The lease terminates April '98. If we were to attempt to extend this lease all indications are it would be in the $14+ range. At its March meeting, the Piedmont Board adopted a policy to try to move into space that the Area Authority owned. This would put the Authority in an equity position and provide a buffer to ever increasing office rents being felt in Cabarrus and Union counties. The Area Authority now requests the County Commissions to approve the enclosed resolution to allow the Authority to purchase two lots in the hospital area in Concord to build an office for the Area Administration and within three years additional office space for lVfR/DD services (currently in leased space). These lots are two of only three office building lots available for under $100,000 per lot in the Concord/Kannapolis area. Piedmont will purchase the approximately two acres for $165,000. Piedmont then, subject to another approval process by the County Commission and Local Govemment Commission would borrow the funds to build the Administration building. The current funds utilized to pay the rent would be utilized for debt service. Piedmont has the $165,000 of funds on hand due to one time Title IVA-EA receipts. There are no county funds in the Area Administration. Proposed Time Line for Project June 10 August 15 September 9 March 1998 April 1998 Close on land purchase. Financiflg approved by Local Government Commission and County Commissions. Piedmont Board awards construction contracts. Construction complete. Vacate current leased space and move into new building. Recommendation: That the County Commissions approve the enclosed resolution.