Committee considers triple-net leases to shift upkeep of historic properties; staff to begin title searches

The Athens-Clarke County property committee spent a significant portion of its April 28 meeting on lease options and legal mechanisms to reduce the county’s maintenance burden for historic properties.

John, representing the county attorney’s office, explained that a ground lease typically leases the land ("the dirt") to an entity that then builds or occupies to its needs. He described a triple-net lease as an arrangement where the lessee pays rent and assumes responsibility for maintenance, insurance and other costs tied to the building. "On triple net...they'd pay rent and they'd basically be responsible for everything associated with that building," John said.

Committee members asked whether a triple-net model could be applied to historic-designated properties so the county could reduce carrying costs while preserving character via deed restrictions or easements. Staff noted that applying different lease terms across nonprofit tenants would require policy work and likely legal review to maintain consistent treatment across county properties.

To clarify property titles and any unusual parcel encroachments that could affect sale or lease options, staff (Andrew) agreed to begin title searches for the Prince Avenue parcels, Taylor Grady parcel(s), and the adjacent Henderson parcel with the encroachment. He said the search should also include a review of commission records tied to the properties’ purchase to capture any past commitments. Staff estimated title work could take about 30 days.

The committee did not adopt a new lease policy at the meeting; instead members asked staff to return with options — including how a triple-net approach would work for locally designated historic properties — and with the title-search results to inform next steps.