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HomeMy WebLinkAboutResolutions - 2011.04.21 - 18196MISCELLANEOUS RESOLUTION #11061 March 24, 2011 BY: Planning and Building Committee, David Potts, Chairperson IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND THE WATER RESOURCES COMMISSIONER - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH D'ANCO PROPERTIES, LLC FOR USE OF INDUSTRIAL BUILDING AND STORAGE YARD AT 30750 W 8 MILE ROAD, FARMINGTON HILLS, MICHIGAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Oakland County Water Resources Commissioner presently provides water main service and maintenance operations to numerous communities in south Oakland County; and WHEREAS, at the present time the County does not own a suitable facility in south Oakland County, which would accommodate the maintenance operations and material storage needs of the Water Resources Commissioner; and WHEREAS, it is the recommendation of the Departments of the Water Resources Commissioner and Facilities Management that the Oakland County Board of Commissioners accept and approve the terms and conditions of the attached Lease Agreement; and WHEREAS, under the terms and conditions of the attached Lease Agreement, the Water Resources Commissioner would continue to occupy approximately 4,300-sf of the industrial building and the north 150-ft. of the storage yard located at 30750 W. 8 Mile Road in the City of Farmington Hills for a period of three years with the option to extend the lease for an additional three years. Rental rate during the initial term: $3,800.00 per month or $45,600 per year. Rental rate for the option term: $4,000 per month or $48,000 per year. The lease may be terminated by the County upon 90 days written notice; and WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached lease agreement. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Lease Agreement for use of part of the industrial building and storage yard at 30750 W. 8 Mile Road, Farmington Hills, Michigan between the County of Oakland and D'ANCO Properties, LLC. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chairperson or his designee to execute the attached Lease Agreement and all other related documents between the County of Oakland and D'ANCO Properties, LLC, which may be required. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING & BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote. Oalcland County Department of Facilities Management 3/15/2011 Acceptance and Approval of Lease with D'Anco Properties, LLC for Water Resources Commissioner Maintenance/Storage Facility The county does not own a suitable facility in southern Oakland County, which would meet the operational requirements of the Water Resources Commissioner's staff to provide water main maintenance services to numerous communities in southern Oakland County. Pursuant to Miscellaneous Resolution No. 05031 the County of Oakland entered into a lease agreement with D'Anco Properties, LLC to occupy and utilize part of an industrial building and adjoining construction yard for the purpose providing such services. Therefore, staff is seeking the authorization and approval of the Oakland County Board of Commissioners to continue to utilize part of the D'Anco property located at 30750 West Eight Mile Road in Farmington Hills. Description of Facility The subject premises consists of the front 4,300-sf of an industrial building and the rear 150-ft. of the construction yard located at 30750 W. 8 Mile Road, Farmington Hills, Michigan, 48335. The building consists of warehouse area and restroom. The storage yard is located at the rear of the property. The Water Resources Commissioner's staff has determined that the facility is adequate to house its maintenance and material storage operations, which serves south Oakland County. Facilities Management has negotiated the terms and conditions of the attached lease agreement with D'ANCO Properties, LLC for use of said property located in the City of Farmington Hills. Terms and Conditions of Lease Term of lease: Three-year original term with option to extend for an additional three-year term. Rent during initial three term shall be $3,800 per month and increase to $4,000 per during the option term of the lease. Termination of Lease: The lease may be terminated by Oakland County for any reason upon 90 day notice. Landlord responsibilities: Maintenance of building and grounds inclusive of trash removal, snow and ice removal from sidewalks and parking lot and payment of utilities and property taxes. Oakland County responsibilities: Provide and maintain telephone and computer system. Commencement date: 3/10/2011. Owner/Landlord The building is owned by D'AN-CO Properties, LLC, 25543 Ranchwood, Farmington Hills, MI 48335. Robert D Angelo, Member. Recommendation It is the recommendation of the Departments of the Water Resources Commissioner and Facilities Management that the Oakland County Board of Commissioners accept and approve the terms and conditions of the attached Lease for the premises located at 30750 W. 8 Mile Road, Farmington Hills, Michigan, 48335 between the County of Oakland as tenant and D'ANCO Properties, LLC as Landlord. Mdli3/2/11 30750 W. 8 Mile Road LEASE This Lease is made and entered into on the day of March 2011, by DAN-CO Properties, LLC, 25543 Ranchwood, Farmington Hills, Michigan 48335 ("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 ("TENANT"). 1. Leased Premises. In consideration of the Rent to be paid and the covenants to be performed by the TENANT, the LANDLORD leases to the TENANT and the TENANT leases from the LANDLORD a portion of the industrial warehouse building and industrial site located at 30750 West Eight Mile Road, Farmington Hills, Michigan, consisting of Four Thousand Three Hundred (4300) square feet of the industrial building located on the site (as diagramed in Attachment A), and the rear One Hundred and Fifty (150) by One Hundred (100) feet of the industrial site (as diagramed in Attachment A), which taken together constitute the "Premises" that is being leased by TENANT, including the right to use an Easement on the Westerly portion of the industrial site for access to the rear of the Building and the rear of the Premises; and the right use the parking in the front and in the rear of the building (see Attachment A). LANDLORD also grants TENANT an easement through LANDLORD'S portion of the building for vehicular access to TENANTS portion of the building for vehicles and other equipment used in TENANT'S business. 2. Teti!' and Commencement Date. The Term of this Lease shall begin on the Commencement Date, which is March 10, 2011, and shall run for three years from that date (Initial Term). The TENANT shall have possession of the Premises on the Commencement Date. Failure of the LANDLORD to provide TENANT with possession on that date shall be deemed a Default under the terms of this Lease. 3. Option to Extend for Second Term. LANDLORD hereby grants to TENANT the option to extend the Initial Term of this Lease for up to an additional three (3) year period (hereinafter Second Term), said Second Term shall commence on the date the Initial Term expires. All provisions of the existing Lease shall continue without modification during the Second Term. The TENANT must provide the LANDLORD with notice of its desire to renew this Lease ninety (90) days before the expiration of the Initial Term. 4. Termination. Notwithstanding any other provision of this Lease TENANT shall have the absolute right to cancel this Lease upon ninety (90) days written notice to the LANDLORD with no penalty whatsoever to TENANT. 5. Rent. From the date this Lease commences until the Lease expires or is terminated, the TENANT agrees to pay the LANDLORD Thirty-eight Hundred Dollars ($3,800.00) per month. This sum includes all utilities, structural maintenance, site maintenance, all snow removal, lawn maintenance, trash removal, parking lot maintenance, taxes and special assessments for the Premises. 6. Rent for Lease Extension. From the commencement date of the Second Term, TENANT agrees to pay LANDLORD monthly rental for the premises at the rate of $4,000.00 per month. 7. Partial Month Rent Proration. Should the Term of this Lease commence on a day other than the first calendar day of a month, then the Rent for such month and the last month of the Term shall be prorated upon a daily basis based upon a thirty (30) day calendar month. 8. Place and Date of Payment. Payments due under this Lease from the TENANT to the LANDLORD shall be paid at the address of the LANDLORD set forth above, or at such other place as LANDLORD may designate in writing. The monthly rental payment shall be paid on the first calendar day of Page 1 of 6 each month or another date agreed to by both Parties. The Rent shall be paid without any deduction or set off. 9. Hold Over. In the event the TENANT holds over after the expiration of the original Term of this Lease without a written agreement between the LANDLORD and the TENANT, the hold over shall be construed to be a tenancy from month-to-month on the same terms and conditions contained in this Lease, for a period not to exceed Six (6) months. 10. Use and Occupancy. The Premises shall not be used in violation of any law, municipal ordinance, or regulation. The Premises will he used to store motorized vehicles and equipment and materials used in the construction, maintenance, and operation of water and sewer mains, including sand, fill dirt, gavel, piping, fire hydrants, and the like. Some light maintenance of vehicles will be performed on the Premises. Upon expiration or termination of th is Lease, the TENANT shall surrender the Premises in the same condition as when taken (reasonable wear and tear excepted), and shall remove its personal property. 11. Equipment and Furnishings. The TENANT shall provide, at its own expense, furniture and equipment it deems necessary. The TENANT, at its own expense, shall be solely responsible for the maintenance and repair of all furniture and equipment used on the Premises. 12. Taxes. All taxes and special assessments are included in the rental payments due under Paragraph five (5) of this Lease. 13. Maintenance and Repairs. The LANDLORD shall maintain and keep the Premises in good including, ncluding, but not limited to, the roof, ceilings, walls, floors, foundations, electrical systems, plumbing, sidewalks, parking areas, exterior glass, heating and cooling systems, and the replacement of light bulbs. If any repairs to the Premises are required (except for normal wear and tear), as a result of the TENANT's actions, or the actions of its employees, agents, customers, licensees or invitees, the TENANT shall be responsible for making such repairs, unless such repairs are covered by insurance as required by the insurance provisions of this Lease. 14. Utilities and Services. a. Utilities. The LANDLORD shall be solely responsible for and promptly pay all utilities including charges for water, gas, heat, electricity, sewer service and any other utilities used by TENANT on the Premises. LANDLORD agrees to provide security lighting for the exterior and interior of the Premises at no charge to TENANT. b. Services. The TENANT agrees to pay all costs associated with maintaining and operating its telephone system, computer system and any other system the TENANT installs in the Premises. The LANDLORD agrees to provide, at its own expense, trash removal, snow and ice removal from sidewalks, steps and parking areas, complete parking lot maintenance and lawn care services. 15. Compliance with Laws. The LANDLORD agrees, at its own expense, to promptly comply with all applicable federal, state and municipal laws and regulations affecting the Premises, including any barrier-free requirements. If the LANDLORD fails to comply with such laws and regulations, the TENANT may give the LANDLORD written notice of its intent to terminate the Lease ninety (90) days after the LANDLORD'S receipt of the written notice. If the LANDLORD complies with the laws and regulations within the ninety (90) day period, then TENANT'S notice will be deemed withdrawn. Page 2 of 6 16. Destruction of Premises. a. In the event, the Premises are partially damaged or destroyed by fire or other casualty, the damage to the Premises shall be promptly repaired or rebuilt by the LANDLORD. In the event the Premises cannot be repaired or rebuilt within ninety (90) days after such destruction, the TENANT shall have the right to terminate this Lease and vacate the Premises within ninety (90) days after the occurrence of such damage or destruction. During the time the Premises are being repaired, the Rent owed by the TENANT shall be reduced in proportion to the percentage of the Premises rendered unusable (in the discretion of the TENANT) until the Premises are repaired or rebuilt. If the TENANT is required to vacate the Premises during any period of repair the rent shall be entirely abated for that time. If more than thirty-five percent (35%) of the Premises are damaged or destroyed by fire or other casualty, the TENANT may elect to remain on the Premises or to vacate the Premises. b. In the event that more than thirty-five (35) percent of the Premises are damaged or destroyed by fire or other casualty, the LANDLORD may elect to either repair or rebuild the Premises, or to terminate this Lease by giving written notice to the TENANT within ninety (90) days after the occurrence of such damage or destruction. TENANT will have ninety (90) days from the date of the notice to vacate the Premises. If the LANDLORD elects to rebuild or repair the Premises, then the Rent owed by the TENANT shall be reduced in proportion to the percentage of the Premises rendered unusable during the time of repair (in the discretion of the TENANT) until the Premises are repaired or rebuilt. In no event shall the LANDLORD be required to repair or replace any property of the TENANT. If the TENANT is required to vacate the Premises during any period of repair, the rent shall be entirely abated for that time. 17. Insurance. The TENANT is self-insured. The LANDLORD agrees to provide the following insurance or similar insurance: a. Commercial General Liability Insurance in the minimum amount of $1,000,000 Combined Single Limit per occurrence, including Contractual Liability coverage recognizing this contract. b. Workers' Compensation as required by statute. Employers Liability (coverage B) in the minimum amount of $500,000 per occurrence. c. All Insurance Certificates are to provide 30 days notice of material change or cancellation. Certificates of Insurance and insurance binders must be provided ten (10) working days before commencement of this Lease. d. Mutual Waiver of Subrogation. With regard to the premises and/or contents, to the extent that a loss is covered by insurance, the LANDLORD agrees that the TENANT (his agents and/or employees) shall not be liable to the LANDLORD and the LANDLORD shall not be liable to the TENANT for any loss resulting directly or indirectly from fire, explosion, smoke damage, vehicle damage, aircraft damage, riot and civil commotion, vandalism and malicious mischief or other similar event. 18. Indemnification. The LANDLORD shall save, defend, indemnify and hold the TENANT harmless from and against any and all loss, cost, liability, damage, expense (including, without limitation, reasonable attorneys' fees), penalties, fines and claims whatsoever in connection with loss of life, personal injury and/or damage to property arising from any negligent or willful acts or omissions of the LANDLORD, its agents or employees. Page 3 of 6 19. Alterations or Improvements. The TENANT shall not make any alterations or improvements to or upon the Premises without the prior written consent of the LANDLORD. Any alterations or improvements made to or upon the Premises shall become an integral part of the Premises and shall become the sole property of the LANDLORD immediately upon the completion, unless agreed to in writing by the Parties. Office furniture and trade fixtures used or installed in the Premises shall not be deemed to be alterations and shall remain the property of the TENANT. 20. Care of Premises. TENANT shall keep the Premises in good repair, wear and tear from reasonable use and damage from the elements excepted. 21. Access by TENANT. The LANDLORD will provide keys for the TENANT'S employees, agents, or independent contractors to enter the Premises. TENANT shall have the right to install a security system of its choice on the Premises. TENANT will pay the cost of installing, operating, and maintaining the security system. TENANT shall have the right to remove the security system upon expiration or termination of this Lease. 22. Access b The TENANT acknowledges that during this Lease, the LANDLORD has the right to have access to the Premises upon written request to the TENANT. The TENANT shall allow the LANDLORD access to the Premises during regular business hours for the purposes of inspecting, repairing and/or maintaining the Premises when accompanied by an agent or employee of TENANT. The LANDLOR_D shall use its best efforts not to disrupt the usual operations of the TENANT at the Premises. The TENANT shall also allow the LANDLORD access to the Premises at any time in case of an emergency. 23. Signs. The TENANT may attach, install or erect signs on the interior walls of the Premises as necessary for the TENANT'S business at the Premises. The TENANT may attach, install or erect signs on the exterior walls of the Premises, or the area surrounding the Premises, with the written approval of the LANDLORD as to the form, content, material, lighting and structure thereof, and in conformance with City regulations. 24. Assignment. The TENANT shall not assign, sublet or in any manner transfer this Lease or any estate or interest therein without the prior written consent of the LANDLORD. 25. Parking, The LANDLORD agrees to provide sufficient parking to satisfy the requirements of the TENANT. 26. Eminent Domain. If the whole Premises are taken by any public authority under the power of eminent domain, then this Lease shall be terminated on the day the public authority takes possession of the whole Premises. If less than the whole Premises are taken by any public authority under the power of eminent domain, then the TENANT in its sole discretion may elect to terminate this Lease upon thirty (30) days written notice to LANDLORD. In the event TENANT elects to remain on the Premises after a partial taking of the Premises the rent shall be reduced in proportion to the percentage of the Premises taken. Neither Party shall have any future liability or obligation under the Lease if it is terminated pursuant to this Paragraph. 27. Quiet Enjoyment. Upon performance of its obligations under this Lease, the TENANT shall peacefully and quietly hold and enjoy the Premises for the Term of this Lease without hindrance or interruption by the LANDLORD, its agents or employees, subject to the terms of this Lease. Page 4 of 6 28. Modifications. This Lease may be modified or amended only by written agreement of the LANDLORD and the TENANT. 29. Remedies not Exclusive. It is agreed that each and every right and benefit provided by this Lease shall be cumulative, and shall not be exclusive of any other right, remedy and/or benefit allowed by law or in equity to either party. 30. Gender. The gender of any word contained in this Lease shall not affect the meaning of this Lease, and whenever herein the singular number is used, the same shall include the plural, and any gender shall be deemed to include the masculine, feminine, or neuter genders. 31. Common Areas. The term "Common Areas" shall include, facilities, service corridors, pedestrian sidewalks, stairways, hallways, bathroom area, landscaped areas, parking areas, access roads, driveways, loading areas, lighting and facilities which may be furnished by LANDLORD in or near the building which are outside of the Premises, and designated from time to time by Landlord as Common Areas. TENANT and its invitees shall have right to access the common areas during the term of this Lease. LANDLORD shall at its sole cost and expense, operate and maintain the common areas. 32. Security Deposit. LANDLORD acknowledges that no security deposit is being required of TENANT, 33. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan. 34. Severability. If a term, condition, or provision of this Lease is found by a court of competent jurisdiction to be invalid, unenforceable, or to violate or contravene federal or state law, then the term, condition, or provision shall be deemed severed from this Lease; all other terms, conditions and provisions shall remain in full force and effect. 35. Waiver. No waiver of any term, provision or condition of this Lease, whether by conduct or otherwise, in one or more instances, shall be deemed or construed as a further continuing waiver of a Willi, provision or condition of this Lease. No remedy available to a Party for the other Party's breach of this Lease is intended to be an exclusive remedy. A Party's exercise of any remedy for breach of this Lease shall not be deemed or construed to be a waiver of its right to pursue another remedy. 36. Entire Agreement. This Lease constitutes the entire agreement of the Parties with respect to the Premises, and all prior negotiations, agreements and understandings, either oral or written, are merged herein. 37. Binding Effect. The teiiiis and conditions of this Lease shall be binding and shall inure to the benefit of the Parties and their respective heirs, representatives, successors and assigns. 38. Use of Words. The pronouns and relative words used in this Lease shall be read interchangeably in masculine, feminine or neuter, singular or plural, as the context requires. 39. Notice. Any notice or other communication required or desired to be given shall be deemed to have been sufficiently given for all purposes if delivered personally to the Party to whom the same is directed, or if sent by registered or certified mail, return receipt requested, postage and charges prepaid, addressed to the address of such Party as set forth above. Any notice which is served personally shall be deemed to be given on Page 5 of 6 WITNESSES: DAN-CO Properties, LLC the date on which the same is actually served, and any notice which is sent by mail shall be deemed given three (3) days after the same is deposited with the United States mail, addressed as provided in the immediately preceding sentence. Any Party may change its address for purposes of this Lease by giving the other Party written notice of the address change. 40. Reservation of Rights. This Lease does not and is not intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or other legal right, privilege, power, obligation, duty, capacity, or immunity of the TENANT. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above written. By: Robert D'Angelo, Member OAKLAND COUNTY By: Michael J. Gingell, Chairperson Oakland County Board of Commissioners STATE OF MICHIGAN ) SS. COUNTY OF OAKLAND The foregoing instrument was acknowledged before me in Oakland County, Michigan this day 2011, by ROBERT D'ANGELO, Member. Michael D. Hughson Notary Public, Acting in Oakland County, Michigan My Commission Expires: May 5, 2014 STATE OF MICHIGAN ) SS. COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me in Oakland County, Michigan this day of 2011, by Michael J. Gingell, Chairperson of the Board of Commissioners of the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, on behalf of the Corporation. Michael D. Hughson Notary Public, Acting in Oakland County, Michigan My Commission Expires: May 5, 2014 Page 6 of 6 Resolution #11061 March 24, 2011 The Chairperson referred the resolution to the Finance Committee. There were no objections. Expense 6010101-149030-731626 Rent Total Expense ($ 1,400) ($ 1,400) FISCAL NOTE (MISC. #11061) April 21, 2011 BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND THE WATER RESOURCES COMMISSIONER - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH D'ANCO PROPERTIES, LLC FOR USE OF INDUSTRIAL BUILDING AND STORAGE YARD AT 30750 W 8 MILE ROAD, FARMINGTON HILLS, MICHIGAN TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Water Resources Commissioner is requesting that the Oakland County Board of Commissioner accept and approve the terms and conditions of the lease agreement between Oakland County and D'Anco Properties, LLC. 2. No adequate County facilities currently exist within the County Complex or offsite to adequately meet the needs of the Water Resources Commissioner in providing the community needs for water main and maintenance operations services. 3. The Department of Facilities Management and the Water Resources Commissioner have successfully negotiated with D'Anco Properties, LLC the terms of a three (3) year lease at the rate of $3,800.00 a month for use of an industrial building located at 30750 West 8 Mile Road in the City of Farmington Hills, Michigan. 4. The Water Resources Commissioner currently has a lease for this location and already has $4,000 a month or $48,000 annually, included in the budget. 5. The cost of the lease is recovered through the water rates. 6. The effect on the Fiscal Year 2012/2013/2014 Budget will be included in the Fiscal Year 2012/2013/2014 County Executive Recommended Budget. 7. The FY 2011 budget is amended to reflect the reduction of monthly rent from $4,000 per month to $3,800 per month that is effective March 10, 2011, which is a $1,400 savings for FY 2011. WATER AND SEWER TRUST FUND (57010) Revenue FY 2011 6010101-149030-632450 Water Sales General ($ 1,400) Total Revenue ($ 1,400) FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote. Resolution #11061 April 21, 2011 Move by Covey supported by Long the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott, Taub, Weipert, Woodward, Zack, Bosnic, Covey. (25) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). APROVL IHE FO-"IGOING RESOLUTION STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Bill Bullard Jr., Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 21, 2011, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 21st day of April, 2011. EL(212_, (2,1, Bill Bullard Jr., Oakland County