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REPORT ON LEASE SPACE AT THE ADMINISTRATION BUILDING Administrator Nelson reviewed the following memo and lease agreement form with the Board and reported that each year 10% escalation will be added. INDIAN RIVER COUNTY, FLORIDA INTER - OFFICE MEMORANDUM TO: The Honorable Members of ' DATE: October 13, 1981 FILE: the Board of County Commissioners FROM' eil A. Nelson County Administrator DESCRIPTION AND CONDITIONS SUBJECT: Lease space at the, Administration Building REFERENCES: As a part of the decision making process concerning the renovation of the Indian River Memorial Hospital Building, it was determined that the overall size of the building was in excess of the projected County need. Therefore, the decision was made to offer lease space to various state and local agencies. The concept was that of developing a Governmental complex. Space has been set aside for the Indian River Federal Credit Union, State Representative Dale Patchett's Administrative Office, Florida Marine Patrol, Division of Driver's License Examining Office, Indian•River County School District Administrative Offices and the Division of Blind Services, as well as for housing "the Administration Offices of the various County departments. ALTERNATIVES AND ANALYSIS In view of the foregoing policy, staff conducted a survey of rental and lease rates utilized in the local area, primarily the private sector. The typical rate for office space varies from $5.00 per square foot up to $10.00 per square foot. The price depends upon the location and typically does not include utility and related services. Staff has prepared a recommended lease rate and a sample lease agreement. The Tease agreement is similar to that utilized by the State of Florida. At present, lease agreements have been entered into between the Division of Blind Services and Indian River County School District. We have developed •a lease rate that will provide the County a proper return on it's investment as well as cover associated annual operating and administrative costs. Attachment "A" provides the basis for those projected annual operating costs on a square footage basis for each of the services provided. The rate needed to cover annual operating cost is $4.08 per square foot. Please note that the total square footage of the building is used for calculation purposes in certain areas and that in costing out others, 84,000 square feet is utilized. The 84,000 is the net square footage of the building exclusive of that portion leased to the School Board. As relates to the capital cost of the building, it was necessary to pro -rate the cost of the renovation of the Administration Building and the Courthouse on a square footage basis in order to determine the applicable principal and interest charges related to each. 73 BOOK .47 PAGE 846