AGENDA DATE: 5/5/2021
TITLE:
Title
Proposed Amendments to the Field School’s Lease of Outdoor Space at the Old Crozet Elementary School
BODY
SUBJECT/PROPOSAL/REQUEST: Approval of amendments to the Field School’s lease of outdoor space at the Old Crozet Elementary School
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Henry, Kamptner, Herrick, Stewart, Freitas
PRESENTER (S): Michael Freitas
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: In 2009, the County solicited for tenants at the Old Crozet School, ultimately entering into lease agreements with the Field School of Charlottesville and the Old Crozet School Arts. Both leases are still active. At that time, a lease rate per square foot for indoor space was developed, designed to cover the operating costs of maintaining the facility. At the time, no consideration was given for the leasing of outdoor space.
STRATEGIC PLAN: Quality Government Operations - Ensure County government’s capacity to provide high quality service that achieves community priorities.
DISCUSSION: As a result of the pandemic, in July 2020, the Field School requested permission to install six tents and four portable restrooms on the grounds of the Old Crozet School, to facilitate outdoor classroom instruction. The outdoor space (5,544 square feet) was needed for the academic year starting in August 2020. The only legal means to approve the request administratively was to charge the same rate per square foot for the outdoor space as for indoor space ($4.43 per square foot per year), for a total annual rent increase of $24,559.92.
After this administrative approval, the Field School submitted a request for rent forgiveness (Attachment A). In response, staff has developed a proposed adjusted rate for the lease of outdoor space. Staff research found that, in general, rental rates for improved property (i.e., a building) are 0.8% - 1.1% of the property’s value per month. Based on the current appraised land value of the 5.4 acre parcel ($972,000), the resulting range would be $0.03 to $0.05 per outdoor square foot per month. Using the middle of the range would result in a rental rate of $0.48 per outdoor square foot per year. If this rate were made retroactive, the Field School would receive a rent credit of $1,824.90 for each month during which the higher rate was paid.
In addition, more recently, the Field School has indicated that it wishes to reduce the size of its outdoor rented space. Attachment B shows the proposed outdoor space to be rented going forward. The proposed amended lease would reduce not only the Field School’s outdoor rental rate retroactively, but the size of its outdoor space going forward.
Virginia Code § 15.2-1800 requires the Board to hold a public hearing prior to the proposed conveyance of this interest in County owned real property.
BUDGET IMPACT: A retroactive rate adjustment would result in a $16,424.10 credit to the Field School.
RECOMMENDATION:
Recommendation
Following the public hearing, staff recommends that the Board adopt the attached resolution (Attachment C) approving proposed amendments to the Field School’s lease of outdoor space at the Old Crozet Elementary School.
ATTACHMENTS:
A - Field School’s Letter
B - Map of Revised Outdoor Leased Space
C - Resolution