Subject:
Title
Amendment 28 to the Lease Agreement with the Raytheon Technologies for space at the Young-Rainey STAR Center to add 16,400 square feet to the leased premises, to extend the term for five years, and to add two additional five-year option terms.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of Amendment 28 (Amendment) to the Lease Agreement (Lease) with Raytheon Technologies (Raytheon) to add 16,400 square feet to the leased premises, to extend the term for five years, and to add two additional five-year renewal options at the Young-Rainey STAR Center.
• The current Lease term expires November 30, 2023.
• The Amendment adds 16,400 square feet (expansion space) to the current Lease increasing the total leased premises from 447,449 square feet to 463,849 square feet.
• The Amendment also extends the term of the Lease for five years, commencing December 1, 2023, with two additional five-year renewal options.
• Due to the time required to modify the expansion space, base rent for the expansion space will be waived for the remainder of the current lease term, however, Raytheon will be responsible to pay for common area maintenance expenses and utilities.
• Commencing December 1, 2023, Raytheon’s base rent for the total 463,849 square feet will increase according to the terms of the Lease, which is based on the customer price index with a maximum increase of 5% of the previous year’s rent.
• The increase in annual rent for the period commencing December 1, 2023, through November 30, 2024, is estimated to be $163,763.00, which represents the maximum increase of 5%.
Body
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.1 Proactively attract and retain businesses with targeted jobs to the county and the region
Deliver First Class Services to the Public and our Customers
5.1 Maximize partner relationships and public outreach
5.2 Be responsible stewards of the public’s resources
Summary:
This Amendment adds 16,400 square feet to the leased space, extends the term to November 30, 2028, and adds two (2) additional five (5) year renewal options.
Background/Explanation:
The Young - Rainey STAR Center is home to Raytheon’s Center of Excellence for its Network Centric Systems Division. Raytheon manufactures radios, terminals, vehicle integration, cables and harness programs to support several Department of Defense contracts. Raytheon has been the STAR Center's anchor tenant since September 1998. The Lease Agreement has been previously amended through Amendments 1 through 27 by the parties.
This Amendment adds 16,400 square feet to the existing Lease increasing the leased premises from 447,449 square feet to 463,849 square feet and extends the current term for five years to November 30, 2028, with two additional five-year renewal options.
Fiscal Impact:
Current Annual Rent $3,275,258.00
New Annual Rent 12/01/23 $3,439,021.00
Annual Rent Increase 12/01/23 $ 163,763.00
This amendment is consistent with the Fiscal Year (FY) 2023 Adopted Budget. The current rent of $3,275,258.00 is included in the FY23 Adopted Budget. The increase to rent of $163,763.00 will need to be included in the FY24 Budget Request.
Delegated Authority:
Authority for the County Administrator to sign this Agreement is granted under Code Section 2-62(a)(2).
Staff Member Responsible:
Greg Concannon, Division Director, Economic Development
Partners:
N/A
Attachments:
Amendment 28
Amendment 27
Lease Agreement
Location Map