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HomeMy WebLinkAboutResolutions - 1998.12.10 - 25331December 10, 1998 Miscellaneous Resolution # 98323 BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - ROCHESTER HILLS 52-3 DISTRICT COURT, 135 BARCLAY CIRCLE, ROCHESTER HILLS, LEASE RENEWAL TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, the County of Oakland is the control unit for the 52-3 District Court; and WHEREAS, the 52-3 District Court is presently leasing a facility located in the City of Rochester Hills, identified as 135 Barclay Circle, Rochester Hills, Michigan; and WHEREAS, the said lease is to expire on December 31, 1998; and WHEREAS, said lease for 15,685 square feet is between Yorkshire International, a Michigan Co-Partnership (Landlord) and the County of Oakland, a Michigan Constitutional Corporation (Tenant); and WHEREAS, the County of Oakland and Yorkshire International have agreed to a new lease agreement for a period of three (3) years at a rate of $19.40 per square foot per year; and WHEREAS, the Department of Facilities Management along with Corporation Counsel has reviewed all the necessary agreements and documents; and WHEREAS, the County Executive recommends this new lease agreement between Yorkshire International and the County of Oakland for a period of three (3) years at a rate of $19.40 for 15,685 square feet. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the new lease agreement at 135 Barclay Circle, Rochester Hills, between Yorkshire International and the County of Oakland for a period of three (3) years. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chairperson to execute the lease Agreement at 135 Barclay Circle, Rochester Hills, Michigan, between Yorkshire International and the County of Oakland. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNINgAND BUILDING_COMMITTEE Planning_and Building Committee Vote: Motion carried unanimously on a roll call vote with Huntoon and Johnson absent. DEA.SE This Lease is made and entered into as of this day of , 1998, by and between YORKSHIRE INTERNATIONAL, LLP, whose address is 1853 Rochester Industrial Court, Rochester Hills, Michigan 48309 (hereinafter referred to as "LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, whose address is 1200 North Telegraph Road, Pontiac, Michigan 48341 (hereinafter referred to as "TENANT"). 1. Leased Premises. LANDLORD, in consideration of the rent to be paid and the covenants to be performed by TENANT, does hereby lease unto TENANT, and TENANT hereby rents from LANDLORD for use as a courthousesfacility for the 52/3 District Court, those certain premises at 135 Barclay Circle, Rochester Hills, Michigan, containing approximately 15,685 square feet of space (hereinafter referred to as the "Premises"). 2. Term. The term of this Lease shall commence upon January 1, 1998 and shall end on the date three (3) years after such commencement date (hereinafter referred to as the rem"), or shall terminate during the third year with 150 days written notice to quit without penalty. This lease may be renewed by means of a new written agreement, upon such terms and conditions as then may be agreed upon by the Landlord and Tenant. 3. Rent. From the commencement date of this Lease until the date three(3) years after such commencement date, TENANT agrees to pay to LANDLORD, as fixed annual rent hereunder, Three Hundred Four Thousand, Two Hundred Eighty Nine Dollars and 00/100 ($304,289.00) per year (based on the approximate rate of Nineteen Dollars and 40/100 ($19.40) per net square foot per year), which sum shall be payable by TENANT to LANDLORD in equal consecutive monthly installments of Twenty-Five Thousand Three Hundred Fifty Seven Dollars and 00/100 ($25,357.00), on or before the first day of each month, in advance, without any prior demand therefor and without any deductions or set-offs whatsoever. 4. Partial Month Rent Proration. 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. 5. Ownership. LANDLORD warrants that it will remain the sole owner of the Premises at all times during the TENANT'S occupancy of the Premises, and shall not transfer ownership of same, without the consent of the County Executive and the Chairman of the Oakland County Board of Commissioners, which shall not be unreasonably withheld. Rochester District Court Lease December 1, 1998 1 6. Place of Payment. Payments due under this Lease from TENANT to LANDLORD shall be paid at the address of LANDLORD set forth above, or at such other place as LANDLORD may designate in writing. 7. /folding Over. In the event TENANT holds over after the expiration of the Original Term of this Lease without a written agreement between LANDLORD and TENANT to further extend the term of the Lease, the same shall be construed to be a tenancy from month- to-month on the same terms and conditions herein specified, so far as applicable, except that the monthly rent to be paid by TENANT to LANDLORD shall be equal to the current lease rate plus 120% of the current lease rate. 8. xikension of Term. If TENANT desires to continue to lease the Premises after the expiration of the Term of this Lease, TENANT shall give LANDLORD written notice of such desire at least six (6) months prior to the expiration of the Term of this Lease; provided, however, that any such further extension of the term of this Lease shall be upon terms and conditions then acceptable to LANDLORD in its sole discretion. 9. Use and Occupancy. The Premises shall be used during any term of this Lease only as the 52/3 District Court for the State of Michigan. The Premises shall not be used in violation of any law, municipal ordinance of regulation. 10. Equipment and Furnishinga. TENANT shall provide, at its own expense, all telephone systems, furniture and equipment it deems necessary in connection with its use and occupancy of the Premises. TENANT shall be solely responsible for the maintenance and repair of all such property at its own expense. 11. Care of Premises. TENANT shall keep the Premises in good repair, wear and tear from reasonable use and damage by the elements excepted. LANDLORD agrees to: (a) either recarpet or clean the existing carpet and (b) repaint the existing painted interior walls as needed and mutually agreed upon. 12. compliance with Law. LANDLORD agrees, at its own expense, to promptly comply with all applicable federal, state and municipal laws and regulations affecting the Premises, including any barrier-free requirements. If LANDLORD fails to comply with such laws and regulations, TENANT may give LANDLORD written notice of its intent to quit the Premises upon the date one hundred fifty (150) days after LANDLORD'S receipt of such notice in the event LANDLORD does not comply with such laws and regulations within such one hundred fifty(150) day period. If LANDLORD complies with such laws and regulations within such one hundred fifty(150) day period, TENANT shall not have the right to quit the Premises. Rochester District Court Lease December 1, 1998 2 13. Destruction of Premises. In the event the Premises are partially or totally damaged or destroyed by fire or other casualty, the damage to the Premises shall be promptly repaired or rebuilt by LANDLORD, unless LANDLORD shall elect not to rebuild as hereinafter provided, and the rent payable by TENANT hereunder shall be reduced in proportion to the fraction of the Premises rendered untenantable until the Premises are repaired or rebuilt. In no event shall LANDLORD be required to repair or replace any property of TENANT. In the event the Premises cannot be repaired or rebuilt within one hundred eighty (180) days after such destruction, TENANT shall have the right to terminate this Lease and vacate the Premises upon written notice to LANDLORD after the expiration of such one hundred eighty (180) day period. If more than thirty-five percent (35 90 of the Premises are damaged or destroyed bye such casualties as aforesaid, LANDLORD may elect to either repair or rebuild the Premises or to terminate this Lease by giving written notice thereof to TENANT within ninety (90) days after the occurrence of such damage or destruction. 14. Insurance. LANDLORD shall provide and maintain the following coverages: a. $1,000,000 combined Single Limit Commercial General Liability with a $1,000,000 annual aggregate. The policy will be equivalent to ISO form CG00010196 with endorsements and/or the following coverages as minimums: - Products and completed operations - Broad form property damage - Premises/Operations - Independent contractors (Blanket)Broad form contractual - Personal injury - Exclusions CG2142 and CG2143 will not apply - Additional Insureds-The County of Oakland, its elected and appointed officials employees and volunteers. b. Worker's Compensation as required by law: - $100,000 Employers' Liability All certificates are to provide 30 days notice of material change or cancellation. Certificates of insurance must be provided no less than ten (10) working days before commencement of the contract to the Risk Management Department. Insurance carriers are subject to the approval of Oakland County. Coverages and limits are also subject to the approval of Oakland County as to conformity with contract requirements. TENANT shall maintain self-insurance with respect to the Premises, at its own expense, in at least the amount of One Million and 00/100 Dollars ($1,000,000.00) combined single limit coverage per Rochester District Court Lease December 1, 1998 3 occurrence. In addition to the foregoing, TENANT shall also maintain a policy of fire and casualty insurance covering TENANT'S contents therein. 15. Indemnification. LANDLORD shall at all times save, defend, indemnify and hold TENANT harmless from and against any and all loss, cost, liability, damage, expense (including, without limitation, reasonable attorneys' fees), penalties, fines and claims whatsoever in connection with loss of life, personal injury and/or damage to property arising from any negligent or willful acts or omissions of LANDLORD, its agents or employees. 16. Repairs. LANDLORD shall maintain and keep in good repair the roof, ceilings, walls, floors, foundations, electrical systems, plumbing, siodewalks, parking areas and exterior glass at the Premises. Tenant shall maintain the heating and cooling systems at the Premises, including all general maintenance and minor repairs. Landlord shall be responsible for the repair or replacement of the heating and cooling systems at the Premises in the event the cost thereof at any one(1) occurrence is in excess of One Thousand and 00/100 Dollars ($1,000.00). 17. Alterations or Improvements. TENANT shall not make alterations or improvements whatsoever to or upon the Premises without the prior written consent of LANDLORD. Any alterations or improvements made upon the Premises shall become an integral part of the Premises and shall become the sole property of LANDLORD immediately upon the completion thereof, unless otherwise agreed to in writing by the parties hereto. 18. Security. TENANT hereby acknowledges that during any term of this Lease, LANDLORD shall have the right to have keys for access to the Premises and that LANDLORD shall have the right to obtain such keys from TENANT upon written request therefor. In the event LANDLORD obtains such keys from TENANT, LANDLORD shall use such keys only for the purpose of inspecting, repairing and/or maintaining the Premises. LANDLORD agrees to provide lighting for the exterior of the Premises, including parking areas directly adjacent to the Premises, in an adequate manner consistent with other similar office buildings in the metropolitan Detroit area. 19. Access. TENANT shall allow LANDLORD access to the Premises during regular business hours for the purposes of inspecting, repairing and/or maintaining the Premises; provided, however, that LANDLORD shall use its best efforts not to disrupt the usual operations of TENANT at the Premises. In addition to the foregoing, TENANT shall allow LANDLORD access to the Premises at any time in the event of an emergency. 20. Signs. TENANT may attach, install or erect such signs on the interior walls of the Premises as may be necessary in connection with the conduct of TENANT'S usual business at the Rochester District Court Lease December 1, 1998 4 Premises. TENANT may not attach, install or erect any signs whatsoever on the exterior walls of, or the area surrounding, the Premises without the prior written approval of LANDLORD and the City of Rochester Hills as to the form, content, material, lighting and structure thereof. 21. Assignment. TENANT will not assign, sublet or in any manner transfer this Lease or any estate or interest therein without the prior written consent of LANDLORD. Notwithstanding the foregoing, in the event the State of Michigan, by action of its legislature, takes over and assumes responsibility for the State of Michigan District Court system, TENANT may assign its interest in this Lease to the State of Michigan, which shall assume all of the liabilities and obligations of TENANT under this Lease. 22. Maintenance and Utilities. TENANT shall be solely responsible for and promptly pay all charges for water, gas, heat, electricity, sewer service and any other utility used or furnished to the TENANT. LANDLORD agrees to provide utility service lines into the Premises and separate meters for all utilities used upon or furnished to the Premises. Tenant agrees to be solely responsible for and pay all charges for janitorial services. 23. Parking. LANDLORD agrees to provide sufficient parking to satisfy the requirements of the City of Rochester Hills as of the date hereof, but in no event less than ninety-eight(98) dedicated spaces. 24. Taxes. From and after the commencement date of this Lease, TENANT agrees to pay all real estate taxes assessed or Imposed against the Premises directly to the taxing authority prior to the date on which any penalty for the nonpayment of such taxes attaches. TENANT shall deliver to LANDLORD evidence of the payment of such taxes prior to the date on which any penalty for the nonpayment of such taxes attaches. Taxes for the years in which any term of this Lease commences and ends shall be prorated and adjusted between LANDLORD and TENANT on the due-date basis. TENANT shall also be responsible for and shall pay before delinquency, all taxes assessed during any term of this Lease against any leasehold interest or personal property of any kind, owned by or placed in, upon or about the Premises by TENANT. 25. Services. LANDLORD agrees to provide, at its own expense, trash removal, snow and ice removal from sidewalks, steps and parking areas, complete parking lot maintenance and lawn care services. 26. Eminent Domain. If the whole of the Premises shall be taken by any public authority under the power of eminent domain, then the term of this Lease shall cease as of the day possession shall be taken by such public authority. If less than the whole but more than thirty-five percent (35 9 ) of the Premises shall be Rochester District Court Lease December 1, 1998 5 taken by any public authority under the power of eminent domain, then either party hereto shall have the right to terminate this Lease by written notice to the other within thirty (30) days after the day possession shall be taken by such public authority, in which event neither party hereto shall have any further liability or obligation hereunder. In the event neither party elects to terminate this Lease, the Lease term shall cease only on the part so taken as of the day possession shall be taken by such public authority, and thereafter the fixed annual rent hereunder shall be reduced in proportion to the amount of the Premises taken. 27. Ouiet Enjoyment. Upon payment by TENANT of the rents herein provided, and upon the observance and performance of all of the terms, conditions and covenants required of TENANT hereunder, TENANT shallspeacefully and quietly hold and enjoy the Premises for any term of this Lease without hindrance or interruption by LANDLORD or any person legitimately by, through or under LANDLORD, subject, nevertheless, to the terms and conditions of this Lease. 28. Liens. TENANT covenants and agrees that it will not permit any liens or encumbrances of any kind or nature whatsoever to attach to the Premises, by leasehold improvements at the Premises or TENANT'S interest in this Lease by reason of any act or omission of TENANT. 29. Modifications. This Lease may be modified or amended only by the written agreement of LANDLORD and TENANT. 30. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan. 31. 5everability. If any provisions of this Lease, or the application thereof, to any extent becomes invalid or unenforceable, the remainder of this Lease, or the application of such provision to the parties or circumstances other than those to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. 32. Waiver. One (1) or more waivers of any covenant, condition or agreement by LANDLORD shall not be construed as a waiver of a subsequent breach of the same covenant, condition or agreement. No breach of a covenant, condition or agreement of this Lease shall be deemed to have been waived by LANDLORD unless such waiver be in writing signed by LANDLORD. 33. Entire Agreement. This Lease constitutes the entire agreement of the parties hereto with respect to the Premises, and , all prior negotiations, agreements and understandings, either oral or written, are hereby merged herein. Rochester District Court Lease December 1, 1998 6 34. Binding Effect. The terms and conditions of this Lease shall be binding and shall inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns; provided, however, that no rights shall inure to the benefit of any assignee of TENANT unless the assignment to such assignee has been approved by LANDLORD in writing as provided for herein. 35. Use of Words. The pronouns and relative words herein used shall be read interchangeably in masculine, feminine or neuter, singular or plural, as the respective case may be. 36. Notice. Any notice or other communication required or desired to be given hereunder shall be deemed to have been sufficientlyo given for all purposes if delivered personally to the party to whom the same is directed, or if sent by registered or certified mail, postage and charges prepaid, addressed to the address of such party as set forth above. Any notice which is served personally shall be deemed to be given on the date on which the same is actually served, and any notice which is sent by mail shall be deemed given two (2) days after the same is deposited in a regularly maintained receptacle for the deposit of United States mail, addressed as provided in the immediately preceding sentence. Any party may change its address for purposes of this Lease by giving the other party notice thereof in the manner hereinbefore provided for the giving of notices. 37. Option to Purchase. LANDLORD hereby grants to TENANT the right and option to purchase the Premises, together with all improvements thereon, at any time during the calendar year immediately preceding the end of the Term of this Lease for an amount to be either mutually agreed upon by the LANDLORD and the TENANT, on the condition that TENANT give LANDLORD a sixty (60) calendar day written notice of TENANT'S exercise of this option. This option to purchase shall be null and void if the parties fail to reach an agreement as to price and terms at least sixty (60) days prior to the expiration of this Lease. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written. Rochester District Court Lease December 1, 1998 7 WITNESSES: RICHARD G. DRYDEN (PROPERTY MANAGER) By: YORKSHIRE INTERNATIONAL LLP RICHARD G. DRYDEN, PROPERTY MANAGER COUNTY OF OAKLAND, a Michigan Constitutional Corporation (TENANT) By: John P. McCulloch, Chairperson Oakland County Board of Commissioners By: L. BROOKS PATTERSON, Oakland County Executive • Rochester District Court Lease December 1, 1998 8 STATE OF MICHIGAN ) ) ss COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me this day of December, 1998, by RICHARD G. DRYDEN, Property Manager, Yorshire International, LLP. ELAINE G. McCRACKEN Notary Public, Oakland County, Michigan My Commission Expires: STATE OF MICHIGAN ) ) ss COUNTY OF OAKLAND ) • The foregoing instrument day of December, 1998, by Board of Commissioners of the Constitutional Corporation, on was acknowledged before me this JOHN McCULLOCH, Chairperson of the COUNTY OF OAKLAND, a Michigan behalf of the Corporation. ELAINE G. McCRACKEN Notary Public, Oakland County, Michigan My Commission Expires: STATE OF MICHIGAN ) ) ss COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me this day of , 1998, by L. BROOKS PATTERSON, County Executive of the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, on behalf of the Corporation. Notary Public, Oakland County, Michigan My Commission Expires: Rochester District Court Lease December 1, 1998 9 FISCAL NOTE (Misc. #98323) December 10, 1998 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - ROCHESTER HILLS 52-3 DISTRICT COURT, 135 BARCLAY CIRCLE, ROCHESTER HILLS, LEASE RENEWAL TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance has reviewed the above referenced resolution and finds: 1. The 52-3 District Court is presently leasing 15,685 square feet of space in the facility located at 135 Barclay Circle, Rochester Hills, Mi. at a rate of $19.40 per square foot. 2. A 3 year lease extension is proposed between Yorkshire International, a Michigan Co-Partnership (Landlord) and the County of Oakland, a Michigan Constitutional Corporation (Tenant). 3. The total yearly lease cost for this facility is $304,289, or $25,357 a month; all maintenance, upkeep, and insurance are the responsability of the landlord. 4. The lease agreement would commence January 1, 1999 and extend through December 31, 2001. 5. The Department of Facilities Management along with Corporation Counsel has reviewed all the necessary agreements and documents; and this cost is currently budgeted, therefore, no budget amendments are needed. FINANCE COMMITTEE .1"4A- 161,4 FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. FOREGOING RESOLUTION 222.14/ Date I HEREBY L. Brooks Ps GowtyEA,Mive 1'8 Resolution #98323 December 10, 1998 Moved by Wolf supported by Taub the resolutions on the Consent Agenda be adopted and the resolutions on the Consent Agenda being amended to conform with their committee reports be adopted as amended. AYES: Coleman, Dingeldey, Douglas, Garfield, Gregory, Hoffman, Holbert, Huntoon, Jacobs, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson, Millard, Moffitt, Obrecht i Paimer, Taub, Wolf, Amos. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolutions on the Consent Agenda were adopted and the resolutions on the Consent Agenda being amended to conform with their committee reports were adopted as amended. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December 10, 1998 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 /0th day of December, 1998. 41,444M, G. William Caddell, County Clerk