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OCT 211981 BOOK 4 i PAGE 84 J <br />Thus, the total Administration Building project cost including principal and <br />interest is calculated to be $11,592,537.00. The useful life of the building <br />is considered to be thirty (30) years which coincides with the life of the Bond <br />Issue. The annualized square footage cost to cover the bond debt service <br />amortized over the thirty (30) year period is $3.51 per square foot. (Please <br />see attachment 0.) <br />It is necessary to provide a fee to the County that would reflect the annual <br />operating cost, the annual bond issue debt service requirement cost, as well <br />as administrative cost that would be involved with the administrative, legal <br />and contractual matters involving the lease. This fee is established at 15% <br />of the annual operating cost and the annual debt service cost and is $1.13 <br />per square foot; thus, providing the total lease rate cost of $8.72. <br />The attached sample lease agreement indicates a means of price escalation on <br />an established percentage basis rather than being based upon the Consumer <br />Price Index. The intent is to establish flexibility in the document. It is <br />our understanding that State Agencies are not permitted to enter into agreements <br />that include cost of living provisions, which are based upon the C.P.I. The <br />intent of the lease agreement is to limit the lease period to a maximum of 5 <br />years and to provide for renewals at the, then, going rate. <br />RECOMMENDATIONS AND FUNDING <br />1. It is recommended that the Board of County Commissioners approve the attached <br />lease agreement in concept and that this agreement be utilized for negotiating <br />purposes. <br />2. That all agreements be limited to a maximum of 5 years. <br />3. That agreements between County and non -State Agencies be similarly constructed <br />and that the rate of escalation be tied to the annual increase in the <br />Consumer Price Index. <br />4. Establish $8.72 per square foot as the base rate for space in the Administration <br />Building. <br />ATTACHMENTS <br />A Projected Annual Operating Costs - Administration Building <br />B Courthouse/Administration Building - 30 Year Cost <br />C Proposed Annual Lease Rate - Administration Building <br />D Potential Lessee's <br />E Sample Lease Agreement <br />the Clerk. <br />The listed attachments are on file in the office of <br />W 74 W <br />