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HomeMy WebLinkAboutResolutions - 2016.03.30 - 22237MISCELLANEOUS RESOLUTION #16056 March 30, 2016 BY: Planning and Building Committee, Philip Weipert, Chairperson IN RE: CENTRAL SERVICES AVIATION DIVISION — AIRPORT LAND LEASE ADDENDUM: PTK AIRPORT PARTNERSHIP, LLC To The Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the County of Oakland ("the County") owns the Oakland County International Airport in Waterford Township; and WHEREAS parcels of land are leased to various aviation businesses for the purpose of constructing hangars, aviation ramps, and related appurtenances for the purpose of conducting aviation business at the airport; and WHEREAS the County has negotiated with PTK Airport Partnership, LLC to amend the existing land lease by revising the property description to include additional property, which is attached hereto; and WHEREAS the existing 25-year lease between PTK Airport Partnership, LLC and the County became effective on October 1, 2015; and WHEREAS the terms of the lease addendum are substantially the same as the previous lease; and WHEREAS the lease addendum will have a term of twenty-five years from October 1, 2015, to September 30, 2040, with annual rent fixed until October 1, 2017 at $62,738.04; and WHEREAS the County reserves the right to change the rental payments provided under this lease each and every two years, with the first computation to be made from the date of this lease addendum; and WHEREAS the Airport Committee and the County's Office of Corporation Counsel have reviewed and agreed to the terms of the lease addendum. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and accepts the terms and conditions of the attached lease addendum. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its Chairperson or his designee to execute the attached lease addendum and all other related documents between the County and PTK Airport Partnership, 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 Jackson absent. Motion for Direct Referral to the Finance Committee carried on a voice vote. FISCAL NOTE (MISC . #16056) March 30, 2016 BY: Finance Committee, Torn Middleton, Chairperson IN RE: CENTRAL SERVICES AVIATION DIVISION — AIRPORT LAND LEASE ADDENDUM: PTK AIRPORT PARTNERSHIP, LLC 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 authorizes the land lease amendment between Oakland County and PTK Airport Partnership, LLC at the Oakland County International Airport. 2. Oakland County is the owner of Oakland County International Airport in Waterford Township. 3. Parcels of land are leased to various aviation businesses for the purpose of constructing hangars, aviation ramps, and related appurtenances for the purpose of conducting aviation business at the airport. 4. The Oakland County International Airport has negotiated with PTK Airport Partnership LLC to amend the existing land lease by revising the property description to include additional property. 5. The lease addendum will have a term of twenty-five years from October 1, 2015 to September 30, 2040, with annual rent fixed until October 1,2017 at $62,738.04. 6. The Oakland County International Airport reserves the right to change the rental payments provided under this lease each and every two years, with the first computation to be made from the date of this lease addendum. 7. A budget amendment is not required at this time. FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. OAKLAND COUNTY INTERNATIONAL AIRPORT AIRPORT LAND LEASE ADDENDUM THIS MEMORANDUM OF LEASE AND AGREEMENT ADDENDUM, effective the 1st day of April, 2016, by and between the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, hereinafter called the LESSOR, and PTK AIRPORT PARTNERSHIP, LLC hereinafter called the LESSEE: WHEREAS the County of Oakland, Lessor, and PTK Airport Partnership, LLC, Lessee, are parties to a certain Land Lease dated October 1,2015; and WHEREAS said land lease is for property located on the Oakland County International Airport in Waterford Township, Oakland County, Michigan, and described as follows: Part of the Southwest 1/4 of Section 17, T3N, R9E, Waterford Township, Oakland County, Michigan, described as beginning at a point located N 00° 0610" E 1339.82 feet and N 89°38'30" E 100.00 feet from the SW corner of Section 17, T3N, R9E; thence N 00°0610" E 115.00 feet; thence N 89°38'30" E 380.00 feet; thence S00° 0610" W 495.00 feet; thence S 89°38'30" W 380.00 feet; thence N 00 00610" E 380.00 feet to the point of beginning. Property contains 188,100 square feet. WHEREAS the parties hereto desire to amend the Land Lease by revising the property description to include additional property. Part of the Southwest 1/4 of Section 17, T3N, R9E, Waterford Township, Oakland County, Michigan, described as beginning at a point located N 00° 0610" E 1339.82 feet and N 89°38'30" E 100.00 feet from the SW corner of Section 17, T3N, R9E; thence N 00°061 0" E 255.00 feet; thence N 89°38'30" E 380.00 feet; thence S 00° 0610" W 635.00 feet; thence S 89'38'30" W 380.00 feet; thence N 00°06'10" E 380.00 feet to the point of beginning. Property contains 241,300 square feet. With respect to the additional property, four (4) months rent, namely $4,610.68 shall be paid upon the execution of this lease, of which $1,152.67 shall apply upon the first month's rent of the term hereby granted, and payment of $3,458.01 shall be retained by the County as a guaranty fund to be applied upon the rent of the last three (3) months of said term. FURTHER Paragraph 5 of said Lease is amended to read: Lessee agrees to pay the Lessor for the described land at a rate of twenty-six (26) cents per square foot annually, or a gross sum of $62,738.04 annually, or payable in twelve (12) equal installments of $5,228.17 per month during the time the lease is in operation. Rental payments shall be computed from the date of April 1, 2016. IN ALL OTHER RESPECTS, said lease agreement shall remain in full force and effect. IN WITNESS WHEREOF the parties hereto have executed this agreement on the respective dates hereunder indicated. WITNESSES: COUNTY OF OAKLAND, a Michigan Constitutional Corporation, Lessor Oakland County Board of Commissioners PTK AIRPORT PARTNERSHIP, LLC Lessee By: PTK FBO Member LLC, Manager APPROVED BY RESOLUTION OF THE OAKLAND COUNTY BOARD OF COMMISSIONERS DATED: OAKLAND COUNTY INTERNATIONAL AIKIRT OAKLAND =NM' TiTCHIGAN a.1•6 S setVLEE tAtIvf LOCATION SKETCH NOT TO SCALE le?! .5 ATAPIAT MAR 4:5 INIET BASIN • STERN NA1-10LE • SAKITARY NAMELE SANITARY sEvER - STORM SEVER vaTearAIN (=TING MAWS IME1 MOADSED GRATES DRAMA& ARMY amme. SEM MEDI FENCE CrESTING CCHT13111 - PROPCISED CLINTOUR FIX LINE • GATE VALME 131 11171147 • SHUTOFF • PIMP KU POL/02 LIOW NI sAICH EASIN fl rns frPT Tr TEATT11N PARCELS ARE LANATCO IN ruin 7:3C X • AN .12E4 6 OlVedlaL fLro111.G. 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In 15-p-in-n7 1,414.11• 8310 zetrisqt 0:STSC5 1-11-LctS m1C/1 ActITIIMA. 18488 ARE• ..7•17 • • /iTCS 4876530200 445 ,KAIMAL 5.11.10:2 s 1340-440 SMN11 s4iEsittnrs..1. .010 041 1452E30F20. cot.. °N.?, siInsaSin ;PAW 4.. xis=recey Win 1CF1.2 E,-.0.12•0 -10.9 MS. 24;v:T t 17 1 OAKLAND COUNTY INTERNATIONAL AIRPORT AIRPORT LAND LEASE FOR CONSTRUCTION OF PERMANENT BUILDING THIS MEMORANDUM OF LEASE AND AGREEMENT, to be effective the 1st day of October, 2015, by and between the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, hereinafter called the COUNTY, and PTK AIRPORT PARTNERSHIP, LLC hereinafter called the LESSEE: WHEREAS the County of Oakland owns and operates the Oakland County International Airport in Waterford Township and has certain plots of ground available which can be leased to the Lessee upon the conditions hereinafter specified; and WHEREAS the Lessee is desirous of leasing said plot of ground upon said conditions for the purpose hereinafter set forth. NOW THEREFORE THIS AGREEMENT WITNESSETH: la) The County hereby lets and leases to the Lessee and the Lessee hereby leases from the County for a period of twenty-five years (25) from and after the date of this lease for a term commencing October 1, 2015 and expiring September 30, 2040, the hereinafter described property. The Lessee shall have the right of renewal of this lease at the expiration thereof upon such terms and conditions as shall be agreed upon between the parties hereto. The County reserves the right to change the rental payments provided under this lease each and every two (2) years, first computation to be made from the date of this lease. Said changes in rental payments shall be based on the rental rates in effect at the Oakland County International Airport at the expiration date of each two-year period. An amendment to the lease providing for such increased rental payments shall be executed by the parties. If such amendment is not executed, then the lease shall be terminated by the County by written notice to the Lessee by Certified United States Mail. Said property located on the Oakland County International Airport in Waterford Township, Oakland County, Michigan, and described as follows: Part of the Southwest 1/4 of Section 17, T3N, R9E, Waterford Township, Oakland County, Michigan, described as beginning at a point located N 00°06'10" E 1339.82 feet and N 89°38'30" E 100.00 feet from the SW corner of Section 17, T3N, R9E; thence N 00°06'10" E 115.00 feet; thence N 89'38'30" E 380.00 feet; thence S 00'06'10" W 495.00 feet; thence S 89 038130" W 380.00 feet; thence N 00°06'10" E 380.00 feet to the point of beginning. Property contains 188,100 square feet. lb) Four (4) months' rent, namely $16,302.00 shall be paid upon the execution of this lease, of which $4,075.50 shall apply upon the first month's rent of the term hereby granted, and payment of $12,226.50 shall be retained by the County as a guaranty fund to be applied upon the rent of the last three (3) months of said term. 2a) The Lessee hereby agrees to use said land so let and leased under Item 1 hereof only for the purpose of commercial use incidental to the sale, servicing and storage of aircraft provided other uses of the premises may be authorized by resolution of the Airport Committee, 2b) The Lessee agrees it will use said property in compliance with the laws and regulations of the Township of Waterford, Oakland County, State of Michigan, the United States, the Michigan Aeronautics Commission and the Federal Aviation Administration, including but not limited to 42 U.S.C. 6991, et seq., 40 C.F. R. Part 281, and MCL 299.701, et seq. above described proporty not loss than a minimum o within-e-n-e-(1)-a e-an-aroved- by th 2d) If this Lease is terminated by either party or its own terms prior to the expiration of, or at any time during the term of this lease, the County shall have the first right of refusal to acquire such hangar by paying Lessee the then fair market value as further provided in paragraph 6b. 3) The Lessee agrees that the privileges herein granted, in whole or in part, shall not be assigned, transferred or in any manner disposed of without the approval of the Airport Committee of the County of Oakland, Michigan. 4) The Lessee agrees that in the use of said above described land, no obstruction shall be made or any inconvenience caused to the County in the business of operating and maintaining the Oakland County International Airport, 5) The Lessee agrees to pay the County for the above described land at a rate of $0.26 per square foot annually, or a flat rate of $48,906.00 annually, or payable in twelve (12) equal installments of $4,075.50 per month, and payable on the first of each and every month during the time that this lease is in operation. Rental payments to be computed from date of October 1, 2015. A late charge of one percent (1%) per month on the unpaid balance shall be applied to payments made after the 20th of each month and shall be cumulative. 6a) The County agrees that at the expiration of this lease or any renewal thereof, Lessee may within a reasonable time remove any and all buildings, structures and other improvements or part of buildings, structures or other improvements placed or erected on said premises by the Lessee during the term thereof or any renewal thereof; all expenses connected with such removal to be borne by Lessee. 3214286.1 2 6b) If this Lease is terminated by operation of law or another provision contained in this Lease prior to its expiration, or at any time during the term of this Lease, the County shall, upon thirty (30) days written notice, have the right to terminate the Lease and to acquire such hangar, or to recapture a portion of the leased lot, by paying Lessee the then fair market value, as determined by a certified appraiser mutually selected and approved by the County and Lessee, the cost of which appraisal shall be borne equally by the parties. 7) It is further agreed that the enjoyment and use in common with others upon the Oakland County International Airport of all entrances, exits, approaches and means of entrance and approach and of light and air now in favor of the demised premises shall not be interfered with or interrupted by any act of either the County or the Lessee during the term of this lease. 8) The Lessee as part of the consideration hereof, hereby undertakes and agrees to indemnify and save the County harmless of and from all loss, injury or damage to person or property of the County, employees of the County or others which may arise or be alleged to arise through, on account of or out of the privilege herein granted, whether caused by theft, fire or otherwise. 9) The Lessee undertakes and agrees that in case any claim is made or suit is brought against the County for any loss, injury or damage arising out of Lessee's use of the premises or the airport, the Lessee will upon notice from the County, settle, adjust and defend the same at the Lessee's sole cost and expense and will pay any judgment rendered together with costs of court. 10) Any grading of land, drilling of well, installing of underground electric or telephone cable, septic tank, underground fuel tanks or any other facility above or below ground shall be done at the Lessee's own expense, including snow removal and general maintenance. 11) That as part of the consideration of this lease, the County hereby grants to the Lessee the right to use in common with others having that right for aircraft that portion of the Oakland County International Airport landing field and appurtenance including runways, apron to runways and parking facilities for Lessee's automobiles, which are now owned or which may hereafter be acquired by the County at such times during day or night and days of the week as shall be established from time to time by such rules and regulations as may be prescribed for the use thereof by any County department or any branch or agency of the federal government having jurisdiction. 12) That the County shall have the right to enter upon the demised premises to maintain, repair, renew or remove sewers and underground telephone or telegraph conduits or other installations. The County agrees to perform any work with reasonable dispatch and to leave said premises in as good order and condition as the same were in prior to the commencement of the work. 3214286.1 3 13) The Lessee expressly grants to the County a lien on the building which the Lessee may erect on the premises covered by this lease for the security of the payment by the Lessee to the County of any rental sums due the said County. 14) That if the County be required by any future governmental regulation or if any contingencies arise in the future whereby the County or its own authorized agencies adopt a general policy of charging a landing fee, then upon due notice, the Lessee shall pay such fee as additional rent, provided however that other tenants of the County at the airport are charged a similar fee. 15) The Lessee covenants and agrees that it will keep the exterior of the building constructed by Lessee and the appurtenant grounds covered by this lease in tidy condition, the grass mowed, and that the grounds shall be kept free from weeds, rubbish and other unsightly objects or things. 16) No signs, posters or similar devices shall be erected, displayed or maintained in view of the general public in, on or above the space herein leased without written approval of the Airport Manager, and any not approved by him shall be removed by the County at the expense of the Lessee. 17) The Lessee further agrees to pay any taxes or special assessments hereinafter legally levied by a governmental agency against the lands covered by this lease, including buildings or personal property of the Lessee. The non-payment of any such taxes by the Lessee for ninety (90) days shall be grounds for cancellation of this lease by the County. 18) It is agreed that the County and its duly authorized employees shall have the right of ingress and egress to said leased premises, including all buildings or appurtenances placed or erected on said premises for inspection purposes or for any purpose occasioned by emergency. 19) It is expressly understood that the present rules and regulations now in effect governing the Oakland County International Airport, or any future amendment thereto, shall be binding and shall be considered a part of this lease and shall be complied with by the Lessee in all details. 20) It is further agreed that if the Lessee shall neglect or fail to pay the payments promptly as specified in this lease, and if there is a failure to pay the same for a period in excess of sixty (60) days, then this lease shall become void and the rights of the Lessee terminated thereunder, and the said Lessee shall be a tenant from month to month and subject to eviction by legal process in accordance with the statutes of the State of Michigan. 3214286,1 4 21) It is further understood that should the Lessee be adjudicated bankrupt or have a judgment entered against the Lessee which affects Lessee=s obligations under this Lease or that the premises and Lessee=s property, including fixtures, shall come into the control of a trustee, receiver or a person acting under court order, and said judgment is not satisfied, or trustee, receiver or person is not discharged, within sixty (60) days, then County may, by written notice, terminate this Lease. If the County elects not to terminate this Lease, County may accept rent from the trustee, receiver, or person acting under court order for such term of such occupancy without impairing or affecting, in any way, the rights of the County against the Lessee under this Lease. 22) The County hereby declares the policy to be in connection with leases of present and future properties on the Oakland County International Airport, and the Lessee will be required to lease the entire lot designated on the Master Plan, as the County will not lease half a lot or any part thereof. 23) If in Paragraph 2 the County grants permission to the Lessee to operate a commercial business on the property herein described, then the four following paragraphs, Nos. 25, 26, 27 and 28, shall apply for commercial use. 24) The Lessee shall furnish good, prompt and efficient service adequate to meet all demands for its service at the airport. 26a) The Lessee for himself, his personal representatives, successors in interest and assigns as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (1) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of or be otherwise subjected to discrimination in the use of said facilities; and (2) that in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of or be otherwise subjected to discrimination in the use of said facilities; and (3) that the Lessee shall use the premises in compliance with all other requirements imposed by or pursuant by or Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in federally-assisted programs of the Department of Transportation-- effectuation of Title VI of the Civil Rights Act of 1964, as said regulations may be amended. 25b) In the event of breach of any of the above nondiscrimination covenants, the County shall have the right to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued. 26) Lessee shall charge fair, reasonable and nondiscriminatory prices for each unit of sale or service, provided that the Lessee may be allowed to make reasonable and 3214286.1 5 nondiscriminatory discounts, rebates and other similar types of price reduction to volume purchasers. 27) This lease shall be non-exclusive and subordinate to the provisions of any existing or future agreement between the County and the United States relative to the operation or maintenance of the airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the airport. 28) The County reserves the right to further develop or improve the landing or other areas of the airport as it sees fit, regardless of the desires or views of the Lessee and without interference or hindrance. 29) The County reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent the Lessee from erecting or permitting to be erected any building or other structure on the airport, which in the opinion of the County would limit the usefulness of the airport or constitute a hazard to aircraft. 30) Assignment and Subletting. Except as otherwise provided herein, Lessee shall not, without County=s written consent, assign, sublet or otherwise transfer its interest in the premises or any part thereof. 31) Remedies Not Exclusive. County's and Lessee's rights, remedies and benefits under this Lease are cumulative and shall not be exclusive of any other rights remedies and benefits allowed by law, or equity. 32) Successors. The covenants, conditions and agreements made and entered into by the County and Lessee shall be binding on their heirs, personal representatives, administrators, executors, successors and assigns. 33) Entire Agreement. This Lease, the exhibits, and/or addendum, if any, attached hereto and forming• a part hereof set forth all the covenants, promises, agreements, conditions and understanding between the parties and there are no matters, whether written or oral, between the parties other than set forth herein. 34) Partial Invalidity. The invalidity or unenforceability of any provision of this Lease shall not affect or impair the validity of any other provision. 35) Notices. All notices of any kind to Lessee shall be sent to Lessee at the following address or to such other address as Lessee may designate by written notice: Matthew J. Shiffman 3214286.1 6 PTK Airport Partnership, LLC 27777 Franklin Road, Ste 200 Southfield, MI 48034 All notices of any kind to County shall be sent to County at the following address or such other address as County may designate by written notice: Airport Manager Oakland County International Airport 6500 Highland Road Waterford, MI 48327 All notices shall be in writing with postage prepaid, registered or certified mail, return receipt requested. 36) Relationship of the Parties. Nothing contained in this Lease shall be deemed or construed as creating the relationship of principal and agent or of partnership or joint venture between the parties hereto, it being understood and agreed that neither the method of computing rent or any additional charges nor any other provision herein nor any acts of the parties shall create any relationship between the parties other than that of County and Lessee. 3214286.1 7 LC rid Count IN WITNESS WHEREOF the parties hereto have executed this agreement on the date hereunder indicated. WITNESSES: COUNTY OF OAKLAND, a Michigan Constitutional Corporation, Lessor PTK AIRPORT PARTNERSHIP, LLC, Lessee By: PTK FBO Member LLC, Manager By: ----7.41,( Ma-nager APPROVED BY RESOLUTION OF THE OAKLAND COUNTY AIRPORT COMMITTEE DATED: 3214286.1 8 oy/ott/ --- IMAM' APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO IVICL 4.5.559A (7) Resolution #16056 March 30, 2016 Moved by Kochenderfer supported by McGillivray the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Dwyer, Fleming, Gershenson, Gingell, Gosselin, Hoffman, Jackson, Kochenderfer, KowaII, Long, McGillivray, Middleton, Quarles, Scott, Spisz, Taub, Weipert, Woodward, Bowman, Crawford. (20) 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). 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 March 30, 2016, 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 30th day of March, 2016. Lisa Brown, Oakland County