HomeMy WebLinkAboutResolutions - 2016.12.08 - 22709REPORT (MISC. #16314) December 8, 2016
BY: Finance Committee, Thomas Middleton, Chairperson
IN RE: FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH
RADEMACHER GROUP ONE, LLC, FOR 52-2 CLARKSTON DISTRICT COURT BUILDING
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The Finance Committee, having reviewed the above referenced resolution, recommends the following
amendment:
Amend the following in the seventh WHEREAS:
WHEREAS the new lease will have a term of ten years from June 1, 2016, to December 31, 2026 May
31, 2026, with the annual rent being the same as the current lease at $286,519.20, with a 2% annual
increase; and
Chairperson, on behalf of the Finance Committee, I move the acceptance of the foregoing report.
FINANCE COMMITTEE
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Crawford and Quarles absent.
MISCELLANEOUS RESOLUTION #16314 November 10, 2016
BY: Planning and Building Committee, Phillip Weipert, Chairperson
IN RE: FACILITIES MANAGEMENT — APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT
WITH RADEMACHER GROUP ONE, LLC, FOR 52-2 CLARKSTON DISTRICT COURT BUILDING
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland ("the County") currently leases a building at 5850 Lorac Drive in
Clarkston, Michigan, to operate the 52-2 District Courthouse (Clarkston), a single-story structure with
approximately 13,128 square feet of office and courtroom space, and approximately 100 parking spaces
on an approximate 2.16 acre lot; and
WHEREAS the Parties entered into a lease dated June 1, 2011, with a five year base term and an
automatic five year extension through May 31, 2021; and
WHEREAS during that five year extension, the landlord may terminate the lease with 365 days' notice
and the current lease does not allow for additional extensions; and
WHEREAS it is in the best interest of the County to ensure that the Court can continue to operate at this
location for the foreseeable future; and
WHEREAS a new amendment to the 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 June 1, 2016, to December 31, 2026, with
the annual rent being the same as the current lease at $286,519.20, with a 2% annual increase; and
WHEREAS starting in year three, a 3% annual rent increase will take effect; and
WHEREAS the County will have the right to terminate the new lease with 365 days advanced notice
starting in year seven; and
WHEREAS the Court Administrator and Judges of the 52-2 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 52-2 District Courthouse
(Clarkston) located at 5850 Lorac Drive in Clarkston, Michigan, with the Landlord, Rademacher Group
One, 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
Rademacher Group One, LLC,
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing
resolution.
PLANNING AND BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
AMENDMENT #1 TO LEASE
BETWEEN
THE COUNTY OF OAKLAND AND
RADEMACHER GROUP ONE, LLC
This First Amendment (1 st Amendment) is entered into this day of
20 , between the County of Oakland, a municipal and Constitutional Corporation located at 1200
North Telegraph Road, Pontiac, MI 48341 (Tenant) and Rademacher Group One, LLC, a Michigan
Limited Liability Company, whose address is 5874 Dixie Highway, Clarkston, MI 48346 (Landlord).
BACKGROUND
A. The Parties entered into a lease dated June 1, 2011 ("Original Lease"). The Original Lease will
expire on May 31, 2021.
B. The Parties desire to amend the Original Lease by extending the term and modifying the payment
terms.
C. In consideration of the mutual covenants contained herein, the Parties agree to amend the Lease as
follows:
1st AMENDMENT
§1. Original Lease. The Parties entered into a lease dated June 1, 2011 ("Original Lease").
The Original Lease is attached as Exhibit A to this 1 st Amendment and fiilly incorporated
herein.
§2. Term. Section 2 of the Original Lease is deleted in its entirety and replaced with the
following language: The term of this Lease shall expire on May 31, 2026. Beginning on
June 1, 2022, Tenant shall have the right to terminate this Lease, without any penalty, upon
three hundred and sixty-five (365) days written notice to the Landlord, if the Tenant, in its
sole discretion, determines that the Premises are no longer suitable for Court operations or
if the Oakland County Board of Commissioners does not appropriate funding for this Lease.
Beginning on June I, 2022, the Landlord shall have the right to terminate this Lease,
without any penalty, upon three hundred and sixty-five (365) days written notice to the
Tenant, if the Landlord executes a purchase agreement for the sale of the Premises and
provides a fully executed copy of the purchase agreement to the Tenant.
§3. Rent. Sections 3 and 4 of the Original Lease are deleted in there entirety and replaced with
the following language: The Tenant shall pay the following amounts as rent to the
Landlord, unless the Lease is terminated as provided here in:
3.1. June 1, 2016 to May 31, 2017: per month; $23,876.60
3.2. June 1, 2017 to May 31, 2018: per month; $24,354.13
3.3. June 1,2018 to May 31, 2019: per month; $25,084.76
3.4. June 1,2019 to May 31, 2020: per month; $25,837.30
3.5. June 1, 2020 to May 31, 2021: per month; $26,612.42
Page I of 3
l't Lease Amendment
Final Version
3.6. June 1,2021 to May 31, 2022:
3.7. June 1,2022 to May 31, 2023:
3.8. June 1, 2023 to May 31, 2024:
3.9. June 1, 2024 to May 31, 2025:
3.10. June 1,2025 to May 31, 2026:
per month;
per month;
per month;
per month;
per month;
$27,410.79
$28,233.11
$29,080.11
$29,952.51
$30,851.09
§4. Notices. All notices, requests, demands, and other communications required by the Lease shall
be in writing and shall be deemed given if personally delivered or mailed, certified mail, return
receipt requested, to the following addresses:
To Tenant: Oakland County Board of Commissioners
1200 North Telegraph
Pontiac, MI 48341
and
Oakland County Department of Facilities Management
Attention: Property Manager
1 Public Work Drive
Waterford, MI 48328
To Landlord: Rademacher Group, LLC
5840 Lorac Drive
Clarkston, MI 48346
§5. Continued Effect. All other terms and conditions of the Original Lease shall continue with
full force and effect, except as modified herein.
§6. Entire Agreement. This 1 st Amendment and the terms and conditions of the Original
Lease, attached as Exhibit A, constitute the entire agreement and understanding between
Landlord and Tenant and supersedes any and all other prior oral or written understandings,
communications, or agreements between Landlord and Tenant.
Page 2 of 3
1st Lease Amendment
Final Version
hereby acknowledges that s/he is authorized IN WITNESS WHEREOF,
by the County of Oakland to execute this 1 st Amendment.
TENANT: County of Oakland
By:
Date:
Subscribed and sworn to before me on the day of , 20
Notary Public,
Oakland County, Michigan
My Commission Expires:
Acting in the County Oakland
IN WITNESS WHEREOF, hereby acknowledges that
s/he is authorized by Rademacher Group One, LLC to execute this 1 st Amendment.
LANDLORD: Rademacher Group One, LLC
By:
Date:
Subscribed and sworn to before me on the day of , 20
Notary Public
Oakland County, Michigan
My Commission Expires:
Acting in the County of Oakland
Page 3 of 3
1 st Lease Amendment
Final Version
Resolution #16314 November 10, 2016
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FY 2018 FY 2019
$ 974
$314
$ 974
$_ _914
$ 3,945
$ 3,945
$ 3,945
$ 3,945
FISCAL NOTE (MISC. #16314) December 8, 2016
BY: Finance Committee, Torn Middleton, Chairperson
IN RE: FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH
RADEMACHER GROUP ONE, LLC, FOR 52-2 CLARKSTON DISTRICT COURT BUILDING
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 an amendment to the original lease agreement (approved via MR
#11052) with Rademacher Group One, LLC for the building located at 5850 Lorac Drive in
Clarkson, Michigan that provides facilities for the 52-2 District Court.
2. The new lease agreement provides the Court to continue to occupy the existing courthouse for a
ten year term with the right to terminate the new lease upon 365 days advanced notice starting in
year seven.
3. The term of the new lease shall commence June 1,2016 and expire on May 31, 2026. Rent for
the initial term will be $23,877 per month or $286,519 annually. Rent shall increase at a rate of
2% per year beginning June 1, 2017 to May 31, 2018 and shall increase at a rate of 3% per year
for the remainder of the lease.
4. The following budget amendment is recommended to the FY 2018 — FY 2019 Budget for the cost
stated in the lease agreement.
GENERAL FUND (#10100)
Revenues
9010101-196030-665882 Planned Use of Balance
Total Revenues
Expenditures
3020301-121 020-73 1626 Rent
Total Expenditures
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Crawford and Quarles absent.
(7/9/7
Resolution #16314 December 8, 2016
Moved by Hoffman supported by Woodward the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Fleming, Gershenson, Gosselin, Hoffman, Jackson, Kochenderfer, KowaII, Long,
McGillivray, Middleton, Quarles, Scott, Spisz, Weipert, Zack, Bowman, Crawford. (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).
GERALD D.-POISSON
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT 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 December 8,
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 8 th day of December, 2016.
Lisa Brown, Oakland County