HomeMy WebLinkAboutResolutions - 2001.09.06 - 266794
MISCELLANEOUS RESOLUTION 101230 September 6, 2001
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
06/8/2001 NORTH PARING LOT
20 SPACES CNN
15 SPACES OAKLAND COUNTY
SOUTH PARKING LOT 17— SHARED
CMH
LEASED
PREMISES
LIMITS
36,385 SQFT. RETAINED BY CMH
21,776 SOFT. RETURNED TO
OAKLAND COUNTY
MORIN a) Community Mental Health Authority
MD WAIL
Oakland County Community Mental Health Authority
Lease of
Oakland County Service Center Realty
Mt MOE SI.
WNW MOM= MD MIMI=
Resolution #01230 September 6, 2001
The Chairperson referred the resolution to the Finance Committee. There
were no objections.