City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 24, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: JEREMY MCPIKE, DIRECTOR, GENERAL SERVICES
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Consideration of a Temporary Lease Agreement Between the City and Commonwealth of Virginia, Department of General Services (for the Virginia Department of Health), for 44,461 Square Feet of Rentable Space in 4850 Mark Center Drive.
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ISSUE: Consideration of a Temporary Lease Agreement Between the City and Commonwealth of Virginia, Department of General Services (for the Virginia Department of Health), for 44,461 Square Feet of Rentable Space in 4850 Mark Center Drive.
RECOMMENDATION: That City Council authorize the City Manager to execute a temporary lease agreement consistent with the general terms of the attached Temporary Lease Agreement with the Commonwealth of Virginia.
BACKGROUND: On February 14, 2023, City Council authorized the City Manager to execute a lease agreement with the Commonwealth of Virginia for 44,461 square feet of rentable space at 4850 Mark Center Drive for a period of ten (10) years with one five-year renewal option exercisable by Virginia Department of Health (VDH) unless terminated by either party. However, upon final review of the lease prior to execution, the Commonwealth determined that because the total rent for the entire lease term exceeds $5.0 million the Commonwealth could not execute the lease. Under the ten (10) year lease, the initial annual rent will be $1.8 million, or over $20.0 million over the entire ten 10-year term.
The state has submitted language in FY 2024 State Budget that will allow for the expenditure of the rent funds over $5.0 million but until the General Assembly and the Governor approve the budget, the lease cannot be executed. The state estimates that it could be another m...
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