Vote: approved

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17. LEASE WITH HHLUHRS, LLC FOR OFFICE SPACE Approve and authorize the Chairman to execute a Lease Agreement L-7418 with Maricopa County as Lessee and HHLurhs, LLC as Lessor for approximately 13,200 rentable square feet of office space in the Luhrs Building at 125 South 1st Avenue in Phoenix Az. Pursuant to A.R.S. 42-17106, transfer FY2011 expenditure appropriation in the amount of $84,953 from Non-Departmental (470) General Fund (100) Operating (0000) to Adult Probation (110) General Fund (100) Operating (0000) for the FY2011 operating costs of this lease and direct the Office of Management and Budget to adjust Adult Probation’s FY2012 budget target to include the annualized cost for this lease. Within the appropriated budget for Non-Departmental, the amount to be transferred will be deducted from General Contingency. Lease Agreement L-7418 leases approximately 13.200 rentable square feet of office space in the Luhrs Building at 125 S. 1st Ave, in Phoenix, for use by the County's Adult Probation Department. The Lease Commencement Date will be on, or about, March 1, 2011. The term of the lease will be for 60 months, with an option to renew for an additional 60-month term. During the initial term of the lease, the County will have the right to use up to 39 unreserved parking spaces in the adjacent garage at no additional cost to the County. The Lessor will provide the Lessee with turnkey tenant improvements per approved space plans. The County will be responsible for incremental costs associated with certain landlord tenant improvements to satisfy specialty requirements for the County's voice/data and access control systems. The Department will submit future agenda item(s) for the Board's consideration to authorize and fund the specialty tenant improvements associated with the County's voice/data and access control systems, as well as, to fund the one-time costs associated with the relocation, once the scope has been finalized. The County will be responsible for increases in Operational and Maintenance expenses above a Base Year of 2011. (C-11-11-001-1-00)

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15. AMENDMENT TO LEASE WITH HHLUHRS, LLC Approve, and authorize the Chairman to execute, Amendment No. 1 to Lease Agreement L-7418 between Maricopa County, as Lessee, and HHLuhrs, LLC as Lessor regarding leased space within the Luhrs Annex at 125 S. 1st Avenue in Phoenix, AZ. Amendment No. 1 to Lease Agreement L-7418 will: i) adjust the Lease Year to coincide with the calendar year; ii) reduce the base rent for Lease Year 2015 to $21.00 per square foot per year with $1.00/s.f. annual increases thereafter; iii) reset the Base Year expenses to 2014; and iv) extend the term of the agreement through December 31, 2019. Beginning with Lease Year 2017, the County will compensate the Lessor for the County’s right to use, during business hours on business days, up to 39 parking spaces in the adjacent Luhrs Garage at a rate of $60.00/month/space plus taxes. As part of Amendment No. 1, the Lessor agrees to relinquish the Lessor’s right to interrupt/terminate the County’s parking rights with regards to the Luhrs Garage. (C-11-11-001-1-01)

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