Property Appraiser and Tax Collector Office Space Search Update Real Estate Management November 19, 2013

Background Property Search Options Next Steps

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

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

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

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. Property Search

Option and 2600 Technology

OPTION and 2600 Technology Dr 2611 Technology Drive2600 Technology Drive 30,602 SF of space62,300 SF of space 150 parking spaces250 parking spaces Total Purchase Price-$9.37m Total Build Out Cost-$5.2m Overall Cost $14.5M ($156/SF)

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

Option 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) Option Herndon Avenue

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

Option South Street and 501 N Orange

OPTION 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)

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

Option N. Orange Avenue

OPTION 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)

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

Summary of Options Total SizeTotal CostCost/SF Option 192,900 SF$14.5m$156 Option 262,517 SF$13.3m$212 Option 351,760 SF$11.5m$222 Option 4128,791 SF$13.2m$102

Summary of Options Surface Parking Access/Bus Size Central Location One 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

Properties Considered

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

Property Appraiser and Tax Collector Office Space Search Update Real Estate Management November 19, 2013