Minutes 04/24/2001 - Laserfiche WebLink

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April 24, 2001 4. REVOCATION OF PERMIT: Violation of any of the above conditions may serve as grounds for revocation of the use permit by the City Council." Ayes: Benn, Griffin, Moody, Pitts, Whitehurst, Holley Nays: None - City Manager's Report - 01 - 135 - Adoption of a resolution approving a sublease between the City and the Portsmouth Public Health Department for a portion of the new Social Services building at 1701 High Street Recommendation: · Adoption of a resolution approving a sublease between the City and the Portsmouth Public Health Department for a portion of the new Social Services building 1701 High Street. Purpose and Need: · In September 1999, the floodwaters from "Hurricane Floyd" damaged the former Human Services Center facility at 1701 High Street and forced the temporary relocation of the Portsmouth Department of Social Services to vacated sections of Tower Mall. · It was determined that it was in the best interest of the City of Portsmouth not to return to the damaged building to protect the safety and well-being of citizens and employees. · Through a 20-year lease purchase arrangement with a private developer, the City built a new 133,000 sq. ft. facility on the site to provide space for both the Portsmouth Department of Social Services and the Portsmouth Health Department, both predominantly State funded local programs. · In November 2000, the Federal Emergency Management Agency (FEMA) conducted an environmental assessment of the site that provided: 1) approval for the City to proceed with demolition of the old building, and 2) tentative approval for the costs associated with damages to the old building. · The new building was designed to accommodate the space requirements of the Health Department, and the Department's move was contemplated as part of the redevelopment plans for the old Portsmouth General Hospital site. · Under the lease purchase agreement, the City is the tenant and now proposes to sublease 32,000 sq. ft. of the building to the Portsmouth Public Health Department. The Health Department will be a sublessee for a term of twenty years with annual renewals for up to five additional years. Because of the length of the term, the City Charter requires that City Council approve the lease. Financial Impact: · The Commonwealth of Virginia has been requested to pay the rent and related building costs including utilities, maintenance, and security that are associated with this sublease for the Health Department. · The combined effect of this sublease and the State reimbursement for the portion occupied by the Social Services Department will cover most of the debt service, interior maintenance, and utility costs associated with the facility. · The total cost of the building is approximately $12 million, and the annual lease payment is $1.5 million.