HomeMy WebLinkAboutResolutions - 2001.09.20 - 26639MISCELLANEOUS RESOLUTION #01230 September 6, 2001
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olvFA - LES E. PALM
BY: PLANNING AND BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON
In RE: DEPARTMENT OF FACILITIES MANAGEMENT — MODIFICATION OF EXISTING LEASE WITH OAKLAND
COUNTY COMMUNITY MENTAL HEALTH AUTHORITY FOR PREMISES LOCATED AT 1200 NORTH
TELEGRAPH, BUILDING 38E, PONTIAC, MI 48341
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS
CHAIRPERSON, LADIES, AND GENTLEMEN:
WHEREAS, pursuant to Miscellaneous Resolution No. 98336, the County of Oakland as Landlord and the
Oakland County Community Mental Health Authority as Tenant, entered into a lease agreement to lease the entire
building 38E (58,161 square feet) to the Oakland County Community Mental Health Authority; and
WHEREAS, In January 1999, the Oakland County Community Mental Health Agency was reorganized to form
the Oakland County Community Mental Health Authority. Since that time the Authority has undergone extensive
privatization and reorganization of its services resulting in the reduction of Community Mental Health Authority staff; and
WHEREAS, the Oakland County Community Mental Health Authority has requested that Oakland County
consider amending or modifying the existing lease agreement between the parties to reduce the area of Building 38E
occupied by the Authority from 58,161 square feet to 36,385 square feet.
WHEREAS, a shortage of suitable office space currently exists on the Oakland County Service Center Complex;
and
WHEREAS, the Department of Facilities Management with the assistance of Corporation Counsel have
negotiated the terms of a lease modification with the Community Mental Health Authority for the use of 36,385 square
feet of Building 38E including shared parking; and
WHEREAS, the rent due Oakland County under the terms of the lease modification shall be $368,944 annually
or $30,745.33 monthly; and
WHEREAS, the term of the lease shall commence upon execution by the Chairperson of the Oakland County
Board of Commissioners or his designee and end January 13, 2004.
WHEREAS, the Department of Facilities Management and Corporation Counsel have reviewed the proposed
modification of the Community Mental Health Authority Lease of Oakland County Service Center Realty.
NOW THEREFORE BE IT RESOLVED that subject to the Oakland County Community Mental Health Authority
approval, the Oakland County Board of Commissioners accepts and approves the modification to the Community Mental
Health Authority Lease of Oakland County Service Center Realty as attached hereto.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its chairperson
or its designee to execute the necessary documents to effect the same.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing
resolution.
PLANNING AND BUILDING COMMITTEE
Planning & Building Committee Vote:
Motion carried on unanimous roll call vote with Melton absent
MODIFICATION TO THE COMMUNITY MENTAL HEALTH AUTHORITY LEASE
OF
OAKLAND COUNTY SERVICE CENTER REALTY
WHEREAS, on January 14, 1999 the Oakland County Community Mental Health Authority
(Tenant) and the County of Oakland (Landlord) entered into a lease agreement (Original Lease)
to lease the entire Building 38E located at 1200 N. Telegraph Road, Pontiac, MI 48341 to the
Oakland County Community Mental Health Authority for a term of five years.
WHEREAS, the Oakland County Community Mental Health Authority has determined that's
its office space needs have changed to the extent that it no longer needs to rent from the County
of Oakland the entire Building 38E; and,
WHEREAS, the Oakland County Community Mental Health Authority is desirous of
surrendering 21,776 square feet of general office space in Building 38E back to the Landlord,
Oakland County; and,
WHEREAS, the County of Oakland is in agreement that it will accept the surrender of said
21,776 square feet from the Oakland County Community Mental Health Authority, without
penalty, and waives any cause of action for breach of Contract for the surrender of the 21, 776
square feet;
Now, therefore, in consideration of the mutual promises and consideration between the parties,
sufficiency of which is hereby acknowledged by both parties, the Original Lease dated January
14, 1999 shall be modified as follows:
1. PREMISES
The premises portion of the Original Lease is hereby modified to exclude certain portions of
Building 38E referred as the Northeast and Southeast areas of the building containing 21,776
square feet as described in Exhibit A attached hereto and made a part hereof The square
footage remaining under lease to the Tenant is 36,385 square feet. In addition to surrendering
21,776 square feet of general office space, the Tenant agrees to surrender to the Landlord 15
parking spaces in the north parking lot (see Exhibit A), which 15 spaces will be designated for
the exclusive use of Landlord. The Tenant and the Landlord mutually agree to share the use of
the south parking lot. Both parties will have the right of ingress and egress to and from the
premises, and to and from the parking lots via the driveway and parking lots systems located on
the premises. The Tenant and Landlord further mutually agree that the Landlord shall be
permitted occasional use of Tenant's conference rooms subject to availability.
2. TERM
The term of the Original Lease is hereby modified to commence upon execution of this
document by the Chairman of the Oakland County Board of Commissioners or his designee
2001-0445 CMHLeaseMod.doc 1
and shall exclude the ability of Tenant to extend the lease, for any reason, beyond January 13,
2004, and makes this date the termination date of this Lease.
3. RENT
Upon the effective date of this modification to the Original Lease, the Tenant shall continue to
pay the Landlord monthly rent at the rate of $10.14 per square foot or $368,944 per year
through December 31, 2001 All subsequent rental rates are to be negotiated pursuant to the
terms of the Original Lease. The yearly sum is payable in equal monthly installments to
Landlord.
ORIGINAL LEASE
All other terms and conditions of the Original Lease dated January 4, 1999 shall remain in full
force and effect unless any of those provisions shall contradict the intentions of the parties to
modify the Original Lease as set forth above, in which case this Modification to the Original
Lease, and the intent manifest herein shall control.
IN WITNESS HEREOF, the parties have executed this Modification to the Community
Mental Health Authority Lease of Oakland County Service Center Realty as of the date first
written below.
WITNESSES: LANDLORD: County of Oakland, a Michigan
Constitutional Corporation
By:
Frank H. Millard, Jr., Chairman, Oakland
County Board of Commissioners
Date: , 2001
TENANT: Community Mental Health
Authority, a Public Government Body
By:
Date: , 2001
2001-0445 CMHLeaseMod.doc 2
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EXHIBIT "A"
06/8/2001 NORTH PARKING LOT
20 SPACES CMH
15 SPACES OAKLAND COUNTY
SOUTH PARKING LOT
SHARED
" CMH
LEASED
PREMISES
LIMITS
36,385 SOFT. RETAINED BY CAAH
21,776 SOFT. RETURNED TO
OAKLAND COUNTY
=MN cr)Community Mgntal Health Authority
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Oakland County Community Mental Health Authority
Lease of
Oakland County Service Center Realty
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Resolution 401230 September 6, 2001
The Chairperson referred the resolution to the Finance Committee. There
were no objections.
FISCAL NOTE (M.R. #01230) September 20, 2001
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - MODIFICATION OF EXISTING
LEASE WITH OAKLAND COUNTY COMMUNITY MENTAL HEALTH AUTHORITY FOR
PREMISES LOCATED AT 1200 NORTH TELEGRAPH, BUILDING 38E, PONTIAC, MI
48341
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has
reviewed the above referenced resolution and finds:
1. The Oakland County Community Mental Health Authority has
requested modification of the lease agreement with Oakland
County to reduce the area occupied by the Authority in
Building 38E from 58,161 square feet to 36,385 square feet.
2. The Department of Facilities Management with the assistance
of Corporation Counsel has negotiated terms of a lease
modification with Community Mental Health.
3. The lease modification shall commence upon execution of the
document by the Chairperson of the Oakland County Board of
Commissioners and shall end January 13, 2004.
4. Modification of the lease is subject to approval by the
Oakland County Community Mental Health Authority.
5. The current five-year lease expires on January 13, 2004 and
the rental rate is currently $10.14 per square foot, or
$589,810 annually.
6. Terms of the lease modification specify annual rent due to
Oakland County of $368,944, based on a charge of $10.14 per
square foot for 36,385 square feet, or a reduction of
$220,866 from the original lease.
7. The majority of this reduction was anticipated in the FY
2002 Recommended Budget, which reallocated building space
charges of $191,853 for Building 38E for the expected
relocation of the Sheriff's Administration and Crime Lab to
this facility.
8. A review will be made by the Fiscal Services Division in
the FY 2002 First Quarter Forecast to determine whether a
budget amendment will be required to fund the $29,013
difference.
FIANCE MM CE COITTEE
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FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Friedman Appel
absent.
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Resolution #01230 September 20, 2001
Moved by Palmer supported by Buckley the resolution be adopted.
AYES: Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub,
Webster, Amos, Appel, Brian, Buckley, Causey-Mitchell, Coleman, Crawford,
Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Melton, Millard.
(25)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
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 September 20, 2001 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 20t,4 dayiff September, 2001.
G. William Caddell, County Clerk