TITLE
Title
TRIAD ADULT & PEDIATRIC MEDICINE (TAPM) LEASE
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SPONSOR
Sponsor
Merle Green
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BACKGROUND
Background
Triad Adult & Pediatric Medicine (TAPM) entered into a lease agreement January 2, 1997 for space located on the lower level of the Guilford County Public Health building in High Point, located at 501 East Green Drive. The lease stated the rent would be determined at $15.00 per square foot and shall be increased by 2% annually. For unknown reasons the rent was never increased and Triad Adult & Pediatric Medicine has been paying $7.50 per square foot since 1997. ($6,500.20 monthly / $78,002.40 annually). In 2016, it was determined that the previous 1997 evergreen lease should be re-negotiated based on today's fair market value of $15.00 per square foot ($12,576.00 monthly / $150,912.00 annually).
TAPM has requested we delay the escalation in the proposed rent for three (3) years due to financial hardship. TAPM adds significant value to the Guilford County community and if they were no longer able to provide services, Guilford County would be required by the State to provide these services. The cost to the County to provide these services would exceed the requested reduction in rent.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY FUNDS REQUIRED
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REQUESTED ACTION
Requested Action
Authorize staff to enter into a lease with Triad Adult & Pediatric Medicine (TAPM) for the term of five (5) years, with three (3) five-year renewal periods, to be effective March 1, 2016. The rental rate for the first (3) years shall be $6,500 monthly / $78,000 annually and shall be increased to $12,576 monthly / $150,912 annually, beginning in year four (March 2019). The renewal rate for the subsequent terms shall be based on current fair market value, as determined by County staff.
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