State Properties Commission
SPC
State Properties Commission
REAL PROPERTY REAL SOLUTIONS
Fiscal Year 2014
Annual Report

GA DOR MACON REGIONAL OFFICE

FURNITURE PLAN

December 12, 2012 1

State Properties Commission

Table of Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Portfolio Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Accomplishments & Achievements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Asset Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Space Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Transaction Management
Leasing Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Land Division. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Vision, Mission & Values
Vision
To be the national leader in State real estate portfolio management
by exemplifying stewardship, accountability and integrity.
Mission
To advise, guide and maximize Georgia's real estate portfolio by applying industry
best practices in asset, space and transaction management.
Core Values
Stewardship Accountability Integrity Leadership
Steven L. Stancil
State Property Officer
Frank Smith
Deputy Executive Director

Commission Members
Governor Nathan Deal
Chairman
Alan Skelton
State Accounting Officer Vice-Chairman
Brian P. Kemp
Secretary of State Board Secretary
Steve McCoy
State Treasurer Board Member
Phil Carlock
Citizen Member appointed by Governor
Mike Nixon
Citizen Member appointed by Speaker of the House
John Breakfield
Citizen Member appointed by Lieutenant Governor

Page 1

State Properties Commission

Maximizing the Value and Use of Georgia's Real Estate Portfolio

With the creation of the position of State Property Officer and the enactment of legislation realigning the management of the State's capital assets in 2005, the State Properties Commission (SPC) was designated as Georgia's real estate portfolio manager. SPC is responsible for the acquisition and disposition of all State-owned real property and real property interests. Additionally, SPC provides a full array of leasing services to State entities in commercially leased space. SPC also is equipped to conduct studies, research and evaluations and to provide statewide policy leadership and coordinate master planning to guide and implement capital asset management. From the review of State Facility Strategic Plans, maximizing the value of the State's assets, increasing the utilization and efficiency of workplace environments and lease and land transactions, SPC's primary focus is to provide accountability in its

stewardship of the State's assets for the taxpayers of Georgia. By creating enterprise-wide leadership and advice for real estate transactions, asset and space management, SPC is a unified and fully integrated real estate portfolio management office that is being recognized as a model in the public sector.

Portfolio Management

SPC, as the State's Portfolio Manager, develops overall real estate strategies and advises OPB on capital budget expenditures. It is comprised of three distinct but coordinated programs:
Asset Management is the strategic function that manages the State's real estate assets to provide the maximum value to the State.
Space Management makes best use of State-owned and leased space by promoting and tracking utilization through standardized space planning to create efficient work environments.
Transaction Management provides for all tasks related to acquiring and disposing of real estate assets, owned or leased, and managing all activities required to lease property for State entities in commercially owned space.

Legislative Agenda
Several pieces of legislation were introduced during the 2014 Session of the General Assembly on behalf of the State Properties Commission.
Senate Resolution 788 (Act No. 595) authorized the State of Georgia, acting through the State Properties Commission, to convey certain State-owned properties around the State. Senate Resolution 868 (Act No. 598) authorized the State of Georgia, acting through the State Properties Commission, to grant non-exclusive easements for State Owned Properties in various counties.
House Bill 495 (Act No. 580) was passed to amend the State's disposition process, which was both lengthy and inefficient. Benefits of the new conveyance process include reduced maintenance and operations costs while the property is vacant; property reinstated on local and county tax digests; earnings received earlier by the State Treasury to generate increased interest income; and best and final offers to allow for higher sales prices.

Page 2

State Properties Commission
Accomplishments and Achievements

Pictured from left to right: GTA Commissioner Calvin Rhodes; GBA I.T. Shared Service Sonny Manalili, Bhaskar Velivela; State Properties Commission Ginette Tatem and Andre' Elam

The State Properties Commission's Space and Transaction Management Tracking System (SATMT) was one of seven projects selected out of a total of 29 projects from 17 state and local government agencies nominated for this year's Technology Innovation Showcase. The award luncheon was held during the annual Georgia Digital Government Summit. The nominations were evaluated by a committee according to how well they met the following criteria:
- Level of innovation in addressing a specific business problem
- Significance to improving business processes and operating efficiency
- Significance to financial savings or cost avoidance
- Significance to enhancing service delivery to external or internal customers

State Properties Commission collected $10,286,341 in FY 2014 from land sales, leases and easements.
Since January 1, 2013 the ability to enter Multi-Year leases has allowed the State to realize $8,419,214 in cost avoidance.
HB 386 SPC performed Conservation Easement appraisal reviews for protection of the State tax credit.
2014 Revised Statewide Space Standards increased utilization by up to 25% going forward.
Acquisition of land for the New Stadium Project 9 owners over 14 tracts.
Ground lease of State Property to the College Football Hall of Fame.

Page 3

State Properties Commission

Asset Management

The Asset Management Program has the responsibility to evaluate the valued or interest of State-owned and leased Real Property Assets and to provide recommendations that increase its value to the State or the market value to the commercial sector. Within this charge are five specific work processes that are the direct charge of Asset Management:
Core and Non-Core - establishing core and non-core designation for each major asset in the portfolio
Total Cost of Occupancy - a framework for making better real estate
Asset Evaluation - the analysis of a particular asset to provide a basis for making portfolio-level decisions around acquiring, disposing or renovating assets to determine highest and best use
Asset Prioritization - identification of properties within the portfolio to determine those which have the highest importance for surplus, investment or change in order to continually balance the mix of assets to maximize value to the State
Surplus Property - establish and implement portfolio-level disposition goals to achieve the best combination of cost and utility

During FY'14, the focus for Asset Management (AM)

continued on the analysis and documentation of existing

asset data, with the objective of improving accuracy and

completion in the BLLIP building database. Through col-

laboration with State agencies and Asset Management,

this effort resulted in increased agency completion of

required critical fields' in BLLIP that is used by the

public, government offi-

cials and agency decisionmakers and is critical to DOAS Risk Management Program for all State in-

"BLLIP is used by the public, government

sured assets. Toward that end, the BLLIP Building data is at 95% completion a 9% increase from FY' 13.

officials, and agency decisionmakers..."

Another area of con-

centration involved monitoring and completing the

audit recommendations set forth by the Department

of Audits and Accounts Performance Audit Division

in January 2012 Special Examination (11-33). During

the Follow-Up Review for State Space Management

Policies, of the 21 sub-findings within the four broad

findings, SPC fully addressed 16 recommendations, 3

findings were partially addressed and 2 findings were

not addressed due to being not applicable to SPC.

AgeAngceinecsiewsiWthitMh MosotstSSqquuaarree FFoooottaaggeeFfoor rOOwwnendeBduBiludiilndgisngs*

16,000,000 14,000,000 12,000,000 10,000,000
8,000,000 6,000,000 4,000,000 2,000,000
-

14,043,938 11,464,633
7,304,819 5,420,123 4,846,651 4,305,494 3,152,187 2,316,731 1,901,630

*Excluding Regents and GDOT

Page 4

State Properties Commission

In addition, Asset Management explored methodologies to determine a best practice to obtain average market rate

HIGHEHSiTghfOPoeRWsrItMNOPEAwrDRinmBYeadUUrIBySLuEUDiIlBsNedYGibnTySgYTsPyEpSesFOR

information in various cities and

counties throughout the State. This undertaking was coordinated with the assistance of our

2000

1972 1437

Costar Representative and our CRE Consultant Cassidy Turley. SPC's goal is to develop a tool

871

823

679

that will give agencies a better

understanding of the real estate

costs in a given market so as

to better project and plan their

budgets for the next fiscal year.

Asset Management teamed

with Space Management, Trans-

action Management and our

Tenant Brokerage Consultant

Cassidy Turley to conduct Met-

ro Plans of the cities of Waycross

Footnote: Building Inventory excludes : BOR, CSB's and DD/MR

and Columbus. A Metro Plan

is a high level portfolio review

and assessment of the State's real estate footprint in a

Portfolio management must continuously strive for

particular metropolitan or geographic region. The stra-

cost/functional improvements where volume (i.e.

tegic goal of such real estate planning is to support State

large amounts of square footage within a single

agency needs while streamlining or reducing the State's

market) is high.

overall costs and operating expenses. With the authori-

Consolidation typically yields more cost savings than

ty to enter into multi-year agreements, SPC is positioned

dispersion.

to provide greater benefits to State agencies in lease ad-

Market rates and current administrative and/or

ministrative office space. There are a few primary as-

statutory requirements often qualify the potential

sumptions that drive this analysis:

solution.

Number of Buildings By Age
Age of Buildings

2599
1605 1325

3431 2215

1 to 20 Years 31 to 40 Years 51 or Older

21 to 30 Years 41 to 50 Years

"SPC's goal is to develop a tool that will give agencies a better understanding of the real estate costs in a given market so as to better project and plan their budgets for the next fiscal year."

Page 5

State Properties Commission

County
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch Cobb Coffee Colquitt Columbia Columbus Cook Coweta Crawford Crisp

Number of Leases and Buildings by County

Leases
13 4 4 4 28 3 9 17 5 6 38 9 4 4 12 32 9 7 1 8 2 26 6 7 49 3 3 18 51 8 25 4 41 17 13 14 0 4 13 2 11

Buildings
33 6 18 3 554 10 150 179 34 30 271 67 16 6 76 170 67 151 33 82 13 139 17 63 453 6 109 17 686 60 122 42 131 122 55 130 0 37 66 12 154

County
Dade Dawson Decatur DeKalb Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson

Leases
6 3 9 63 11 3 31 10 6 2 9 10 14 5 14 7 20 8 7 215 10 3 27 12 4 10 40 7 31 3 5 4 10 3 17 18 1 2 5 6 9

Buildings
74 100 93 354 103 46 115 68 61
6 12 155 115 38 13 3 203 30 184 399 22 3 226 77 14 15 97 108 146 48 28 175 54 4 14 114 18 18 71 24 23

Page 6

State Properties Commission

Number of Leases and Buildings by County (Continued)

County
Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie McIntosh Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Not Georgia Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph

Leases
5 3 6 4 4 17 6 12 8 3 33 21 2 4 1 10 7 8 2 11 16 1 8 11 47 8 19 13 3 12 10 4 4 3 9 2 10 4 7 4

Buildings
71 42 32 47 22 80 54 26 76 27 230 105 62 47 5 58 251 144 10 53 183 50 197 113 207 74 40 76 34 46 115 16 12 36 30 54 262 3 99 12

County
Richmond Rockdale Schley Screven Seminole Spalding Stephens Stewart Sumter Talbot Taliaferro Tattnall Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth

Leases
26 11 2 12 5 10 11 2 13 3 1 11 3 6 5 14 21 9 3 2 14 4 4 12 12 12 8 22 3 11 11 4 1 7 20 2 8 3 4

Buildings
361 54 5 19 62 150 26 74 146 27 98 409 23 57 20 85 338 67 62 23 58 22 10 130 68 88 37 223 6 135 68 5 120 200 65 43 31 14 9

Page 7

State Properties Commission

Space Management

The Space Management Program offers a full range of professional planning services to State entities in meeting their space needs. These services include receiving all requests for space, developing space utilization programs to determine square footage requirements and preparing schematic floor plans and design intent drawings to guide workspace layout and construction. The overall goal of Space Management is to maximize the utilization of State-owned and leased Space to create efficient work environments using industry standards and public sector criteria to accomplish the following objectives: Increase occupancy Decrease vacancy Improve the value of State-owned and leased space Provide the most cost efficient works space for State entities
Spaces By Use Type
Spaces By Use Type

80%

Administrative/Office Classroom/Faculty Offices

During FY'14, Space Management (SM) processed 1,281 Space Action Forms, used by any State agency requesting some action relative to workspace needs: new space, renewal, renegotiation, expansion or cancellation. The majority of these requests, 1,018, were related to administrative office space. With regard to the 91 requests for new space, Space Management reviewed Space Utilization Questionnaires and developed Space Utilization Programs (based on SPC approved Space Standards) to provide guidance for the actual square footage requirements for the requesting agencies. Additionally, Space Management either developed and/ or reviewed schematic floor plans and design intent drawings for the space requests.
SpaceSRpaeqcueeRstesqbuyeTstyspeby Type

51%

8% 8% 9%

New Renegotiation

6% 9%

3% 1%

Classroom/Training Rooms Towers Warehouse/Storage Other Uses

26%

Renewals Cancellation Other

33%
3% 8%

SSppaacceeRReeqquueessttssbByyAAgegnenccyy 2%
34%

Department of Behavioral Health and Developmental Disabilities Department of Human Services Department of Juvenile Justice Department of Natural Resources Department of Corrections Technical College System of Georgia State Board of Pardons and Paroles Other

Page 8

State Properties Commission

measurements and best practices to improve utilization

and reduce overall square footage while maintaining

essential agency business processes.

Space Management worked with GBA and shared

the award-winning Space and Transaction Manage-

ment Tracking (SATMT) system to offer them same the

tracking and management capability to fill vacant space

in the GBA managed buildings on Capitol Hill. Agency

tenants seeking administrative office space on Capitol

Hill can now apply directly to GBA.

Working with Idea-Span, an Atlanta interior design

firm, Space Management coordinated the initial space

programming and design planning meetings with the

Governor's Office of Planning and Budget for their

BIM Renderings - New Office of Planning & Budget

move to the former DOT building on Capitol Hill. This effort required organizing leadership team meetings,

Following the revision of the State Space Standards

developing space utilization programs and adjacency

in 2012, Space Management again proposed a revision

requirements for organizational efficiencies as well as

which was adopted by the SPC Board in April 2014

facilitating timely decision-making for the project. OPB

to mirror sizes currently being employed in the private

anticipates relocating to their newly renovated space in

sector. Exchanging "me" (individual) space for "we"

time for the 2015 Session of the General Assembly.

(collaborative) space has continued the improvement in

SPC contracted with DOAS to provide technology

the utilization of space by State agencies. With an on-

upgrades to the Building, Land and Lease Inventory

going emphasis on function over hierarchy, space costs

of Property (BLLIP). Since 2006, when BLLIP was first

have been reduced and benefits have been recognized

released, the data warehouse has been used to provide

in shared space for teleworking and field employees as

current and accurate information on state-owned and

well as in improved work environments for collabora-

leased assets. Additionally, the application is used by

tion, team rooms, training areas and huddle areas for

the DOAS Risk Management office to provide the criti-

employees.

cal reports necessary to insure the state's assets. These

SPC has reduced the overall number of administra-

technology upgrades, developed by ITOS, will be done

tive office space categories from nine (9) in 1976 to four

in phases over an 18-month period and will improve the

(4) in 2014 and established an equal balance of closed

user experience, increase mapping capabilities and pro-

and open work spaces. This streamlining of work-

vide greater accuracy in reporting.

space resulted in a decrease

of square feet per employee to 288. Where State govern-

Changes inCAhdanmgeins iinstArdamtiniivsteraOtivfefOicffeicSe pSapacceess

ment administrative office

500

space varies from the private

sector is in the specialized

uses for programmatic func-

400

tions and business operations

SF/PP

for client-based services, such as DFCS, Child Support Services, Corrections and Juvenile Justice. These agencies

300
265
200

346

288

often require additional space

to provide client and/or fam-

100

ily interviews, drug and sub-

stance screening or testing, children's play areas and kiosk

2011

2012

2013

2014

or computer carrels for applications, scheduling and

Avg SF Per Person

265

288

346

288

job searches. Space Manage-

*Space Standards were revised in 2008, 2012 & 2014*

ment will continue to identify

Page 9

State Properties Commission

Transaction Management

Leasing Division
The Leasing Division provides management and oversight for the State's leased property portfolio. Services range from locating and procuring new lease locations to renewing or renegotiating existing agreements as well as managing the State's lease inventory. The Division's responsibilities and functions include leasing assistance to State entities in State and commercially owned facilities, site selection and tenant improvements, lease negotiation and execution, renewals and renegotiations. SPC maintains an inventory of 1,815 lease agreements of which 1,154 are managed by SPC and 661 are Agency managed leases.
FY 2014 Total Leases

Total Number of Agency Managed Leases Total Number of SPC Administered Leases Total Leases

661 1154 1815

SPC continued its partnership with Cassidy Turley,

a national commercial real estate services provider,

tasked with providing transaction management,

project management, lease administration, and special

project consulting ser-

vices for Georgia's "SPC maintains

real estate portfolio. With Cassidy Turley's assistance, SPC expanded

an inventory of 1,815 lease

its market research and portfolio analysis process and reports. SPC will provide the expanded

agreements of which 1,154 are managed

data to state entities to aide in real estate costs budgeting for lease rene-

by SPC and 661 are Agency

gotiations and potential managed leases."

relocations.

LeasLeeaPseoProtrftfoollioio- 1-01H0igHheisgt hUesesTtyUpesse Types
2% 2% 2% 2% 3% 4% 7%
8% 59%
11%

Offices Classroom w/facilty offices Parking facilities Student Union

Land/Acreage Residence, house apartments Storage building, enclosed shed, warehouse

Radio/Antenna/Tower Retail stores Dormitories

Page 10

State Properties Commission

Multi-Year Lease (MYL) Process
Since the ratification of the Constitutional Amendment in November 2012, which authorized SPC to enter in Multi-Year Leases (MYL), SPC and the Georgia State Financing and Investment Commission (GSFIC) developed and implemented policies to provide transparent and efficient practices that safeguard Georgia's AAA credit rating. In FY 2014 SPC executed eight (8) MYL for a total of 123,773 rentable square feet with $17,632,423 total contract obligation, and $5,069,169 total cost avoidance. SPC and Cassidy Turley devel-
"SPC and Cassidy Turley developed and implemented key performance indicators to measure deal economics, transaction time, competition generation, cost savings, and cost avoidance for MYLs."

oped and implemented key performance indicators to measure deal economics, transaction time, competition generation, cost savings, and cost avoidance for MYLs. In April 2014, the SPC Board approved policy revisions to the Multi-Year Lease RFP process to modify the lease term limitations based on the square footage of the leased space and include a period of negotiation to the RFP process. With these policy changes, SPC expects to maximize the benefit of multi-year leases, improve efficiency in negotiations, and achieve better rental rates for the State.

"With Board approved 2014 policy changes, SPC expects to maximize the benefit of multiyear leases, improve efficiency in negotiations, and achieve better rental rates for the State."

Page 11

State Properties Commission
Multi-Year Lease Key Performance Indicators

Georgia Environmental Finance Authority (GEFA)
Multi-Year Lease - Renewal & Expansion

Key Performance Indicators
Deal Economics
Existing Full-Service Lease Rate Renegotiated (Actual) Full-Service Lease Rate Average Full-Service Market Lease Rate
Transaction Time
Goal (in weeks)
Actual (in weeks)
Savings
Total Cost Savings
Total Cost Avoidance
Deal Concessions (Free Rent, TI & Parking)
Customer Survey Rating (1 to 5; 5 being highest)
Actual
Goal

$19.81/SF $18.00/SF $18.89/SF
24 weeks* 27 weeks
$1,227,247 $288,483 = $1.81/SF per year
over-the-term $938,764
TBD 4

*Includes negotiations, pricing, planning and FF&E ordering

Address Peachtree Center 233 Peachtree Street, Suite 900 Atlanta, Georgia 30303
Space Use Office/Administration
Square Footage Original Premises = 20,844 SF New Premises = 22,769 SF Expansion of 1,925 SF
Lease Term 84 months
Cassidy Turley Services Transaction Management Project Management Architecture & Design

$1.81/SF Cost Avoidance

$20.00 $19.81/SF*

$19.50 $19.00

$18.89/SF*

$18.50 $18.00

$18.00/SF*

$17.50

$17.00

PriorRentRate
AverageMarket RateQ42013
NewNegotiated Rate

*Rental Rates are on a Full-Service Basis **Source: CoStar Year-End 2013 Report- Downtown Class A Office

$1,227,247 Total Savings

$336,000

$288,483

$363,690

$239,075

RentalRate Reduction FreeRentSavings
TurnKey&Refurb. Allowance FreeParking

Page 12

State Properties Commission
Multi-Year Lease Key Performance Indicators

Child Support Services (CSS)
Multi-Year Lease - Consolidation & Relocation

Key Performance Indicators
Deal Economics
Existing Full-Service Lease Rate (net of Utilities and Janitorial) Negotiated (Actual) Full-Service Lease Rate (net of Utilities and Janitorial) Average Market Full-Service Lease Rate (net of Utilities and Janitorial)
Transaction Time
Goal (in weeks)
Actual (in weeks)
Competition Generation
No. of Properties - Initial Survey No. of Properties - Actual Responses Goal: Expectation vs. Actual
Savings
Total Cost Savings
Total Cost Avoidance Deal Concessions (Tenant Improvements)
Customer Survey Rating (1 to 5; 5 being highest)
Actual Goal

$18.25/SF & $10.59/SF $16.00/SF $16.19/SF
39 weeks 44 weeks
13 5 70% vs. 38%
$423,750 $93,750 = $2.50/SF per year,
over-the-term $330,000
TBD 4

Address 955 Interstate Ridge Drive Gainesville, Georgia 30501
Space Use Office/Administration
Square Footage 7,500 SF
Lease Term 60 months
Cassidy Turley Services Transaction Management Architecture & Design

$2.50/SF Cost Avoidance

$18.50 $18.00 $17.50 $17.00 $16.50 $16.00 $15.50 $15.00 $14.50

$18.50/SF*
$16.19/SF** $16.00/SF*

AskingRate
AverageMarket RateY2014
NewNegotiated Rate

*Rental Rates are on a Full-Service Basis, Net of Utilities & Janitorial **Source: CoStar 2nd Quarter 2014 Report

$423,750 Total Savings

$330,000

$93,750

RentSavings
TurnKey& Refurbish Allowance

Page 13

State Properties Commission
Multi-Year Lease Key Performance Indicators

Department of Behavioral Health and Developmental Disabilities (DBHDD)
Multi-Year Lease - Relocation and Consolidation

Key Performance Indicators
Deal Economics
Existing Full-Service Lease Rate (net of Utilities and Janitorial) Negotiated (Actual) Full-Service Lease Rate (net of Utilities and Janitorial) Average Market Full-Service Lease Rate (net of Utilities and Janitorial)
Transaction Time
Goal (in weeks) Actual (in weeks)
Competition Generation
No. of Properties - Initial Survey No. of Properties - Actual Responses Goal: Expectation vs. Actual
Savings
Total Cost Savings
Total Cost Avoidance Deal Concessions (Free Rent and TI)
Customer Survey Rating (1 to 5; 5 being highest)
Actual Goal

N/A* $18.85/SF $21.20/SF
27 weeks 32 weeks
9 2 75% vs. 22%
$616,802 $101,993 = $1.50/SF per
year, over-the-term $514,809
TBD 4

Address 1230 Bald Ridge Marina Cumming, GA 30041
Space Use Office/Administration
Square Footage 13,599 SF
Lease Term 65 months
Cassidy Turley Services Transaction Management Project Management Architecture & Design

*Existing properties include owned and leased facilities, therefore N/A

$1.50/SF Cost Avoidance

$616,802 Total Savings

$21.50 $21.00 $20.50 $20.00 $19.50 $19.00 $18.50 $18.00 $17.50

$21.20/SF* $20.35/SF*
$18.85/SF*

AskingRate
AverageMarket RateQ42013
NewNegotiated Rate

*Rental Rates are on a Full-Service Basis, Net of Utilities & Janitorial ** Source: CoStar Fourth Quarter 2013

$408,000

$101,993 $106,809

RentalRate Reduction
FreeRentSavings
TITurnKey Allowance

Page 14

State Properties Commission

Land Division
The team Land Acquisitions/Dispositions Management (LAD) assures that all acquisitions and dispositions of land in the State's name meet the legal, policy, and process requirements of the State. Properties owned by the Board of Regents and by Georgia DOT are excluded. Acquisitions into the State include purchases of $10 or more of fee simple interests, conservation easements, access and other easements, and ground leases. Dispositions from the State include temporary revocable licenses, permanent easements, short or long-term ground leases, and fee simple conveyances. LAD also leads projects on cross-agency issues and efficiencies, conducts title research, verifies ownership of State property for construction with GO bonds, and drafts Executive Orders for the Governor on property issues such as custody of land and the demolition of buildings. LAD provides agency and individual training on SPC and State processes, and acts as agent for the Georgia Building Authority, Georgia World Congress Center, and occasionally other agencies. Since 2013, SPC has been required by law to review appraisals of all conservation easements and fee simple donations submitted with applications for the Georgia

Conservation Tax Credit. SPC reviews and/or conducts its own appraisals, and created the program's policies, procedures, and checklists.
Compared to FY year 2013, the total number of board approved action items increased by 10, from 54 to 64 approvals, over FY year 2014. The chart above details the breakout of approved action items occurring in FY year 2014, which included: 54 total acquisitions; 1 reversion by quitclaim deed; 2 revocable license agreements, 2 disposition sales; 2 short-term lease agreements; 3 amendments to conservation easements; and 3 other items.
College Football Hall of Fame

60 50
50

LAD - SPC Board Meetings Change from 2013 to 2014
Approved Items

2014 2013

3 0

Acquisitions -Fee Simple Acquisitions by State -Conservation Easements Acquisitions -Easements Acquisitions -Ground Lease Acquisitions -Condemnation Reversion -Quit Claim Deed Revocable License Agreements (RLA's)-SPC Board Disposition -Approve Sale Disposition -Short Term Lease Amendments to Conservation Easements Other Items

Page 15

State Properties Commission

FY 2014 SPC Legislation
The bulk of Legislative items approved during FY year 2014 were for Easements and Conveyances to local governments. There were 42 action items approved through Legislation, compared to 49 approved action

items during FY year 2013: 19 Easements, 4 Conveyances to Sell, 12 Conveyances to local governments or GDOT, and 7 Conveyances for Ground Leases.

FY 2014 - LAD - SPC Legislation % of Total Items

45%

9% Easements
29%

Conveyances-To Sell

17%

Conveyances-To Local Government or GDOT
Conveyance-Ground Lease

0 Easements

LAD - SPC Legislation 2014
Change from 2013 to 2014 2013

4 Conveyances-To Sell

Conveyances-To Local Government or GDOT

Conveyance-Ground Lease

Page 16

State Properties Commission

Title Certifications Executive Orders
RLA's SPO Approved Legislatively Authorized Agreements Training Sessions for other Agencies
Improve SPC Forms CE & Donation Policies CE & Donation Required Items CE Appraisal Reviews Approved CE Appraisal Reviews/In Process

Other Items
Other LAD projects during FY year 2014 included Revocable License Agreements, creation and revision of SPC forms for improved efficiency, Conservation Easement (CE) and Conservation Donation policies and appraisal reviews, expedited disposition policies to implement legislation, and Title Certifications. Revocable Licenses issued: 43 for public purpose or
short term use. Certification of ownership prior to GSFIC construction
with GO bonds: 11 Executive Orders drafted for the Governor: 9 Interagency or intergovernmental projects:
- 6 agency training sessions; - Disposition of 3 armories Appraisals for CE or Conservation Donations: - 3 approved, 12 in-process

50 45 40 35 30 25 20 15
11 10
5 0

LAD - Other Items 2014
43

Accomplishments
Legislation to streamline disposition practices was passed by the 2014 General Assembly, and policies to implement it were approved by SPC. (HB495)
During FY 2014, SPC handled the sale of 11 properties. The total proceeds to the General Treasury from all sales during FY 2014 were $1,102,498 for 297+/- acres. Additionally, SPC also conveyed 8 properties to local government, 3 to GDOT, and 1 to Board of Regents.
Agreement on the sale of the former Tronox property in Savannah for environmental clean-up and economic re-development of 750 acres. This secures approximately 25 acres to buffer GA DNR's Historic Fort Jackson on the Savannah River and the protection of about 700 acres of marsh on the southern portion of the property (See Map Below).

Due diligence conducted on 20 acquisitions for Georgia World Congress Center's New Stadium Project, and 15 parcels were closed in FY 14. Issued licenses and an easement for the construction of the Omni Hotel's (TOJV) Connector to the GA World Congress Center. Administrative approvals of the Kia plant's mitigation for construction were completed. Also, conveyance of roadway parcels along Kia Parkway and Kia Boulevard to GDOT and the City of West Point were approved.

FY 2014 Expense Budget

Expenses
Personal Services Expenses Regular Operating Expenses Real Estate Rents Per Diem and Fees Computer Charges Telecommunications Total Expenses Total Position Count

$ 1,182,058.00 $ 40,215.00 $ 98,139.00 $ 97,402.00 $ 26,388.00 $ 12,926.00 $ 1,457,128.00
14.00

Page 17

State Properties Commission
Organziational Chart
Page 18

Deputy State Property Officer
MARVIN WOODWARD

R Chief Financial Officer

APRIL KING

Communications

PAUL MELVIN

R V

Human Resources

LISA SHARPTON

State Property Officer & SPC Executive Director
STEVEN L. STANCIL

Legal Services

Deputy Executive Director

CINDY PRESTO

FRANK SMITH

S Information Technology E

ALAN PERRY

Executive Assistant

HEATHER YORK

Transaction Management-Leasing
TAMIKA CRITTENDEN
Leasing Lease Administration

Space Management
VACANT
Space Planning Space Design Inventory Analysis

Asset Management
VACANT
Financial Analysis Asset Analysis Special Projects

Transaction Management-Land
J. WADE
Acquisitions & Dispositions Easements & Licenses

Shared Services positions serve the State Properties Commission, Georgia Building Authority and Georgia State Financing and Investment Commission. 4/14

State Properties Commission 47 Trinity Avenue, Suite G02, Atlanta, Georgia 30334
404-656-5602 Fax 404-651-8084 www.spc.georgia.gov December 2014