SUBJECT:
Title
WALK-ON: Presented on March 18, 2025, as Agenda Item 8.1. - Request Approval of the Fourth Lease Renewal Agreement Between Ellison Property Management, Agent for the Landlord, Ocala Springs Plaza, LC, and Marion County for the Tax Collector Office Space in the Ocala Springs Shopping Plaza
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INITIATOR: |
DEPARTMENT: |
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Matthew G. Minter, County Attorney |
County Attorney |
DESCRIPTION/BACKGROUND:
The Marion County Tax Collector, George Albright, requests that Marion County enter into a fourth lease renewal agreement with Ocala Springs Shopping Center, LC, for a term of five (5) years commencing January 15, 2025. The Marion County Tax Collector has re-negotiated the terms of the renewal so that the current rental rate of $3,010.00 per month, which includes common area maintenance (CAM) and tenant's share of operating expenses, shall remain the same through year one (1). The rental rate in years two (2) through five (5) will increase to $3,440.00 per month including CAM and tenant's share of operating expenses.
Year one (1) annual rent will continue at its current rate of $36,120.00, including CAM and tenant's share of operating expenses. Accordingly, there will be no additional budget impact for the remainder of FY 2024-25. In years two (2) through (5) annual rent would be $41,280.00, which results in an annual increase of $5,160.00 for years two (2) through (5).
The requested and negotiated rental increase by the landlord results from two components - Base Rent and CAM. Inflation from January 2020 to December 2024 is 21.48%. The CAM portion of the rent has risen from $3.30/sf in 2020 to $4.42/sf currently, which is an increase of $1.12/sf. The landlord is not asking for an increase commensurate with overall inflation. The landlord is seeking a 10% increase over the current base rent and a $1.12/sf increase in the CAM starting in year two (2) and remaining the same through year five (5). The landlord is seeking an increase to the gross rent of $2.00/sf to a gross rent of $16.00/sf ($3,440.00 per month) including CAM and tenant’s share of operating expenses. This equates to an overall thirteen and one-half percent (13.5%) increase to the gross rent beginning in year two.
BUDGET/IMPACT:
May result in increase of the Tax Collector’s budget in coming fiscal years.
RECOMMENDED ACTION:
Recommended action
Motion to approve the fourth lease renewal Agreement between Ellison Property Management, agent for the Landlord, Ocala Springs Plaza, LC, and Marion County for the Tax Collector office space in the Ocala Springs Shopping Plaza.
Motion by Vice Chair Zalak, second by Commissioner Curry, to approve agenda item 8.1. The motion carried 5 / 0.
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