City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 22, 2019
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration and Authorization to Enter into an Interim Lease for the Department of Community and Human Services at 6101 Stevenson Avenue.
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ISSUE: Consideration and authorization to enter into an interim lease of real property for the Department of Community and Human Services (DCHS) at 6101 Stevenson Avenue.
RECOMMENDATION: That City Council authorize the City Manager to enter into an interim lease agreement with terms in general conformance with those described in the attached Letter of Intent for property located at 6101 Stevenson Avenue and owned by Steve A. Hansen, LLC and WWIV Stevenson Avenue, LLC.
BACKGROUND: DCHS has been operating and providing services to the public at 4401 Ford Avenue for over 6 years. The lease is due to expire on July 31, 2019, but the City has the right to extend for 5 more years. The current landlord does not want to extend the lease as they plan to convert 4401 Ford Avenue to a residential use and has offered a settlement of $575,000 to terminate the lease at 4401 Ford Avenue without exercise of the option to extend. The landlord has provided an extension through December 31, 2019 at the current monthly rate in order for the City to have time to build out the new space located at 6101 Stevenson Avenue.
Steve A. Hansen, LLC and WWIV Stevenson Avenue, LLC have agreed to lease approximately 15,000 square feet at 6101 Stevenson Avenue to the City for thirty-eight (38) months as a short-term lease until the consolidated 4850 Mark Center Drive building is ready for DCHS occupancy. At the end of this lease of 6101 Stevenson Avenue, this function will be part of the DCHS and Health Department consolidation project at 4850 Mark Center Drive. Executing the lease will allow the time needed to finalize and secure plans for the current and future site of DCHS operations.
FISCAL IMPACT: The City will be receiving $575,000 to cover all costs associated with relocating DCHS programs from 4401 Ford Avenue.
ATTACHMENTS:
1. Letter of Intent Agreement 6101 Stevenson Avenue
2. Letter of Intent Termination Agreement 4401 Ford Avenue
STAFF:
Laura Triggs, Deputy City Manager
Jeremy McPike, Director, General Services
Alfred Coleman, Deputy Director, General Services
Donna Poillucci, Deputy Director, General Services