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HomeMy WebLinkAboutResolutions - 2004.04.22 - 27402April 1,2004 MISCELLANEOUS RESOLUTION # 04087 BY: Planning and Building Committee, Charles E. Palmer, Chairperson IN RE: DEPARTMENT OF FACILITIES MANAGEMENT — APPROVAL AND ACCEPTANCE OF LEASE WITH OPTION TO PURCHASE AGREEMENT WITH THE CITY OF SOUTHFIELD, PART OF THE SOUTHFIELD HEALTH CENTER PROPERTY, PART OF PARCEL NOS. 24-13-426-001 and 24- 13-404-013. To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the County of Oakland is the owner of the Southfield Health Center property located at 27725 Greenfield Road in the City of Southfield consisting of 28.43-acres; and WHEREAS, the County has leased approximately 25-acres of the Southfield Health Center property to the City of Southfield for recreational purposes (Catalpa Park) since 1978; and WHEREAS, the City of Southfield has requested that the lease of 25-acres of the Health Center property be extended and that the County and the City negotiate the possible purchase of 22-acres of the Health Center property by the City; and WHEREAS, pursuant to the authorization of the Oakland County Board of Commissioners Planning and Building Committee the Departments of Facilities Management and Corporation Counsel have negotiated the terms of the attached Lease with Option to Purchase agreement with the City of Southfield; and WHEREAS, pursuant to the terms and conditions of said Lease with Option to Purchase agreement the County will continue to lease approximately 25-acres of land to the City for recreational purposes until May 5, 2005 for the sum of one dollar per year. During the term of the lease the City will have the option to purchase 22-acres of the Southfield Health Center property on or before May 5, 2005. The sale of the property shall be pursuant to a purchase agreement to be negotiated and adopted pursuant to the rules and procedures of the parties. WHEREAS, the Departments of Facilities and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached Lease with Option to Purchase agreement and recommend its approval. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Lease with Option to Purchase agreement between the County of Oakland and the City of Southfield. BE IT FURTHER RESOLVED that the County of Oakland Board of Commissioners hereby directs its Chairperson or his designee to execute the attached Lease with Option to Purchase agreement and all other related documents between the County of Oakland and the City of Southfield, which may be required. 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 Coleman absent LEASE With Option To Purchase THIS LEASE PURCHASE, made and entered into this 22nd day of April, 2004 between the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, whose address is 1200 North Telegraph Road, Pontiac, Michigan, 48341, hereinafter referred to as the "LESSOR", and the CITY OF SOUTHFIELD, a Michigan Municipal Corporation, whose address Is 26000 Evergreen Road, Southfield, Michigan, 48076, hereinafter referred to as the "LESSEE." In this Lease, either the Lessor or the Lessee may also be referred to individually as a "Party" or jointly as the "Parties"; WHEREAS, the County of Oakland and the City of Southfield entered into a lease of approximately 25 acres of real property located at the intersection of Catalpa Drive and Greenfield Road in the City of Southfield (Premises) on May 4, 1983 for an initial term of five (5) years which was subsequently renewed until May 5, 2003; and WHEREAS, the County of Oakland and the City of Southfield desire to extend the lease of the Premises for up to an additional two year term commencing at 12:00 A.M.on May 4, 2003 and terminating on May 5, 2005, in the event the LESSEE has not exercised its option to purchase the Premises as set forth in section 12 hereof and described as follows; Legal Description Approximately 22-Acres A parcel of land being Part of "Oakland Gardens Sub.", a subdivision of the E 1/2 of SE 1/4 of Section 13, TTN, R10E, City of Southfield, Oakland County, Michigan, as recorded in Liber 34, Page 8 of Plats, Oakland County Records, and also Part of "Woodlands Park Sub.", a subdivision of the W 1/2 of SE 1/4 of Section 13, TIN, R1 0E, City of Southfield, Oakland County, Michigan, as recorded in Liber 37, Page 40 of Plats, Oakland County Records. Further described as beginning SE corner of lot 84 "Oakland Gardens Sub." also being the intersection of the north right of way line of San Quentin Avenue and the West right of way line of Greenfield Road; 1 thence S 89 degrees 55' 00" W along said San Quentin Avenue North right of way line 1256.34 ft. to a point; thence N 1 degree 03' 47" W 5.0 ft. to a point; thence S 89 degrees 55' 00" W 330.04 ft. to the SW corner of Lot 219 "Woodlands Park Sub."; thence N 1 degree 03' 47" W 773.09 ft. along the westerly lot lines of Lots 219 through 231 inclusive and the westerly lot line of the E 1/2 of Lot 133 of "Woodlands Park Sub." to a point, said point also being the southerly right of way line of Catalpa Drive; thence N 89 degrees 19' 00" E 330.00 ft. along the southerly right of way line of Catalpa Drive to a point; thence N 88 degrees 13' 00" E 558.04 ft, to the Northeast comer of lot 21, "Oakland Gardens" subdivision to a point along the southerly right of way line of Catalpa Drive; thence S 1 degree 03' 00" E 418.78 ft. to a point; thence easterly to the northeast comer of lot 65, "Oakland Gardens" subdivision to a point on the westerly right of way line on Greenfield Road. Said point also being 418.78 ft. South of the NE comer of Lot 44 "Oakland Gardens Sub."; thence S 1 degree 03' 00" E 400.00 ft. to the point of beginning. Containing approximately 22.14 acres and otherwise known as Part of Tax Parcels 24-13-404- 013 and 24-13-426-001 City of Southfield Tax Rolls. Subject to the following terms and conditions; 1. During the term of this lease the Premises and any and all improvements thereon shall only be used by the LESSEE for recreational activities. 2. During the term of this lease, LESSEE shall have the right to prepare the Premises and facilities for such recreational purposes as are appropriate for the location, given the size of the land, the surrounding neighborhood, and the close proximity of the Premises to the south office of the Oakland County Health Department. To this end, the Lessee will be allowed to construct on the Premises bleachers, stands for refreshments, sanitary facilities and any other facilities necessary to make the Premises useable for recreational purposes. Any such improvements shall be constructed in accordance with the City of Southfield zoning ordinance and building code. No permanent structures shall be erected on the Premises without the prior written consent of the LESSOR. 3. The LESSEE agrees to Pay to the LESSOR as rental under this lease, the sum of One ($1.00) Dollar per year for each year this lease is in effect, payable when this Lease is executed and a like amount each year thereafter. 2 4. LESSEE agrees that the erection, maintenance and operation of any and all buildings or recreational structures on the Premises herein described shall be at the sole expense and responsibility of the LESSEE, and that said buildings and structures shall all be removed by the LESSEE upon the termination of this Lease. In the event that LESSEE fails to remove the structures it erected on the property prior to the termination of this Lease, then LESSOR has the option of removing any remaining structure at the sole expense of LESSEE. If LESSOR determines that it wants any structures to remain on the property after termination of this lease, then LESSOR shall notify LESSEE sixty (60) days prior to the termination of this Lease. Any structure that LESSOR determines it wants to remain on the property shall become the sole property of LESSOR. 5. LESSEE shall not damage or deface the Premises and shall not cause anything to be done whereby said Premises shall in any manner be marred or defaced, and at the expiration or cancellation of the Lease, LESSEE shall surrender the premises in a decent, safe and sanitary condition. 6. LESSEE must provide suitable off-street parking, and said parking must be made available for the intended users of the property. LESSEE will acquire no rights to the use of LESSOR'S parking lot at the Health Department's south office in conjunction with the granting of this Lease. 7. LESSEE agrees to comply with all applicable state, city or county ordinances covering the described premises. 8. Lessee shall be solely responsible for the upkeep and maintenance of the leased premises. 3 9. LESSEE agrees to indemnify, hold harmless, defend and pay all expenses including attorney fees and judgements against the LESSOR, its elected officials, officers, employees and/or agents, from and against any and all claims which are imposed upon, incurred by, or asserted against LESSOR and/or any of LESSOR'S elected officials, officers, employees and/or agents, which are based upon, result from, arise from, or are in any way related to an alleged or proven error, mistake, negligence, nuisance, injury, omissions, or intentional actions on the part of LESSEE or any of LESSEE'S elected officials, officers, employees or agents, relating to the operation, maintenance, or any use of the above described property by LESSEE, or any of LESSEE'S elected officials, officers, employees, agents, guests, invitees, trespassers, or the public at large. 10. LESSEE will procure and provide the following insurance or Certificate of Self Insurance as satisfies the requirements of LESSOR'S Risk Manager: $3,000,000 Combined Single Limit Commercial General Liability Broad Form Endorsement/or the following as minimum requirements: Broad form property damage Premises/Operations Independent Contractors (Blanket) Broad form Contractual Personal Injury - delete contractual exclusion "A" Additional Insureds - the County of Oakland, County Agents and employees and elected and appointed officials of Oakland County; Workers' Compensation as required by law $500,000 Employer's Liability; $1,000,000 Combined Single Limit Automobile Liability, including hired and leased vehicles, and owned and non-owned autos No Fault coverage as required by law; and General Certificates of Insurance a. All Certificates of Insurance and duplicate policies of any outside vendor or contractor shall contain the following clauses: 1) "The insurance company(s) issuing the policy or policies shall have no recourse against the LESSOR for payment of any premiums or for assessments under any 4 form of policy." 2) "Any and all deductibles in the above-described insurance policies shall be assumed by and be for the account of, and at sole risk of, the contractor." All Certificates are to provide thirty (30) days notice of material change or cancellation. Certificates of Insurance or Self Insurance and insurance binders must be provided within ten (10) working days after execution of this lease to the LESSOR'S Risk Management Office. Insurance carriers and Certificates of Self-Insurance are subject to the approval of LESSOR'S Risk Manager. 11. This Lease may be canceled or terminated by either party for any reason or no reason, by giving a three (3) month written notice to the other party or by concluding a sale of the property to the LESSEE. In no event shall termination or cancellation by LESSOR be effective before September 1st of any year except the last year of this Lease. Any cancellation or termination of this Lease by either party (other than by sale to LESSEE) shall terminate and extinguish the option to purchase in Paragraph 12,. 12. LESSOR hereby grants to LESSEE an option to purchase the Premises as described in the Legal Description. It is contemplated that the parties will enter into a Purchase Agreement during the term of the Lease and complete the sale of the Premises on or before May 5, 2005. The Purchase Agreement and sale of the Premises shall be upon terms agreeable to both parties and in accordance with the rules and procedures of the Oakland County Board of Commissioners. If the sale is not completed on or before May 5, 2005, this lease and the option to purchase the Premises will expire and LESSEE will retain no legal or equitable rights in the above-described real property or structures appurtenant thereto, and LESSEE will retain no legal or equitable right or cause of action against LESSEE to enforce the sale of the premises or to extend this Lease. IN WITNESS WHEREOF, Thomas A. Law, the Chairman of the Board of 5 By Brenda L. Lawrence, Mayor Commissioners of Oakland County, Brenda L. Lawrence, Mayor of the City of Southfield, and Nancy L.M. Banks, Clerk of the City of Southfield have executed this Lease on behalf of the County of Oakland and the City of Southfield respectively. COUNTY OF OAKLAND, A Michigan CITY OF SOUTHFIELD, A Michigan Constitutional Corporation Municipal Corporation By: Thomas A. Law, Chairman Oakland County Board of Commissioners By Nancy L.M. Banks, Clerk STATE OF MICHIGAN) COUNTY OF OAKLAND) On this day of . 2004, personally appeared Thomas A. Law, Chairman of the Oakland County Board of Commissioners and as such he affixed his signature to the foregoing Lease Option to Purchase, and that said instrument was signed and sealed on behalf of said County of Oakland, by authority of its Miscellaneous Resolution No. , dated 2004, and acknowledged said instrument to be the free act and deed of the County of Oakland. Michael D. Hughson Notary Public, Oakland County Michigan My Commission expires: 5/5/2004. STATE OF MICHIGAN) COUNTY OF OAKLAND) On this day of . 2004, personally appeared Brenda L. Lawrence, Mayor of the City of Southfield and as such she affixed her signature to the foregoing Lease Option to Purchase, and that said instrument was signed and sealed on behalf of said City of Southfield, by authority of its City Council Resolution No. , dated . 2004 6 and acknowledged said instrument to be the free act and deed of the City of Southfield. Notary Public, Oakland County, Michigan My Commission expires: On this day of . 2004, personally appeared Nancy L.M. Banks, Clerk of the City of Southfield and as such she affixed her signature to the foregoing Lease Option to Purchase, and that said instrument was signed and sealed on behalf of said City of Southfield, by authority of its City Council Resolution No. , dated . 2004 and acknowledged said instrument to be the free act and deed of the City of Southfield. Notary Public, Oakland County, Michigan My Commission expires: Mh7/31/03. 14; \TEMPFILE \ lnumber \ 2003 \2003-0400 thru 2003-0499 \ 2003-0407 South Oakland Health Center - Catalpa Park Purchase or Lease - City of Southfield \ Final Catalpa L-P.doc 7 FISCAL NOTE (M.R. #04087) April 22, 2004 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE WITH OPTION TO PURCHASE AGREEMENT WITH THE CITY OF SOUTHFIELD, PART OF THE SOUTHFIELD HEALTH CENTER PROPERTY, PART OF PARCEL NOS. 24- 13-426-001 AND 24-13-404-013 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 resolution approves and authorizes a Lease with Option to Purchase agreement between Oakland County and the City of Southfield. 2. Under terms of the agreement, the County will continue to lease approximately 25 acres of County-owned land at the Southfield Health Center property to the City of Southfield for recreational purposes until May 5, 2005 for the sum of $1 per year. 3. During the term of the lease, the City will have the option to purchase 22 acres of the Southfield Health Center property on or before May 5, 2005. 4. The proceeds of the sale of the property will be receipted in the Building Improvement Fund if the option to purchase is exercised. 5. If the property sale is not completed on or before May 5, 2005, the lease and the option to purchase will expire and the City will retain no interest in the property. 6. Approval of the purchase agreement requires the Board of Commissioners approval. 7. No budget amendment if necessary at this time. FINANCE COMMITTEE FINANCE COMMITTEE Motion carried on a roll call vote with Bullard, Jamian, Knollenberg and Zack absent. Resolution #04087 April 1, 2004 The Chairperson referred the resolution to the Finance Committee. There were no objections, In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 22nd day of April, 2004. G. William Caddell, County Clerk Resolution #04087 April 22, 2004 Moved by Webster supported by Scott the resolutions on the Consent Agenda be adopted. AYES: Coleman, Coulter, Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack, Bullard. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted. f"'" I HEREBY APPR(NE TiE MON ROM co 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 April 22, 2004 with the original record thereof now remaining in my office.