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Home My WebLink AboutResolutions - 2018.09.27 - 23799MISCELLANEOUS RESOLUTION #18333 September 27, 2018 BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee IN RE: PARKS AND RECREATION - GREENHOUSE LEASE AMENDMENT - 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 Oakland County Parks and Recreation Commission staff, with the assistance of Corporation Counsel, negotiated a lease for the Greenhouses and surrounding property; and WHEREAS the lease is for the Greenhouses and surrounding land located at 1580 Scott Lake Road, Waterford, MI 48328 for a period commencing October 1, 2017 through December 31, 2027; and WHEREAS the Oakland County Board of Commissioners, at its September 6, 2017 meeting, approved and authorized the lease agreement between the County of Oakland and the Oakland Urban Growers; and WHEREAS the lease requires Oakland Urban Growers to pay monthly rent, along with all utilities and maintenance/repair costs for the Greenhouses; and WHEREAS the Oakland Urban Growers subsequently requested deferment of their monthly lease payments to a later point in the lease; and WHEREAS the Oakland County Parks and Recreation Commission directed staff to amend the lease with specific criteria; and WHEREAS the Oakland County Parks and Recreation Commission, with the assistance of Corporation Counsel, negotiated a lease amendment with Oakland Urban Growers; and WHEREAS the lease amendment includes the following terms: Rent Deferral. Section 3.1 of the Residential Lease is entirely deleted and replaced with the following section: 1.1 Tenant Monetary Obligations. 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 - April 30, 2018 May 1, 2018 - December 31, 2018 January 1, 2019 - December 31, 2019 January 1, 2020 - December 31, 2020 January 1, 2021 - April 30, 2021 May 1,2021 December 31, 2021 January 1, 2022 - December 31, 2022 January 1, 2023 - December 31, 2023 January 1, 2024 - April 30, 2024 May 1, 2024 - December 31, 2024 January 1, 2025 - December 31, 2025 January 1, 2026 - December 31, 2026 January 1, 2027 - December 31, 2027 Monthly Rent $750.00 $ $ 0 $ $ $1,592.00 $1,624.00 $1,656.00 $1,489.00 $845.00 $862.00 $879.00 $896.00 If Lease is Extended: January 1, 2028 - December 31, 2028 $914.00 January 1, 2029 - December 31, 2029 $933.00 January 1, 2030 - December 31, 2030 $951.00 January 1, 2031 - December 31, 2031 $970.00 January 1, 2032 - December 31, 2032 $990.00 January 1, 2033 - December 31, 2033 $1,009.00 January 1, 2034 - December 31, 2034 $1,030.00 January 1, 2035 December 31, 2035 $1,060.00 PLANNING AND BUILDING COMMITTEE Motion carried on a roll call vote with Tietz absent and Dwyer voting no. January 1, 2036 — December 31, 2036 January 1, 2037 — December 31, 2037 $1,071.00 $1,093.00; and WHEREAS the Oakland County Parks and Recreation Commission approved the attached Greenhouse lease amendment and directed that it be forwarded to the Oakland County Board of Commissioners for review and approval; and WHEREAS the Oakland County Parks and Recreation Commission recommends the Oakland County Board of Commissioners approve and authorize the attached Greenhouse lease amendment between the County of Oakland and Oakland Urban Growers. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes and approves the attached Greenhouse lease amendment between the County of Oakland and Oakland Urban Growers. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the Board's Chairperson, or his designee, to execute the Greenhouse lease amendment between the County of Oakland and Oakland Urban Growers. Chairperson, on behalf of the Planning and Building Committee I move the adoption of the foregoing resolution. )Commissioner Philip Weipert, District #8 Chairperson, Planning and Building Committee FIRST AMENDMENT TO TDE GREENHOUSE LEASE WITH OAKLAND URBAN GROWERS This First Amendment (1 st Amendment) is entered this day of , 20 , between the County of Oakland ("Landlord"), by and through the Oakland County Parks and Recreation Commission ("OCPRC"), located at 2800 Watkins Lake Road, Waterford, MI 48328 and the Oakland Urban Growers ("Tenant"), located at 'INTEREST ADDRESS], BACKGROUND A. On October 1, 2017, the Parties entered into a lease for the Waterford Oaks Greenhouse Complex located at 1580 Scott Lake Road Waterford, MI 48328 ("Greenhouse Lease"). On this same day, the Parties entered into a lease for the residential dwelling located at the same address. B. Tenant has made significant capital improvements to the Waterford Oaks Greenhouse Complex and is requesting a deferral of the rent owed under Greenhouse Lease through April 30, 2021. C. Landlord agrees to this deferral of rent pursuant to the teinis and conditions set forth below. D. In consideration of the mutual covenants and benefits contained herein, the Parties agree as follows: 14 AMENDMENT §1, Rent Deferral. Section 3.1 of the Greenhouse Lease is entirely deleted and replaced with the following section: 1.1. Tenant Monetary Obligations. Tenant shall pay Landlord the following rent on or before the first day of each month during the term of this Lease: Monthly Rent $ 750.00 $ 0 $ 0 $ 0 $ 0 $ 1,592.00 $1,624.00 $1,656.00 $1,489.00 $845.00 $862.00 $879.00 $896.00 Date Range October 1, 2017 — April 30, 2018 May 1,2018 - December 31, 2018 January I, 2019 — December 31, 2019 January I, 2020 —December 31, 2020 January 1, 2021 April 30, 2021 May 1, 2021 —December 31, 2021 January 1, 2022 —December 31, 2022 January 1, 2023 — December 31, 2023 January 1, 2024 — April 30, 2024 May 1, 2024— December 31, 2024 January 1, 2025 — December 31, 2025 January I, 2026 —December 31, 2026 January 1, 2027 — December 31, 2027 Continued on next page Page 1 of 3 i st Amendment 08-03-18 Draft if Lease is Extended: January 1, 2028 - December 31, 2028 January 1, 2029 - December 31, 2029 January 1, 2030 - December 31, 2030 January 1,2031 December 31, 2031 January 1, 2032- December 31, 2032 January 1,2033 - December 31, 2033 January 1, 2034 - December 31, 2034 January 1, 2035 - December 31, 2035 January 1, 2036 - December 31, 2036 January 1, 2037 - December 31, 2037 $914.00 $ 933.00 $ 951.00 $ 970.00 $ 990.00 $ 1,009.00 $1,030,00 $1,050.00 $1,071.00 $1,093.00 §2. Generator. Section 7,3 of the Greenhouse Lease is entirely deleted and replaced with the following section: "A Landlord-owned diesel generator is located on the Premises. Tenant may use the generator in its current condition. Tenant shall be responsible to provide and pay for the maintenance and repair of the generator and all costs associated therewith by the vendor of their choice, Tenant shall provide and pay for the diesel fuel to operate the generator. Landlord is not responsible to provide or pay for maintenance, repair, replacement, or fuel for the generator," §3. Utilities. Section 8.3 of the Greenhouse Lease is entirely deleted and replaced with the following section: "Tenant shall provide and pay for any utilities (electric, gas, sewer, and water) for the Premises it deems necessary for its use of the Premises. Within fourteen (14) calendar days of full execution of this 1 st Amendment, Tenant shall change all utility bills into its name and Landlord's name shall no longer be on any utility bills for the Premises." §4. Payment of Past Utilities. Within fourteen (14) calendar days of full execution of this 1st Amendment, Tenant shall pay Landlord all past due and current costs and charges associated with the utilities for the Premises, except for ten thousand dollars ($10,000.00). This remaining ten thousand dollar ($10,000.00) balance shall be paid to Landlord in twelve (12) equal monthly installments on the first calendar day of each month, beginning on the first calendar day of a month after this Amendment is fully executed. Notwithstanding any other provision of the Greenhouse Lease to the contrary, if Tenant does not pay such utility costs and charges as set forth herein, Landlord may immediately terminate the Greenhouse Lease. §5. Roof Repairs. In consideration of the rent deferment, Tenant shall make the following specific repairs to the greenhouse complexes located on the Premises: repair the roofs on greenhouses four (4) thru eight (8). In no event is Landlord obligated to reimburse Tenant for any costs associated with this repair. §6. Continuation of Agreement Terms and Conditions. All other terms and conditions of the Greenhouse Lease shall continue with full force and effect, except as specifically modified herein. Page 2 of 3 1 st Amendment 08-03-18 Draft §T Entire Agreement. The Greenhouse Lease and the 1 st Amendment constitute the entire agreement and understanding between Landlord and Tenant and supersede all other prior oral or written understandings, communications, or agreements between the Parties. THE COUNTY OF OAKLAND: IN WITNESS WIEEREOF, Michael J. Gingell acknowledges that he has been authorized to sign this Amendment. Michael J. Gingell, Chairperson, Date Oakland County Board of Commissioners WITNESS: By: Date OAKLAND URBAN GROWERS: IN WITNESS WHEREOF, acknowledges that she/he has been authorized to sign this Amendment By: Date WITNESS: By: Date Page 3 of 3 1st Amendment 08-0348 Draft Resolution #18333 September 27, 2018 The Chairperson referred the resolution to the Finance Committee. There were no objections.