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Local News

April 22, 2013

Workforce agency staying put

City voting on Council of Governments lease

GREENVILLE — The local office of the North Central Texas Council of Governments/Texas Workforce will be staying where it is, for at least another year.

The Greenville City Council is scheduled tonight to vote on approving an addendum to the lease for the agency, which currently occupies two floors of the Paul Mathews Exchange Building downtown. The vote is included as part of the regular session agenda, which begins at 6 p.m. in the Municipal Building, 2821 Washington Street. A work session is set for 5 p.m. today.

In July 2001, the City of Greenville purchased the Paul Mathews Exchange Building and once renovations were completed in 2003, the State of Texas, Hunt County Tax Collector’s Office, and the North Central Texas Council of Governments signed 10 year leases, which are due to expire this spring.

An appraisal was conducted last year to determine a fair rent rate for renewals of the leases, which determined the rate should be $15.00 to $16.50 per square foot. Currently the North Central Texas Council of Governments leases 9,141 square feet on 2 of the 8 floors of office space in the building, at a rate of $18.03 per square foot.

In a memo to the Council, Finance Director Cliff Copeland explained that the North Central Texas Council of Governments has expressed a desire to stay at its current location until a suitable, single floor location can be located.

“Based on this information, a second amendment to the lease agreement was drafted between the City of Greenville and the North Central Texas Council of Governments to continue for an additional one year (through March 31, 2014) with two additional one year renewal options, Copeland said. “The amendment would also give the North Central Texas Council of Governments right of first refusal on the first floor if that tenant chooses to move and a termination clause if federal or state funding is cut for funding the lease payments.  Additionally, the North Central Texas Council of Governments contracted with a tenant broker to identify and secure a location for their Greenville operation.  This lease addendum includes a four percent commission to be paid to the tenant broker.”

Under the addendum, the lease rate would decrease from $18.03 to $16.50 per square foot which would have a revenue impact of $6,993 on the current fiscal year.

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