HomeMy WebLinkAboutResolutions - 1996.05.09 - 24853MISCELLANEOUS RESOLUTION 1/96105
BY PLANNING & BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON
In RE COMMUNITY MENTAL HEALTH - SPECIALIZED RESIDENTIAL PROPERTY
LEASE AGREEMENT - ORION TOWNSHIP
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS
CHAIRPERSON, LADIES AND GENTLEMEN:
WHEREAS the Oakland County Community Mental Health Service Board presently
requires procurement of specialized residential properties leased by private owners to conduct the
provision of specialized mental health services to consumers in the community; and
WHEREAS a specialized residential lease agreement for a facility located at 870 East
Silverbell Road, Sidwell, Orion Township is being requested; and
WHEREAS this lease has been approved by the Oakland County Community Mental Health
Board and the lease negotiation authorization has been approved by the Planning & Building
Committee of Oakland County; and
WHEREAS the final lease, subject to provision of appropriate property title and signature
of the lessor prior to Board of Commissioners approval, has been negotiated between Oakland
County and bidders, Michael M. Grabowski and Stephen M. Wirt, doing business as Tusco a
Michigan Co-Partnership; and
WHEREAS the final lease has been reviewed by Corporation Counsel; and
WHEREAS the lease terms of five (5) years, expiration April 30, 2001, with an option to
renew for a second term have been included; and
WHEREAS the monthly lease payments of $1,970.00 and a total lease first term payment
sum of $118,200.00 are currently budgeted for Oakland County Community Mental Health and
require no further budget amendments;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes and accepts the attached lease agreement with Tusco for the Silverbell
property in Orion Township.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs
its chairperson to execute the lease agreement between the County of Oakland and Tusco•for a term
of five (5) years on behalf of the Oakland County Community Mental Health Board at the rates
herein stated.
Chairperson, on behalf of the Planning & Building Committee, I move the adoption of the
foregoing resolution
8==2)1%;:11TT E
silver2
SPECIALIZED RESIDENTIAL SERVICES
LEASE AGREEMENT
This SPECIALIZED RESIDENTIAL SERVICES LEASE AGREEMENT (hereafter this "Lease") is
made by and between Michael M. Grabowski, 405 Garfield Ave., Bay City, Michigan, 48708 and
Stephen M. Wirt, 909 Washington Ave., Bay City, Michigan, 48708, (doing business as TUSCO,
a Michigan Co-Partnership whose address is Century 21 - MREE, 405 Garfield, Bay City,
Michigan 48708), hereafter, jointly and severally, the "Landlord, and the County of Oakland, a
Michigan Municipal and Constitutional Corporation, by and through its agent, the Oakland
County Community Mental Health Services Board, whose address is 1200 N. Telegraph,
Pontiac, Mich. 48341, hereafter the "Tenant".
1 PREMISES
The Landlord is in the process of acquiring full legal title and ownership of a parcel, of
land located in the Township of Orion in Oakland County, Michigan (legally described as
Dunn Farms, Lot # 7) Liber 81, Page 19 of the Plats of the Oakland County records, of
which the common address is 870 E. Silverbell Rd., Sidwell #09-36-100-010 and upon
which there is an approximately 2260 square feet house plus garage which entire parcel
of land, the entire house and garage, and any and all other improvements, structures,
fixtures, and appurtenances thereto shall hereafter be referred to in its entirety as the
"Premises".
2 TERM(S) OF LEASE
2.1 Subject to the Landlords completion of all of the following express Landlord
obligations and/or conditions contained in Sections 2.1.1 through and including
Section 2,1.2 below, the initial term (hereafter the "First Term") of the Lease shall
commence and be effective beginning on the day that this Lease is executed and
notarized by and for the Tenant on the last page of this Lease, and shall end,
unless the Tenant exercises its Option for a "Second Term' or its Option to
Purchase, as herein described, at 11:59:59 P.M. on the 30th day of April, 2001.
2.1.1 Landlord agrees to complete any and all necessary acts to acquire
and obtain the fee simple and absolute ownership of the Premises,
except for any utility easements necessary to service the Premises,
and deliver to the Tenant a certified copy of a recorded deed for the
Premises from the current owner granting a fee simple interest in the
Premises to the Landlord and a title insurance policy from a Tenant
approved title insurer insuring Landlord's full and complete ownership
and enjoyment of the Premises except any utility easements
necessary to service the Premises.
2.1.2 Landlord agrees to undertake and complete any and all renovations,
modifications and repairs to the Premises, as provided for in this
Lease, within thirty calendar (30) days after the commencement and
effective date of this Lease. Landlord also agrees to provide Tenant
with a copy of an unconditional 'Certificate of Occupancy" for all
anticipated residential purposes from the local building authority at the
completion of any all renovations, modifications and repairs to the
Premises, as provided for in this Lease, within thirty calendar (30)
days after the commencement and effective date of this Lease.
2.1.3 The date upon which the Landlord completes the final Landlord
obligation and/or condition contained in Sections 2.1.1 through and
including Section 2.1.2, shall be hereafter defined and referred to as
the 'Occupancy Date". Notwithstanding any other term or condition in
this Lease, under no circumstances shall the Tenant be required to
pay to the Landlord any monthly Rent or any other amount to the
Landlord under this Lease, for any calendar month or any part of any
calendar month prior to the Occupancy Date.
2.1.4 In the event that the Landlord fails to complete any of the Landlord's
obligations and/or the conditions contained in Sections 2.1.1 through
and including Section 2.1.2 herein, on or before the expiration of the
time periods provided therein, the Tenant, in its sole discretion, shall
have the absolute right to either:
2.1.4.1 Cancel this Lease in its entirety, by sending a written
notice of same to the Landlord within thirty (30) calendar
after the expiration of the time allowed herein for the
Landlord to complete his obligations and/or the conditions
in Sections 2.1.1 through and including Section 2.1.2,
without incurring any penalty or obligation to pay any rent
or other amount of any kind to the Landlord, OR
2.1.4.2 Grant the Landlord an one additional period of time, not to
exceed an additional thirty (30) calendar days, to complete
all of the Landlord's obligations and/or the conditions in
Sections 2.1.1 through and including Section 2.1.2. If the
Landlord still cannot complete his obligations and/or the
conditions in Sections 2.1.1 through and including Section
2.1.2 on or before the end of this additional period of time
granted by the Tenant, then this Lease shall be deemed
canceled in its entirety without any further Tenant notice or
obligation to the Landlord of any kind.
2,2 The Landlord hereby grants to the Tenant 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 immediately upon such date and time as the First
Term ends, and shall, except as otherwise provided herein, continue without
interruption until 11:59:59 P.M. on April 30, 2006. Except for the amount of rent,
all remaining provisions of this Lease during the First Term shall continue without
modification during the Second Term. The Tenant shall notify the Landlord in
writing of its intention to exercise this option at least sixty (60) days before the
expiration of the First Term of this Lease.
2
3 RENT
3.1 Except as otherwise provided in this Lease, during the First Term of this Lease,
the Tenant shall pay to the Landlord the monthly total rent of ONE THOUSAND,
NINE HUNDRED, SEVENTY and 001100 ($1970.00) Dollars, for each and every
full calendar month that this Lease is in effect after the Occupancy Date, which
monthly amount shall be due and payable on or before the 1st day of each and
every forthcoming calendar month. Said rent shall be paid to the Landlord in
such place as the Landlord shall designate in writing.
3.2 Except as otherwise provided in this Lease, during any Second Term of this
Lease, the Tenant shall pay to the Landlord the monthly total rent of ONE
THOUSAND, NINE HUNDRED, SEVENTY and 00/100 ($1970.00) Dollars,
multiplied by the "CPI Fraction", as herein defined, (but in any event, not less
than $1970.00) for each and every full calendar month that this Lease is in effect
during any Second Term, which monthly amount shall be due and payable on or
before the 1st day of each and every forthcoming calendar month during any
Second Term of this Lease.
3.2.1 For the purposes of this Lease, the term 4CPI Fraction" shall mean a
fraction, the numerator of which is the Consumer Price Index, as
hereinafter defined, for the month of April. 2001, and the denominator
of which is the Consumer Price Index for the month of May, 1996.
The Landlord and Tenant agree that notwithstanding any change in
the actual CPI Fraction, or its calculation, as described herein, the
total monthly Rent to be Landlord during any Second Term of this
Lease, shall in no event be less than the $1970.00 amount payable to
the Landlord during the First Term of this Lease or a monthly amount
greater than Two Thousand, Sixty-Eight and 50/100 ($2068.50)
Dollars.
3.2.2 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 the Detroit North
Central Region for all Urban Consumers, or the comparable substitute
index in the event the Consumers Price Index is no longer published.
3.3 Should any term of this Lease commence or end 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.
3.4 It is hereby agreed that in the event the Tenant 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. Tenant may holdover for a period not to
exceed 120 days, and the monthly rent shall remain at $1970.00. All other terms
and conditions of this Lease shall remain in effect and without modification
during the holdover period
3
4 TENANT OPTION TO PURCHASE
Landlord also hereby grants to Tenant the right and option to purchase the Premises,
together with all improvements thereon, at any time during the First or Second Term of
this Lease for an amount to be either mutually agreed upon by the Landlord and the
Tenant, or as otherwise determined below, on the condition that Tenant give Landlord a
sixty (60) calendar day written notice of Tenant's intent to exercise of this option. In the
event that the Landlord and Tenant fail to agree on the purchase price, each of the
parties shall, at their own expense, engage a person who under state law is an
appropriately Certified and Licensed Real Estate Appraiser and either approved by the
American institute of Real Property Appraisers or a Senior member of the Society of
Residential Appraisers. These two (2) Appraisers in turn shall mutually select a third
appropriately Certified and Licensed Real Estate Appraiser, whose fees shall be borne
equally by both parties, and each of the three (3) Appraisers shall prepare a written
appraisal establishing the fair market value of the Premises. The purchase price shall be
the average of the fair market value of the three (3) appraisals. If the purchase price
established by the appraisals is not acceptable to Tenant, then Tenant shall terminate
its exercise of this option, shall reimburse Landlord for all reasonable appraisal costs the
Landlord incurred in connection with this Section, and shall continue to hold the
Premises as a Tenant until the expiration of any term of this Lease as provided for
herein. Any exercise or failure to exercise this option by Tenant at the end of the Term
of this Lease shall not prejudice, in any way, any other Tenant rights or options during
the Term of this Lease, in accordance with the provisions herein.
5 TAXES
5.1 Landlord shall be solely liable for and pay all state, county and local municipality
property taxes.
5.2 Beginning with the first calendar year following the commencement of this Lease
and every year thereafter, Tenant shall pay to Landlord any increase in property
taxes which exceed the amount incurred by Landlord for the calendar year in
which this Lease became effective. At the election of Tenant and upon
presentment to Tenant of a paid tax receipt, the Tenant 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 Landlord that any
decrease in property taxes below the amount incurred by Landlord for the base
year shall be passed on to the Tenant and prorated as a decrease in the monthly
Rent payment as otherwise provided for herein.
6 SUBORDINATION TO MORTGAGE
The Landlord reserves the right to subordinate this Lease to the lien of any mortgage or
mortgages now or hereafter placed upon the Landlord's interest in the said Premisses
including the land and buildings of which the said Premises are a part. The Tenant
covenants and understands that this Lease is and shall be subject and subordinate to
the lien of any current or future mortgage. Tenant agrees that this Section shall be self
operating and no instrument of subordination need be required by any mortgagee.
4
7 USE OF THE PREMISES
7.1 It is understood and agreed between Landlord and Tenant 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 Landlord.
7.2 It is further understood and agreed between Landlord and Tenant that at
Tenant's option and without requiring the written consent of Landlord, that
Tenant may either sublet the Premises to third parties who will provide on site
services to residents, or may contract with third parties for the provision of on
site services to residents.
8 EMINENT DOMAIN
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
Tenant 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 Landlord 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 Landlord shall not be entitled to any portion of the
award made to the Tenant for any losses it may have sustained.
9 COMPLIANCE WITH LAWS AND ORDINANCES
9.1 Landlord warrants that the Landlord 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 Tenant, throughout the
term of this Lease, as a Licensed Adult Foster Care Facility.
9.2 Landlord agrees that during the term of this Lease, or the term of any option(s)
exercised under this Lease, Landlord 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 Landlord shall be grounds for immediate termination
of this Lease.
10 REMODELING, MAINTENANCE, AND REPAIRS
10.1 Except as otherwise provided for in this Lease, the Landlord, prior to the
Occupancy Date, and at his sole cost and expense. agrees to complete the
remodelings, repairs, conditions, and/or improvements to the leased Premises:
5
10.1.1 Landlord agrees to attain a Certificate of Occupancy and electric
Certificate of Approval from the local building authority after
completing all remodeling work.
10.1.2 To repair, expand and otherwise ensure proper on-site sewage
disposal system is in place as per Department of Public Health
requirements for an approved DSS AFC licensed small group home.
The cost for this repair or improvement will be equally shared with the
Tenant, however, it will be the Tenant's responsibility to get the work
completed.
10.1.3 Install wolmanized wood handrails at the front and rear porch and
handrails at the basement steps as per Building Code requirements.
10.1.4 Install a proper temperature release valve at the existing hot water
heater as per mechanical code requirements.
10.1.5 Make corrections to laundry waste water piping as required per
mechanical code. (Currently drains into sump pit and lifts into septic
system which may not meet code requirements)
10.1.6 Any other remodeling as indicated by local building code inspector in
order to bring home into current compliance with all applicable
building codes for the intended purposes of this Lease.
10.2 Except as otherwise provided for in this Lease, the Landlord, at his sole cost and
expense, before the Occupancy Date or anytime thereafter during any Term of
this Lease, also agrees to install and/or furnish, repair or rep[ace-as-rrecessary
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 Tenant or Tenant's agent):
10.2.1 The furnace, with a capacity to maintain a temperature of 72 degrees
Fahrenheit, and a minimum 30% of relative humidity in winter.
10.2.2 Air conditioning system, if any.
10.2.3 Hot water heater servicing bathroom(s), kitchen and laundry area.
10.2.4 Electric service for lights and all other electrical equipment.
10.2.5 Sewer system, water system, water well and septic system where
required and pay all charges/fees.
10.2.6 Any equipment required by the Fire Inspector(s) for fire prevention
and safety as required for single-family residential rental dwellings
pursuant to state or local ordinances.
10.2.7 Outside lighting.
6
e"
al
-NA
10.2.8 Damage done by insects, rodents or other animals.
10.2.9 Damage done by nature or other causes to landscaping.
10.2.10 Items that affect the health, safety, and welfare of the occupants shall
be repaired or replaced immediately by the Landlord. If Landlord fails
to do so then Tenant may repair or replace those items immediately
and deduct the cost from the ensuing rent payments.
10.3 Except as otherwise provided for in this Lease, the Tenant, at his sole cost and
expense, agrees to complete the following remalelings, repairs, conditions,
and/or improvements to the leased Premises:
10.3.1 Those additional acts. beyond those responsibilities of the Landlord to
obtain and maintain a valid Certificate of Occupancy for the Premises,
which may necessary to assure compliance with those special
additional DSS AFC licensing requirements pertaining to the homes
physical plant under small group home rules.
10.3.2 Replace the existing dryer vent hose (plastic) with a metal type, non-
flammable vent hose.
10.3.3 Remove 6-8 sheets of wall paneling in the basement. (Class C finish
requirement).
10.3.4 To install a 1 3/4" thick, solid core door with HD closer and non-
locking vs. egress door hardware in place of the existing door to the
basement. Trim, stain and finish to match existing.
10.3.5 Repair main bath drywall ceiling after removing drop in ceiling panel.
Patch, finish, and paint ceiling to match existing.
10.3.6 Install GF1 grounded outlets at main bath, kitchen, laundry and
garage areas as per NEC requirements.
10.3.7 To replace all exterior door hardware with lever type, non-locking vs.
egress door hardware (keyed alike).
10.3.8 Install hard wired in-line smoke detector system with battery backup
at several locations for full coverage as per DMH certification
standards.
10.3.9 Install fire extinguishers (3) as required for fire safety purposes. One
in basement, one near kitchen area and one in bedroom corridor
area. Minimum 5 lb., 2A-10BC rating.
10.3.10 Install non-slip additive (Skid-Tek, e.g.) at outside porches, steps, etc.
7
10.3.11 Other remodeling as required by DSS, AFC licensing inspector,
subject to their review of the home and IDSS physical plant licensing
rules.
10.4 The Tenant 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,
Landlord shall pay for tree trimming and/or tree removal.
10.5 The Landlord, after receiving written notice from the Tenant 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 Tenant or Tenant 's agent(s). For
purposes of this Section, "Premises", as defined in this Lease, shall also include
the following; chimney, gutter, downspouts, porches, steps, decks, patio,
driveway, sidewalks, roof arid all walls of the Premises including the doors,
garage doors, garage door opener, door frames, 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 Landlord fails to do so, the Tenant may make the
necessary repairs and deduct the cost for the repairs from the next ensuing rent
payments. Tenant has the right to make emergency repairs and charge the cost
of the repairs to the Landlord, such charges not to exceed five hundred dollars
($500.00) per occurrence.
11 LANDLORD REMODELING TO COMPLY WITH REGULATORY REQUIREMENTS
Prior to and during any Term of this Lease, the Landlord agrees to comply fully
and be responsible for the cost of any renovations, improvements, repairs,
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 a d sir iyle-rcimily
residential dwelling or to comply with any Landlord maintenance obligation under
this Lease.
11.2 Landlord agrees to obtain and maintain continuously throughout any Term of this
Lease, and to provide Tenant with a copy of same upon request, a current
Certificate of Occupancy from the local building authority at the completion of
any Landlord renovations, improvements, repairs, structural changes or other
modifications to the Premises required under this Lease. If Landlord fails to
provide a Certificate of Occupancy then at Tenants sole discretion and option,
the Tenant, upon fifteen (15) calendar days written notice to the Landlord, may
cancel this Lease in its entirety, vacate the Premises, pursuant to Section 10.5,
exercise its right to make the necessary repairs and deduct the cost of the
repairs from the next month 's Rent, and/or abate the rental payments until
Landlord presents to Tenant the required Certificate of Occupancy.
11.1
8
11.3 Tenant 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.
11.4 The Tenant and the Landlord 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. Landlord further consents to Tenant 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.
11.5 The Tenant will contact Landlord for Landlord's written consent prior to
undertaking any non-regulatory alterations, additions, or improvements to said
Premises.
12 CONTINGENCY PROVISIONS
Landlord acknowledges and covenants that Landlord understands that this Lease is
contingent upon continued funding and licensing from the State of Michigan and in the
event that the future levels of State funding or State licensing is terminated or reduced
for any reason, and/or the continued operation of the Premises for a foster care facility
is not, in the sole discretion of the Tenant, feasible economically or due to regulatory
issues, Tenant perceived environmental hazards or concerns which may effect the
Premises, the Tenant at its sole option may cancel this Lease with thirty (30) days prior
written notice to Landlord. If this Lease is canceled pursuant to this provision then
Landlord assumes payments for any utilities, service charges or incidental expenses as
they become due and payable against the Premises immediately upon Tenant's
vacation of the Premises.
13 CONDITION OF PREMISES UPON SURRENDER BY TENANT
13.1 Tenant 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, inclusive of
any alterations made by Tenant with Landlord's consent during the course of and
prior to the termination of this Lease, reasonable use and wear and tear and
damage by the elements and casualty, including fire, excepted. To this end the
parties will conduct both a pre-move in inspection and an exit inspection, at
which times inventory checklists will be completed and used as a basis for
determining physical plant condition.
13.2 All alterations, additions or improvements made to the Premises by either
Landlord or Tenant (except fixtures common to a Licensed Adult Foster Care
Facility installed at the expense of the Tenant and which may be removed at the
sole option of Tenant), shall be the property of the Landlord 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 Tenant. Landlord will
9
accept all alterations made by Tenant with Landlord's consent during the course
of and up to the termination of this Lease.
14 ACCESS BY LANDLORD FOR INSPECTING. REPAIRING AND EMERGENCIEq
Tenant hereby acknowledges that during the term of this Lease the Landlord shall have
access to the Premises for the purposes of inspecting, repairing and/or maintaining said
Premises. If circumstances so require, Landlord may ask in writing for a set of keys from
Tenant, but 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.
Tenant shall allow Landlord access to the Premises in the event of an emergency and
Tenant agrees to provide Landlord with a written notice indicating the name(s),
address(s), and telephone number(s) of Tenants representative(s) who will provide
Landlord with access to the Premises in an emergency situation.
15 LANDLORD TO PROVIDE INSURANCE
15.1 Landlord agrees to carry liability insurance pertaining to the structure and
Premises located at 870 E. Silverbell Rd., Orion Township as well as, for
Landlord's operations, if any, connected to that Premises, in the amount of One
Million ($1,000,000.00) dollars per occurrence.
15.2 In the event of fire or other damage to the Premises the Parties, including agents
of Tenant or Landlord, any successor(s) to Landlord, and any Sublessee(s)
agree to mutually waive their rights of subrogation and recovery against each
other, their agents, their corporate officers, directors and employees. Landlord
agrees to submit to Tenant at the commencement of this Lease a written Waiver
of Subrogation from any insurance carrier, as well as Landlord's own written
Waiver of Subrogation. Landlord agrees to maintain casualty (property)
insurance on all risk of loss basis, with replacement basis coverage on the
building and personal property owned by the Landlord in the building. Landlord
agrees to obtain and maintain loss of rental income insurance for the full term of
this Lease. Landlord agrees to provide Tenant with a Certificate of Insurance for
rental, casualty and liability insurance. Tenant shall be named as a Certificate
holder on all policies and the Certificate shall provide thirty (30) days notice to
Tenant of material change or cancellation. All Certificates must be sent to Tenant
at the address herein stated.
16 DAMAGE OR DESTRUCTION BY FIRE OR OTHER CASUALTY
16.1 Tenant shall notify Landlord 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 Tenant's alterations) shall be repaired with due diligence by
and at the expense of Landlord to a condition substantially equivalent to that
which existed immediately prior to such damage. From the date that Landlord
receives actual notice of the occurrence of a casualty until the date on which
Landlord shall have substantially completed the repairs in accordance with the
provisions of this Section, Fixed Rent shall be abated in the proportion which the
10
area of the part of the Premises which is not usable by Tenant bears to the total
area of the Premises.
16.2 Anything in Section 16.1 not to the contrary, if (1) 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
(2) 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
Landlord or Tenant, 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 Tenant shall vacate the Premises and surrender
the same to Landlord in accordance with the applicable provisions of this Lease.
Notwithstanding any other term or condition in this Lease, the Tenant shall have
no obligation to pay the Landlord any Rent or any other amount during or for any
period in which the Premises shall be either unlicensable and/or uninhabitable for
any reason during any Term of this Lease.
16.3 Landlord shall not be liable for delays, of up to 90 calendar days, so occasioned
by adjustment of losses from insurance carriers so long as Landlord shall
proceed in good faith.
•17 DEFAULT
In the event of a default by either the Landlord or the Tenant, 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.
18 QUIET ENJOYMENT
The Landlord covenants that upon payment of all of the rents and performance of all the
covenants contained herein, the Tenant shall have and maintain quiet and peaceful
enjoyment of the Premises for the term of this Lease.
19 RIGHTS TO BE CUMULATIVE
Ills 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
Landlord shall not be construed as a waiver of a further breach of the same covenant or
condition.
20 ADDRESSES FOR WRITTEN NOTICE
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 Tenant is in writing addressed
to the Chairperson, Oakland County Board of Commissioners, County of Oakland, 1200
N. Telegraph Rd., Pontiac, Michigan 48341-0047 and deposited in the mail with postage
prepaid; and if such notice to the Landlord is necessary it shall be done in writing and
11
addressed to the Landlord at the following address 405 Garfield, Bay City, Mich. 48708
Landlord shall notify the Tenant within thirty (30) days of any change of address.
21 GOVERNING LAW
This Lease shall be interpreted under and governed by the laws of the State of
Michigan.
22 ASSIGNMENT OF LEASE
The Tenant shall have the right to assign this Lease to its successors and assigns with
Landlord's consent, which shall not be unreasonably withheld or delayed.
23 TAKING OF LANDLORD'S INTEREST BY EXECUTION
The Landlord 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, and at the sole discretion of the Tenant, this Lease
may be canceled by Tenant upon a 30 day written notice to Landlord.
24 MISCELLANEOUS
24.1 It is agreed that in this Lease the word "he" shall be used as synonymous with
the words "she", "it", "they", and the word "his" is synonymous with "her", "its",
and "their".
24.2 The covenants, conditions and agreements made and entered into by the Parties
hereto are declared binding on their respective heirs, successors,
representatives and assigns.
24.3 The Parties agree that there shall be no modification, rescission, waiver, release
or amendment of any provision of this Lease, except by an express written
amendment to this Lease signed for the Landlord and for the Tenant by the
same person, or his successors, who originally attested to this Lease below.
24.4 This Lease sets forth the entire agreement between the Parties concerning the
subject matter hereof. In entering into this Lease, the Parties acknowledge that
they have not relied upon any prior or contemporaneous agreement,
representation, warranty, or other statement by any Party and/or their agents
that are not expressly set forth in this Lease, and that any and all such possible,
perceived or prior agreements, representations, understandings, statements,
negotiations, understandings and undertakings, whether written or oral, in any
way concerning or related to the subject matter hereof are fully and completely
superseded by this Lease.
For and in consideration of the mutual assurances, promises, acknowledgments, warrants,
representations, and agreements set forth in this Lease, and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the undersigned
hereby execute this Lease on behalf of the Landlord and the Tenant, and by doing so legally
obligate and bind the Landlord and the Tenant to the terms and conditions of this Lease.
12
• Ifik---)ib":44.
FOR THE LANDLORD:
BY: BY:
Michael M. Grabowski, Partner,
TUSCO, a Michigan Co-Partnership
DATE:
Michael M. Grabowski appeared in person
before me on this date and executed this Lease
on behalf of himself and acting as a partner in
the partnership known as TUSCO, a Michigan
Co-Partnership and acknowledged to me under
oath that: Michael M. Grabowski has taken all
actions and secured any and all necessary
approvals and authorizations to fully and
completely obligate and bind the himself and his
partners as Landlord to the terms and
conditions of this Lease..
Subscribed and sworn to before me on the
day of ,1996.
Notary Public,
County, Michigan.
My Commission Expires:
Stephen M. Wirt, Partner,
TUSCO, a Michigan Co-Partnership
DATE:
Stephen M. Wirt appeared in person before me
on this date and executed this Lease on behalf
of himself and acting as a partner in the
partnership known as TUSCO, a Michigan Co-
Partnership and acknowledged to me under
oath that: Stephen M. Wit has taken all actions
and secured any and all necessary approvals
and authorizations to fully and completely
obligate and bind the himself and his partners
as Landlord to the terms and conditions of this
Lease.
Subscribed and sworn to before me on the
day of , 1996.
Notary Public,
County, Michigan.
My Commission Expires:
FOR THE COUNTY OF OAKLAND:
BY: DATE:
John McCulloch, Chairperson
Oakland County Board of Commissioners
John McCulloch, Chairperson, Oakland County Board of Commissioners appeared in person
before me on this date and executed this Lease on behalf of the County of Oakland and
acknowledged to me under oath that: John McCulloch has taken all actions and secured any
and all necessary approvals and authorizations to fully and completely obligate and bind the
Tenant to the terms and conditions of this Lease.
Subscribed and sworn to before me on the day of _____. 1996.
Notary Public, Oakland County, Michigan. My Commission Expires:
13
FISCAL NOTE (MSC. #96105)
BY: FINANCE AND PERSONNEL COMMITTEE - SUE ANN DOUGLAS ; CHAIRPERSON
LN RE: COMMUNITY MENTAL HEALTH - SPECIALIZED RESIDENTIAL PROPERTY LEASE
AGREEMENT - ORION TOWNSHIP, MISCELLANEOUS RESOLUTION #
To the Oakland County Board of Commissioners
Chairperson, Ladies, and Gentlemen:
Pursuant to Rule XII-F, the Finance and Personnel Committee has reviewed
Miscellaneous Resolution #96105 an finds:
1) This lease replaces an existing lease for residential property and
is currently budgeted.
2) Amendments to the Biennial Budget are not required.
//u9-z.-
FINANCE AND PERSONNEL COMMITTEE
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the
County of Oakland at Pontiac, Michigan this 9th day of ,May 1996,
Resolution #96105 May 9, 1996
Moved by Palmer supported by Obrecht the resolution be adopted,
AYES: Huntoon, Jacobs, Johnson, Kaczmar, Kingzett, Law, McCulloch,
McPherson, Moffitt, Obrecht, Palmer, Pernick, Powers, Quarles, Schmid, Taub,
Wolf, Amos, Crake, Devine, Dingeldey, Douglas, Garfield, Holbert. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
HEREBY
F
...-1011 ORE RESOLUTION -401 IPV
571M-1
L. Brooke Pa. son,1411..inty Executive — Date
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
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 May 9, 1996 with the original record
thereof now remaining in my office.
LynnID. Allen, County Clerk