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HomeMy WebLinkAboutResolutions - 2002.03.27 - 26888March 28, 2002 MISCELLANEOUS RESOLUTION #02073 BY: PLANNING AND BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON In RE: DEPARTMENT OF FACILITIES MANAGEMENT — SECOND 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 Oakland County Community Mental Health as Tenant, entered into a lease agreement to lease the entire building 38E (58,161 square feet) to Oakland County Community Mental Health; 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, on November 1, 2001, the Community Mental Health Authority and the County of Oakland, pursuant to Miscellaneous Resolution number 01230 entered into a Modification of Lease agreement whereby the Community Mental Health Authority surrendered 21,776 square feet of office space in building 38E back to the County resulting in the Authority retaining 36,385 square feet of office space; and WHEREAS, the Oakland County Community Mental Health Authority has requested that Oakland County consider amending the existing lease agreement as modified between the parties to further reduce the area of Building 38E occupied by the Authority from 36,385 square feet to 24,663 square feet, thus surrendering an additional 11,722 square feet of office space; and WHEREAS, the Department of Facilities Management with the assistance of Oakland County Corporation Counsel have negotiated the terms of a second lease modification with the Community Mental Health Authority for the use of 24,663 square feet of Building 38E including shared parking; and WHEREAS, the rent due Oakland County under the terms of the second lease modification shall be $276,472 annually or $23,039.33 monthly; and WHEREAS, the term of the lease shall commence on April 1, 2002 and end January 13, 2004; and WHEREAS, the Department of Facilities Management and Corporation Counsel have reviewed the proposed second modification of the Community Mental Health Authority Lease of Oakland County Service Center Realty. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby accepts and approves the second 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. PLAW41 NG AND BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried on unanimous roll vote with Middleton and Grego absent SECOND 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 Tenant has determined that's its office space needs have changed to the extent that it no longer needs to rent from the Landlord the entire Building 38E; and, WHEREAS, on November 1, 2001 the Tenant and the Landlord entered into a Lease Modification Agreement to surrender 21,776 square feet of general office space located in Building 38E back to the Landlord, County of Oakland. WHEREAS, the Tenant is desirous of surrendering an additional 11,722 square feet of general office space in Building 38E back to the Landlord, Oakland County; and, WHEREAS, the Landlord is in agreement that it will accept the surrender of said an additional 11,722 square feet from the Tenant, without penalty, and waives any cause of action for breach of Contract for the surrender of the 11,722 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 a certain portion of Building 38E herein referred to as the Northwest area of the building containing 11,722 square feet as depicted on page 1 of Exhibit A attached hereto and made a part hereof; except that the corridor and access thereto, at the South edge of the Northwest area depicted on page 1 of Exhibit A attached hereto shall remain intact and shall be freely used by Tenant at all times, said corridor, being necessary for access by Tenant to unsurrendered premises. The square footage remaining under lease to the Tenant is 24,663 square feet. In addition to surrendering 11,722 square feet of general office space, the Tenant and Landlord mutually agree to continue to share use of the existing parking lots and driveway systems located on the premises pursuant to the Lease Modification Agreement entered into by the parties on November 1, 2001. The Tenant and Landlord further mutually agree to continue to share the use of conference rooms B132A, B132B, B132C and B132D pursuant to the Lease Modification Agreement entered into by the parties on November 1, 2001. 2001-0445 CMH2ndLeaseMod.doc 2. TERM The effective date of reduced lease area and reduced rental under this Second Modification is April 1, 2002. The final day of the lease term shall continue to be January 13, 2004. 3. RENT Upon the effective date of this Second Lease Modification to the Original Lease, the Tenant shall continue to pay the Landlord monthly rent at the rate of $11.21 per square foot or $276,472 per year (24,663-sf) through December 31, 2002. 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 14, 1999 as modified by the Lease Modification Agreement entered into by the parties on November 1, 2001 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 last written below. WITNESSES: LANDLORD: COUNTY OF OAKLAND, a Michigan Constitutional Corporation By: Thomas A. Law, Chairman, Oakland County Board of Commissioners Date: , 2002 TENANT: OAKLAND COUNTY COMMUNITY MENTAL HEALTH AUHTORITY, a Public Government Body By: Mary Griffiths, Director Business Operations Date: , 2002 mh2/27/02 2001-0445 CMH2ndLeaseMod.doc 2 INIMOI 1 IIIIIIIII--IIIIIZ _ oft Mae In D•MDDA r 1 SE OC SW CMH SOUTH PARKING LOT SHARED- PER FIRST MODIFICATION OF LEASE. • Weed County Dexemont of FoeIltiog ',grommet Fixates Moreno= & Operations Dhaka PRIAM Emoinemes May Raba Flomig Gm* Se PAD WM 111. 1111•11•11•16•1 OM De NNW Oakland County Community Mental Health Authority Second Modification to Lease of Oakland County Service Center Realty NW OC EXHIBIT AN PAGE 2 OF 2 2/27/2002 NE —1- OC NORTH PARKING LOT 20 SPACES CMH 15 SPACES OAKLAND COUNTY PER FIRST MODIFICATION OF LEASE. PARKING ARRANGEMENTS UNDER LEASE MODIFICATION AGREEMENTS cr,Community Mental Health Authority ND MU 1111110 SIM Num, Dowalos DA. - IVIIM111110/4081111•1•11 24,663 SQFT. RETAINED BY CMH A TOTAL OF 33,498 SOFT. RETURNED TO OAKLAND COUNTY FISCAL NOTE #02073 March 28, 2002 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - SECOND 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. Pursuant to Miscellaneous Resolution #01230, the lease agreement between the Community Mental Health Authority and the County of Oakland was modified to reflect a reduction in the area of office space occupied by the Authority in Building 38E from 58,161 square feet to 36,385 square feet, effective November 1, 2001. 2. The Oakland County Community Mental Health Authority has requested a second modification of the lease agreement to further reduce the area occupied by the Authority in Building 38E from 36,385 square feet to 24,663 square feet. 3. The Department of Facilities Management, with the assistance of Corporation Counsel, has negotiated terms of this second lease modification with the Community Mental Health Authority. 4. This second lease modification shall commence on April 1, 2002 and end January 13, 2004. 5. Terms of the second lease modification specify annual rent due to Oakland County in the amount of $276,472, based on a charge of $11.21 per square foot for 24,663 square feet. 6. As a result of the lease modifications, total lease charges to the Community Mental Health Authority in FY 2002 are estimated at $350,845, a $238,965 reduction from the original lease amount of $589,810. 7. The majority of this reduction was anticipated in the FY 2002 Budget, which reallocated $191,853 in building space charges for Building 38E, for the probable relocation of the Sheriff's Administration and Crime Lab to this facility. 8. An analysis of the estimated Facilities Maintenance & Operations Fund revenues by the Fiscal Services Division, indicates sufficient revenues will be realized in FY 2002 to cover the $47,112 difference. Revenue loss will be absorbed by Facilities Maintenance and Operations Fund Balance and therefore, no budget amendments are required. FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Patterson absent. — E THE FOREGOING RESOLUTION — 6) I HEREBOCT G. William Caddell, County Clerk Resolution #02073 March 28, 2002 Moved by Middleton supported by Douglas the resolutions on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Appel, Brian, Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Melton, Middleton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Webster, Amos. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted (with accompanying reports being accepted). Ooto County ecutoi L Brooks tterso v 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 March 28, 2002, 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 28 day of March, 2002.