HomeMy WebLinkAboutResolutions - 1995.11.09 - 24591ING AND BUILDING\COMMITTEE
MISCELLANEOUS RESOLUTION #95290 November 9, 1995
BY: PLANNING AND BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON
In RE: DEPARTMENT OF FACILITIES MANAGEMENT, REAL ESTATE SECTION
LEASE AGREEMENTS FOR BOARD OF COMMISSIONERS - COMMUNITY MENTAL
HEALTH SPECIALIZED RESIDENTIAL GROUP HOMES - WEST BLOOMFIELD TWP.
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS,
CHAIRPERSON, LADIES, AND GENTLEMEN:
WHEREAS, the Oakland County Community Mental Health Service Board
presently has many specialized Residential Lease Agreements for group homes, and
WHEREAS, two (2) specialized Residential Lease Agreements for group homes
located at Coach Lane and St. James Drive in West Bloomfield Township have
expired, and
WHEREAS, the Oakland County Community Mental Health Service Board is
desirous of continuing the operations of these leased group homes located with
the Judson Center, Inc., and
WHEREAS, Fair Market Rental Appraisals have been obtained on these
properties which support the award of a five percent (5%) increase in rental
rates over the previous five-year term of the expired leases, which would result
in annual rental rates of $11,844.00 for Coach Lane and $15,600.00 for St. James
Drive, West Bloomfield Township, and
WHEREAS, new leases have been negotiated with Judson Center based on the
model lease approved by Oakland County Corporation Counsel for a term of five (5)
years, and
WHEREAS, the Oakland County Community Mental Health Services desirous
of continuing the operation of these two (2) group homes for consumers with
developmental disabilities in the current locations, and
WHEREAS, the Oakland County Community Mental Health Service Board has
approved and recommends this lease agreement with Judson Center, Inc., and
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes and accepts these lease agreements with Judson Center,
Inc. at Coach Lane and St. James Drive in West Bloomfield Township.
PE IT FURTHER RESOLVED that the Oakland County Board of Commissioners
directs its chairperson to execute the lease agreements between the County of
Oakland and Judson Center, Inc. on behalf of its Community Mental Health Service
Board and Judson Center for a term of five (5) years for Coach Lane and St. James
Drive homes at the rates herein stated.
Chairperson, on behalf of the Planning and Building Committee, I move the
adoption of the foregoing resolution.
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SPECIALIZED RESIDENTIAL SERVICES LEASE AGREEMENT
BETWEEN
JUDSON CENTER, INC. and
COUNTY OF OAKLAND
This lease is made this First day of September 1995, by and between Judson
Center Inc.. the Lessor(s), whose address is 4410 W. Thirteen Mile Rd., Royal Oak,
Michigan 48072, hereinafter designated as the "Lessor", and the Oakland County
Community Mental Health Services Board by and through the County of Oakland, whose
address is 1200 N. Telegraph, Michigan, 48341, hereinafter designated as the "Lessee":
and
Whereas, the Lessor is the owner which holds good title to premises located in the
Township of West Bloomfield, Liber , Page of Oakland County records, of
which the common address is 7473 Coach Lane. West Bloomfield. Michigan, 48322,
hereinafter referred to as the "Premises"; and
Whereas, the Lessor and Lessee are desirous of entering into a lease for the entire
Premises, under the following terms and conditions:
1. Term of Lease
The term of the Lease shall be for five years and shall commence on the
First day of September, 1995, and end on the Thirty-first day of August,
2000. During the term of the Lease, the Lessee shall pay to the Lessor the
total sum of $ 59,220.00 (Fifty-nine Thousand Two Hundred Twenty Dollars
and no cents), payable in monthly installments of $ 987.00 (Nine Hundred
Eighty-seven Dollars and no cents) per month in advance of the First day
1.1
of each and every month, beginning with the First day of September, 1995.
Said rent shall be paid to the Lessor in such place as the Lessor shall
designate in writing.
1.2 Should the term of this Lease commence on a day other than the first day
of a calendar month, then the rental for such month and the last month of
the term hereof shall be prorated upon a daily basis based upon a thirty
(30) day calendar month.
1.3 It is hereby agreed that in the event the Lessee holds over after the
termination of this Lease, the tenancy shall be from month-to-month in the
absence of a written agreement to the contrary. Lessee may holdover for
a period not to exceed 120 days, and the monthly rent shall remain at
$987.00 (Nine Hundred Eighty-seven Dollars and no cents). All other terms
and conditions of this lease shall remain in effect and without modification
during the holdover period.
1.4 The Lessor hereby grants to the Lessee the option to extend this Lease for
an additional five (5) year period (hereinafter referred to as the "Second
Term"). The Second Term shall commence on such date as the Original
Term ends, and Lessee shall pay to Lessor the total sum of $ 59,220.00
(Fifty-nine Thousand Two Hundred Twenty Dollars and no cents) multiplied
by the CPI Fraction, as hereinafter defined, [but in any event, not less than
$ 59,220.00 (Fifty-nine Thousand Two Hundred Twenty Dollars and no
cents)] in equal consecutive monthly installments each equal to one-sixtieth
2
(1/60th) of such revised fixed rent, on or before the first day of each and
every month. All remaining provisions of the Original Term shall continue
without modification during the Second Term. The Lessee shall notify the
Lessor in writing of its intention to exercise this option at least sixty (60)
days before the expiration of the Original Term of this Lease.
1.5•For the purposes of this Lease, the term CPI Fraction shall mean a fraction,
the numerator of which is the Consumer Price Index, as hereinafter defined,
for the month of October, 2000, and the denominator of which is the
Consumer Price Index for the month of October 1995 provided, however,
that in no event shall the CPI be less than one (1) or more than one point
zero-five (1.05).
1.6 For the purposes of this Lease, the term Consumer Price Index shall mean
the revised Consumer Price Index of the Bureau of Labor Statistics, United
States Department of Labor, for Detroit-North Central Region for all Urban
Consumers, or any comparable substitute index in the event the Consumer
Price Index is no longer published.
2. Taxes
2.1 Lessor shall pay all state, county and local municipality property taxes.
2.2 Beginning with the first calendar year following the base year of this lease
and every year thereafter, Lessee shall pay to Lessor any increase in
property taxes which exceed the amount incurred by Lessor for the base
year. At the election of Lessee and upon presentment to Lessee of a paid
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tax receipt, the Lessee may pay any increase in property taxes in one lump
sum, or prorate the increase over a twelve (12) month period. It is also
agreed and understood by the Lessor that any decrease in property taxes
below the amount incurred by Lessor for the base year shall be passed on
to the Lessee and prorated as a decrease in the monthly payment.
3. Subordination to Mortgage
3.1 The Lessor reserves the right to subordinate this Lease to the lien of any
mortgage or mortgages now or hereafter placed upon the Lessor's interest
in the said Premises including the land and buildings of which the said
Premises are a part. The Lessee covenants and understands that this
lease is and shall be subject and subordinate to the lien of any current or
future mortgage. Lessee agrees that this section shall be self operating and
no further instrument of subordination need be required by any mortgagee.
4. Use of Premises
4.1 It is understood and agreed between Lessor and Lessee that during the
term of this lease the premises will be used by Community Mental Health
as a Licensed Adult Foster Care Facility and for no other purpose or
purposes without the written consent of Lessor.
4.2 It is further understood and agreed between Lessor and Lessee that at
Lessee's option and without requiring the written consent of Lessor, that
Lessee may either sublet the premises to third parties who will provide on
4
site services to residents, or may contract with third parties for the provision
of on site services to residents,
5. Eminent Domain
5.1 If the whole or any part of the Premises hereby leased shall be taken by
any public authority under the power of eminent domain, then the term of
the Lease of the portion of the premises taken shall cease from the date of
the possession of the part required for any public purpose, and the rent
shall be paid up to that day, and as of that day the Lessee shall have the
sole right and option to either cancel this lease and declare the same null
and void, or to continue in the possession of the remainder of the premises
under the terms herein provided; except that the rent shall be reduced in
proportion to the amount of the Premises taken. All damages awarded for
such taking shall belong to and be the property of the Lessor whether such
damages shall be awarded as compensation for diminution in value to the
leasehold or the fee of the Premises herein leased; provided, however, that
the Lessor shall not be entitled to any portion of the award made to the
Lessee for any losses it may have sustained.
6. Compliance with Laws and Ordinances
6.1 Lessor warrants that the Lessor holds good title to the Premises and further
warrants that there are no zoning, building code, or deed restrictions that
would interfere with the intended use of the Premises by the Lessee,
throughout the term of this Lease, as a Licensed Adult Foster Care Facility.
5
6.2 Lessor agrees that during the term of this lease, or the term of any option(s)
exercised under this lease, Lessor will comply with all rules, regulations and
laws now in effect or which may be enacted during the continuance of this
lease (whether civil or criminal), by State, Federal, or local governments,
and that a violation of this provision by Lessor shall be grounds for
immediate termination of this Lease Agreement.
7. Maintenance, Expenses and Repairs
7.1 The Lessee shall pay the following utilities, service charges and incidental
expenses charged against the Premises during the term of this lease:
electrical utility charges; replacement of bulbs for all light fixtures; cleaning
services and supplies; water; septic and sewer utility charges, if any,
including charges for pumping the septic system, annually if applicable; fuel
and/or utility charges for heat; insect and/or rodent control; rubbish removal;
grounds maintenance, e.g., grass cutting, leaf raking, litter removal and
snow and ice removal; however, Lessor shall pay for tree trimming and/or
tree removal.
7.2 The Lessor, after receiving written notice from the Lessee and having a
reasonable opportunity thereafter to obtain the necessary workmen, agrees
to keep the premises in good order and repair, except when damage is
caused by a resident of the facility or negligence of the Lessee or Lessee's
agent(s). For purposes of this section, "Premises" includes the following:
chimney, gutters, downspouts, porches, steps, decks, patio, driveway,
6
sidewalks, roof and all walls of the premises including the doors, garage
doors, garage door opener, door frames, window glass, windoW casing,
window frames, windows, or any of the appliances or appurtenances of said
doors and/or window casings, window frames and windows, or any
attachments thereto, or attachments to said building or Premises used in
connection therewith. If after receiving written notice and a reasonable
opportunity to repair the Premises as required Lessor fails to do so, the
Lessee may make the necessary repairs and deduct the cost for the repairs
from the next ensuing rent payments. Lessee has the right to make
emergency repairs and charge the cost of the repairs to the Lessor, such
charges not to exceed five hundred dollars ($500.00) per occurrence.
7.3 Lessor also agrees to install and/or furnish, repair or replace as necessary
and as required for the rental of single family residential dwellings pursuant
to state and local ordinances (except for repairs required when damage is
caused by a resident of the facility or negligence of the Lessee or Lessee's
agent): 1) the furnace, with a capacity to maintain a temperature of 72
degrees fahrenheit, and a minimum 30% of relative humidity in winter; 2) air
conditioning system, if any; 3) hot water heater servicing bathroom(s),
kitchen and laundry area; 4) electric service for lights and all other electrical
equipment; 5) sewer system, water system, water well and septic system
where required and pay all charges/fees, if any, for installation; 6) any
equipment required by the Fire inspector(s) for fire prevention and safety as
7
required for single-family residential rental dwellings pursuant to state or
local ordinances; 7) Outside lighting; 8) damage done by insects, rodents
or other animals, 9) damage done by nature or other causes to landscaping.
7.4 Items that affect the health, safety, and welfare of the occupants shall be
repaired or replaced immediately by the Lessor. If Lessor fails to do so then
Lessee may repair or replace those items immediately and deduct the cost
from the ensuing rent payments.
8. Remodeling to Comply with Regulatory Requirements
8.1 Lessor agrees to comply fully and be responsible for the cost of any
renovations, improvements, structural changes or other modifications
necessitated or required by local municipality, or state building and
construction code or other local or state regulations necessary to bring the
Premises into compliance as a single-family residential dwelling. Lessor
agrees to complete such changes or modifications within thirty (30) days of
the execution of this Lease. If Lessor fails to comply within the thirty (30)
day requirement, then Lessee shall have the right to quit the Premises upon
fifteen (15) days written notice, or exercise it's option under paragraph 9.3
of this Agreement. Lessor agrees to renovate the leased premises in
accordance with Attachment D.
8.2 Lessor agrees to provide Lessee with a current Certificate of Occupancy
from the local building authority at the completion of any work required
pursuant to Paragraph 9.2 of this Agreement, If Lessor fails to provide a
8
Certificate of Occupancy then at Lessees option it may exercise it's right to
quit the premises pursuant to Paragraph 9.2, or Lessee may abate the
rental payments until Lessor presents to Lessee the required Certificate of
Occupancy.
8.3 Lessee agrees to be fully responsible for any renovations, improvements,
structural changes or other modifications required to operate the Premises
as an Licensed Adult Foster Care Facility.
8.4 The Lessee and the Lessor agree to cooperate in order to expedite the
remodeling of the Premises to comply with any State, Federal or Local
regulations (including Building Codes), required of a Licensed Adult Foster
Care Facility. Lessor further consents to Lessee performing any
modifications or alterations to the premises in order to comply with any
State, Federal or local regulations, now in effect or which may be enacted,
for operation or licensing of a Licensed Adult Foster Care Facility.
8.5 The Lessee will contact Lessor for Lessors written consent prior to
undertaking any non-regulatory alterations, additions, or improvements to
said Premises.
9. Contingency Provisions
9.1 Lessor acknowledges and covenants that Lessor understands that this
lease is contingent upon continued funding and licensing from the State of
Michigan and in the event funding or licensing is terminated or reduced for
any reason, and the continued operation of the premises for a foster care
9
facility is not economically or regulatorily feasible, the Lessee at its sole
option may cancel this Lease with thirty (30) days prior written notice to
Lessor. If this Lease is canceled pursuant to this provision then Lessor
assumes payments for any utilities, service charges or incidental expenses
as they become due and payable against the premises immediately upon
Lessee's vacation of the premises.
10. Condition of Premises Upon Surrender By Lessee
10.1 Lessee further agrees that it will deliver up the Premises at the expiration
of the term of this Lease (or at any time during the term of this lease that
surrender of the premises becomes necessary) in like condition as when
taken, reasonable use and wear and tear and damage by the elements and
casualty, including fire, excepted.
10.2 All alterations, additions or improvements made to the premises by either
Lessor or Lessee (except fixtures common to a Licensed Adult Foster Care
Facility installed at the expense of the Lessee and which may be removed
at the sole option of Lessee), shall be the property of the Lessor and shall
remain upon and be surrendered with the Premises. All furniture and
household items shall remain the property of, and shall be removed by,
Lessee. Lessor agrees that upon surrender of the premises by Lessee,
Lessor will accept all alterations made by Lessee with Lessor's consent
during the course of and prior to the termination of this Lease.
10
11. Access by Lessor For Inspecting, Repairing and Emergencies
11.1 Lessee hereby acknowledges that during the term of this Lease the Lessor
shall have access to the Premises for the purposes of inspecting, repairing
and/or maintaining said Premises. If circumstances so require, Lessor may
ask in writing for a set of keys from Lessee, but Lessor agrees to use said
keys to access the Premises only during normal working hours or during
emergencies, and only to conduct necessary business in such a manner as
not to disrupt the usual and normal routine of the persons residing at the
Premises. Lessee shall allow Lessor access to the Premises in the event
of an emergency and Lessee agrees to provide Lessor with a written notice
indicating the name(s), address(s) and telephone number(s) of Lessee's
representative(s) who will provide Lessor with access to the Premises in an
emergency situation.
12. Insurance
12.1 Lessor agrees to carry liability insurance pertaining to the structure and
premises located at 7473 Coach Lane, West Bloomfield, Michigan, as well
as, for Lessor's operations connected to that premises, in the amount of
One Million ($1,000.000.00) dollars per occurrence Lessor understands that
Lessee is self-insured and will provide Lessor with a Certificate of Self-
Insurance, if necessary.
12.2 In the event of fire or other damage to the Premises the Parties, including
agents of Lessee or Lessor, any successor(s) to Lessor, and any
11
Sublessee(s) agree to mutually waive their rights of subrogation and
recovery against each other, their agents, their corporate officers, directors,
and employees. Lessor agrees to submit to Lessee at the coniinencemei
of this Lease a written Waiver of Subrogation from any insurance carrier, as
well as Lessor's own written Waiver of Subrogation. Lessor agrees to
maintain casualty (property) insurance on an all risk of loss basis, with
replacement basis coverage on the building and personal property owned
by the Lessor in the building. Lessor agrees to obtain and maintain loss of
rental income insurance for the full term of this Lease. Lessor agrees to
provide Lessee with a Certificate of Insurance for rental, casualty and
liability insurance. Lessee shall be named as a Certificate holder on all
policies and the certificate shall provide thirty (30) days notice to Lessee of
material change or cancellation. All Certificates must be sent to Lessee at
the address herein stated.
13. Damage or Destruction By Fire or Other Casualty
13.1 (a) Lessee shall notify Lessor of any damage to the Premises by fire or
other casualty. If the Premises shall be damaged by fire or other casualty,
the damage (including damage to Lessee's alterations) shall be repaired
with due diligence by and at the expense of Lessor to a condition
substantially equivalent to that which existed immediately prior to such
damage. From the date that Lessor receives actual notice of the
occurrence of a casualty until the date on which Lessor shall have
12
substantially completed the repairs in accordance with the provisions of this
Section, Fixed Rent shall be abated in the proportion which the area of the
part of the Premises which is not usable by Lessee bears to the total area
of the Premises.
(b) Anything in Subsection (a) of this Section 14.1 not to the contrary, if
(i) by reason of fire or other casualty the Premises are rendered
unlicensable pursuant to the requirements of the Michigan Adult Foster Care
Licensing act (P.A. 218 of 1979, as amended), or (ii) if the Building shall be
damaged by fire or other casualty to the extent of fifty (50%) percent or
more of its replacement costs, then at the option of either Lessor or Lessee,
and upon notice delivered to either party not more than thirty (30) days
following the damage, this Lease may be terminated. If an election to
terminate this Lease is exercised, then this lease shall expire upon the 30th
day after such notice is given and Lessee shall vacate the premises and
surrender the same to Lessor in accordance with the applicable provisions
of this Lease.
13.2 Lessor shall not be liable for delays occasioned by adjustment of losses
from insurance carriers so long as Lessor shall proceed in good faith.
14. Default
14.1 In the event of a default by either the Lessor or the Lessee, the Party
alleging the default shall mail to the other Party's last known address details
of the alleged default and allow thirty (30) days to correct same.
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15. Quiet Enjoyment
• 15.1 The Lessor covenants that upon payment of all of the rents and
performance of all the covenants contained herein, the Lessee shall have
and maintain quiet and peaceful enjoyment of the Premises for the term of
this Lease.
16. Rights to be Cumulative
16.1 It is agreed that each and every one of the rights, remedies and benefits
provided by this Lease shall be cumulative, and shall be exclusive of any
other said rights, remedies and benefits allowed by law. One or more
waivers of any covenant or condition by the Lessor shall not be construed
as a waiver of a further breach of the same covenant or condition.
17. Addresses for Written Notice
17.1 Whenever under this Lease a provision is made for notice of any kind it
shall be deemed sufficient notice and service thereof if such notice to the
Lessee is in writing addressed to the Community Mental Health Services
Board C/0 Oakland County at 1200 North Telegraph Road, Pontiac,
Michigan 48341-0047 and deposited in the mail with postage prepaid; and
if such notice to the Lessor is necessary it shall be done in writing and
addressed to the Lessor at the following address: 4410 W. Thirteen Mile
Rd., Royal Oak, Michigan 48072. Lessor shall notify the Lessee within thirty
(30) days of any change of address.
14
18. Governing Law
18.1 This Lease shall be interpreted under and governed by the laws of the State
of Michigan.
19. Assignment of Lease
19.1 The Lessee shall have the right to assign this lease agreement to its
successors and assigns with Lessor's consent, which shall not be
unreasonably withheld or delayed.
20. Taking of Lessor's Interest by Execution
20.1 The Lessor agrees that if the estate created hereby shall be taken in
execution, or by other process of law, or if the assignment shall be made
of the premises for the benefit of creditors, then and in such event this
Lease may be canceled by Lessee with a 30 day written notice to Lessor.
21. Miscellaneous
21.1 It is agreed that in this Lease the word "he" shall be used as synonymous
with the words "she", "it", and "they", and the word "his" is synonymous with
"her", "its", and "their'.
21.2 The covenants, conditions and agreements made and entered into by the
Parties hereto are declared binding on their respective heirs, successors,
representatives and assigns.
IN WITNESS WHEREOF, the Parties hereunto, through their respective agents, have set
their hands the day and year first above written, with full authorization to execute this
document.
15
WITNESSED BY:
JUDSON CENTER, INC., Lessor
By:
MOUNIR W. SHAROBEEM, President
Date :
IN WITNESS WHEREOF, LARRY P. CRAKE, Chairperson of the Oakland County Board
of Commissioners, on behalf of the COUNTY OF OAKLAND, a Michigan Constitutional
and Municipal Corporation, hereby accepts and binds the COUNTY OF OAKLAND to the
terms and conditions of this lease on this day of October, 1995.
COUNTY OF OAKLAND, a Michigan Consti-
WITNESSED BY: tutional and Municipal Corporation as LESSEE
By:
LARRY P. CRAKE, Chairperson
'itempfileljorirrsomInsleasels 2
16
SPECIALIZED RESIDENTIAL SERVICES LEASE AGREEMENT
BETWEEN
JUDSON CENTER, INC. and
COUNTY OF OAKLAND
This lease is made this First day of September 1995, by and between Judson
Center Inc.,. the Lessor(s), whose address is 4410 W. Thirteen Mile Rd., Royal Oak,
Michigan 48072, hereinafter designated as the "Lessor", and the Oakland County
Community Mental Health Services Board by and through the CimintvoMakland., whose
address is 1200 N. Telegraph, Michigan, 43341, hereinafter designated as the "Lessee";
and
Whereas, the Lessor is the owner which holds good title to premises located in the
Township of West Bloomfield, Liber , Page of Oakland County records, of
which the common address is 6110 St. James Dr.. West Bloomfield. Michigan. 48322,
hereinafter referred to as the "Premises"; and
Whereas, the Lessor and Lessee are desirous of entering into a lease for the entire
Premises, under the following terms and conditions:
1. Term of Lease
The term of the Lease shall be for five years and shall commence on the
First day of September, 1995, and end on the Thirty-first day of August,
2000. During the term of the Lease, the Lessee shall pay to the Lessor the
total sum of $ 78,000.00 (Seventy-eight Thousand Dollars and no cents),
payable in monthly installments of $1,300.00 (One-Thousand Three
1.1
Hundred Dollars and no cents) per month in advance of the First day of
each and every month, beginning with the First day of September, 1995.
Said rent shall be paid to the Lessor in such place as the Lessor shall
designate in writing.
1.2 Should the term of this Lease commence on a day other than the first day
of a calendar month, then the rental for such month and the last month of
the term hereof shall be prorated upon a daily basis based upon a thirty
(30) day calendar month.
1.3 It is hereby agreed that in the event the Lessee holds over after the
termination of this Lease, the tenancy shall be from month-to-month in the
absence of a written agreement to the contrary. Lessee may holdover for
a period not to exceed 120 days, and the monthly rent shall remain at
$1,300.00 (One-Thousand Three Hundred Dollars and no cents) All other
terms and conditions of this lease shall remain in effect and without
modification during the holdover period.
1.4 The Lessor hereby grants to the Lessee the option to extend this Lease for
an additional five (5) year period (hereinafter referred to as the "Second
Term"). The Second Term shall commence on such date as the Original
Term ends, and Lessee shall pay to Lessor the total sum of $ 78,000.00
(Seventy-eight Thousand Dollars and no cents) multiplied by the CPI
Fraction, as hereinafter defined, [but in any event, not less than $ 59,220.00
(Fifty-nine Thousand Two Hundred Twenty Dollars and no cents)] in equal
2
consecutive monthly installments each equal to one-sixtieth (1/60th) of such
revised fixed rent, on or before the first day of each and every month. All
remaining provisions of the Original Term shall continue without modification
during the Second Term. The Lessee shall notify the Lessor in writing of
its intention to exercise this option at least sixty (60) days before the
expiration of the Original Term of this Lease.
1.5 For the purposes of this Lease, the term CPI Fraction shall mean a fraction,
the numerator of which is the Consumer Price Index, as hereinafter defined,
for the month of October, 2000, and the denominator of which is the
Consumer Price Index for the month of October 1995 provided, however,
that in no event shall the CPI be less than one (1) or more than one point
zero-five (1.05).
1.6 For the purposes of this Lease, the term Consumer Price Index shall mean
the revised Consumer Price Index of the Bureau of Labor Statistics, United
States Department of Labor, for Detroit-North Central Region for all Urban
Consumers, or any comparable substitute index in the event the Consumer
Price Index is no longer published.
2. Taxes
2.1 Lessor shall pay all state, county and local municipality property taxes.
2.2 Beginning with the first calendar year following the base year of this lease
and every year thereafter, Lessee shall pay to Lessor any increase in
property taxes which exceed the amount incurred by Lessor for the base
3
year, At the election of Lessee and upon presentment to Lessee of a paid
tax receipt, the Lessee may pay any increase in property taxes in one lump
sum, or prorate the increase over a twelve (12) month period. It is also
agreed and understood by the Lessor that any decrease in property taxes
below the amount incurred by Lessor for the base year shall be passed on
to the Lessee and prorated as a decrease in the monthly payment.
3. Subordination to Mortgage
3.1 The Lessor reserves the right to subordinate this Lease to the lien of any
mortgage or mortgages now or hereafter placed upon the Lessor's interest
in the said Premises including the land and buildings of which the said
Premises are a part. The Lessee covenants and understands that this
lease is and shall be subject and subordinate to the lien of any current or
future mortgage. Lessee agrees that this section shall be self operating and
no further instrument of subordination need be required by any mortgagee.
4. Use of Premises
4.1 It is understood and agreed between Lessor and Lessee that during the
term of this lease the premises will be used by Community Mental Health
as a Licensed Adult Foster Care Facility and for no other purpose or
purposes without the written consent of Lessor.
4.2 It is further understood and agreed between Lessor and Lessee that at
Lessee's option and without requiring the written consent of Lessor, that
Lessee may either sublet the premises to third parties who will provide on
4
site services to residents, or may contract with third parties for the provision
of on site services to residents.
5. Eminent Domain
5.1 If the whole or any part of the Premises hereby leased shall be taken by
any public authority under the power of eminent domain, then the term of
the Lease of the portion of the premises taken shall cease from the date Of
the possession of the part required for any public purpose, and the rent
shall be paid up to that day, and as of that day the Lessee shall have the
sole right and option to either cancel this lease and declare the same null
and void, or to continue in the possession of the remainder of the premises
under the terms herein provided; except that the rent shall be reduced in
proportion to the amount of the Premises taken. All damages awarded for
such taking shall belong to and be the property of the Lessor whether such
damages shall be awarded as compensation for diminution in value to the
leasehold or the fee of the Premises herein leased; provided, however, that
the Lessor shall not be entitled to any portion of the award made to the
Lessee for any losses it may have sustained.
6. Compliance with Laws and Ordinances
6,1 Lessor warrants that the Lessor holds good title to the Premises and further
warrants that there are no zoning, building code, or deed restrictions that
would interfere with the intended use of the Premises by the Lessee,
throughout the term of this Lease, as a Licensed Adult Foster Care Facility.
5
6.2 Lessor agrees that during the term of this lease, or the term of any option(s)
exercised under this lease, Lessor will comply with all rules, regulations and
laws now in effect or which may be enacted during the continuance of this
lease (whether civil or criminal), by State, Federal, or local governments,
and that a violation of this provision by Lessor shall be grounds for
immediate termination of this Lease Agreement.
7. Maintenance, Expenses and Repairs
7.1 The Lessee shall pay the following utilities, service charges and incidental
expenses charged against the Premises during the term of this lease:
electrical utility charges; replacement of bulbs for all light fixtures; cleaning
services and supplies; water; septic and sewer utility charges, if any,
including charges for pumping the septic system, annually if applicable; fuel
and/or utility charges for heat; insect and/or rodent control; rubbish removal;
grounds maintenance, e.g., grass cutting, leaf raking, litter removal and
snow and ice removal; however, Lessor shall pay for tree trimming and/or
tree removal.
7.2 The Lessor, after receiving written notice from the Lessee and having a
reasonable opportunity thereafter to obtain the necessary workmen, agrees
to keep the premises in good order and repair, except when damage is
caused by a resident of the facility or negligence of the Lessee or Lessee's
agent(s). For purposes of this section, "Premises" includes the following:
chimney, gutters, downspouts, porches, steps, decks, patio, driveway,
6
sidewalks, roof and all walls of the premises including the doors, garage
doors, garage door opener, door frames, window glass, window casing,
window frames, windows, or any of the appliances or appurtenances of said
doors and/or window casings, window frames and windows, or any
attachments thereto, or attachments to said building or Premises used in
connection therewith. If after receiving written notice and a reasonable
opportunity to repair the Premises as required Lessor fails to do so. the
Lessee may make the necessary repairs and deduct the cost for the repairs
from the next ensuing rent payments. Lessee has the right to make
emergency repairs and charge the cost of the repairs to the Lessor, such
charges not to exceed five hundred dollars ($500.00) per occurrence.
7.3 Lessor also agrees to install and/or furnish, repair or replace as necessary
and as required for the rental of single family residential dwellings pursuant
to state and local ordinances (except for repairs required when damage is
caused by a resident of the facility or negligence of the Lessee or Lessee's
agent): 1) the furnace, with a capacity to maintain a temperature of 72
degrees fahrenheit, and a minimum 30% of relative humidity in winter; 2) air
conditioning system, if any; 3) hot water heater servicing bathroom(s),
kitchen and laundry area: 4) electric service for lights and all other electrical
equipment; 5) sewer system, water system, water well and septic system
where required and pay all charges/fees, if any, for installation; 6) any
equipment required by the Fire Inspector(s) for fire prevention and safety as
7
•
required for single-family residential rental dwellings pursuant to state or
local ordinances; 7) Outside lighting; 8) damage done by insects, rodents
or other animals, 9) damage done by nature or other causes to landscaping.
7.4 Items that affect the health, safety, and welfare of the occupants shall be
repaired or replaced immediately by the Lessor. If Lessor fails to do so then
Lessee may repair or replace those items immediately and deduct the cost
from the ensuing rent payments.
8. Remodeling to Comply with Regulatory Requirements
8.1 Lessor agrees to comply fully and be responsible for the cost of any
renovations, improvements, structural changes or other modifications
necessitated or required by local municipality, or state building and
construction code or other local or state regulations necessary to bring the
Premises into compliance as a single-family residential dwelling. Lessor
agrees to complete such changes or modifications within thirty (30) days of
the execution of this Lease. If Lessor fails to comply within the thirty (30)
day requirement, then Lessee shall have the right to quit the Premises upon
fifteen (15) days written notice, or exercise it's option under paragraph 9.3
of this Agreement. Lessor agrees to renovate the leased premises in
accordance with Attachment D.
8,2 Lessor agrees to provide Lessee with a current Certificate of Occupancy
from the local building authority at the completion of any work required
pursuant to Paragraph 9.2 of this Agreement. If Lessor fails to provide a
8
Certificate of Occupancy then at Lessees option it may exercise it's right to
quit the premises pursuant to Paragraph 9.2, or Lessee may abate the
rental payments until Lessor presents to Lessee the required Certificate of
Occupancy.
8.3 Lessee agrees to be fully responsible for any renovations, improvements,
structural changes or other modifications required to operate the Premises
as an Licensed Adult Foster Care Facility.
8.4 The Lessee and the Lessor agree to cooperate in order to expedite the
remodeling of the Premises to comply with any State, Federal or Local
regulations (including Building Codes), required of a Licensed Adult Foster
Care Facility. Lessor further consents to Lessee performing any
modifications or alterations to the premises in order to comply with any
State, Federal or local regulations, now in effect or which may be enacted,
for operation or licensing of a Licensed Adult Foster Care Facility.
8.5 The Lessee will contact Lessor for Lessor's written consent prior to
undertaking any non-regulatoiy alterations, additions, or improvements to
said Premises.
9. Contingency Provisions
9.1 Lessor acknowledges and covenants that Lessor understands that this
lease is contingent upon continued funding and licensing from the State of
Michigan and in the event funding or licensing is terminated or reduced for
any reason, and the continued operation of the premises for a foster care
9
facility is not economically or regulatorily feasible, the Lessee at its sole
option may cancel this Lease with thirty (30) days prior written notice to
Lessor. If this Lease is canceled pursuant to this provision then Lessor
assumes payments for any utilities, service charges or incidental expenses
as they become due and payable against the premises immediately upon
Lessee's vacation of the premises.
10. Condition of Premises Upon Surrender By Lessee
10.1 Lessee further agrees that it will deliver up the Premises at the expiration
of the term of this Lease (or at any time during the term of this lease that
surrender of the premises becomes necessary) in like condition as when
taken, reasonable use and wear and tear and damage by the elements and
casualty, including fire, excepted.
10.2 All alterations, additions or improvements made to the premises by either
Lessor or Lessee (except fixtures common to a Licensed Adult Foster Care
Facility installed at the expense of the Lessee and which may be removed
at the sole option of Lessee), shall be the property of the Lessor and shall
remain upon and be surrendered with the Premises. All furniture and
household items shall remain the property of, and shall be removed by,
Lessee. Lessor agrees that upon surrender of the premises by Lessee,
Lessor will accept all alterations made by Lessee with Lessor's consent
during the course of and prior to the termination of this Lease.
10
11. Access by Lessor For Inspecting, Repairing and Emergencies
11.1 Lessee hereby acknowledges that during the term of this Lease the Lessor
shall have access to the Premises for the purposes of inspecting, repairing
and/or maintaining said Premises. if circumstances so require, Lessor may
ask in writing for a set of keys from Lessee, but Lessor agrees to use said
keys to access the Premises only during normal working hours or during
emergencies, and only to conduct necessary business in such a manner as
not to disrupt the usual and normal routine of the persons residing at the
Premises. Lessee shall allow Lessor access to the Premises in the event
of an emergency and Lessee agrees to provide Lessor with a written notice
indicating the name(s), address(s) and telephone number(s) of Lessee's
representative(s) who will provide Lessor with access to the Premises in an
emergency situation.
12. Insurance
12.1 Lessor agrees to carry liability insurance pertaining to the structure and
premises located at 6110 St. James Dr, West Bloomfield, Michigan, as well
as, for Lessor's operations connected to that premises, in the amount of
One Million ($1,000,000.00) dollars per occurrence Lessor understands that
Lessee is self-insured and will provide Lessor with a Certificate of Self-
Insurance, if necessary.
12.2 In the event of fire or other damage to the Premises the Parties, including
agents of Lessee or Lessor, any successor(s) to Lessor, and any
11
S 1,
Sublessee(s) agree to mutually waive their rights of subrogation and
recovery against each other, their agents, their corporate officers, directors,
and employees. Lessor agrees to submit to Lessee at the commencement
of this Lease a written Waiver of Subrogation from any insurance carrier, as
well as Lessor's own written Waiver of Subrogation. Lessor agrees to
maintain casualty (property) insurance on an all risk of loss basis, with
replacement basis coverage on the building and personal property owned
by the Lessor in the building. Lessor agrees to obtain and maintain loss of
rental income insurance for the full term of this Lease. Lessor agrees to
provide Lessee with a Certificate of Insurance for rental, casualty and
liability insurance. Lessee shall be named as a Certificate holder on all
policies and the certificate shall provide thirty (30) days notice to Lessee of
material change or cancellation. All Certificates must be sent to Lessee at
the address herein stated.
13. Damage or Destruction By Fire or Other Casualty
13.1 (a) Lessee shall notify Lessor of any damage to the Premises by fire or
other casualty. If the Premises shall be damaged by fire or other casualty,
the damage (including damage to Lessee's alterations) shall be repaired
with due diligence by and at the expense of Lessor to a condition
substantially equivalent to that which existed immediately prior to such
damage. From the date that Lessor receives actual notice of the
occurrence of a casualty until the date on which Lessor shall have
12
• a 4 • •
•
substantially completed the repairs in accordance with the provisions of this
Section, Fixed Rent shall be abated in the proportion which the area of the
part of the Premises which is not usable by Lessee bears to the total area
of the Premises.
(b) Anything in Subsection (a) of this Section 14.1 not to the contrary, if
(i) by reason of fire or other casualty the Premises are rendered
unlicensable pursuant to the requirements of the Michigan Adult Foster Care
Licensing act (P.A. 218 of 1979, as amended), or (ii) if the Building shall be
damaged by fire or other casualty to the extent of fifty (50%) percent or
more of its replacement costs, then at the option of either Lessor or Lessee,
and upon notice delivered to either party not more than thirty (30) days
following the damage, this Lease may be terminated. If an election to
terminate this Lease is exercised, then this lease shall expire upon the 30th
day after such notice is given and Lessee shall vacate the premises and
surrender the same to Lessor in accordance with the applicable provisions
of this Lease.
13.2 Lessor shall not be liable for delays occasioned by adjustment of losses
from insurance carriers so long as Lessor shall proceed in good faith.
14. Default
14.1 In the event of a default by either the Lessor or the Lessee, the Party
alleging the default shall mail to the other Party's last known address details
of the alleged default and allow thirty (30) days to correct same.
13
0
15. Quiet Enjoyment
15.1 The Lessor covenants that upon payment of all of the rents and
performance of all the covenants contained herein, the Lessee shall have
and maintain quiet and peaceful enjoyment of the Premises for the term of
this Lease.
16. Rights to be Cumulative
16.1 It is agreed that each and every one of the rights, remedies and benefits
provided by this Lease shall be cumulative, and shall be exclusive of any
other said rights, remedies and benefits allowed by law. One or more
waivers of any covenant or condition by the Lessor shall not be construed
as a waiver of a further breach of the same covenant or condition.
17. Addresses for Written Notice
17.1 Whenever under this Lease a provision is made for notice of any kind it
shall be deemed sufficient notice and service thereof if such notice to the
Lessee is in writing addressed to the Community Mental Health Services
Board C/O Oakland County at 1200 North Telegraph Road, Pontiac,
Michigan 48341-0047 and deposited in the mail with postage prepaid; and
if such notice to the Lessor is necessary it shall be done in writing and
addressed to the Lessor at the following address: 4410 W. Thirteen Mile
Rd., Royal Oak, Michigan 48072. Lessor shall notify the Lessee within thirty
(30) days of any change of address.
14
18. Governing Law
18.1 This Lease shall be interpreted under and governed by the laws of the State
of Michigan.
19. Assignment of Lease
19.1 The Lessee shall have the right to assign this lease agreement to its
successors and assigns with Lessor's consent, which shall not be
unreasonably withheld or delayed.
20. Taking of Lessor's Interest by Execution
20.1 The Lessor agrees that if the estate created hereby shall be taken in
execution, or by other process of law, or if the assignment shall be made
of the premises for the benefit of creditors, then and in such event this
Lease may be canceled by Lessee with a 30 day written notice to Lessor.
21. Miscellaneous
21.1 It is agreed that in this Lease the word "he" shall be used as synonymous
with the words "she", "it", and "they", and the word "his" is synonymous with
"her", "its", and "their".
21.2 The covenants, conditions and agreements made and entered into by the
Parties hereto are declared binding on their respective heirs, successors,
representatives and assigns.
IN WITNESS WHEREOF, the Parties hereunto, through their respective agents, have set
their hands the day and year first above written, with full authorization to execute this
document.
15
JUDSON CENTER, INC., Lessor
WITNESSED BY: By:
MOUNIR W. SHAROBEEM, President
Date :
IN WITNESS WHEREOF, LARRY P. CRAKE, Chairperson of the Oakland County Board
of Commissioners, on behalf of the COUNTY OF OAKLAND, a Michigan Constitutional
and Municipal Corporation, hereby accepts and binds the COUNTY OF OAKLAND to the
terms and conditions of this lease on this day of October, 1995.
COUNTY OF OAKLAND, a Michigan Consti-
WITNESSED BY: tutional and Municipal Corporation as LESSEE
By:
LARRY P. CRAKE, Chairperson
r itemptile'vonlunnSieasegs 2
16
FIN (4477Z— E AND PER SONNEL COMMITTEE A/4DER
• Or -• 4
NOVEMBER 9, 1995
FISCAL NOTE (Misc. # 95290 )
BY: FINANCE AN PERSONNEL COMMITTEE, John P. McCulloch, Chairperson
IN RE: FACILITIES MANAGEMENT, REAL ESTATE SECTION
LEASE AGREEMENT FOR BOARD OF COMMISSIONERS - COMMUNITY MENTAL' HEALTH
SPECIALIZED RESIDENTIAL GROUP HOMES - NEST BLOOMFIELD IMP.
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-G of this Board, the Finance and Personnel Committee has
reviewed Miscellaneous Resolution # 9529Q and finds:
1) The resolution requests authorization and acceptance of two specialized
Residential Lease Agreements for group homes located at Coach Lane and St.
James Drive in West Bloomfield Township.
2) The agreement, with Judson Center, Inc., is for a period of five years,
September 1, 1995 through August 31, 2000, at an annual rate of $11,844 for
Coach Lane and $15,600 for St. James Drive.
3) This cost has been incorporated in the 1995-1996 Community Mental Health
State Spending Plan.
#
Resolution #95290 Nbvember 9, 1995
Moved by Palmer supported by Taub the resolution be adopted.
AYES: Pernick, Powers, Quarles, Schmid, Taub, Wolf, hum, Crake, Devine, Dingeldey,
Douglas, Garfield, Holbert, liUntoon, Jacobs, Johnson, Eaczmar, Yingzett, MCCUlloch, McPherson,
Moffitt, Obrecht, Palmer. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
FOREGOING RESOLUTION
/1
eculive Date
STATE OF MICHIGAN)
COUNTY OF OAKLAND;
I, Lynn D. Allen, 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 November 9, 1995 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 9th day qhf Novemberr.,1995.
illyrip?". Allen, County Clerk
