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HomeMy WebLinkAboutResolutions - 2017.08.23 - 23080MISCELLANEOUS RESOLUTION #17241 August 23, 2017 BY: Philip Weipert, Chairperson, Planning and Building Committee IN RE: PARKS AND RECREATION COMMISSION- RESIDENTIAL LEASE — OAKLAND URBAN GROWERS - WATERFORD OAKS To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the County of Oakland is the owner of Waterford Oaks County Park; and WHEREAS, a 1,392 square foot house, identified as 1580 Scott Lake Road, Waterford, MI 48328, is located on the grounds of Waterford Oaks County Park; and WHEREAS, Oakland Urban Growers has expressed a desire to lease this house, along with its separate lease for the greenhouses and surrounding land at Waterford Oaks; WHEREAS, the lease of the house will allow Oakland Urban Growers to have a caretaker near its greenhouse operations on a 24-hour basis; and WHEREAS, Oakland County Parks and Recreation Commission ("OCPRC") staff with the assistance of Corporation Counsel negotiated the attached Lease, in compliance with the OCPRC residential lease policy; and WHEREAS, the attached Lease is for the house located at 1580 Scott Lake Road, Waterford, MI 48328 for a period commencing October 1, 2017 through December 31, 2027 and WHEREAS, the Lease requires Oakland Urban Growers to pay the following rent along with all utility costs: October 1, 2017 — January 1, 2019 — January 1, 2020 — January 1, 2021 — January 1, 2022 — January 1, 2023 — January 1, 2024 — January 1, 2025 — January 1, 2026 — January 1, 2027 — December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026 December 31, 2027 $1,350 $1,377 $1,405 $1,433 $1,461 $1,491 $1,520 $1,551 $1,582 $1,613 per month per month per month per month per month per month per month per month per month per month WHEREAS, the monthly rent amounts are based on a market analysis from the Oakland County Property Manager; and WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached lease agreement; and WHEREAS, it is the recommendation of the Oakland County Parks and Recreation Commission and the Department of Facilities Management that the Oakland County Board of Commissioners accepts and approves the terms and conditions of the attached Lease Agreement between the County of Oakland and Oakland Urban Growers for the residence located at 1580 Scott Lake Road, Waterford, MI 48328. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Lease Agreement between the County of Oakland and Oakland Urban Growers. BE IT FURTHER RESOLVED that the rent amount received be deposited in the Oakland County Parks and Recreation Rental House Revenue fund line item. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chairperson or his designee to execute the attached Lease Agreement and all other related documents between the County of Oakland and Oakland Urban Growers, which may be required. Chairperson, on behalf of the Planning and Building Cgorttee, I move the adoption of the foregoing resolution. Cpmmissioner Philip J. Weipert, District #8 chairperson, Planning and Building Committee PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote with Dwyer absent. RESIDENTIAL LEASE AGREEMENT NOTICE: MICHIGAN LAW ESTABLISHES RIGHTS AND OBLIGATIONS FOR PARTIES TO RENTAL AGREEMENTS. THIS AGREEMENT IS REQUIRED TO COMPLY WITH THE TRUTH IN RENTING ACT. IF YOU HAVE A QUESTION ABOUT THE INTERPRETATION OR LEGALITY OF A PROVISION OF THIS AGREEMENT, YOU MAY WANT TO SEEK ASSISTANCE FROM A LAWYER OR OTHER QUALIFIED PERSON. This Lease Agreement ("Lease") is entered into between the County of Oakland, 1200 North Telegraph, Pontiac, MI 48341 ("Landlord"), by the through its statutory agent the Oakland County Parks and Recreation Commission ("OCPRC") and Oakland Urban Growers ("Tenant") according to the terms and conditions set forth below. 1. Premises. Tenant leases from Landlord the residential dwelling located at 1580 Scott Lake Road, Waterford, MI 48328 ("Premises"), together with any furnishings, fixtures, personal property, and appurtenances provided by Landlord for Tenant's use, which is specifically described and depicted in Exhibit A. Exhibit A is incorporated into this Lease.. 2. Term. The term of this Lease shall be for ten (10) years, beginning on October 1, 2017 and ending on December 31, 2027. This Lease may be renewed, at the sole option of OCPRC, for an additional term of ten (10) years, upon its expiration ("Renewal Term'). All terms and conditions of this Lease shall apply to the Renewal Term. References in this Lease to the term of the Lease shall include any renewal teim(s). Tenant shall receive possession of the Premises upon execution of the Lease. 3. Tenant Monetary Obligations. 3.1. The rental rate for the first year is set by the market rate. The rent is then increased 2% each year. Tenant shall pay Landlord the following rent on or before the first day of each month during the term of this Lease: Date Range October 1, 2017 — December 31, 2018 January 1, 2019 December 31, 2019 January 1, 2020 — December 31, 2020 January 1, 2021 — December 31, 2021 January 1, 2022 — December 31, 2022 January 1, 2023 — December 31, 2023 January 1, 2024 — December 31, 2024 January 1, 2025 — December 31, 2025 January 1, 2026 — December 31, 2026 January 1, 2027 — December 31, 2027 If Lease is Extended: January 1, 2028 — December 31, 2028 January 1, 2029 — December 31, 2029 January 1, 2030 — December 31, 2030 Monthly Rent $ 1,350 $ 1,377 $ 1,405 $ 1,433 $ 1,461 $ 1,491 $ 1,520 $ 1,551 $ 1,582 $ 1,613 1,646 1,679 1,712 Draft 017-19-17 Residential Lease — Oakland Urban Growers Waterford Oaks January 1, 2031 — December 31, 2031 1,746 January 1, 2032 — December 31, 2032 1,781 January 1, 2033 — December 31, 2033 1,817 January 1, 2034 — December 31, 2034 1,853 January 1, 2035 — December 31, 2035 1,890 January 1, 2036 — December 31, 2036 1,928 3.2. The rent shall be paid by check or money order made payable to the "County of Oakland" and sent to the following address: Oakland County Parks and Recreation, 2800 Watldns Lake Road, Waterford, Michigan 48328 or another address designated by Landlord in writing. 3.3. Tenant shall pay the first monthly installment when Tenant executes this Lease. The first monthly installment shall be pro-rated for such month, if the Lease is executed on another day than the first day of the month. 3.4. Tenant shall pay Landlord a late fee of $25 for each monthly installment not received by Landlord within five days of its due date. This increase shall be considered additional rent and shall compensate Landlord for costs incurred because of late payments. Landlord's right to collect this additional rent shall be in addition to Landlord's right to take action under other provisions of this Lease for Tenant's default in paying rent. Tenant shall pay all additional rent to Landlord promptly after the due date of the delinquent installment. All rent paid after the due date and payments to cover checks that have been returned for insufficient funds must be paid at the place designated for payment, by cashier's check, certified check, or money order. 3.5. During the term of this Lease, Tenant shall obtain and maintain comprehensive personal liability or tenant's form insurance coverage in the minimum amount of One Hundred Thousand Dollars ($100,000.00). Tenant shall also provide the Landlord with a certificate of insurance coverage listing the County of Oakland and its employees, officers, and elected and appointed officials as additional insureds. Use of Premises 4.1. Tenant shall use the Premises for private residential purposes only. No persons other than the following listed person(s) shall occupy the Premises for more than fourteen (14) days during the term of this Lease without the prior written approval of Landlord: N/A Landlord's approval shall be given by the OCPRC Executive Officer or his or her designee. 4.2. Tenant shall not do any of the following or allow another person to do any of the following: 4.2.1. Create any excessive noise or public nuisance; Draft 027-19-17 Residential Lease — Oakland Urban Growers Waterford Oaks 4.2.2. Do anything to the Premises or its surroundings that may be hazardous or that will cause Landlord's insurance to be cancelled or premiums to increase; 4.2.3. Deface or damage any part of the Premises; 4.2.4. Change the locks or install any additional locks or bolts without Landlord's prior written approval. Landlord's approval shall be given by the OCPRC Executive Officer or his or her designee; 4.2.5. Place a waterbed or other heavy article on the Premises without Landlord's prior written approval. Landlord's approval shall be given by the OCPRC Executive Officer or his or her designee; 4.2.6. Install any equipment or appliances that, in Landlord's opinion, would cause an unsafe conditions on or around the Premises; 4.2.7. Accumulate refuse on or around the Premises that might pose a health hazard to Tenant or to the surrounding properties; 4.2.8. Peiinit any flammable liquids or explosives to be kept on or around the Premises; and 4.2.9. Bring any animals on the Premises without Landlord's prior written approval. Landlord's approval shall be given by the OCPRC Executive Officer or his or her designee. 4.3. Tenant Duties. 4.33. Landlord shall install smoke-detection devices for the Premises along with batteries to operate the devices. Tenant must regularly test the devices to ensure that they are operational and if not notify Landlord immediately. Tenant must never remove batteries from smoke detection device, except when necessary to replace the batteries. 4.3.2. The performance of "tenant duties," set forth in the Lease does not and is not intended to create an employee/employer relationship between Landlord and Tenant. 5. Use of Illegal Substances. Tenant shall not violate or knowingly allow another person to violate federal, state, or local laws regarding the use of controlled substances or the use of alcohol by minors in or around the Premises. When aware of a violation of this section, Landlord will file a faunal police report. 6. Condition of Premises. 6.1. Except as otherwise expressly stated herein or in an Amendment to this Lease, Tenant acknowledges that no representations were made by Landlord about the condition of the Premises or promises to alter or to improve the Premises before or during the teun of the Lease. 6.2. Throughout the term of the Lease, Tenant shall keep the Premises in a good and clean condition and shall allow no waste of the Premises or any utilities. Draft 037-19-17 Residential Lease — Oakland Urban Growers Waterford Oaks 6.3. Except for normal wear and tear, Tenants shall return the Premises to Landlord in the same condition as they were upon commencement of this Lease, including cleanliness. 7. Utilities and Services for Premises. Tenant is responsible for the costs of utilities and services for the Premises and for establishing accounts, if they are not already established for the term of this Lease including but not limited to the following: (a) garbage removal; (b) water and sewer; (c) gas/propane; (d) electricity; (e) ice removal, including salting the driveway and any walks surrounding the Premises or on the Premises; (f) telephones; (g) cable television; (h) Internet; and (i) cleaning for the interior of the building located on the Premises. All accounts for utilities and services shall be in the name of Tenant. 8. Maintenance, Repairs, and Damage to Premises. 8.1. Landlord shall be responsible for snow removal and lawn/grounds services for the Premises. 8.2. Landlord shall provide repair and maintenance for the Premises and its parking lot or parking area, including but not limited to, building infrastructure, HVAC system, utility infrastructure, plumbing and electrical system. Tenant shall notify Landlord, in a timely manner and without delay, when there is a need for repairs to the Premises. 8.3. Except for normal wear and tear to the Premises, Tenant shall be liable for any damage to the Premises or other property of Landlord that is caused by the acts or omissions of Tenant or Tenant's guests, including but not limited to broken glass and lost or broken keys. If damage occurs, Landlord or its agents shall make the necessary repairs and Tenant shall reimburse Landlord for all costs associated with the repairs. Such reimbursement shall be paid by Tenant within thirty (30) days of receiving an invoice from Landlord. If Landlord makes a claim and receives payment under its property insurance for damage to the Premises, then Tenant shall only be liable to Landlord for the amount of the deductible for the property insurance for the Premises. Landlord shall send an invoice to Tenant for the amount of the deductible and Tenant shall pay this amount within thirty (30) days of receiving the invoice. 8.4. To the extent permitted by law, Landlord and Landlord's agents shall not be liable for any damage to property or loss of property that is caused by theft Of casualty on the Premises. Landlord recommends that Tenant obtain insurance to protect Tenant's personal property against such loss or damage. 9. Decorations and Alterations to Premises. Tenant shall not alter or decorate the Premises, including but not limited to, removing any furnishings Landlord provides to Tenant, driving nails into the woodwork, painting or using any adhesive material on the walls without prior written approval from Landlord. Landlord's approval shall be given by the OCPRC Executive Officer or his or her designee. Landlord's approval of a particular decoration or alteration shall not be deemed consent to future decorations or alterations. 10. Assignment and Sublease of Premises. Tenant shall not assign or sublease the Premises Of any portion thereof. Draft 047-19-17 Residential Lease — Oakland Urban Growers Waterford Oaks 11. Access to the Premises. Tenant shall allow Landlord and Landlord's agents reasonable access to the Premises to inspect, repair, alter, or improve the Premises. Landlord and Landlord's agents shall have immediate access to the Premises in case of an emergency or if an emergency repair to the Premises is required. Tenant shall also allow insurance carriers and representatives, fire department inspectors, police, or local health authorities to inspect the Premises. Tenant shall allow Landlord or Landlord's agents to show the Premises to prospective tenants or purchasers at reasonable times during the sixty (60) days prior to the expiration of this Lease. 12. Vacation or Abandonment of the Premises. If Tenant removes substantially all Tenant's property from the Premises for a period of thirty (30) days, Landlord may immediately enter and redecorate the Premises without abatement of rent and proceed as if Tenant terminated this Lease. These acts by Landlord shall not affect Tenant's obligations under this Lease. If Tenant abandons the Premises before the Lease expires, all rent for the remainder of the term of the Lease shall immediately become due. 13. Damage or Destruction of the Premises. If a casualty partially destroys the Premises but they can be restored to a tenantable condition within thirty (30) days, Landlord shall repair the Premises with reasonable dispatch; however, Landlord's obligation to repair the Premises shall be limited to the amount of insurance proceeds actually received by Landlord. Tenant's obligation to pay rent shall be suspended while the Premises are untenantable. If a casualty damages the Premises to the extent that they cannot be restored to a habitable condition within thirty (30) days, either Party may terminate this Lease by giving the other party written notice within fifteen (15) days after the casualty. Landlord shall not be liable for any reasonable delay or for providing housing for Tenant during repairs. 14. Telmination of Lease. 14.1. Tenant may terminate this Lease for any reason upon thirty (30) days written notice to Landlord. 14.2. Landlord may terminate this Lease for any reason upon ninety (90) days written notice to Tenant. 14.3. Upon termination of this Lease, Tenant shall surrender the Premises to Landlord in the same condition they were upon commencement of Lease, normal wear and tear excepted. Upon termination of this Lease, Tenant shall also notify Landlord of the move-out date, return all keys to the Premises to Landlord, and transfer all utility and service accounts into the name of the "County of Oakland." 15. Default of Lease and Landlord's Remedies. 15.1. If Tenant defaults on any obligations under this Lease or misrepresents any information in the application for this lease, Landlord may, on written notice to Tenant, terminate the Lease and enter the Premises as permitted by law; Tenant and any other occupants shall surrender the Premises to Landlord by the date stated in the notice. If Landlord terminates the Lease, Landlord may recover Landlord's expenses for enforcing Landlord's rights under the Lease and applicable law, including court costs and attorney fees, from Tenant, as permitted by statute; and rent for the rest of the term of the Lease shall immediately become Draft 03749-17 Residential Lease — Oakland Urban Growers Waterford Oaks due. Tenant may not be liable for the total accelerated amount because of Landlord's obligation to minimize damages, and either party may ask a court to determine the actual amount owed, if any. If Tenant fails to pay rent or any other sums when due to Landlord, Landlord serves a notice of default on Tenant as required by law, and Tenant fails to remit the amounts due before the notice period expires, the amount of court costs and attorney fees incurred by Landlord in enforcing Landlord's remedies and allowed by statute shall be added to the amount of the arrearage. 15.2. It is a violation of this Lease if Tenant, a member of Tenant's household, or any other person under Tenant's control unlawfully manufactures, delivers, possesses with intent to deliver, or possesses a controlled substance as defined by Michigan law anywhere on the Premises or surrounding the Premises. Pursuant to Michigan law, if Tenant violates this provision Landlord may serve a written demand for possession for termination of this Lease giving Tenant 24 hours' notice of the Lease termination and demand for possession. Tenant acknowledges that an order of eviction/writ of restitution may be issued by the court immediately after the entry of a judgment for possession. Tenant's 15.3. Hold Over. Tenant may, with Landlord's pennission, continue to occupy the Premises after the term of this Lease expires without renewing this Lease or signing another Lease for the Premises. Such tenancy shall be on a month-to- month basis and subject to the provisions of this Lease except that the monthly rent shall increase by ten (10) percent from the rent for the last month of the teim of the Lease, and Landlord may increase rent on thirty (30) days' notice to Tenant. 16. Notices. Any notices under this Lease shall be in writing and delivered to the recipient personally or by first class mail fully prepaid at the following locations: Tenant: Oakland Urban Growers 1580 Scott Lake Road Waterford, MI 48328 Landlord: Oakland County Department of Facilities Management Property Management One Public Works Drive, Bldg. 95W Waterford, MI 48328 and Oakland County Parks and Recreation Executive Officer 2800 Watkins Lake Road, Bldg. 97W Waterford, MI 48328 Unless otherwise required by law, the date of service shall be the date of hand delivery or the mailing date. Draft 0749-17 Residential Lease — Oakland Urban Growers Waterford Oaks 17. Modifications. No modifications of this Lease shall be binding unless they are in writing and signed by Landlord and Tenant. 18. Whole Agreement. This Lease sets forth the entire agreement between Landlord and Tenant. There are no verbal or written agreements that are not contained in this Lease between the parties. 19. Binding Effect. This Lease shall bind and benefit the parties to the Lease and their heirs, personal representatives, successors, and permitted assigns. 20. Severability. If any provision of this Lease is invalid, unlawful, or unenforceable to any extent, the rest of the Lease and the application of the provision to the persons or circumstances other than those for which it is invalid, unlawful, or unenforceable are not affected. 21. Time of the Essence. Time shall be deemed to be of the essence in the performance of this Lease. 22. Effective Date. This Lease is effective on the date stated in Section 2. TENANT LANDLORD Date Date Draft W7-19-17 Residential Lease — Oakland Urban Growers Waterford Oaks .1600-Sooti Cake Road Watirfolik M14-8328 - D.37 Acres Waterford Oaks County Park 7800 Watkins fake Rd • Parcel # 13-13-300-201 103 ACies Location Map Waterford Oaks County Park 281:143 Watkins Lake Rd. Waterrord, M148328 o 25 50 Feet I I I I I Legend * Site Location Tax Panel Lines Waterford Oaks Residential Rental Property 1580 Scott Lake Rd, Waterford, MI 48328 N . I OAKLAND COUNTY PARKS Ongthrid Camay Pads and AuctolLion au WaLna Lai. Aue, WaterkDel, MI 2:46,95il,D9DL wArANC.:=.111,5twrZalare.ccan En Watarrord Oaks _ Countyl.ark I= Real-del-6e Reate Properly 0.1 Mrs- M SHIA OF ilar Read Centerline Draft Off-19-17 Residential Lease — Oakland Urban Growers Waterford Oaks Resolution #17241 August 23, 2017 The Vice Chairperson referred the resolution to the Finance Committee. There were no objections.