Loading...
HomeMy WebLinkAboutResolutions - 2016.02.17 - 22213MISCELLANEOUS RESOLUTION #16035 February 17, 2016 BY: Planning and Building Committee, Phillip Weipert, Chairperson IN RE: FACILITIES MANAGEMENT — NEW LANDLORD LEASE FOR 52-1 NOVI DISTRICT COURT To The Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the County of Oakland ("the County") currently leases a building at 48150 Grand River Avenue, Novi, Michigan, to operate the 52-1 District Courthouse (Novi), a single-story structure with approximately 25,833 square feet of office and courtroom space, and approximately 227 parking spaces on an approximately 4.74 acre lot; and WHEREAS the District Court was experiencing maintenance service quality problems with the previous landlord, Hannawa Holdings, LLC; and WHEREAS the County proactively negotiated with Hannawa Holdings, LLC, to achieve the goals of a 7% rent concession, improved quality and timeliness of building maintenance services, and needed capital improvements to the building; and WHEREAS the resulting ten-year lease between Hannawa Novi Holdings, LLC, and the County was adopted by the Board of Commissioners via MR#13141 and became effective on July 1, 2013; WHEREAS the County succeeded in achieving its goals and the annual rent was reduced $121,241 a year from $493,241 to $372,000; and WHEREAS the County assumed the majority of maintenance services for the building beginning July 1, 2013, and has not exceeded the $121,241 annual reduction in rent; and WHEREAS in 2015, the building was sold to Novi Partners, LLC, ("the Landlord"), thus necessitating a new lease be negotiated; and WHEREAS a new lease has been negotiated and is attached hereto; and WHEREAS the terms of the new lease are substantially the same as the previous lease; and WHEREAS the new lease will have a term of ten years from April 1,2016, to March 31, 2026, with annual rent fixed for the first three years at $372,000; and WHEREAS starting in year four, a 2% annual rent increase will take effect; and WHEREAS the County will have the right to terminate the new lease with 365 days advanced notice beginning in year eight; and WHEREAS the County will contract with a property management company to assume the majority of maintenance services for the building once the lease is executed; and WHEREAS by doing so, the staff time incurred by Facilities Management to perform the maintenance services will be greatly reduced and reallocated to other high-priority projects; and WHEREAS the County presently does not plan to relocate the court to another building or to build a new courthouse during the first seven years of the lease term; and WHEREAS the Chief Judge of the 52 nd District Courts, as well as the Court Administrator and Presiding Judge of the 52nd -1 District Court, have reviewed and agreed to the terms of the new lease. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and accepts the terms and conditions of the attached lease for the 52-1 District Courthouse (Novi) located at 48150 Grand River Avenue, Novi, Michigan with the Landlord, Novi Partners, LLC. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs it Chairperson or his designee to execute the attached lease and all other related documents between the County and the Landlord, Novi Partners, LLC. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING AND BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Dwyer absent. LEASE FOR 52ND DISTRICT COURT, FIRST DIVISION This Lease is made and entered into on April 1, 2016 (the "Commencement Date") between Novi Investment Partners LLC, a Massachusetts limited liability company 232 Summit Avenue, Suite103, Brookline, MA 02446 ("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 ("TENANT"). INTRODUCTION A. The TENANT currently leases the building and parking lot from the LANDLORD located at 48150 Grand River Avenue, Novi, Michigan (as further defined herein the "Premises") for use as the 52nd District Court, First Division, pursuant to a lease executed on July 1, 2013 by and between the TENANT and the then owner of the Premises, Hannawa Novi Holdings, LLC ("Current Lease"); B. The TENANT previously occupied the Premises under a lease dated April 12, 2005. C. On November 5, 2009, the TENANT exercised its option to extend the then current lease for five (5) years until March 2, 2015; D. In 2013, the TENANT negotiated the Current Lease with the previous Landlord, which included a rent reduction and a term extension. E. The TENANT desires to extend the length of its stay at the Premises; and F, The Parties desire to terminate the Current Lease and to enter into a new lease, all in accordance with and pursuant to, the following terms and conditions. 1. Leased Premises of Lease. 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 the entire building consisting of approximately 25,833 square feet and the parking lot for this building, located at 48150 Grand River Avenue, Novi, Michigan (the "Premises"). The Premises are depicted in Exhibit A, which is attached and incorporated by reference into this Lease. 2. Term. The term of this Lease shall begin on the Commencement Date and shall end on March 31, 2026. From and after April 1, 2023, the TENANT shall have the right to terminate this Lease, without any penalty, on that date, which is no less than three hundred and sixty-five (365) days from the delivery of written notice (the "Termination Notice") to the LANDLORD (the "Termination Date"). If said Termination Notice is delivered to the LANDLORD, then this Lease shall remain in full force and effect until, and then shall terminate and be of no further force and effect upon, the end of the day on the Termination Date. During the period between the date of the Termination Notice and the Termination 1 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 Date, the LANDLORD shall have the right upon reasonable notice to the TENANT to show the Premises to prospective tenants, purchasers and lenders provided, however, that in such showings that would include portions of the Premises to which the public does not have unfettered access, LANDLORD shall not make such showing without being accompanied by an appointed person of TENANT. LANDLORD shall give advance notice to TENANT of the scheduled showing and TENANT shall reasonably cooperate with LANDLORD in the scheduling of such showing and the appointment of a person to accompany LANDLORD. 3. Renewal Option. Provided the TENANT is not in default of any terms and provisions herein contained, the TENANT shall have the one time option to extend the lease term for seven (7) years (the "Option Period"), provided the TENANT gives to the LANDLORD no less than three hundred sixty five (365) calendar days prior written notice of such election to extend the Lease ("Extension Term"). The terms and provisions of this Lease shall govern the Extension Term except that Rent (as defined in Paragraph 4 of this Lease for each lease year of the said Option Period shall be the "Option Period" Rent set forth in Exhibit B to this Lease. 4. Rent for Lease. The rent due and owing to the LANDLORD from the TENANT under this Lease is set forth in the rent schedule in Exhibit B ("Rent"). Exhibit B is incorporated into this Lease. 5. Place and Date of Payment. All payments due to the LANDLORD under this Lease shall be paid at the address of the LANDLORD set forth above or at such other place as the LANDLORD may designate in writing. All payments due to the LANDLORD under this Lease shall be paid on a monthly basis on the first calendar day of each month or another date agreed to by both Parties, in writing. 6, Partial Month Payment Proration. Should the Commencement Date be other than the first calendar day of a month, then all payments under this Lease for such month shall be prorated upon a daily basis based upon a thirty (30) day calendar month. Should this Lease terminate or expire other than the first calendar day of the month, then all payments under this Lease for such month shall be prorated upon a daily basis for a thirty (30) day calendar month. 7. Failure to Perform. In the event the LANDLORD fails to perform or comply with any obligation or requirement of this Lease, the TENANT shall give the LANDLORD five (5) business days written notice of such failure. If the LANDLORD does not perform or comply with the obligation or requirement within the five (5) business day period (or, for such items that take longer than the five (5) business days to cure, if the LANDLORD does not reasonably commence to perform or comply with the obligation or requirement within said five (5) business day period, and then fails to diligently proceed to cure thereafter), then the TENANT may perform or cause the compliance with the obligation or requirement. The TENANT may deduct any reasonable costs associated with performing or complying with the obligation or requirement of the Lease from the Rent. In an emergency situation, the TENANT may perform or cause compliance with the obligations or requirements of the Lease without prior written notice to the LANDLORD and still may deduct reasonable costs 2 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 from the Rent. Upon request, the TENANT shall provide the LANDLORD with an itemized invoice or statement for the costs associated with performing or complying with the obligations or requirements in the Lease, 8. Hold Over. In the event the TENANT holds over after the expiration of the Term or Extension Term of this Lease, as the case may be, 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, and the Rent shall be one hundred and fifty (150%) of the then current Rent for the period of such holdover. 9. Use and Occupancy. The Premises shall be used as a Courthouse. The Premises shall not be used in violation of any law, municipal ordinance, or regulation. Upon expiration or termination of this Lease, the TENANT shall surrender the Premises in the same condition when taken, nounal wear and tear excepted, and shall remove its personal property. 10. Equipment and Furnishings. The TENANT shall provide, at its own expense, all computer and telephone systems, furniture and equipment it deems necessary. The TENANT, at its own expense, shall be solely responsible for the maintenance and repair of all computer and telephone systems, furniture and equipment. 11. Taxes. From and after the Commencement Date of this Lease, the TENANT agrees to pay all real estate taxes assessed or imposed on the Premises directly to the taxing authority prior to the date on which any penalty for nonpayment of such taxes attaches. The taxes for the year in which the Lease ends or is terminated shall be prorated and adjusted between the LANDLORD and the TENANT on the due-date basis. 12. Utilities. The TENANT shall be solely responsible for and promptly pay all charges for water, gas, heat, electricity, telephone, sewer, and any other utility used upon or furnished to the TENANT. The LANDLORD agrees to provide utility service lines into the Premises and separate meters for utilities used upon or furnished to the Premises. 13. Maintenance, Repairs and Services. The division of responsibilities between the LANDLORD and the TENANT as they relate to maintenance, repairs, and services on, about, or to the Premises are set forth in Exhibit C, which is incorporated by reference into this Lease. 13.1. Costs. Each Party shall be solely responsible for their own costs associated with providing maintenance, repairs, and services on, about or to the Premises as set forth in Exhibit C. 13.2. Third-Party Contractors. Either Party may hire a third-party to perform the maintenance, repairs, and services on, about, or to the Premises, for which they are obligated to perform as required by this Lease. The responsibilities contained in this Lease shall not be diminished in any manner if a Party hires a third-party to perform the responsibilities. 3 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 14. Alterations or Improvements. Except as set forth in this Lease and Exhibits, neither the LANDLORD nor the TENANT shall make any alterations or improvements on, about, or to the Premises without the prior written consent of the other Party. Such consent shall include approval of designs for alterations or improvement; approval of Contractors to perform the alternations or improvements; and any request for proposals for the alterations or improvements. 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. The LANDLORD, in its sole discretion, may require as a condition of approval that the TENANT restore the Premises, at the expiration of this Lease, to its condition prior to improvements made by the TENANT. 15. Indemnification/Liability. 15.1. 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, litigation expenses, or court costs), penalties, fines ' and claims whatsoever in connection with loss of life, personal injury and/or damage to property arising from acts or omissions of the LANDLORD or its agents or employees. 15.2. The TENANT shall be responsible for property damage to the Premises, including the structure thereon or fixtures attached to the structure, up to $10,000.00 per occurrence, which is caused by the acts of the TENANT, the TENANT'S employees or officers, or third-parties on the Premises for Court purposes. Normal wear and tear to the Premises is excluded from this Section. 16, Landlord Insurance. The LANDLORD agrees to provide the following insurance or similar insurance: 16.1. Commercial General Liability Insurance in the minimum amount of $1,000,000 Combined Single Limit per occurrence, including Contractual Liability coverage recognizing this contract. The TENANT shall be an additional named insured on such policy. 16.2. The LANDLORD shall cause the Premises, including the structure and improvements located thereon, to be insured against loss or damage under a policy or policies of fire and extended coverage insurance, including "additional perils." 16.3. All Insurance Certificates are to provide 30 days notice of material change or cancellation. Certificates of Insurance and insurance binders must be provided no less than ten (10) working days before commencement of this Lease. 4 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 Waiver of Subrogation. The LANDLORD and the LANDLORD'S insurance carrier agree to waive all rights of subrogation against the TENANT for any loss or damage to the Premises and/or structure thereon exceeding $ 10,000.00. 17. Tenant Insurance. The TENANT is self-insured as to liability claims. Any personal property kept on the Premises by the TENANT shall be insured at the TENANT'S sole risk and at its discretion. The TENANT and the TENANT's insurance carrier agree to waive all rights of subrogation against the LANDLORD and the LANDLORD'S insurance carrier, and to release the LANDLORD and the LANDLORD's insurance company, for any loss or damage to the TENANT'S personal property kept on or at the Premises. 18. Destruction of Premises. In the event, the Premises are partially or totally damaged or destroyed by fire or other casualty that is not attributed to the acts of the TENANT's employees, contractors, or visitors, the damage to the Premises shall be promptly repaired or rebuilt by the LANDLORD. Notwithstanding any other provision in this Lease, if the Premises cannot be repaired or rebuilt within one hundred eighty (180) days after such damage, destruction, or casualty, then the TENANT shall have the right to terminate this Lease and vacate the Premises upon written notice to the LANDLORD, after the expiration of such one hundred eighty (180) day period. In any event, the Rent owed by the TENANT shall be reduced in proportion to the fraction of the Premises rendered unusable (in the discretion of the TENANT) until the Premises are repaired or rebuilt. If more than fifty percent (50%) of the Premises are damaged or destroyed by a casualty, then the LANDLORD may elect to either repair or rebuild the Premises or to terminate this Lease by giving written notice to the TENANT within thirty (30) days after the occurrence of such damage or destruction. 19. 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. Notwithstanding any provision of this Lease, if the LANDLORD fails to comply with such laws and regulations, then the TENANT may give the LANDLORD written notice of its intent to terminate the Lease one hundred fifty (150) days after the LANDLORD'S receipt of the written notice (or as to any matter that cannot reasonably be cured within such one hundred fifty (150) day period, then the LANDLORD shall not be in violation of this Section, if the LANDLORD commences such cure within the one hundred fifty (150) day period and thereafter diligently prosecutes such cure until completion). If the LANDLORD complies with the laws and regulations within the one hundred fifty (150) day period, or such applicable longer period as provided herein, the TENANT shall not have the right to terminate the Lease. 20. Security. 20.1. The TENANT is solely responsible for interior and exterior security measures and devices for the Premises. 5 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 20.2. All persons working inside or outside the Premises will be subject to and must pass a background check conducted by the TENANT's Building Safety Division. Because the Premises are used as a Courthouse and have Law Enforcement Information Network ("LEIN") terminals (providing access to LEIN information) located thereon, if a person will be working inside the Premises, then the person will be subject to and must pass an additional background check conducted by the 52-1 District Court. The TENANT shall be responsible to perform the background checks and shall be responsible for all costs associated with the background checks. Notwithstanding the foregoing, the parties acknowledge that in certain circumstances (i.e., emergencies, insufficient response time) TENANT may not be able to have performed a background check, and on such occasions, such persons working inside or outside the Premises have to be first accompanied by an employee or person designated by TENANT for that purpose (unless waived by TENANT). 21 Access. The TENANT shall allow the LANDLORD access to the Premises during regular business hours or at other times mutually agreed to by the Parties for the purposes of inspecting, repairing and/or maintaining the Premises as may be required under this Lease. The LANDLORD 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. Given the TENANT'S use of the Premises as a courthouse, an employee of the TENANT may have to escort the LANDLORD or the LANDLORD'S agents or contractors while on the Premises. Notwithstanding anything to the contrary contained herein, the LANDLORD shall have access to the Premises during the last nine (9) months of the term of this Lease to show the Premises to prospective tenants, purchasers or lenders; provided, however, that in such showings that would include portions of the Premises to which the public does not have unfettered access, LANDLORD shall not make such showing without being accompanied by an appointed person of TENANT. LANDLORD shall give advance notice to TENANT of the scheduled showing and TENANT shall reasonably cooperate with LANDLORD in the scheduling of such showing and the appointment of a person to accompany LANDLORD. 22. Signs. The TENANT may attach, install or erect signs on the interior walls of the Premises as necessary for the TENANT'S use of the Premises. The TENANT may not install or erect a sign on the exterior walls of or the area surrounding the Premises without the prior written approval of the LANDLORD and the City of Novi as to the form, content, material, lighting and structure thereof. 23. Assignment. The TENANT shall not assign, sublet or in any manner transfer this Lease or any estate or interest herein without the prior written consent of the LANDLORD. Notwithstanding the foregoing, in the event of the State of Michigan, by action of its legislature, takes over and assumes responsibility for the 52/1 District Court or assigns the responsibility for the District Court to another governmental entity, the TENANT may assign its interest in this Lease to the State of Michigan or other governmental entity, which shall in writing assume all of the liabilities and obligations of the TENANT under this Lease. The interest of the LANDLORD in the Lease may be sold, conveyed, assigned or otherwise 6 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 transferred without the consent of the TENANT, but any such sale, conveyance, assignment or transfer shall be subject to this Lease and the documents accomplishing such sale, conveyance, assignment or other transfer shall expressly require compliance with all terms and conditions of this Lease. Upon any such transfer of the LANDLORD's interest in the Lease, the LANDLORD shall have no further obligation under the Lease or to the TENANT, except to the extent any obligation accrued and remain unsatisfied prior to the date of such transfer. 24. Parking. The LANDLORD agrees to provide sufficient parking at the Premises for the TENANT'S use of the Premises, provided, however, that a minimum of 227 parking spaces shall be provided for the TENANT'S exclusive use. The TENANT may use additional parking spaces, if available. The TENANT agrees that the existing parking available to the TENANT as of the date of this Lease complies with this paragraph. 25. 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, but more than thirty-five percent (35%) of the Premises are taken by any public authority under the power of eminent domain, then either Party may terminate this Lease upon thirty (30) days written notice to the other Party. In the event neither Party elects to terminate this Lease, the Lease shall terminate on the date the public authority takes possession of the Premises. Neither Party shall have any future liability or obligation under the Lease if it is terminated under this Paragraph. 26. Quiet Enjoyment. Upon performance of its obligations under this Lease, the TENANT shall peacefully and quietly hold and enjoy the Premises without hindrance or interruption by the LANDLORD, its agents or employees, subject to the terms of this Lease. 27. Modifications. This Lease may be modified or amended only by written agreement of the LANDLORD and the TENANT. 28. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan, 29. 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 tettn, condition, or provision shall be deemed severed from this Lease; all other terms, conditions and provisions shall remain in full force and effect. 30. Right to Mortgage. The LANDLORD reserves the right to subordinate this lease to the lien of any mortgage now or hereafter upon the LANDLORD'S interest in the Premises and on the land and buildings of which the Premises are part or upon any buildings hereafter placed upon the land of which the Premises form a part. The TENANT agrees to execute and deliver upon demand an instrument or instruments subordinating this lease to the lien of any such mortgage or mortgages. The TENANT agrees, within ten (10) business days after the 7 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 LANDLORD'S request, to execute an estoppel certificate in a form reasonably acceptable to the LANDLORD or any third party relying on said estoppel certificate. 31. 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 term, 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. 32. 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. The Current Lease executed by the Parties on July 1, 2013 is terminated and is null and void. 33. 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. 34. 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. 35. 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, 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 the date on which the same is actually served, and any notice which is sent by mail shall be deemed given two (2) days after the same is deposited in a regularly maintained receptacle for the deposit of 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. 36. 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. 37. Default. If the TENANT defaults in any of its obligations under this Lease, the LANDLORD shall have all remedies available to it under the law. [SIGNATURES ON FOLLOWING PAGE] 8 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 IN WITNESS WHEREOF, the parties hereto have executed this lease as of the day and year above written. NOVI INVESTMENT PARTNERS LLC (LANDLORD) By: WITNESS Kenneth G. Lewis Managing Member The foregoing instrument was acknowledged before me this day of .201 by Kenneth G. Lewis. Notary Public, Commonwealth of Massachusetts My Commission Expires: COUNTY OF OAKLAND, a Michigan Constitutional Corporation (TENANT) By: WITNESS Michael J. Gingell Chairperson, Oakland County Board of Commissioners The foregoing instrument was acknowledged before me this day of , 201 by Michael J. Gingell of the Board of Commissioners on behalf of the County of Oakland. Notary Public, State of Michigan, Oakland County, My Commission Expires: Acting in the County of Oakland 9 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 EXHIBIT A Premises 48150 Grand River Avenue, Novi, Michigan 10 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 EXHIBIT B RENT SCHEDULE OAKLAND COUNTY DISTRICT COURT 52-1 NOVI, MI Lease Year 1 2 3 4 5 6 7 8 9 10 Option Period 11 12 13 14 15 16 17 Lease Fiscal Year 4/1/16 — 3/31/17 4/1/17 — 3/31/18 4/1/18 3/31/19 4/1/19 — 3/31/20 4/1/20 --3/31/21 4/1/21 — 3/31/22 4/1/22 — 3/31/23 4/1/23 —3/31/24 4/1/24 — 3/31/25 4/1125 — 3/31/26 4/1/26 — 3/31/27 4/1/27 — 3/31/28 4/1/28 — 3/31/29 4/1/29 — 3/31/30 4/1/30 3/31/31 4/1/31 —3/31/32 4/1/32— 3/31/33 Annual $372,000.00 $372,000.00 $372,000.00 $379,440.00 $387,028.80 $394,769.38 $402,664.76 $410,718.06 $418,932.42 $427,311.07 $435,857.29 $444,574.44 $453,465.92 $462,535.24 $471,785.95 $481,221.67 $490,846.10 Monthly $31,000.00 $31,000.00 $31,000.00 $31,620.00 $32,252.40 $32,897.45 $33,555.40 $34,226.50 $34,911.03 $35,609.26 $36,321.44 $37,047.87 $37,788.83 $38,544.60 $39,315.50 $40,101.81 $40,903.84 11 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 EXHIBIT C The LANDLORD and the TENANT shall perform and/or provide or cause a third party to perform and/or provide the following maintenance, repairs, and services on, about, or to the Premises as set forth below. A. DIRECT BY TENANT: The following property related services and expenses shall be procured, administered and paid directly by the TENANT: B. DIRECT BY LANDLORD (non-reimbursed expenses): 1. Real estate taxes 2. Utilities (electric, water, sewer, gas, cable, etc.) 3. Security services and equipment 4. Equipment and furnishings 5. Signage 6. In-suite janitorial 7. Interior & exterior window cleaning 8. Landscape and grounds maintenance 9. Parking lot cleaning and sweeping 10. Snow and ice removal 11. Trash removal 12. Pest control 13. HVAC preventive maintenance. See Exhibit C-1 attached and incorporated herein 14. Fire extinguisher maintenance & inspection fees 15. Replacement, repairs & maintenance (including painting) of all interior walls, doors, ceilings, floors, lighting, built-in cabinets & counter tops, restroom fixtures, and specialty items. 16. Replacement of light bulbs and ballast for all light fixtures including upgrade of bulbs to LED 17. Property management & administrative fees 18. Alterations to Premises requested by the TENANT The following property related services and expenses shall be procured, administered and paid directly by the LANDLORD: 1. Insurance 2. Repairs, maintenance and replacement of the following property components: (a) Roof; (b) Building structure including the foundation, exterior 12 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 masonry walls, and windows; (c) Exterior areas including the parking lot, driveways, sidewalks, retention pond, and durnpster (excluding landscaping and sweeping the parking lot); (d) Exterior lighting excluding replacement of light bulbs and ballast; (e) Base building mechanical, electrical & plumbing systems (except electrical outlets, light switches, and electric panel for enhanced security system); (f) HVAC system (except HVAC Preventive Maintenance); (g) Life safety system including sprinklers, fire alatm, and emergency lighting (excluding fire extinguishers) 13 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 EXHIBIT C-1 PREVENTIVE MAINTENANCE FOR HVAC SYSTEM The following is included and required as part of HVAC system preventative maintenance: • Inspect electrical controls and compressor, hook gauges to compressor, check for proper gas levels and working pressures; • Inspect the heat exchanger; • Inspect and clean burners; • Check for proper pressure and manifold and gas pressure; • Remove and replace filters; • Check interior coils and filter box for debris and vacuum, if necessary; • Clean exterior coils; • Lube hinges on filter box door; • Grease bearings; • Oil and grease motor; • Check all damper linkages for wear and tear and lube as necessary; and • Check all belts for wear and cracks and adjust and/or replace belts as necessary All preventative maintenance listed above shall be performed according to manufacturer's specifications or according to best industry practices (if the manufacturer specifications are silent regarding a particular preventative maintenance task). 14 FINAL VERSION OF LEASE FOR 52ND DISTRICT COURT, FIRST DIV — COUNTY OF OAKLAND 04012016 Resolution #16035 February 17, 2016 The Chairperson referred the resolution to the Finance Committee. There were no objections.