HomeMy WebLinkAboutResolutions - 2014.11.19 - 21600MISCELLANEOUS RESOLUTION #14264 November 19, 2014
BY: Planning and Building Committee, Jim Runestad, Chairperson
IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT/SHERIFF'S OFFICE - APPROVAL AND
ACCEPTANCE OF LEASE AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC, FOR USE OF
THE QUALITY PONTIAC BUILDING FOR STORAGE OF EQUIPMENT AT 2470 ELIZABETH LAKE
ROAD, WATERFORD, MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Sheriff's Office/Marine Unit currently has a maintenance shop and stores boats at
a pole barn adjacent to the old trustee camp and Animal Shelter on Brown Road in Auburn Hills; and
WHEREAS the Sheriff's Office currently stores certain law enforcement vehicles at a Water
Resources Commissioner's warehouse on Opdyke Road; and
WHEREAS the pole barn on Brown Road is dilapidated and must be essentially rebuilt; and
WHEREAS the Water Resources Commissioner has requested that the Sheriff's Office move out
of the warehouse on Opdyke Road; and
WHEREAS at the present time no adequate County-owned facility exists which would
accommodate storage of all of the above vehicles and equipment; and
WHEREAS in response to this situation, the Sheriff's Office and Department of Facilities
Management have visited numerous buildings throughout Pontiac, Auburn Hills, and Waterford to identify
an adequate facility; and
WHEREAS the former Quality Pontiac car dealership building at 2470 Elizabeth Lake Road has
an adequate facility and its location near campus is advantageous; and
WHEREAS the Homeland Security Division and the Health Division of the Health & Human
Services Department have several trucks and trailers for emergency response use being stored on
campus and at the South Oakland Office Building that could be centrally stored indoors at 2470 Elizabeth
Lake Road; and
WHEREAS the Sheriff's Office and Department of Facilities Management, with the assistance of
Corporation Counsel, have negotiated the terms and conditions of the attached Lease; and
WHEREAS it is the recommendation of the Departments of the Sheriff's Office and Facilities
Management that the Oakland County Board of Commissioners accepts and approves the terms and
conditions of the attached Lease; and
WHEREAS under the terms and conditions of the attached Lease with 2470 Elizabeth Lake
Road, LLC, the County would lease the real property located at 2470 Elizabeth Lake Road, including the
building for a term of three years commencing December 1, 2014, with two, one-year optional renewals;
and
WHEREAS the rate will increase 2.5% each subsequent year; and
WHEREAS the County will pay the utilities, insurance premium (up to $7,000 per year), and
property taxes estimated at $69,757 per year; and
WHEREAS 2470 Elizabeth Lake Road, LLC, agrees not to lease any other portion of the building
for security reasons while this Lease is in effect; and
WHEREAS the County will provide certain maintenance services directly, such as for custodial,
snow removal, trash removal, pest control, etc., estimated at $13,000 per year; and
WHEREAS 2470 Elizabeth Lake Road, LLC, will provide all other maintenance services, such as
for HVAC repairs, etc., and in exchange the County will reimburse 2470 Elizabeth Lake Road, LLC, up to
$22,500 per year; and
WHEREAS 2470 Elizabeth Lake Road, LLC, will perform all capital improvements to the building,
such as roof replacement, parking lot repaving, etc., and in exchange the County will pay 2470 Elizabeth
Lake Road, LLC, for just those capital improvements deemed necessary for the County's continued use
of the building, in the amount of the per year amortized cost based on the capital improvements' useful
life; and
WHEREAS the 2470 Elizabeth Lake Road building will require ID scanners, cameras, window
bars and tinting, etc., for security purposes at a one-time cost of $95,751; and
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Runestad and Bosnic absent.
WHEREAS, the Sheriffs Office, Department of Facilities Management, and Corporation Counsel
have reviewed and/or prepared all necessary documents related to the attached Lease.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and authorizes the attached Lease for use of the former Quality Pontiac car dealership building at
2470 Elizabeth Lake Road, Waterford, Michigan.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby approves
the one-time expenditure of $95,751 for building security-related costs.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its
Chairperson or his designee to execute the attached Lease and all other related documents between the
County of Oakland and 2470 Elizabeth Lake Road, LLC, which may be required.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
LEASE OF BUILDING LOCATED AT
2470 ELIZABETH LAKE ROAD, WATERFORD, MICHIGAN
This Lease is entered into between 2470 Elizabeth Lake Road, LLC ("LANDLORD") whose
address is 500 S. Opdyke Road, Pontiafc, Michigan 48341, and the COUNTY OF OAKLAND, a
Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341
("TENANT"). The Parties agree to the following terms and conditions.
1, Leased Premises.
1.1. LANDLORD leases to TENANT and TENANT leases from LANDLORD the real
property located at 2470 Elizabeth Lake Road, Waterford, Michigan 48328 with the
Parcel Identification Number 13-25-200-007 (approximately seven (7) acres), including
the building located thereon (approximately forty-seven thousand one hundred and forty-
one (47,141) square feet) (the "Premises"). The Premises are illustrated in Exhibit A.
Exhibit A is fully incorporated into this Lease. Notwithstanding the definition of
"Premises," TENANT shall not use the showroom and parts department in the building
(approximately 16,800 square feet) which are depicted on Exhibit A as Unusable Space,
unless TENANT pays rent of three dollars and fifty cents ($3.50) per square foot or the
adjusted rent amount. If TENANT chooses to use the "Unusable Space" the Parties shall
execute an amendment to this Lease codifying this fact (including the rent due for such
space and a proportional increase in the cap on maintenance cost set forth in Section
12.1). TENANT'S Director of County Facilities Management or successor and the
Sheriff are authorized to sign the Amendment on behalf of the County.
1.2. LANDLORD shall not be required to remove any of its personal property from the
Unusable Areas, unless TENANT chooses to use this space. If TENANT chooses to use
the Unusable Space, LANDLORD shall remove its personal property from this space
within fourteen (14) calendar days after execution of a lease amendment covering such
space.
1.3. LANDLORD shall not use the Unusable Space for any purpose, except for storing its
personal property. LANDLORD shall not permit a third party to use the Unusable Space
for any purpose.
1.4. Included in this Lease is the right of TENANT to use the generator currently located on the Premises. The generator is the personal property of LANDLORD and shall remain
the personal property of LANDLORD.
2. Term and Renewal.
2.1. Term. This Lease shall begin on the December 1, 2014 ("Commencement Date") and
shall end three (3) years from that date on November 30, 2017 ("Initial Term").
TENANT shall have possession of the Premises (other than the Unusable Space) on the
Commencement Date. Failure of LANDLORD to provide TENANT with possession on the Commencement Date and the continuation of such failure for thirty (30) Calendar
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days shall entitle TENANT, as its sole remedy, to terminate this Lease upon written
notice to LANDLORD; otherwise the Commencement Date shall be delayed until
possession is delivered without any liability imposed upon LANDLORD for such delay.
2.2. Renewal. So long as TENANT has not been in default and is not in default on the
commencement of the Renewal Term, this Lease may be renewed, at TENANT'S sole
option, for two (2) additional terms of one (1) year each upon written notice to
LANDLORD by TENANT (each a "Renewal Term"). LANDLORD must receive
TENANT'S written renewal notice at least sixty (60) calendar days before the expiration
of the Initial Tenn or the Renewal Term, absent which TENANT shall have no right to
renew this Lease. The renewal of this Lease shall be contained in an amendment to this
Lease, which may be executed on behalf of TENANT by its Director of Facilities
Management or successor and the Oakland County Sheriff. The same terms and
conditions contained herein shall apply to the Renewal Term. References herein to
"term" shall mean the Initial Term and any Renewal Tettn,
3. Default/Termination.
3.1. Upon written notice, a Party may terminate this Lease for default by the other Party
pursuant to the following procedure: (a) the non-defaulting Party gives the defaulting
Party written notice specifically identifying the default(s) and (b) the defaulting Party
does not cure the default within fifteen (15) calendar days of receiving the written notice
of default or the defaulting party does not commence to cure the default within fifteen
(15) calendar days of receiving written notice of the default and does not diligently
pursue the cure to completion, if the default is of such a nature that it cannot be cured
within the fifteen (15) day period.
3.2. If either Party defaults in any of its obligations under this Lease (after expiration of the
notice and cure periods in Seetion 3.1) the other Party shall have all remedies available
to it under the law, in addition to the rights and remedies set forth herein.
3.3. During any Renewal Term, TENANT may terminate this Lease at any time and for any
reason, including convenience, upon three hundred sixty-five (365) calendar days
written notice to LANDLORD.
3.4. Upon expiration or termination of this Lease or TENANT'S right to possession,
TENANT shall surrender the Premises in a similar condition as when taken (reasonable
wear and tear excepted) and shall remove its personal property on or before the date of
expiration or termination. If TENANT does not remove its personal property within
fifteen (15) calendar days of the date of expiration or termination, in addition to any
other remedies of LANDLORD, such items shall be deemed abandoned, and
LANDLORD may cause such items to be stored, removed or disposed of at TENANT'S
expense, without notice to TENANT and without obligation to compensate TENANT.
Any damage caused by the removal of TENANT'S personal property shall be repaired
and paid for by TENANT within thirty (30) days of the date of expiration or termination.
If TENANT does not repair or commence repair of such damage within thirty (30) days
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of the date of expiration or termination, then LANDLORD may repair and restore the
Premises and TENANT shall pay the actual and reasonable costs, prior to payment, of
such repair and restoration to LANDLORD, within thirty (30) days of demand.
LANDLORD shall provide TENANT with an itemized invoice for such repair and
restoration.
4. Rent and Date of Rent Payment.
4.1. Rent Amount. From December 1, 2014 until the date the Lease expires or is
terminated, TENANT agrees to pay LANDLORD, one hundred and six thousand and
forty-four dollars and no cents ($106,044.00) annually as Rent for the Premises, subject
to annual increases set forth in Section 4.3. This annual amount shall be paid in twelve
equal installments of eight thousand eight hundred and thirty-seven dollars and no cents
($8,837.00) due on the first calendar day of each month, as adjusted in accordance with
Section 4.3.
4.1 Place of Pqyment. Payments due under this Lease from TENANT shall be paid at the
address of LANDLORD set forth above or at such other place as LANDLORD may
designate in writing
4.3. Rent Adjustments. On December 1, 2015 and each December i st thereafter, the Rent
shall increase by two and a half percent (2.5%) from the previous twelve (12) months'
Rent.
4.4. Rent Setoff. If LANDLORD fails to perform or comply with any obligation or
requirement of this Lease, TENANT shall give LANDLORD fifteen (15) calendar days
written notice of such failure. If LANDLORD does not cure the failure within fifteen
(15) calendar days after receipt of such written notice (or if a cure of such failure cannot
reasonably occur within such fifteen (15) calendar days and LANDLORD does not
commence the cure within such fifteen (15) calendar day period and thereafter diligently
pursue performance or compliance), TENANT may upon written notice to LANDLORD
perform or comply with such obligation or requirement or may cause a third-party to
perform or comply with such obligation or requirement. TENANT may deduct the costs
associated with such perfolina.nce or compliance from the Rent, if the LANDLORD'S
failure to perform or comply with an obligation or requirement substantially interferes
with TENANT'S use of the Premises. Upon written request, TENANT shall provide
LANDLORD with an itemized invoice or statement of costs associated with
performance or compliance of an obligation or requirement.
4.5. Partial Month Rent Proration. If this Lease commences, tei ninates (other than due to
a default by TENANT), or expires other than the first calendar day of a month, then the
Rent for such month shall be prorated upon a daily basis.
5. Security Deposit. No security deposit is required of TENANT.
6. Hold Over. In the event TENANT holds over after the termination or expiration of this
Lease, without a written amendment, TENANT shall be a TENANT-AT-SUFFERANCE at
two hundred percent (200%) of the base rent in effect at the end of the applicable teun.
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TENANT shall also continue to pay all other sums due hereunder. There shall be no renewal
of this Lease by operation of law. In addition to the foregoing, in the event that TENANT
remains in possession of the Premises after the expiration or termination of the Term,
TENANT shall be liable for all damages, direct and consequential, incurred by LANDLORD
as a result of such holdover. No receipt of money by LANDLORD from TENANT after the
termination of this Lease or TENANT'S right of possession of the Premises shall reinstate,
continue or extend the Term or TENANT'S right of possession.
7. Use and Occupancy of the Premises.
7.1 TENANT shall use the Premises to store motorized vehicles and other equipment, which
are owned by TENANT or in TENANT'S possession because of the performance of a
governmental function. TENANT may perfoun light maintenance of these vehicles at
the Premises. The public will not have access to the Premises. TENANT shall use the
Premises in the performance of governmental functions.
7.2 TENANT shall not use the Premises in violation of any law, municipal ordinance, or
regulation.
7.3 TENANT shall comply with, at its expense, with all applicable laws, municipal
ordinances, or regulations.
7.4 TENANT will permit no liens to attach to the Premises. Any liens attaching to the
Premises shall be discharged by TENANT within thirty (30) days of filing.
7.5 TENANT will use the Premises in a careful, safe, and proper manner, will not commit
waste to the Premises, will not overload the floor or structure of the Premises, or will not
subject the Premises to use that would damage the Premises.
7.6 TENANT shall keep the Premises in good and clean condition and free of trash, wear and
tear from reasonable use and damage from the elements excepted.
7.7 Except for the uses provided in this Lease, TENANT shall not use the Premises in a
manner to cause cancellation of, prevent the use of, or increase the rate of, the insurance
carried by LANDLORD.
7.8 TENANT' s use of the Premises and its activities thereon shall comply with all
"Environmental Laws," which, for purposes of this Lease, shall mean all federal, state
and local environmental laws, including, but not limited to, the Hazardous Materials
Transportation Act, (47 USC §§ 1801 et seq.), Federal Water Pollution Control Act (33
U.S.C. §§ 1251 et seq.) ("Clean Water Act"), the Resource Conservation & Recovery Act
(42 U.S.C. §§ 6901 et seq.) ("RCRA"), Safe Drinking Water Act (42 U.S.C. §§ 300f-j-
26), Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.), Clean Air Act (42 U.S.C.
§§ 7401 et seq.), the Comprehensive Environmental Response, Compensation and
Liability Act (42 U.S.C. §§ 9601 et seq.) ("CERCLA"), the Emergency Planning and
Community Right to Know Act, 42 U.S.C. §§ 11.001 et seq. ("EPCRA"), the Michigan
Natural Resources and Environmental Protection Act (MCL § 324.101 et seq.) the
administrative rules and regulations promulgated under such statutes, or any other similar
federal, state or local law or administrative rule or regulation of similar effect, in effect
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and adopted as of the date of execution of this Lease and as amended. "Hazardous
Materials" shall mean any substances, compounds, mixtures, wastes or materials that ar
e
defined to be, that are regulated as, that are listed as or that (because of their toxicity,
concentration or quantity) have characteristics that are hazardous or toxic under any of
the Environmental Laws, or any substances, compounds, mixtures, wastes or materials
that are otherwise regulated under any of the Environmental Laws.
7.9 TENANT shall not cause or permit the release of Hazardous Materials into any
environmental media such as air, water or land, or into or on the Premises in any manner.
If such release shall occur, TENANT shall (a) take all steps reasonably necessary to
contain and control such release and any associated contamination, (b) clean up or
otherwise remedy such release and any associated contamination, and take any and all
other actions required under, applicable Environmental Laws and (c) notify and keep
LANDLORD reasonably informed of such release and response.
7.10 The terms of Section 7 shall survive the expiration or termination of this Lease
8. Equipment and Furnishings. TENANT shall provide, at its OW11 expense, furniture and
equipment it deems necessary. TENANT, at its own expense, shall be solely responsible f
o
r
the maintenance and repair of its furniture and equipment used on the Premises.
9. Condition of Premises. TENANT has examined the Premises prior to the execution of this
Lease and TENANT accepts the Premises "AS-1S" except that: (a) LANDLORD shall
perform the obligations contained in Section 11 of this Lease; and (b) LANDLORD warrants
and certifies that all interior and exterior lighting fixtures will be operational on the
Commencement Date. LANDLORD has made no representation or warranty as to the
suitability of the Premises for the conduct of TENANT'S business and TENANT waives an
y
implied warranty that the Premises are suitable for TENANT'S intended purposes.
10. Security of Premises. LANDLORD will provide any existing keys to the Premises for
TENANT'S use and will provide any existing devices to TENANT for the operation of the
overhead doors at the Premises. TENANT shall be responsible for securing the Premis
e
s
o
n
a day-to-day basis. TENANT shall have the right to install a security system of its choice on
and around the Premises. TENANT will pay for all costs of installing, operating, and
maintaining the security system. The security system shall remain the property of TENAN
T
and TENANT shall remove the security system upon expiration or termination of this Lease,
including any fence gate automation added by TENANT. In addition to a security system
and as part of securing the Premises, TENANT, at its sole cost, may tint certain windows and
cover the interior of certain windows with plywood or aluminum sheeting (so long as
TENANT removes such plywood or aluminum upon the expiration or termination of this
Lease).
11. Landlord Obligations. Prior to December 1, 2014, LANDLORD shall perfonn or cause to
be performed the following at its sole cost:
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11.1. Remove all hoists in Service and Body Shop areas of the Premises, except for the
hoists that TENANT indicates not to be removed (which indications must be provided
within three (3) calendar days after the execution of this Lease);
11.2. Repair the broken windows in Service and Body Shop area of the Premises;
11.3. Clean out the slow drain in rear parking area of the Premises; and
11.4. Replace the broken section of fence on the west side of rear lot of the Premises.
12. Maintenance and Repairs of Premises.
12.1. LANDLORD shall be responsible to perform and pay for the maintenance and
repairs to keep the Premises (other than the Unusable Space) in substantially the same
condition which existed on the Commencement Date, subject to normal wear and tear.
Such maintenance shall include, but is not limited to, maintenance and repairs to, roof;
ceiling; walls; floors; windows; heating, cooling, and ventilation system (HVAC);
radiant heat system; electrical system; plumbing system; restroom fixtures; sidewalks;
parking lots; exterior and interior lighting fixtures; light bulb replacement; and
generator. TENANT shall reimburse LANDLORD the actual cost of the maintenance
and. repairs per Fiscal Year or twenty-two thousand five hundred dollars ($22,500.00)
per Fiscal Year (the "Cap"), whichever is least, provided, however, that the amount for
the first Fiscal Year shall not exceed eighteen thousand seven hundred and forty dollars
($18,740.00). On December 1, 2015 and each December l st thereafter, the Cap shall
increase by two and a half percent (2.5%) from the Cap for previous Fiscal Year. A
Fiscal Year is defined as three hundred and sixty-five (365) calendar days commencing
on October 1 st and ending on September 30th. The first Fiscal Year shall be abbreviated
because the Lease Commencement Date is December 1 st; thus, the first Fiscal Year is
December 1, 2014 to September 30, 2015. LANDLORD shall invoice TENANT on a
quarterly basis for the maintenance and repair costs. TENANT shall pay the invoice
within ten (10) business days of receipt. TENANT must provide LANDLORD with
prompt written notice of needed maintenance. Subject to the limitations in Section 20.1,
the Cap shall not apply to, and TENANT shall be obligated to reimburse LANDLORD
for the cost of repairs or replacements required due to the acts or omission of TENANT
or its employees, agents, contractors or invitees. TENANT acknowledges that an air
handler in the Premises is not currently functional and LANDLORD has no obligation to
replace or repair such handler; provided however, that TENANT shall not be responsible
for any costs associated with the repair or replacement of such handler.
12.2. On or before December 3, 2014, the Parties shall create a document (in writing
and with pictures) evidencing the current condition of the Premises. This document
shall establish the condition of the Premises on the Commencement Date and shall foirn
the basis for maintenance and repairs to the Premises.
12.3. Notwithstanding the foregoing, if any of the LANDLORD'S maintenance
obligations under Section 12.1 involve Capital Improvements to the Premises,
LANDLORD shall not be required to undertake such Capital Improvements unless and
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until TENANT agrees in writing that the Capital Improvement is approved by TENA
N
T
and deemed necessary by TENANT for TENANT's use of the Premises; in which eve
n
t
,
LANDLORD may elect to charge TENANT under this Section, rather than under
Section 12.1. Capital Improvement is defined as: (a) replacement of the roof, gener
a
t
o
r
,
HVAC, ceilings, plumbing/electrical systems, or parking lots or (b) maintenance or
repair of any single item which exceeds ten thousand dollars ($10,000.00).
LANDLORD, at its option, may amortize a Capital Improvement over its useful l
i
f
e
(whereby the useful life shall be reasonably agreed to by the Parties) according to
t
h
e
Generally Accepted Accounting Principles. If LANDLORD amortizes a Capital
Improvement and that Capital Improvement is necessary for TENANT'S use of the
Premises (as reasonably confirmed by TENANT as required above), then TENA
N
T
shall pay LANDLORD the yearly amortized portion of the Capital Improvement
w
h
i
l
e
this Lease is in effect. Payment of the yearly amortized portion shall commence o
n
t
h
e
date the Capital Improvement is fully completed and shall be due thereafter on th
e
anniversary of the completion date. Payment of the yearly amortized portion shall
c
e
a
s
e
on the date this Lease terminates or expires, if this Lease expires or terminates on a
d
a
t
e
other than the anniversary of completion, the yearly amortized portion shall be prorated
on a daily basis and refunded to TENANT. The yearly amortized amount charged t
o
TENANT under this Section shall not be applied against the Cap under Section 12.1.
13. Alterations or Improvements. TENANT shall not make any alterations or improvements to
or upon the Premises without the prior written consent of LANDLORD. Except as o
t
h
e
r
w
i
s
e
provided in this Lease, any alteration or improvement made to or upon the Premises s
h
a
l
l
become an integral part of the Premises and shall become the sole property of the
LANDLORD immediately upon the completion, unless LANDLORD, at its option, re
q
u
i
r
e
s
TENANT to remove such work upon the expiration or termination of this Lease
o
r
TENANT'S right to possession (in which event, TENANT shall undertake such re
m
o
v
a
l
a
n
d
restore the Premises to a condition similar to which existed prior to TENANT u
n
d
e
r
t
a
k
i
n
g
such work). Office furniture and trade fixtures used or installed in the Premises are
n
o
t
alterations or improvements and shall remain the property of TENANT.
14. Utilities. TENANT shall pay for all utilities for the Premises beginning December 1, 2014,
including gas, electric, water, and sewer. These utilities shall be in the name of TENA
N
T
.
Until placed into TENANT'S name, TENANT shall reimburse LANDLORD for an
y
u
t
i
l
i
t
y
charges (such reimbursement to be paid within ten (10) Calendar days after receipt of an invoice from LANDLORD).
15, Services. TENANT shall pay all costs associated with installing, maintaining and operating
its telephone system, computer system, security system, and any other system TE
N
A
N
T
installs in or around the Premises. All such systems shall remain the property of TE
N
A
N
T
,
who shall remove them upon Lease termination or expiration. TENANT shall pro
v
i
d
e
the following services at and around the Premises, at its own expense: (a) trash removal, (b)
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snow and ice removal from sidewalks, steps and parking areas, (c) custodial services, (d)
landscaping services, and (e) fuel to operate the generator.
16. Signs. TENANT may attach, install or erect signs on the interior walls of the Premises as
necessary for TENANT'S use of the Premises. TENANT may not attach, install or erect any
signs on the exterior walls of or the area surrounding the Premises without the prior written
approval of LANDLORD. TENANT shall remove its signs prior to the expiration or
termination of this Lease.
17. Access. TENANT shall allow LANDLORD access to the Premises during regular business
hours (and at all other times in the event of an emergency) for the purposes of inspecting,
posting notices, repairing and/or maintaining the Premises, and to show the Premises to
lenders, potential buyers and/or potential tenants; provided however, LANDLORD, and any
other persons accompanied, at all times, by an agent or employee of TENANT. TENANT
represents that someone will be available to accompany LANDLORD on a 24/7/365 basis
and LANDLORD shall not be liable for delays in undertaking maintenance or other
obligations of LANDLORD hereunder if due to the unavailability of TENANT to accompany
LANDLORD into the Premises. LANDLORD shall not unreasonably disrupt the operations
of TENANT at the Premises. TENANT shall also allow LANDLORD access to the
Premises at any time in case of an emergency, provided however, LANDLORD, and any
other persons shall be accompanied, at all times, by an agent or employee of TENANT.
18. Taxes. TENANT shall pay all real property taxes and special assessments on the Premises.
At LANDLORD'S option, such taxes and assessments shall be paid directly to the taxing
authority (with evidence of payment provided to LANDLORD) or paid to LANDLORD
within thirty (30) Calendar days after receipt of an invoice from LANDLORD. At the
beginning and end of this Lease, taxes and assessments shall be prorated between the Parties
on a calendar basis based upon the number of days this Lease in effect for the year in
question.
19. Insurance.
19.1. Real Property Insurance. LANDLORD shall cause the Premises, the building
and its improvements located there to be insured against loss or damage during this
Lease.
19.2. Liability Insurance. LANDLORD shall purchase liability insurance for the
Premises.
19.3. Personal Property Insurance. TENANT shall insure its personal property kept
on the Premises at its sole cost and in the amount and manner as TENANT deems fit.
19.4. Insurance Premium Payments. LANDLORD shall be responsible to pay the
premiums for the property insurance for the Premises and the liability insurance for the
Premises, provided however, TENANT shall reimburse LANDLORD, on an annual
basis, the actual amount of the premium for the property insurance and the liability
insurance or seven thousand dollars ($7,000.00) toward such premium, whichever is
less. The seven thousand dollar ($7,000.00) figure shall be increased in the same
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manner as the Rent, set forth in Section 4.3. TENANT shall reimburse
L
A
N
D
L
O
R
D
f
o
r
the applicable premium charge within ten (10) days after receipt o
f
a
n
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n
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o
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e
f
r
o
m
LANDLORD.
20. Indemnification/Liability and Damage to the Premises.
20.1. TENANT shall be responsible for property damage to the Premises, inc
l
u
d
i
n
g
t
h
e
building or fixtures attached to the building, which is caused by the
a
c
t
s
o
r
o
m
i
s
s
i
o
n
s
o
f
TENANT or TENANT's employees, agents, contractors or invitees
;
p
r
o
v
i
d
e
d
,
h
o
w
e
v
e
r
,
with respect to damage that is covered by LANDLORD's property i
n
s
u
r
a
n
c
e
p
o
l
i
c
y
,
TENANT shall only be liable for up to ten thousand dollars ($10,000
.
0
0
)
p
e
r
o
c
c
u
r
r
e
n
c
e
.
20.2. For purposes of this Lease, "Claims" means any loss; complaint; d
e
m
a
n
d
f
o
r
relief or damages; lawsuit; cause of action; proceeding; judgment; pen
a
l
t
y
;
c
o
s
t
s
;
o
r
other liability of any kind which is imposed on, incurred by, or assert
e
d
o
r
f
o
r
w
h
i
c
h
a
Party may become legally or contractually obligated to pay or defend ag
a
i
n
s
t
,
w
h
e
t
h
e
r
commenced or threatened, including, but not limited to, reimbursem
e
n
t
f
o
r
r
e
a
s
o
n
a
b
l
e
attorney fees, mediation, facilitation, arbitration fees, witness fees, cour
t
c
o
s
t
s
,
investigation expenses, litigation expenses, or amounts paid in settlemen
t
,
20.3. Each Party shall be responsible for Claims made against that Party
b
y
a
t
h
i
r
d
party and for the acts or omissions of its employees, agents or contractors rel
a
t
e
d
t
o
t
h
e
performance of this Lease.
20.4. LANDLORD shall indemnify and hold TENANT harmless from all
C
l
a
i
m
s
,
incurred by or asserted against TENANT by any person or entity, to
t
h
e
e
x
t
e
n
t
c
a
u
s
e
d
from the acts or omissions of LANDLORD or its agents or employees.
20.5. TENANT's right to indemnification is in excess and above any insuran
c
e
rights/policies required by this Lease.
20.6. LANDLORD shall not be liable to IENANT or to any other person
f
o
r
a
n
y
damage (to person or property) caused by: (a) failure in any utility or b
u
i
l
d
i
n
g
s
y
s
t
e
m
,
(b) failure of any security system, (c) by the bursting or leaking of
a
n
y
v
e
s
s
e
l
o
r
p
i
p
e
i
n
or about the Premises, (el) by water, snow or ice coming into the Prem
i
s
e
s
,
o
r
(
e
)
f
r
o
m
the acts or neglect of occupants of adjacent property or the public. TE
N
A
N
T
s
h
a
l
l
maintain all desired insurance covering its personal property and T
E
N
A
N
T
,
r
a
t
h
e
r
t
h
a
n
LANDLORD, shall be responsible for the damage or theft of its perso
n
a
l
p
r
o
p
e
r
t
y
.
20.7. This Lease does not and is not intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or other legal right, privilege, powe
r
,
o
b
l
i
g
a
t
i
o
n
,
d
u
t
y
,
capacity, or immunity of TENANT.
20.8. The terms and conditions of Section 20 shall survive the expiration or
t
e
r
m
i
n
a
t
i
o
n
of this Lease.
21. Destruction of Premises.
21.1. Except as otherwise provided herein, in the event the Premises are
p
a
r
t
i
a
l
l
y
damaged or destroyed by fire or other casualty, the damage to the Premises shall be
promptly repaired or rebuilt by LANDLORD. In the event the Premises
c
a
n
n
o
t
b
e
Page 9 of 12
Final Version
Detroit 4394583 2
repaired or rebuilt within ninety (90) Calendar days after such destruction, TENANT
shall have the right to terminate this Lease and vacate the Premises within thirty (30)
Calendar days after the occurrence of such damage or destruction. If the Premises are
damaged or destroyed, TENANT may elect to remain on the Premises or to vacate the
Premises (at its sole option) until the repairs are complete. During the time between
when the Premises are damaged and until the repairs or construction to the Premises are
complete, the Rent owed by TENANT shall be reduced in proportion to the portion of
the Premises rendered unusable (in the discretion of TENANT).
2L2. In the event (i) all or any portion of the Premises is damaged by fire or other
casualty and the time period reasonably determined by LANDLORD to be required for
the actual restoration or repair of the Premises will exceed ninety (90) Calendar days
from the date the casualty occurs, or (ii) the Premises is damaged by fire or other
casualty within twelve (12) months preceding the end of the Term, or (iii) LANDLORD
does not anticipate receiving sufficient insurance proceeds to restore the Premises, or
(iv) LANDLORD is required to pay any insurance proceeds arising out of the casualty to
LANDLORD'S lender, or (Y) LANDLORD determines in its sole discretion that it is not
economical to repair the casualty, then LANDLORD shall have the right, to be exercised
by giving written notice within thirty (30) Calendar days after the occurrence of the
casualty, to terminate this Lease. TENANT will have thirty (30) Calendar days from the
date of the notice to vacate the Premises. If LANDLORD elects to rebuild or repair the
Premises, then the Rent owed by TENANT shall be reduced in proportion to the portion
of the Premises rendered unusable (in the discretion of TENANT) until the Premises are
repaired or rebuilt. In no event, shall LANDLORD be required to repair or replace any
property of TENANT.
22. Eminent Domain.
22.1. If the whole Premises or any part thereof is taken by any public authority under
the power of eminent domain, TENANT has the right to terminate the Lease and vacate
the Premises anytime between the award of taking to the public authority and the day the
public authority takes possession.
22.2. If less than the whole of the Premises is taken by any public authority under the
power of eminent domain, and TENANT elects to remain on the Premises, the rent shall
be reduced in proportion to the amount of space taken by the public authority. Neither
Party shall have any future obligation or liability under the Lease (except as otherwise
stated herein), if the Lease is terminated pursuant to this Section.
23. Assignment. TENANT shall not assign, sublet, or in any manner transfer this Lease or any
estate or interest therein without the prior written consent of LANDLORD.
24. Quiet Enioyment. Upon performance of its obligations under this Lease, TENANT shall
peacefully and quietly hold and enjoy the Premises without hindrance or interruption by
LANDLORD, its agents or employees, subject to the terms of this Lease.
Page 10 of 12
Final Version Detroit 4394583 2
25. Modifications. This Lease may be modified or amended only by written agreement of
LANDLORD and TENANT.
26. Binding Effect. The terms 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
(subject to the limits in Section 23). TENANT shall not record this Lease or a memorandum
of this in the Oakland County Register of Deeds Office.
27. Severability. If a term or condition of this Lease is found by a court of competent
jurisdiction to be invalid, unenforceable, or to violate federal or state law, then the term or
condition shall be deemed severed from this Lease; all other terms and conditions shall
remain in full force and effect.
28. Waiver. No waiver of any term 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
term 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.
29, 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.
30. Notice. All notices required under this Lease shall be in writing. Notices shall be effective:
(a) the next Business Day, if personally delivered; (b) the third Business Day, if sent by U.S. mail, postage prepaid, return receipt requested; (c) the next Business Day, if sent by a nationally recognized overnight express courier with a reliable tracking system; or (d) the
next Business Day with a receipt of confirmation, if sent by e-mail or fax. Notice to
LANDLORD shall be sent to: 500 S. Opdyke Road, Pontiac, Michigan 48341. Notice to
TENANT shall be sent to: (1) Oakland County Facilities Management, Director, One Public
Works Drive, Building 95 West, Waterford, Michigan 48328 and (2) The Oakland County
Sheriff, Law Enforcement Complex, 1200 North Telegraph Road, Building 38 East, Pontiac,
Michigan 48341.
31. Force Maieure. LANDLORD shall not be in default under this Lease (and the time for
LANDLORD to perform shall be extended day for day) to the extent LANDLORD is unable
to perform any of its obligations on account of any adverse weather, strike or labor problem,
energy shortage, governmental pre-emption or prescription, national emergency or any other
cause of any kind beyond the reasonable control of LANDLORD.
32. Subordination/Estoppel. This Lease and all rights of TENANT hereunder shall be
subordinate to the lien and security title of any mortgage which may encumber the Premises.
Upon demand, TENANT shall execute and deliver to LANDLORD or to mortgagee any instruments, requested by either of them, to evidence such subordination. Upon demand,
TENANT will execute and deliver to LANDLORD, LANDLORD'S mortgagee, purchasers,
or any other third party designated by LANDLORD an estoppel certificate in the form and substance requested by LANDLORD, to the extent it is factually accurate.
Page 11 of 12
Final Version
Detroit 4394583 2
33. Governing Law. This Lease shall be interpreted under and governed by the laws of the
State of Michigan.
34. Entire Agreement. This Lease constitutes the entire agreement of the Parties with respect to
the Premises. All prior negotiations, agreements and understandings, either oral or written,
are merged into this Lease.
35. Authority: TENANT represents that is authorized by all required governmental action to
enter into this Lease and the individual(s) signing this Lease on behalf of TENANT are each
authorized to bind TENANT to its terms.
IN WITNESS WHEREOF, the parties execute this Lease.
(LANDLORD)
By:
This Lease was acknowledged before me in Oakland County, Michigan this day of
, 201 , by , Landlord.
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
COUNTY OF OAKLAND (TENANT)
By:
Michael 3. Gingell, Chairperson
Oaldand County Board of Commissioners
This Lease was acknowledged before me in Oakland County, Michigan this day of
201_, by Michael 3. Gingell, Chairperson, Oakland County Board of
Commissioners,
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
Page 12 of 12
Final Version
Detroit_4394583 2
LII:=EIL=Ibl=t1 =113==1:1 1=131t=1[11==I3 333,00'
FENCED AREA
SF. CALCULATIONS
AREAS SF.
UNUSABLE SPACE 16,840 TOTAL BUILDING
LEGEND
47,141
1.•
=:1 =2 UNUSABLE SPACE
=3 c=1 PROPERTY LIMITS
UPSTAIRS MEZZANINE
CMIZESII 1711 GI E.---.3 G-Grl D=MIU 1=Mi.5
EXHIBIT A
2470 ELIZABETH LAKE RD.
QUALITY PONTIAC - WAREHOUSE LEASE
SCALE: NOT TO SCALE 10/14/14 PRODUCED 5128114 UY MM AND JU OAKLAND COUNTY
F
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F
FACILITIES MAINTENANCE AND OPERATIONS.
AREA OF ENTIRE BUILDING 47,141 SF. (GROSS)
FISCAL NOTE (MIK . #14264) November 19, 2014
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT/SHERIFF'S OFFICE — APPROVAL AND
ACCEPTANCE OF LEASE AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC, FOR USE OF THE
QUALITY PONTIAC BUILDING FOR STORAGE OF EQUIPMENT AT 2470 ELIZABETH LAKE ROAD,
WATERFORD, 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 resolution approves and authorizes a lease agreement between the County of Oakland and 2470
Elizabeth Lake Road, LLC for use of space located at the former Quality Pontiac car dealership
building at 2470 Elizabeth Lake Road, Waterford, Michigan.
2. No adequate County owned facility exists to accommodate storage of vehicles and equipment for the
Sheriff's Office as well as emergency response equipment for both Homeland Security Division and
Health Division of Health and Human Services Department.
3. Facilities Management and the Sheriff's Office have determined that the former Quality Pontiac car
dealership building at 2470 Elizabeth Lake Road will provide adequate space and the location is
advantageous near the county campus.
4. The Departments of Facilities Management and Sheriff's Office with the assistance of Corporation
Counsel has negotiated terms and conditions of the new lease.
5. The annual lease amount is $106,044 and shall increase by 2.5% each subsequent year.
6. The term of the lease shall be three years commencing on December 1, 2014 and ending on
November 30, 2017 and maybe renewed at the County's discretion on a year-to-year basis for up to
an additional two years.
7. The County will provide certain maintenance services such as custodial, snow & trash removal, etc. of
an estimated annual amount of $13,000 and estimated annual amount of $69,757 for utilities,
insurance premium and property taxes.
8. Other maintenance services such as HVAC repairs, roof repairs, electrical, etc. will be provided by
2470 Elizabeth Lake Road, LLC and the County will be responsible to reimburse 2470 Elizabeth Lake
Road, LLC up to $22,500 per year.
9. All capital improvements provided by 2470 Elizabeth Lake Road, LLC that are deemed necessary for
the County's continued use of the building, will be paid by the County in the amount of the per year
amortized costs based on the capital improvements useful life; funding for such capital improvements
will need to be identified before such improvements are approved.
10. The County will pay for security enhancements to the building at a one-time cost of $95,751 which will
include ID Scanners, cameras, window bars, and tinting; funding for the one-time cost is available from
General Fund Assigned Fund Balance for Homeland Security Enhancements (G/L Account #383455).
11. Annual estimated prorated costs for FY 2015 are $176,084; annual estimated costs for FY 2016 are
$213,952; and annual estimated costs for FY 2017 are $216,670.
12. The annual estimated costs are partially offset by amounts previously budgeted in the Sherriffs rent
line item for FY 2015 $62,083; FY 2016 $74,500; and FY 2017 $74,500.
13. The monthly rent line item (#731626) will be split based on a weighted percentage to account for total
estimated costs and to avoid having all individual bills (utilities, insurance, building maintenance, etc.)
split and routed to multiple departments for approval; Sheriff 76%, Health 11%, and Homeland
Security 13%.
14. All other expenses (utilities, insurance, taxes, etc.) except Rent (#731626) will be charged to the
Sheriff's budget.
15. The FY 2015-2017 budget amendments are recommended as detailed below:
FY 2015 FY 2016 FY 2017
General Fund #10100 (GL#383455)
Revenue:
9010101-196030-665882 Planned Use of Balance
Total Revenue
$ 95,751 $ -0-
$ 95,751 $ -0- $ -0-
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Scott and Crawford absent.
$ 228,002
114,001)
$ 114,001
$278,904
(139,452)
$139,452
$284,340
(142,170)
$142,170
$ 114,001 $139,452 $142,170
$ 114,001 $139,452 $142,170
Expenditure:
4030601-110000-788001-40400 Transfr Out-Proj Wrk Order $ 95,751 $ -0-
Total Expenditure $_2515.1 $ -0-
$ -0-
$ -0-
Project Work Order Fund #40400 Project ID#100000002093
Revenue:
1040101-148020-695500-10100 Transfer In-General Fund
Total Revenue
95,751 $-0-
95,751 $ -0-
-0-
-0-
Expense:
1040101-148020-796500 Budgeted Equity Adjustments $ 95,751 $ -0-
Total Expense $ 95,751 $ -0- $ -0-
General Fund #10100
Revenues:
9010101-196010-620302 Convention Facility Liquor Tax
9010101-196030-665882 Planned use of Balance
Total Revenue
Expenditures:
9010101-134790-740160 Substance Abuse Coord Agency
4030601-110000-731626 Rent
1060201-133150-731626 Rent
1060601-115090-731626 Rent
4030601-110000-730562 Electrical Service
4030601-110000-731269 Natural Gas
4030601-110000-730940 Insurance
4030601-110000-730198 Building Maintenance
9010101-148050-775754 Maintenance Dept Chgs
4030601-110000-731479 Property Taxes
4030601-116200-770631 Bldg Space Cost Allocation
9010101-148050-770631 Bldg Space Cost allocation
Total Expenditures
Facilities Maintenance & Operations Fund #63100
Revenue:
1040702-140010-631134 Maintenance Dept Chgs
Total Revenue
Expense:
1040719-141000-731878 Sublet Repairs
Total Expense
$ 4,981
10,054
11,252
12,677
11,743
5,833
18,750
10,833
27,878
(25,017)
25,017
$114,001
$ 10,833
$ 10,833
$ 10,833
$ 10,833
$ 7,989
12,367
13,839
15,212
14,092
7,000
22,500
13,000
33,453
(35,691)
35,691
$139,452
$ 13,000
$ 13,000
$ 13,000
$ 13,000
$ 10,051
12,676
14,186
15,212
14,092
7,000
22,500
13,000
33,453
(35,842)
35,842
$142,170
$ 13,000
$ 13,000
$ 13,000
$ 13,000
/c.efs_d_
Resolution #14264 November 19, 2014
Moved by Spisz supported by Quarles the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Gershenson, Gingell, Gosselin, Hatchet( Jackson, Long, Matis, McGillivray, Middleton,
Quarles, Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Dwyer. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
H0401VY APPROVE THIS RESOLUTION
ib:PUTY COUNTY EXECUTIVE
KIRSUANT TO MCL 45.559A (7)
(STATE OF MICHIGAN)
(COUNTY OF OAKLAND)
I, Lisa Brown, 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 November
19th, 2014, 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 19 th day of November 2014.
Lisa Brown, Oakland County