Subcommittee approves three state office leases for Children's Services and Human Services
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Summary
The Executive Subcommittee approved three leases — two in Campbell County that separate Department of Children's Services and Department of Human Services offices and a larger combined lease in Waynesboro with significant tenant-improvement costs and a termination-for-convenience clause.
The Executive Subcommittee of the State Building Commission on June 23 approved three leases presented by the Department of General Services that alter office space for the Department of Children's Services (DCS) and the Department of Human Services (DHS).
Deputy Commissioner John Holt, presenting the items for the Department of General Services, said the first lease (Campbell County) is for DCS and proposes a 10-year term with a 13-year renewal option; when implemented, the DCS lease will shrink by 4,463 square feet as the agency separates from co-location with DHS. The second lease, at the same Campbell County location for DHS, also proposes a 10-year term with a 13-year renewal option and will reduce that lease's space by 1,212 square feet. The third lease, in Waynesboro, is a combined lease for both agencies with a 10-year term and a 15-year renewal option; Holt said the Waynesboro space will be larger than the current lease by 1,800 square feet to provide separation and a safety zone and that landlord renovation costs are estimated at over $700,000. The Waynesboro lease includes a termination-for-convenience option after 84 months in the 15-year renewal scenario.
A subcommittee member asked whether tenant-improvement costs were built into the leases; Holt confirmed they were. The member also asked why rent increases appeared significant despite some current leases being only three to five years old; Holt and staff attributed the increases primarily to current market rents and construction and renovation costs, noting COVID-era inflation and that often only a single proposal was received for these locations.
The subcommittee took the three leases as a group and approved them by voice vote after a motion and second; no opposing votes were recorded in the transcript.
Details: - DCS (Campbell County): proposed 10-year term with a 13-year renewal option; space reduction of 4,463 sq ft compared with the current lease. - DHS (Campbell County): proposed 10-year term with a 13-year renewal option; space reduction of 1,212 sq ft compared with the current lease. - Combined DCS/DHS (Waynesboro): proposed 10-year term with a 15-year renewal option; new lease larger by 1,800 sq ft; landlord renovation costs estimated "at over $700,000"; termination for convenience after 84 months in the 15-year lease.
What the record shows: The items were presented together, a motion and second were recorded, and the chair called for ayes and declared the motion passed. Specific dollar amounts for rent or the tenant-improvement allowance beyond the stated renovation estimate were not provided in the transcript.
Next steps: Not specified in the transcript; implementation and landlord improvements implied by lease language and the tenant-improvement allowance recorded in the presentation.