HomeMy WebLinkAboutResolutions - 2017.12.07 - 23206mmissioner Philip Weipert, District #8
hairperson, Planning and Building Committee
MISCELLANEOUS RESOLUTION #17336 December 7, 2017
BY: Commissioner Philip J. Weipert, Chairperson, Planning and Building Committee
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT AND SHERIFF'S OFFICE - AMENDMENT TO
THE LEASE AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Board of Commissioners, via MR# 14264, authorized a three-year lease
with two one-year options, for the property at 2470 Elizabeth Lake Road for storage of equipment; and
WHEREAS the three-year lease term ends on November 30, 2017 and the Sheriffs Office has agreed to
extend the terms for an additional two years; and
WHEREAS the Sheriff's Office desires to exercise the two one-year options and also expand into more
space at the building; and
WHEREAS the Lease Amendment #1 agreement extends the current lease, and adds additional space
for a total two-year term, beginning December 1,2017 and expires on November 30, 2019; and
WHEREAS all other terms and conditions of the original lease will remain the same and in effect; and
WHEREAS Facilities Management and the Sheriff's Office recommends and requests that the Oakland
County Board of Commissioners approve and execute the attached Lease Amendment #1.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the
attached Lease Amendment #1 for the property at 2470 Elizabeth Lake Waterford, Michigan 48328.
BE IT FURTHER RESOLVED that the Board of Commissioners directs its Chairperson or designee to
execute the attached Lease Amendment on behalf of the County and all other related documents
between the County and 2470 Elizabeth Lake Road, LLC.
Chairperson, on behalf of the Planning and Building Committee, I move the adoptigp-11 the foregoing
resolution.
PLANNING AND BUILDING COMMITTEE
Motion carried unanimously on a roll call vote with Quarles absent.
ADR REVIEW SIGN OFF — Facilities Management and Sheriff's Off
i
c
e
RESOLUTION TITLE: Department of Facilities Management and Sheriffs Office — Amendment to
t
h
e
Lease Agreement with 2470 Elizabeth Lake Road, LLC
DEPARTMENT CONTACT PERSON: Dale Cunningham - Sheriffs Office 858-5512, and Paul Zachos - FMO
248-858-5380
DATE: 11/8/2017
DEPARTMENT REVIEW
Corporation Counsel:
Approved —Jody Hall (11/2/2017)
Department of Human Resources:
HR Approved (No Committee) — Heather Mason (11/8/2017)
Department of Management and Budget:
Approved — Lynn Sonkiss (11/9/2017)
LEASE AMENDMENT #1
This First Lease Amendment "Amendment") is entered into effective as of , 2017
("Effective Date"), between the COUNTY OF OAKLA
N
D
("Tenant") and 2470
Elizabeth Lake Road, LLC ("Landlord").
WHEREAS, Tenant and Landlord are parties to a Lease that commenced
o
n
D
e
c
e
m
b
e
r
1, 2014 ("Lease") relating the property commonly known as 2470 Elizabeth Lak
e
R
o
a
d
,
Waterford, Michigan 48328;
WHEREAS, Landlord and Tenant desire to renew the Lease and amend th
e
L
e
a
s
e
t
o
permit Tenant to use certain defined additional space at the Pr
e
m
i
s
e
s
.
NOW, THEREFORE, for good and valuable consideration, receipt of which is he
r
e
b
y
acknowledged, it is agreed by the parties hereto as follows:
1. Use of "Unusable" Space at Premises. As permitted in Section 1.1 of the Lease,
Tenant exercises its right to use the "Unusable Space" as defin
e
d
i
n
t
h
e
L
e
a
s
e
a
n
d
as depicted in Exhibit A to the Lease. As of December 1, 201
7
,
T
e
n
a
n
t
s
h
a
l
l
h
a
v
e
the right to use the "Unusable Space" according to the t
e
r
m
s
a
n
d
c
o
n
d
i
t
i
o
n
s
contained in the Lease. Provided, however, permitted uses of th
e
U
n
u
s
a
b
l
e
S
p
a
c
e
are limited to office, administrative, storage, and training us
e
s
.
T
e
n
a
n
t
h
e
r
e
b
y
accepts the "Unusable Space" in its "as is" condition. If
L
a
n
d
l
o
r
d
d
o
e
s
n
o
t
remove its personal property from the "Unusable Space"
w
i
t
h
i
n
f
o
u
r
t
e
e
n
(
1
4
)
days after the Effective Date of this Amendment as set forth
i
n
S
e
c
t
i
o
n
1.2 of the
Lease, such items remaining in place shall be deemed abando
n
e
d
a
n
d
L
a
n
d
l
o
r
d
shall have no responsibility to remove such; rather Tenant may
,
a
t
i
t
s
c
o
s
t
r
e
m
o
v
e
such property and dispose of it, without notice, in Tenant's so
l
e
d
i
s
c
r
e
t
i
o
n
.
2. Rent and Cap Amount for "Unusable" Space. Notwithstanding any other
provision of the Lease, Tenant shall pay Landlord two t
h
o
u
s
a
n
d
d
o
l
l
a
r
s
($2,000.00) per month for the "Unusable Space," commencin
g
o
n
D
e
c
e
m
b
e
r
1
,
2017. This shall be the only rent due to Landlord for the "U
n
u
s
a
b
l
e
S
p
a
c
e
.
"
T
h
e
rent for the "Unusable Space" shall be due and paid to L
a
n
d
l
o
r
d
p
u
r
s
u
a
n
t
t
o
Section 4 of the Lease. This rent shall be adjusted pursuant to S
e
c
t
i
o
n
4
.
3
o
f
t
h
e
Lease beginning on December 1, 2018. The "Cap", as defined
i
n
t
h
e
L
e
a
s
e
,
f
o
r
maintenance and repairs shall remain at its current ra
t
e
a
n
d
s
h
a
l
l
n
o
t
proportionally increase due to Tenant's use of the "Unusable" S
p
a
c
e
.
"
3. Lease Renewal/Renewal Options. As permitted in Section 2.2 of the Lease,
Tenant exercises its right to renew the Lease. The Lease is
h
e
r
e
b
y
r
e
n
e
w
e
d
a
n
d
extended until November 30, 2019. So long as Tenant has not b
e
e
n
i
n
d
e
f
a
u
l
t
a
n
d
is not in default on the commencement of the Renewal Term
,
t
h
i
s
L
e
a
s
e
m
a
y
b
e
renewed, at Tenant's sole option, for two (2) additional ter
m
s
o
f
t
w
o
(
2
)
y
e
a
r
s
each upon written notice to Landlord by Tenant (each a
"
R
e
n
e
w
a
l
T
e
r
m
"
)
.
Landlord must receive Tenant's written renewal notice at least s
i
x
t
y
(
6
0
)
c
a
l
e
n
d
a
r
days before November 30, 2019 or the last day of first R
e
n
e
w
a
l
T
e
r
m
(
a
s
applicable), absent which Tenant shall have no right to ren
e
w
t
h
i
s
L
e
a
s
e
.
T
h
e
1
FINAL VERSION (10-2547) Detroit_14914$91_2
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 of the
Lease shall apply to the Renewal Teini, including the same annual increases in
Rent. References herein to "term" shall mean the Initial Term and any Renewal
Term.
4. Obligations and Duties for "Unusable" Space. As of December 1, 2017, all
duties and obligations that Landlord and Tenant have for the Premises shall
equally apply to the "Unusable" Space, including but not limited to, Landlord's
obligation and responsibility for maintenance and repairs and Tenant's obligations
for the payment of utilities, taxes and insurance.
5. Document Evidencing Condition of "Unusable" Space. On or before
December 1, 2017, the Parties shall create a document (in writing and with
pictures) evidencing the condition of the "Unusable" Space on the Effective Date
of this Amendment. Such document shall establish the condition of the
"Unusable" Space on the Effective Date of this Amendment and shall form the
basis for maintenance and repairs to the "Unusable" Space.
6. HVAC Filter. Notwithstanding anything in the Lease to the contrary, as of the
Effective Date of this Amendment, Tenant shall, at Tenant's cost, have the filters
for the HVAC units replaced on a quarterly basis. Within 10 days after such
replacement has occurred, Tenant shall provide Landlord with written
confirmation of such replacement.
7. Generator Maintenance. Notwithstanding anything in the Lease to the
contrary, as of the Effective Date of this Amendment, Tenant shall, at Tenant's
cost, cause to be performed on a quarterly basis the manufacturer recommended
maintenance for the generator servicing the Premises. Within 10 days after such
maintenance has occurred, Tenant shall provide Landlord with written
confirmation of such maintenance.
8. Continuation of Terms and Conditions. Excepted as specifically modified in
this Amendment, all terms and conditions of the Lease shall remain the same and
in effect. This Amendment shall be incorporated into and made part of the Lease.
In the event of any conflict between the terms and conditions contained in this
Amendment and the terms and conditions contained in the Lease, the terms and
conditions of this Amendment shall control. This Amendment may be executed
in two or more counterparts, each of which shall be deemed an original but all of
which shall constitute one and the same instrument. A copy of a signature
received through telefax transmission or other electronic means (including files in
Adobe .pdf or similar format) shall bind the party whose signature is so received,
and shall be considered for all purposes, as if such signature were an original.
2
FINAL VERSION (10-25-17)
Detroit 1491489[2
TENANT:
COUNTY OF OAKLAND
By:
Michael J. Gingell, Chairperson
Oakland County Board of Commissioners
This Lease was acknowledged before me in Oakland County, Michigan this day of
, 201 , by , Tenant.
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
LANDLORD:
2470 Elizabeth Lake Road, LLC
By:
Title:
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:
3
FINAL VERSION (10-25-17)
Detroit_14914891_2
LEASE OF BUILDING LOCATED AT
2470 ELIZABETH LAKE ROAD, WATERFORD, MIC
H
I
G
A
N
This Lease is entered into between 2470 Elizabeth Lake
R
o
a
d
,
L
L
C
(
"
L
A
N
D
L
O
R
D
"
)
w
h
o
s
e
address is 500 S. Opdyke Road, Pontiac, Michigan 4834
1
,
a
n
d
t
h
e
C
O
U
N
T
Y
O
F
O
A
K
L
A
N
D
,
a
Michigan Constitutional Corporation, 1200 North Telegrap
h
R
o
a
d
,
P
o
n
t
i
a
c
,
M
i
c
h
i
g
a
n
4
8
3
4
1
("TENANT'). The Parties agree to the following term
s
a
n
d
c
o
n
d
i
t
i
o
n
s
.
Leased Premises.
1.1. LANDLORD leases to TENANT and TENANT le
a
s
e
s
f
r
o
m
L
A
N
D
L
O
R
D
t
h
e
r
e
a
l
property located at 2470 Elizabeth Lake Road, Wate
r
f
o
r
d
,
M
i
c
h
i
g
a
n
4
8
3
2
8
w
i
t
h
t
h
e
Parcel Identification Number 13-25-200-007 (approx
i
m
a
t
e
l
y
s
e
v
e
n
(
7
)
a
c
r
e
s
)
,
i
n
c
l
u
d
i
n
g
the building located thereon (approximately forty-seve
n
t
h
o
u
s
a
n
d
o
n
e
h
u
n
d
r
e
d
a
n
d
f
o
r
t
y
-
one (47,141) square feet) (the "Premises"). The Premise
s
a
r
e
i
l
l
u
s
t
r
a
t
e
d
i
n
E
x
h
i
b
i
t
A
.
Exhibit A is fully incorporated into this Lease. Notwithsta
n
d
i
n
g
t
h
e
d
e
f
i
n
i
t
i
o
n
o
f
"Premises," TENANT shall not use the showroom a
n
d
p
a
r
t
s
d
e
p
a
r
t
m
e
n
t
i
n
t
h
e
b
u
i
l
d
i
n
g
(approximately 16,800 square feet) which are depicte
d
o
n
E
x
h
i
b
i
t
A
a
s
U
n
u
s
a
b
l
e
S
p
a
c
e
,
unless TENANT pays rent of three dollars and fifty cen
t
s
(
$
3
,
5
0
)
p
e
r
s
q
u
a
r
e
f
o
o
t
o
r
t
h
e
adjusted rent amount. If TENANT chooses to use the "
U
n
u
s
a
b
l
e
S
p
a
c
e
"
t
h
e
P
a
r
t
i
e
s
s
h
a
l
l
execute an amendment to this Lease codifying this fact (in
c
l
u
d
i
n
g
t
h
e
r
e
n
t
d
u
e
f
o
r
s
u
c
h
space and a proportional increase in the cap on mainte
n
a
n
c
e
c
o
s
t
s
e
t
f
o
r
t
h
i
n
S
e
c
t
i
o
n
12.1). TENANT'S Director of County Facilities Man
a
g
e
m
e
n
t
Or successor and the
Sheriff are authorized to sign the Amendment on behalf
o
f
t
h
e
C
o
u
n
t
y
.
1.2. LANDLORD shall not be required to remove any
o
f
i
t
s
p
e
r
s
o
n
a
l
p
r
o
p
e
r
t
y
f
r
o
m
t
h
e
Unusable Areas, unless TENANT chooses to use this spa
c
e
.
I
f
T
E
N
A
N
T
c
h
o
o
s
e
s
t
o
u
s
e
the Unusable Space, LANDLORD shall remove its p
e
r
s
o
n
a
l
p
r
o
p
e
r
t
y
f
r
o
m
this space
within fourteen (14) calendar days after execution of a l
e
a
s
e
a
m
e
n
d
m
e
n
t
c
o
v
e
r
i
n
g
s
u
c
h
space.
1.3. LANDLORD shall not use the Unusable Space for
a
n
y
p
u
r
p
o
s
e
,
e
x
c
e
p
t
f
o
r
s
t
o
r
i
n
g
i
t
s
personal property. LANDLORD shall not permit a t
h
i
r
d
p
a
r
t
y
t
o
u
s
e
t
h
e
U
n
u
s
a
b
l
e
S
p
a
c
e
for any purpose.
1.4. Included in this Lease is the right of TENANT to
u
s
e
t
h
e
g
e
n
e
r
a
t
o
r
c
u
r
r
e
n
t
l
y
l
o
c
a
t
e
d
o
n
the Premises. The generator is the personal property
o
f
L
A
N
D
L
O
R
D
a
n
d
s
h
a
l
l
r
e
m
a
i
n
the personal property of LANDLORD,
2. Term and Renewal.
2.1, Term. This Lease shall begin on the December 1, 2014 ("Com
m
e
n
c
e
m
e
n
t
D
a
t
e
"
)
a
n
d
shall end three (3) years from that date on November
3
0
,
2
0
1
7
(
"
I
n
i
t
i
a
l
T
e
r
m
"
)
.
TENANT shall have possession of the Premises (oth
e
r
t
h
a
n
t
h
e
U
n
u
s
a
b
l
e
S
p
a
c
e
)
o
n
t
h
e
Commencement Date. Failure of LANDLORD to prov
i
d
e
T
E
N
A
N
T
w
i
t
h
p
o
s
s
e
s
s
i
o
n
o
n
the Commencement Date and the continuation of such f
a
i
l
u
r
e
f
o
r
t
h
i
r
t
y
(
3
0
)
C
a
l
e
n
d
a
r
Page 1 of 12
Finai Version Detroit 4394583_2
days shall entitle TENANT, as its sole remedy, to terminate this Lease
u
p
o
n
w
r
i
t
t
e
n
notice to LANDLORD; otherwise the Commencement Date shall be de
l
a
y
e
d
u
n
t
i
l
possession is delivered without any liability imposed upon LANDLORD
f
o
r
s
u
c
h
d
e
l
a
y
.
2.1 Renewal. So long as TENANT has not been in default and is not in default on th
e
commencement of the Renewal Term, this Lease may be renewed, at T
E
N
A
N
T
'
S
s
o
l
e
option, for two (2) additional terms of one (1) year each upon written no
t
i
c
e
t
o
LANDLORD by TENANT (each a "Renewal Term"). LANDLORD mu
s
t
r
e
c
e
i
v
e
TENANT'S written renewal notice at least sixty (60) calendar days befor
e
t
h
e
e
x
p
i
r
a
t
i
o
n
of the Initial Term or the Renewal Term, absent which TENANT sh
a
l
l
h
a
v
e
n
o
r
i
g
h
t
t
o
renew this Lease. The renewal of this Lease shall be contained in an a
m
e
n
d
m
e
n
t
t
o
t
h
i
s
Lease, which may be executed on behalf of TENANT by its Director of
F
a
c
i
l
i
t
i
e
s
Management or successor and the Oakland County Sheriff. The same terms and
conditions contained herein shall apply to the Renewal Term. References h
e
r
e
i
n
t
o
"term" shall mean the Initial Term and any Renewal Term.
3. Default/Termination.
3.1. Upon written notice, a Party may terminate this Lease for default
b
y
t
h
e
o
t
h
e
r
P
a
r
t
y
pursuant to the following procedure: (a) the non-defaulting Party gives th
e
d
e
f
a
u
l
t
i
n
g
Party written notice specifically identifying the default(s) and (b) the
d
e
f
a
u
l
t
i
n
g
P
a
r
t
y
does not cure the default within fifteen (15) calendar days of receiving
t
h
e
w
r
i
t
t
e
n
n
o
t
i
c
e
of default or the defaulting party does not commence to cure the defaul
t
w
i
t
h
i
n
f
i
f
t
e
e
n
(15) calendar days of receiving written notice of the default and does not
d
i
l
i
g
e
n
t
l
y
pursue the cure to completion, if the default is of such a nature that it can
n
o
t
b
e
c
u
r
e
d
within the fifteen (15) day period.
3.2. If either Party defaults in any of its obligations under this Lease
(
a
f
t
e
r
e
x
p
i
r
a
t
i
o
n
o
f
t
h
e
notice and cure periods in Section 3.1) the other Party shall have all rem
e
d
i
e
s
a
v
a
i
l
a
b
l
e
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 a
n
y
t
i
m
e
a
n
d
f
o
r
a
n
y
reason, including convenience, upon three hundred sixty-five (365)
c
a
l
e
n
d
a
r
d
a
y
s
written notice to LANDLORD.
3.4. Upon expiration or termination of this Lease or TENANT'S right
t
o
p
o
s
s
e
s
s
i
o
n
,
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 befo
r
e
t
h
e
d
a
t
e
o
f
expiration or termination. If TENANT does not remove its personal property within
fifteen (15) calendar days of the date of expiration or termination, in addi
t
i
o
n
t
o
a
n
y
other remedies of LANDLORD, such items shall be deemed abandoned,
a
n
d
LANDLORD may cause such items to be stored, removed or disposed of
a
t
T
E
N
A
N
T
'
S
expense, without notice to TENANT and without obligation to compen
s
a
t
e
T
E
N
A
N
T
.
Any damage caused by the removal of TENANT'S personal property sh
a
l
l
b
e
r
e
p
a
i
r
e
d
and paid for by TENANT within thirty (30) days of the date of expiration
o
r
t
e
r
m
i
n
a
t
i
o
n
.
If TENANT does not repair or commence repair of such damage wi
t
h
i
n
t
h
i
r
t
y
(
3
0
)
d
a
y
s
Page 2 of 12
Final Version Detroit 4394583_2
of the date of expiration or termination, then LANDLORD may re
p
a
i
r
a
n
d
r
e
s
t
o
r
e
t
h
e
Premises and TENANT shall pay the actual and reasonable costs, pr
i
o
r
t
o
p
a
y
m
e
n
t
,
o
f
such repair and restoration to LANDLORD, within thirty (30)
d
a
y
s
o
f
d
e
m
a
n
d
.
LANDLORD shall provide TENANT with an itemized invoice
f
o
r
s
u
c
h
r
e
p
a
i
r
a
n
d
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 hundr
e
d
a
n
d
s
i
x
t
h
o
u
s
a
n
d
a
n
d
forty-four dollars and no cents ($106,044.00) annually as Rent f
o
r
t
h
e
P
r
e
m
i
s
e
s
,
s
u
b
j
e
c
t
to annual increases set forth in Section 4.3. This annual amount
s
h
a
l
l
b
e
p
a
i
d
i
n
t
w
e
l
v
e
equal installments of eight thousand eight hundred and thirty-sev
e
n
d
o
l
l
a
r
s
a
n
d
n
o
c
e
n
t
s
($8,837.00) due on the first calendar day of each month, as ad
j
u
s
t
e
d
i
n
a
c
c
o
r
d
a
n
c
e
w
i
t
h
Section 4.3,
4.2. Place of Payment. Payments due under this Lease from TENANT shall be paid at
t
h
e
address of LANDLORD set forth above or at such other place as
L
A
N
D
L
O
R
D
m
a
y
designate in writing
4.3. Rent Adjustments. On December 1, 2015 and each December 1 st thereafter, the Rent
shall increase by two and a half percent (2.5%) from the previou
s
t
w
e
l
v
e
(
1
2
)
m
o
n
t
h
s
'
Rent.
4.4, Rent Setoff. If LANDLORD fails to perform or comply with any obligat
i
o
n
Or
requirement of this Lease, TENANT shall give LANDLORD
f
i
f
t
e
e
n
(
1
5
)
c
a
l
e
n
d
a
r
d
a
y
s
written notice of such failure. If LANDLORD does not cure the failu
r
e
w
i
t
h
i
n
f
i
f
t
e
e
n
(15) calendar days after receipt of such written notice (or if a cur
e
o
f
s
u
c
h
f
a
i
l
u
r
e
c
a
n
n
o
t
reasonably occur within such fifteen (15) calendar days and LAN
D
L
O
R
D
d
o
e
s
n
o
t
commence the cure within such fifteen (15) calendar day period an
d
t
h
e
r
e
a
f
t
e
r
d
i
l
i
g
e
n
t
l
y
pursue performance or compliance), TENANT may upon written n
o
t
i
c
e
t
o
L
A
N
D
L
O
R
D
perform or comply with such obligation or requirement or may
c
a
u
s
e
a
t
h
i
r
d
-
p
a
r
t
y
t
o
perform or comply with such obligation or requirement. TENA
N
T
m
a
y
d
e
d
u
c
t
t
h
e
c
o
s
t
s
associated with such performance or compliance from the Rent, i
f
t
h
e
L
A
N
D
L
O
R
D
'
S
failure to perform or comply with an obligation or requireme
n
t
s
u
b
s
t
a
n
t
i
a
l
l
y
i
n
t
e
r
f
e
r
e
s
with TENANT'S use of the Premises. Upon written request, TENA
N
T
s
h
a
l
l
p
r
o
v
i
d
e
LANDLORD with an itemized invoice or statement of costs a
s
s
o
c
i
a
t
e
d
w
i
t
h
performance or compliance of an obligation or requirement.
4.5. Partial Month Rent Proration. If this Lease commences, terminates (other than due to
a default by TENANT), or expires other than the first calendar d
a
y
o
f
a
m
o
n
t
h
,
t
h
e
n
t
h
e
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 expirati
o
n
o
f
t
h
i
s
Lease, without a written amendment, TENANT shall be a TENAN
T
-
A
T
-
S
U
F
F
E
R
A
N
C
E
a
t
two hundred percent (200%) of the base rent in effect at the end
o
f
t
h
e
a
p
p
l
i
c
a
b
l
e
t
e
r
m
.
Page 3 of 12
Final Version Detroit 43945832
TENANT shall also continue to pay all other sums due hereunder. There shall b
e
n
o
r
e
n
e
w
a
l
of this Lease by operation of law. In addition to the foregoing, in the event that TEN
A
N
T
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 LANDL
O
R
D
as a result of such holdover. No receipt of money by LANDLORD from TENAN
T
a
f
t
e
r
t
h
e
termination of this Lease or TENANT'S right of possession of the Premises shall
r
e
i
n
s
t
a
t
e
,
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, w
h
i
c
h
are owned by TENANT or in TENANT'S possession because of the performance of
a
governmental function. TENANT may perform light maintenance of these vehicles at
the Premises. The public will not have access to the Premises. TENANT shall use
t
h
e
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
c
o
m
m
i
t
waste to the Premises, will not overload the floor or structure of the Premises, or w
i
l
l
n
o
t
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 tra
s
h
,
w
e
a
r
a
n
d
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 i
n
a
manner to cause cancellation of, prevent the use of, or increase the rate of, the ins
u
r
a
n
c
e
carried by LANDLORD.
7.8 TENANT' s use of the Premises and its activities thereon shall comply with a
l
l
"Environmental Laws," which, for purposes of this Lease, shall mean all federal
,
s
t
a
t
e
and local environmental laws, including, but not limited to, the Hazardous Materia
l
s
Transportation Act, (47 U.SC §§ 1801 et seq.), Federal Water Pollution Control Act
(
3
3
U.S.C. §§ 1251 et seq.) ("Clean Water Act"), the Resource Conservation & Recovery
A
c
t
(42 U.S.C. §§ 6901 et seq.) ("RCRA"), Safe Drinking Water Act (42 U.S.C. §§ 30
0
f
ij
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. §§ 11001 et seq. ("EPCRA"), the Mich
i
g
a
n
Natural Resources and Environmental Protection Act (MCL § 324.101 et seq.) the
administrative rules and regulations promulgated under such statutes, or any other sim
i
l
a
r
federal, state or local law or administrative rule or regulation of similar effect, in effect
Page 4 of 12
Final Version Detroit 4394553_2.
and adopted as of the date of execution of this L
e
a
s
e
a
n
d
a
s
a
m
e
n
d
e
d
.
"
H
a
z
a
r
d
o
u
s
Materials" shall mean any substances, compounds
,
m
i
x
t
u
r
e
s
,
w
a
s
t
e
s
o
r
m
a
t
e
r
i
a
l
s
t
h
a
t
a
r
e
defined to be, that are regulated as, that are listed a
s
o
r
t
h
a
t
(
b
e
c
a
u
s
e
o
f
t
h
e
i
r
t
o
x
i
c
i
t
y
,
concentration or quantity) have characteristics that a
r
e
h
a
z
a
r
d
o
u
s
o
r
t
o
x
i
c
u
n
d
e
r
a
n
y
o
f
the Environmental Laws, or any substances, com
p
o
u
n
d
s
,
m
i
x
t
u
r
e
s
,
w
a
s
t
e
s
o
r
m
a
t
e
r
i
a
l
s
that are otherwise regulated under any of the Envi
r
o
n
m
e
n
t
a
l
L
a
w
s
.
7.9 TENANT shall not cause or permit the release of
H
a
z
a
r
d
o
u
s
M
a
t
e
r
i
a
l
s
i
n
t
o
a
n
y
environmental media such as air, water or land, or int
o
Or on the Premises in any manner.
If such release shall occur, TENANT shall (a) ta
k
e
a
l
l
s
t
e
p
s
r
e
a
s
o
n
a
b
l
y
n
e
c
e
s
s
a
r
y
t
o
contain and control such release and any associa
t
e
d
c
o
n
t
a
m
i
n
a
t
i
o
n
,
(
b
)
c
l
e
a
n
u
p
o
r
otherwise remedy such release and any associate
d
c
o
n
t
a
m
i
n
a
t
i
o
n
,
a
n
d
t
a
k
e
a
n
y
a
n
d
a
l
l
other actions required under, applicable Environme
n
t
a
l
L
a
w
s
a
n
d
(
e
)
n
o
t
i
f
y
a
n
d
k
e
e
p
LANDLORD reasonably informed of such release a
n
d
r
e
s
p
o
n
s
e
.
7.10 The terms of Section 7 shall survive the expiration
o
r
t
e
r
m
i
n
a
t
i
o
n
o
f
t
h
i
s
L
e
a
s
e
8. Equipment and Furnishings. TENANT shall provide, at its own expense, furnitur
e
a
n
d
equipment it deems necessary. TENANT, at its ow
n
e
x
p
e
n
s
e
,
s
h
a
l
l
b
e
s
o
l
e
l
y
r
e
s
p
o
n
s
i
b
l
e
f
o
r
the maintenance and repair of its furniture and equ
i
p
m
e
n
t
u
s
e
d
o
n
t
h
e
P
r
e
m
i
s
e
s
.
9. Condition of Premises. TENANT has examined the Premises prior to the ex
e
c
u
t
i
o
n
o
f
t
h
i
s
Lease and TENANT accepts the Premises "AS-IS"
e
x
c
e
p
t
t
h
a
t
(
a
)
L
A
N
D
L
O
R
D
s
h
a
l
l
perform the obligations contained in Section 11 of th
i
s
L
e
a
s
e
;
a
n
d
(
b
)
L
A
N
D
L
O
R
D
w
a
r
r
a
n
t
s
and certifies that all interior and exterior lighting
f
i
x
t
u
r
e
s
w
i
l
l
b
e
o
p
e
r
a
t
i
o
n
a
l
o
n
t
h
e
Commencement Date, LANDLORD has made no
r
e
p
r
e
s
e
n
t
a
t
i
o
n
o
r
w
a
r
r
a
n
t
y
a
s
t
o
t
h
e
suitability of the Premises for the conduct of TENA
N
T
'
S
b
u
s
i
n
e
s
s
a
n
d
T
E
N
A
N
T
w
a
i
v
e
s
a
n
y
implied warranty that the Premises are suitable for T
E
N
A
N
T
'
S
i
n
t
e
n
d
e
d
p
u
r
p
o
s
e
s
,
10. Security of Premises. LANDLORD will provide any existing keys to the
P
r
e
m
i
s
e
s
f
o
r
TENANT'S use and will provide any existing dev
i
c
e
s
t
o
T
E
N
A
N
T
f
o
r
t
h
e
o
p
e
r
a
t
i
o
n
o
f
t
h
e
overhead doors at the Premises. TENANT shall be
r
e
s
p
o
n
s
i
b
l
e
f
o
r
s
e
c
u
r
i
n
g
t
h
e
P
r
e
m
i
s
e
s
o
n
a day-to-day basis. TENANT shall have the right to
i
n
s
t
a
l
l
a
s
e
c
u
r
i
t
y
s
y
s
t
e
m
o
f
i
t
s
c
h
o
i
c
e
o
n
and around the Premises. TENANT will pay for all c
o
s
t
s
o
f
i
n
s
t
a
l
l
i
n
g
,
o
p
e
r
a
t
i
n
g
,
a
n
d
maintaining the security system. The security system
s
h
a
l
l
r
e
m
a
i
n
t
h
e
p
r
o
p
e
r
t
y
o
f
T
E
N
A
N
T
and TENANT shall remove the security system up
o
n
e
x
p
i
r
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
o
f
t
h
i
s
L
e
a
s
e
,
including any fence gate automation added by TEN
A
N
T
.
I
n
a
d
d
i
t
i
o
n
t
o
a
s
e
c
u
r
i
t
y
s
y
s
t
e
m
and as part of securing the Premises, TENANT, a
t
i
t
s
s
o
l
e
c
o
s
t
,
m
a
y
t
i
n
t
c
e
r
t
a
i
n
w
i
n
d
o
w
s
a
n
d
cover the interior of certain windows with plywood
Or aluminum sheeting (so long as
TENANT removes such plywood or aluminum upo
n
t
h
e
e
x
p
i
r
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
o
f
t
h
i
s
Lease).
11. Landlord Obligations, Prior to December 1, 2014, LANDLORD shall pe
r
f
o
r
m
o
r
c
a
u
s
e
t
o
be performed the following at its sole cost:
Page 5 of 12
Final Version Detroit_4394583 2
11.1. Remove all hoists in Service and Body Shop areas of the Premises, except fo
r
t
h
e
hoists that TENANT indicates not to be removed (which indications must he
p
r
o
v
i
d
e
d
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 Premis
e
s
.
12, Maintenance and Repairs of Premises.
121 LANDLORD shall be responsible to perform and pay for the maintenance and
repairs to keep the Premises (other than the Unusable Space) in substant
i
a
l
l
y
t
h
e
s
a
m
e
condition which existed on the Commencement Date, subject to normal we
a
r
a
n
d
t
e
a
t
Such maintenance shall include, but is not limited to, maintenance and repai
r
s
t
o
,
r
o
o
f
;
ceiling; walls; floors; windows; heating, cooling, and ventilation system (HVA
C
)
;
radiant heat system; electrical system; plumbing system; restroom fixtures; side
w
a
l
k
s
;
parking lots; exterior and interior lighting fixtures; light bulb replacement;
a
n
d
generator. TENANT shall reimburse LANDLORD the actual cost of the m
a
i
n
t
e
n
a
n
c
e
and repairs per Fiscal Year or twenty-two thousand five hundred dollars ($22,
5
0
0
,
0
0
)
per Fiscal Year (the "Cap"), whichever is least, provided, however, that
t
h
e
a
m
o
u
n
t
f
o
r
the first Fiscal Year shall not exceed eighteen thousand seven hundred and
f
o
r
t
y
d
o
l
l
a
r
s
($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 Y
e
a
r
.
A
Fiscal Year is defined as three hundred and sixty-five (365) calendar days com
m
e
n
c
i
n
g
on October l and ending on September 30 th , 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 TEN
A
N
T
o
n
a
quarterly basis for the maintenance and repair costs. TENANT shall pay the
i
n
v
o
i
c
e
within ten (10) business days of receipt. TENANT must provide LANDLORD
w
i
t
h
prompt written notice of needed maintenance. Subject to the limitations i
n
S
e
c
t
i
o
n
2
0
.
1
,
the Cap shall not apply to, and TENANT shall be obligated to reimburse
L
A
N
D
L
O
R
D
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
a
n
a
i
r
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
b
e
r
e
s
p
o
n
s
i
b
l
e
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 d
o
c
u
m
e
n
t
shall establish the condition of the Premises on the Commencement Date an
d
s
h
a
l
l
f
o
r
m
the basin 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 Premi
s
e
s
,
LANDLORD shall not be required to undertake such Capital Improvements
u
n
l
e
s
s
a
n
d
Page 6 of 12
Final Version Detroit 4394583_2
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; generator,
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 life
(whereby the useful life shall be reasonably agreed to by the Parties) according to the
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 TENANT
shall pay LANDLORD the yearly amortized portion of the Capital Improvement while
this Lease is in effect. Payment of the yearly amortized portion shall commence on the
date the Capital Improvement is fully completed and shall be due thereafter on the
anniversary of the completion date. Payment of the yearly amortized portion shall ceas
e
on the date this Lease terminates or expires, if this Lease expires or terminates on a date
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 to
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 oth
e
r
w
i
s
e
provided in this Lease, any alteration or improvement made to or upon the Premises shal
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, requir
e
s
TENANT to remove such work upon the expiration or termination of this Lease Or
TENANT'S right to possession (in which event, TENANT shall undertake such remo
v
a
l
a
n
d
restore the Premises to a condition similar to which existed prior to TENANT undertakin
g
such work). Office furniture and trade fixtures used or installed in the Premises are not
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 TENAN
T
.
Until placed into TENANT'S name, TENANT shall reimburse LANDLORD for any utility
charges (such reimbursement to be paid within ten (10) Calendar days after receipt o
f
a
n
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 TENANT
installs in or around the Premises. All such systems shall remain the property of TENA
N
T
,
who shall remove them upon Lease termination or expiration. TENANT shall provide t
h
e
following services at and around the Premises, at its own expense; (a) trash removal, (b)
Page 7 of 12
Final Version Detroit 4394583. 2
snow and ice removal from sidewalks, steps and parking are
a
s
,
(
c
)
c
u
s
t
o
d
i
a
l
s
e
r
v
i
c
e
s
,
(
d
)
landscaping services, and (e) fuel to operate the generator.
16. Signs. TENANT may attach, install or erect signs on the inte
r
i
o
r
w
a
l
l
s
o
f
t
h
e
P
r
e
m
i
s
e
s
a
s
necessary for TENANT'S use of the Premises. TENANT m
a
y
n
o
t
a
t
t
a
c
h
,
i
n
s
t
a
l
l
o
r
e
r
e
c
t
a
n
y
signs on the exterior walls of or the area surrounding the P
r
e
m
i
s
e
s
w
i
t
h
o
u
t
t
h
e
p
r
i
o
r
w
r
i
t
t
e
n
approval of LANDLORD. TENANT shall remove its signs
p
r
i
o
r
t
o
t
h
e
e
x
p
i
r
a
t
i
o
n
o
r
termination of this Lease.
17, Access. TENANT shall allow LANDLORD access to the Prem
i
s
e
s
d
u
r
i
n
g
r
e
g
u
l
a
r
b
u
s
i
n
e
s
s
hours (and at all other times in the event of an emergency)
f
o
r
t
h
e
p
u
r
p
o
s
e
s
o
f
i
n
s
p
e
c
t
i
n
g
,
posting notices, repairing and/or maintaining the Premises
,
a
n
d
t
o
s
h
o
w
t
h
e
P
r
e
m
i
s
e
s
t
o
lenders, potential buyers and/or potential tenants; provided h
o
w
e
v
e
r
,
L
A
N
D
L
O
R
D
,
a
n
d
a
n
y
other persons accompanied, at all times, by an agent or e
m
p
l
o
y
e
e
o
f
T
E
N
A
N
T
.
T
E
N
A
N
T
represents that someone will be available to accompany L
A
N
D
L
O
R
D
o
n
a
2
4
1
7
/
3
6
5
b
a
s
i
s
and LANDLORD shall not be liable for delays in underta
k
i
n
g
m
a
i
n
t
e
n
a
n
c
e
o
r
o
t
h
e
r
obligations of LANDLORD hereunder if due to the unavail
a
b
i
l
i
t
y
o
f
T
E
N
A
N
T
t
o
a
c
c
o
m
p
a
n
y
LANDLORD into the Premises. LANDLORD shall not unr
e
a
s
o
n
a
b
l
y
d
i
s
r
u
p
t
t
h
e
o
p
e
r
a
t
i
o
n
s
of TENANT at the Premises. TENANT shall also allow L
A
N
D
L
O
R
D
a
c
c
e
s
s
t
o
t
h
e
Premises at any time in case of an emergency, provided h
o
w
e
v
e
r
,
L
A
N
D
L
O
R
D
,
a
n
d
a
n
y
other persons shall be accompanied, at all times, by an age
n
t
o
r
e
m
p
l
o
y
e
e
o
f
T
E
N
A
N
T
.
18. Taxes. TENANT shall pay all real property taxes and specia
l
a
s
s
e
s
s
m
e
n
t
s
o
n
t
h
e
P
r
e
m
i
s
e
s
.
At LANDLORD'S option, such taxes and assessments shall b
e
p
a
i
d
d
i
r
e
c
t
l
y
t
o
t
h
e
t
a
x
i
n
g
authority (with evidence of payment provided to LANDL
O
R
D
)
o
r
p
a
i
d
t
o
L
A
N
D
L
O
R
D
within thirty (30) Calendar days after receipt of an invoic
e
f
r
o
m
L
A
N
D
L
O
R
D
.
A
t
t
h
e
beginning and end of this Lease, taxes and assessments sha
l
l
b
e
p
r
o
r
a
t
e
d
b
e
t
w
e
e
n
t
h
e
P
a
r
t
i
e
s
on a calendar basis based upon the number of days this Leas
e
i
n
e
f
f
e
c
t
f
o
r
t
h
e
y
e
a
r
i
n
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
o
r
d
a
m
a
g
e
d
u
r
i
n
g
t
h
i
s
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 mann
e
r
a
s
T
E
N
A
N
T
d
e
e
m
s
f
i
t
,
19,4. Insurance Premium Payments. LANDLORD shall be responsible to pay the
premiums for the property insurance for the Premises and th
e
l
i
a
b
i
l
i
t
y
i
n
s
u
r
a
n
c
e
f
o
r
t
h
e
Premises, provided however, TENANT shall reimburse
L
A
N
D
L
O
R
D
,
o
n
a
n
a
n
n
u
a
l
basis, the actual amount of the premium for the property i
n
s
u
r
a
n
c
e
a
n
d
t
h
e
l
i
a
b
i
l
i
t
y
insurance or seven thousand dollars ($7,000.00) toward su
c
h
p
r
e
m
i
u
m
,
w
h
i
c
h
e
v
e
r
i
s
less. The seven thousand dollar ($7,000.00) figure shall be
i
n
c
r
e
a
s
e
d
i
n
t
h
e
s
a
m
e
Page 8 of 12
Final Version Detroit 4394583_2
manner as the Rent, set forth in Section 4.3. TENANT shall reimburse LANDL
O
R
D
f
o
r
the applicable premium charge within ten (10) days after receipt of an inv
o
i
c
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, including t
h
e
building or fixtures attached to the building, which is caused by the acts
o
r
o
m
i
s
s
i
o
n
s
o
f
TENANT or TENANT' s employees, agents, contractors or invitees; prov
i
d
e
d
,
h
o
w
e
v
e
r
,
with respect to damage that is covered by LANDLORD's property insurance p
o
l
i
c
y
,
TENANT shall only be liable for up to ten thousand dollars ($10,000.00) per
o
c
c
u
r
r
e
n
c
e
.
20.1 For purposes of this Lease, "Claims" means any loss; complaint; demand
f
o
r
relief or damages; lawsuit; cause of action; proceeding; judgment; penalty;
c
o
s
t
s
;
o
r
other liability of any kind which is imposed on, incurred by, or asserted or f
o
r
w
h
i
c
h
a
Party may become legally or contractually obligated to pay or defend agains
t
,
w
h
e
t
h
e
r
commenced or threatened, including, but not limited to, reimbursement for rea
s
o
n
a
b
l
e
attorney fees, mediation, facilitation, arbitration fees, witness fees, court c
o
s
t
s
,
investigation expenses, litigation expenses, or amounts paid in settlement,
20.3. Each Party shall be responsible for Claims made against that Party by a third p
a
r
t
y
and for the acts or omissions of its employees, agents or contractors related to the
performance of this Lease.
20.4. LANDLORD shall indemnify and hold TENANT harmless from all Claim
s
,
incurred by or asserted against TENANT by any person or entity, to the exte
n
t
c
a
u
s
e
d
from the acts or omissions of LANDLORD or its agents or employees.
20.5, '1ENANT's right to indemnification is in excess and above any insurance
rights/policies required by this Lease.
20.6. LANDLORD shall not be liable to TENANT or to any other person for any
damage (to person or property) caused by: (a) failure in any utility or buildin
g
s
y
s
t
e
m
,
(b) failure of any security system, (c) by the bursting or leaking of any vessel o
r
p
i
p
e
i
n
or about the Premises, (d) by water, snow or ice coming into the Premises, or (e) from
the acts or neglect of occupants of adjacent property or the public. TENAN
T
s
h
a
l
l
maintain all desired insurance covering its personal property and TENANT, r
a
t
h
e
r
t
h
a
n
LANDLORD, shall be responsible for the damage or theft of its personal prop
e
r
t
y
.
20.7. This Lease does not and is not intended to impair, divest, delegate
,
o
r
c
o
n
t
r
a
v
e
n
e
any constitutional, statutory, and/or other legal right, privilege, power, oblig
a
t
i
o
n
,
d
u
t
y
,
capacity, or inununity of TENANT.
20.8. The terms and conditions of Section 20 shall survive the expiration or termination
of this Lease.
21. Destruction of Premises.
21.1. Except as otherwise provided herein, in the event the Premises are partially
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, TEN
A
N
T
shall have the right to terminate this Lease and vacate the Premises within t
h
i
r
t
y
(
3
0
)
Calendar days after the occurrence of such damage or destruction. If the Pr
e
m
i
s
e
s
a
r
e
damaged or destroyed, TENANT may elect to remain on the Premises or to v
a
c
a
t
e
t
h
e
Premises (at its sole option) until the repairs are complete. During the tim
e
b
e
t
w
e
e
n
when the Premises are damaged and until the repairs or construction to th
e
P
r
e
m
i
s
e
s
a
r
e
complete, the Rent owed by TENANT shall be reduced in proportion to th
e
p
o
r
t
i
o
n
o
f
the Premises rendered unusable (in the discretion of TENANT).
21.2. 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 b
e
r
e
q
u
i
r
e
d
f
o
r
the actual restoration or repair of the Premises will exceed ninety (90) Ca
l
e
n
d
a
r
d
a
y
s
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) LA
N
D
L
O
R
D
does not anticipate receiving sufficient insurance proceeds to restore the Prem
i
s
e
s
,
o
r
(iv) LANDLORD is required to pay any insurance proceeds arising out of
t
h
e
c
a
s
u
a
l
t
y
t
o
LANDLORD'S lender, or (v) LANDLORD determines in its sole discretion
t
h
a
t
i
t
i
s
n
o
t
economical to repair the casualty, then LANDLORD shall have the right, to
b
e
e
x
e
r
c
i
s
e
d
by giving written notice within thirty (30) Calendar days after the occurrence o
f
t
h
e
casualty, to terminate this Lease. TENANT will have thirty (30) Calendar
d
a
y
s
f
r
o
m
t
h
e
date of the notice to vacate the Premises. If LANDLORD elects to rebuild
o
r
r
e
p
a
i
r
t
h
e
Premises, then the Rent owed by TENANT shall be reduced in proportion t
o
t
h
e
p
o
r
t
i
o
n
of the Premises rendered unusable (in the discretion of TENANT) until the Pre
m
i
s
e
s
a
r
e
repaired or rebuilt. In no event, shall LANDLORD be required to repair or repl
a
c
e
a
n
y
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 a
n
d
v
a
c
a
t
e
the Premises anytime between the award of taking to the public authorit
y
a
n
d
t
h
e
d
a
y
t
h
e
public authority takes possession.
22.2. If less than the whole of the Premises is taken by any public authority under t
h
e
power of eminent domain, and TENANT elects torcmain on the Premises, the
r
e
n
t
s
h
a
l
l
be reduced in proportion to the amount of space taken by the public authority.
N
e
i
t
h
e
r
Party shall have any future obligation or liability under the Lease (except as o
t
h
e
r
w
i
s
e
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 Enjoyment. Upon performance of its obligations under this Lease, TENANT shall
peacefully and quietly hold and enjoy the Premises without hindrance or inte
r
r
u
p
t
i
o
n
b
y
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. Bindina Effect. The terms and conditions of this Lease shall be binding and shall
i
n
u
r
e
t
o
the benefit of the Parties and their respective heirs, representatives, successors and ass
i
g
n
s
(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 te
r
m
o
r
condition shall be deemed severed from this Lease; all other terms and conditions shall
remain in fall force and effect.
28. Waiver. No waiver of any term or condition of this Lease, whether by conduct or o
t
h
e
r
w
i
s
e
,
in one or more instances, shall he 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 b
r
e
a
c
h
of this Lease is intended to be an exclusive remedy. A Party's exercise of any remedy f
o
r
breach of this Lease shall not be deemed or construed to be a waiver of its right to
p
u
r
s
u
e
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 requ
i
r
e
s
.
30. Notice. All notices required under this Lease shall be in writing. Notices shall be
e
f
f
e
c
t
i
v
e
:
(a) the next Business Day, if personally delivered; (b) the third Business Day, if se
n
t
b
y
U
.
S
.
mail, postage prepaid, return receipt requested; (c) the next Business Day, if sent b
y
a
nationally recognized overnight express courier with a reliable tracking system; or (d)
t
h
e
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.
N
o
t
i
c
e
t
o
TENANT shall be sent to: (1) Oakland County Facilities Management, Director, O
n
e
P
u
b
l
i
c
Works Drive, Building 95 West, Waterford, Michigan 48328 and (2) The Oakland C
o
u
n
t
y
Sheriff, Law Enforcement Complex, 1200 North Telegraph Road, Building 38 East, P
o
n
t
i
a
c
,
Michigan 48341.
31. Force Majeure. LANDLORD shall not be in default under this Lease (and the tim
e
f
o
r
LANDLORD to perform shall be extended day for day) to the extent LANDLORD
i
s
u
n
a
b
l
e
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 o
r
a
n
y
o
t
h
e
r
cause of any kind beyond the reasonable control of LANDLORD.
32, Subordination/Estoppel. This Lease and all rights of TENANT hereunder sha
l
l
b
e
subordinate to the lien and security title of any mortgage which may encumber the Prem
i
s
e
s
.
Upon demand, TENANT shall execute and deliver to LANDLORD or to mortgagee any
instruments, requested by either of them, to evidence such subordination. Upon dem
a
n
d
,
TENANT will execute and deliver to LANDLORD, LANDLORD'S mortgagee, purch
a
s
e
r
s
,
or any other third party designated by LANDLORD an estoppel certificate in the
f
o
r
m
a
n
d
substance requested by LANDLORD, to the extent it is factually accurate.
Page 11 of 12
Final Version Detroit_4394583_2
By:
Mi6hael J. GingellMiairper n
Oakland County Board of Commissioners
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/.1:)---4 day of
A)z) _, 201V , by 1.,..),/1/4wL f-Le )),i) , Landlord.
-
//-
Notary Publir-,-baiqtnd unty, Michigan
Acting in Oakland e9
My Commissid.
COUNTY OF OAKLAND (TENANT)
rdTh._a a. -+E.-
—PAUL 0 ZACHOS
Notary Public - Michigan
Oakland County
My Commission expires Sep 30, 2019
Acting In the County of
This Lease was acknowledged before me in Oakland County, Michigan this VIM day of
V40--c4v\ 2014, by Michael J. Gingell, Chairperson, Oakland County Board of
Commissioners,
JOANN M. STRINGFELLOW
Notary Public - State of Michigan
County of Oakland
My Commission Expires June 28, 2020
Acting in the County of A)PAcjAlz...1:1_,
N tary Public, Oak1an1dCounty, Michigan
Acting in Oakland County
My Commission Expires: • ;AC,
Page 12 of 12
Final Version
Detroit 4394583_2
2470 ELIZABETH LAKE RD.
U nNoinnly n siin Iwn Irowl n IN•wommI 3.50,06
FENCED AREA
FENCED AREA
LEGEND
• I= UNUSABLE SPACE
gm g PROPERTY LIMITS
•
UPSTAIRS MEZZANINE
•
•
EXHIBIT A
SF. CALCULATIONS
AREAS SF.
UNUSABLE SPACE 116,840 EXISTING BUILDING
TOTAL BUILDING 1 47,141 FENCED AREA
PATIO
•
QUALITY PONflACI- WAREHOUSE LEASE
SCALE: NOT TO SCALE 10/14/14
PRODUCED 6128114 BY MM AND JL1 OAKLAND COUNTY FACILMES PLANNING B ENGINEERING - DIVISION OF
FACILITIES MAINTENANCE AND OPERATIONS.
AREA OF ENTIRE BUILDING 47,141 SF. (GROSS)
FISCAL NOTE
December 7, 2017
(IYIIS51. #17336)
BY: Commissioner T omas Middleton, Chairperson, Finance C
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IN RE: DEPARTMENT OF FACILITIES MANAGEMENT
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AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC
TO THE OAKLAND COUNTY BOARD OF COMMISSION
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Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Commi
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:
1. The resolution authorizes an amendment to the lease agree
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County of Oakland and 2470 Elizabeth Lake Road, LLC to exe
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Quality Pontiac car dealership building at 2470 Elizabeth L
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extended through November 30, 2019.
2. The Sheriff's Office currently uses County facilities located
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recent completion of the new Animal Control and Pet Adoption
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the County plans to sell the Brown Road property.
3. As a result of the expected Brown Road operations relocation
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Office and this lease amendment provides for additional space
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4. The Departments of Facilities Management and Sheriff's Offic
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have negotiated terms and conditions for the lease of the a
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5. The monthly lease amount will increase $2,000 and is to be a
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agreement.
6. The County will continue to provide certain maintenance ser
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etc. of an estimated annual amount of $22,500 for annual incre
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$77,700 for insurance premium, utilities and property taxes f
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7. Most maintenance services such as HVAC repairs, roof repairs
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2470 Elizabeth Lake Road, LLC and the County will be resp
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LLC currently up to $23,063 per year and shall be adjusted pe
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Amendment #1 does include a change that requires the Co
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quarterly basis as well as performing quarterly generator main
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8. All capital improvements provided by 2470 Elizabeth Lake
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County's continued use of the building, will continue to be paid
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amortized costs based on the capital improvement's usefu
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need to be identified before such improvements are approved.
9. Any facility renovation needs at 2470 Elizabeth Lake Road
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relocation/lease amendment will be considered separately.
10. Annual estimated prorated costs for FY 2018 total $217,89
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$265,504; and annual estimated costs for FY 2020 total $269
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11. The overall impact to the budget is an increase of $4,990
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FY 20'19 and FY 2020.
12. Subsequent to the sale of the Brown Road property, there will b
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utilities, which will be reflected in future Building Space Cos
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2019 and FY 2020 anticipates a reduction to the Building Spac
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incremental costs associated with the lease amendment.
13. As denoted in the Fiscal Note for M.R. #14264, the monthly ren
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Road, was to be split based on a weighted percentage of es
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departments; Sheriff (76%), Homeland Security (13%), and He
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14. Effective with the lease amendment, the new monthly rent
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departments as follows; Sheriff (80%), Homeland Security (11%
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15. All other expenses (utilities, insurance, taxes, etc.) except R
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Sheriff's budget.
16. The FY 2018-2020 budget amendments are recommende
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:
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
$ 4,990
$ 4,990
($ 323)
( 114)
660
( 4,092)
562
5,750
2,547 o
$ 4,990
$ 2,446
200
1,031
( 4,092)
1,139
9,500
2,547
(12,771)
$ 0
$ 5,285
513
1,401
( 4,092)
1,730
9,500
2,547
(16,884)
$ 0
$ 0 $ 0
$ 0
$ 5,750
$._5,zia
$ 9,500
$ 9,500
l
ommissioner Thomas Middleton, District #4
Chairperson, Finance Committee
FY 2018 FY 2019 FY 2020
GENERAL FUND (#10100)
Revenues:
9010101-196030-665882 Planned Use of Balance
Total Revenue
Expenditures:
4030601-110000-731626 Rent
1060201-133150-731626 Rent
1060601-115090-731626 Rent
4030601-110000-731269 Natural Gas
4030601-110000-730198 Building Maintenance
9010101-148050-775754 Maintenance Dept Chgs
4030601-110000-731479 Property Taxes
9010101-148050-770631 Bldg Space Cost Allocation
Total Expenditures
FACILITIES MAINTENANCE & OPERATIONS FUND (#63100)
Revenue:
1040702-140010-631134 Maintenance Dept Chgs
Total Revenue
$ 5,750 $ 9,500 $ 9,500
$ 5,750
$ 9,500 $ 9,500
Expense:
1040719-141000-731878 Sublet Repairs
Total Expense
$ 9,500
$ 9,500
Resolution #17336 December 7, 2017
Moved by KowaII supported by Jackson the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Fleming, Gershenson, Gingell, Hoffman, Jackson, KowaII, Long, McGillivray,
Middleton, Quarles, Tietz, Weipert, Woodward, Zack, Berman, Crawford. (17)
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 4%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 7,
2017, 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 7th day of December, 2017.
-
Lisa Brown, Oakland County