Property Appraiser and Tax Collector Office Space Search Update

1. Property Appraiser and Tax CollectorOffice Space Search Update Real Estate Management November 19, 2013

2. Background • Property Search • Options • Next Steps

3. Background Last November questions were raised about the suitability of the SunTrust building to house the Property Appraiser and Tax Collector – location, ease of access, parking, and cost. Board asked us to look into finding a more suitable property for them

4. Background • BCC currently leases 49,307 SF of Class A office space at SunTrust Center • Property Appraiser = 31,064 • Tax Collector = 18,243 • Lease expires December 2014 • Current Cost $1.2 M/Year • Anticipated Cost $1.4 M/Year

5. Background The Property Appraiser and Tax Collector sent letters to the Mayor specifying the following criteria regarding suitable alternative office space. Property Appraiser • Easy and accessible customer service • Customer and employee parking • Accessibility • Central location within County Seat Tax Collector • Easy Access • Adequate Parking • Accessibility • Convenient location near Property Appraiser • Data Requirements

6. Property Search • CBRE and REM have conducted a search of available properties for purchase over the last year. • Utilized criteria provided by the PA and TC which did not include requests for additional space beyond the current 49,307 SF. • Identified approximately 26 properties. • Narrowed the list to 4 options based on location, price, size, parking and improvement costs.

7. Option 12611 and 2600 Technology

8. OPTION 1 2611 and 2600 Technology Dr 2611 Technology Drive 2600 Technology Drive 30,602 SF of space 62,300 SF of space 150 parking spaces 250 parking spaces Total Purchase Price-$9.37m Total Build Out Cost-$5.2m Overall Cost $14.5M ($156/SF)

9. Option 1 PROS & CONS PROS Provides needed SF • Ample Parking • Central location • Cost • Campus Setting • Tenant Income • Bus Stop - .2 mile/Sidewalks CONS • Existing tenants (2021) in 20,000 S.F. • Competing with another Buyer for the 2611 site

10. Option 2815 Herndon Avenue

11. Option 2815 Herndon Avenue 62,517 SF of space 270 Parking spaces Purchase price-$7.0M (asking) Build out-$6.3M Total Cost-$13.3M Overall Cost $13.3M ($212/SF)

12. Option 2 PROS & CONS PROS • One campus • No tenant logistics • Adequate parking • Central location CONS • Extensive renovation costs

13. Option 3320 South Street and 501 N Orange

14. OPTION 3 320 South St. and 501 N Orange 320 South Street 31,454 SF of space 94 parking spaces Total Purchase Price-$8.35M Total Build Out Cost-$3.15M 501 N Orange Ave 20,306 SF of space 61 parking spaces Overall Cost $11.5M ($222/SF)

15. Option 3 PROS & CONS PROS • Proximity of buildings • No tenant logistics CONS • Doesn’t meet space needs • Inadequate parking • No expansion opportunity

16. Option 4250 N. Orange Avenue

17. OPTION 4 250 N Orange Ave (Southern Bank) 128,791 SF of space Minimal on site parking spaces Purchase Price-$10M (not listed for sale) Build out-$3.2M Total Cost-$13.2m Overall Cost $13.2M ($102/SF)

18. Option 4 PROS & CONS PROS • Single location • Cost per SF • Overall size CONS • Small floor plates • Inadequate parking • Tenant logistics • Building condition

19. Summary of Options Total SizeTotal CostCost/SF Option 1 92,900 SF $14.5m $156 Option 2 62,517 SF $13.3m $212 Option 3 51,760 SF $11.5m $222 Option 4 128,791 SF $13.2m $102

20. Summary of Options SurfaceParkingAccess/Bus SizeCentral LocationOne Campus Option 1 yes yes exceeds yes yes Option 2 yes yes meets yes yes Option 3 limited yes limited yes no Option 4 limited yes exceeds yes yes

21. Properties Considered

22. Other Options/Next Steps • Continue to look for other buildings for sale • Look for lease opportunities • Discuss short term (1 to 3 Year) renewal • Investigate costs of land purchase and build • Continue to explore all options • Return to Board with recommendation

23. Property Appraiser and Tax CollectorOffice Space Search Update Real Estate Management November 19, 2013