HomeMy WebLinkAboutResolutions - 2004.05.20 - 27587May 6, 2004
MISCELLANEOUS RESOLUTION # 04117
BY: Planning and Building Committee, Charles E. Palmer, Chairperson
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT — REQUEST FOR APPROVAL OF LEASE
AGREEMENT WITH ART OF PONTIAC, LLC FOR USE OF OFFICE SPACE AT 17 SOUTH PERRY
STREET, PONTIAC, MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the Main Street Oakland County Program (MSOC) was established in 2000 to
provide assistance to Oakland County Communities in their efforts to redevelop downtown districts; and
WHEREAS, Grant funding totaling $15,250 annually has been pledged in support of the MSOC
Program by the Pontiac Downtown Development Authority ($10,000) and by the Chrysler Arts Beats and
Eats, Inc. ($5,250). The grant funding will allow the Downtown Design Studio to function with all
operating expenses offset by the pledges. Therefore, no County funding is required and;
WHEREAS, it is the recommendation of the Departments of Facilities Management and
Community and Economic Development that the Oakland County Board of Commissioners accept and
approve the terms and conditions of the attached Lease Agreement.
WHEREAS, under the terms and conditions of the attached Lease Agreement, the Main street
Oakland County Program-Downtown Design Studio will occupy approximately 850-sf of office space at 17
S. Perry Street in the City of Pontiac for a period of three years. Rent will be $1,062.50 per month or
$12,750 per year and is inclusive of all building and site maintenance, utilities, snow and ice removal and
property taxes. Custodial services and telephone expenses will be paid separately from the grant funds.
The lease may be terminated in the event that grant funding for the project is no longer available.
WHEREAS, the Departments of Facilities Management, Community and Economic Development,
and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached
construction license and lease agreement.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and authorizes the attached Lease Agreement for office space at 17 S. Perry Street, Pontiac,
Michigan between the County of Oakland and Art of Pontiac, LLC.
BE IT FURTHER RESOLVED that the County of Oakland Board of Commissioners hereby directs
its Chairperson or his designee to execute the attached Lease Agreement and all other related documents
between the County of Oakland and Art of Pontiac, LLC, 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
LEASE
This Lease is made and entered into on the 20th day of May 2004, by Art of Pontiac, LLC,
a Michigan Limited Liability Corporation, whose address is 107 Evaline Dr., Troy, Michigan 48085
("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation,
1200 North Telegraph Road, Pontiac, Michigan 48341 ("TENANT").
1. Leased Premises. In consideration of the Rent to be paid and the covenants to be
performed by the "IENANT, the LANDLORD leases to the TENANT and the TENANT rents from
the LANDLORD approximately 850-sf located in the front of the premises on the first floor of the
building located at 17 S. Perry Street, Pontiac, Michigan ("Premises").
2. Term and Commencement Date. The Term of this Lease shall begin on the
Commencement Date, which date shall be August 15, 2004 or upon the date of issuance of a
certificate of occupancy or temporary certificate of occupancy, which ever occurs earliest for the said
premises and shall run for three years from that date. The TENANT shall have possession of the
Premises on the Commencement Date. Failure of the LANDLORD to provide TENANT with
possession on that date shall be deemed a Default under the terms of this Lease. The TENANT must
provide the LANDLORD with notice of its desire to renew this Lease 180 days before the expiration
of the initial Term.
3. Termination. Notwithstanding Paragraph 2 (or any other term of this Lease), should
the Oakland County Board of Commissioners remove or revoke funding for this Lease because the
City of Pontiac Downtown Development Authority or Arts, Beats, and Eats Foundation failed to
provide sufficient funding to completely cover the costs associated with the Lease, then TENANT
shall have the right to cancel this Lease upon thirty (30) days written notice to the LANDLORD with
no penalty whatsoever.
4. Rent. From the date this Lease commences until the Lease expires or is terminated,
the TENANT agrees to pay the LANDLORD One Thousand Sixty-two Dollars and
50/100($1,062.50) per month. This sum includes all utilities, structural maintenance, site
maintenance, snow removal, lawn maintenance, trash removal, and taxes for the Premises.
5. Partial Month Rent Proration. Should the Term of this Lease commence on a day
other than the first calendar day of a month, then the Rent for such month and the last month of the
Term shall be prorated upon a daily basis based upon a thirty (30) day calendar month.
6. Place and Date of Payment. Payments due under this Lease from the TENANT to
the LANDLORD shall be paid at the address of the LANDLORD set forth above, or at such other
place as LANDLORD may designate in writing. The Rent due under Paragraph 3 of this Lease shall
be paid on a monthly basis. The monthly rental payment shall be paid on the first calendar day of
each month or another date agreed to by both Parties. The Rent shall be paid without any deduction
or set off.
7. Hold Over. In the event the TENANT holds over after the expiration of the original
Term of this Lease without a written agreement between the LANDLORD and the TENANT, the
hold over shall be construed to be a tenancy from month-to-month on the same terms and conditions
contained in this Lease, for a period not to exceed Six (6) months.
8. Build-Out. The Landlord shall be responsible for and provide at no cost to Tenant
an 850-sf. finished office suite inclusive of carpeted floors, painted walls, finished ceiling and light
fixtures on the first floor at the front of the premises.
The tenant shall have the right to install window treatments in its suite at its own cost.
9. Use and Occupancy. The Premises shall not be used in violation of any law,
municipal ordinance, or regulation. Upon expiration or termination of this Lease, the TENANT shall
surrender the Premises in the same condition as when taken (reasonable wear and tear excepted), and
shall remove its personal property.
10. Equipment and Furnishings, The TENANT shall provide, at its own expense,
furniture and equipment it deems necessary. The TENANT, at its own expense, shall be solely
responsible for the maintenance and repair of all furniture and equipment used on the Premises.
11.
Lease.
Taxes. All taxes are included in the rental payments due under Paragraph 4 of this
12. Maintenance and Repairs. The LANDLORD shall maintain and keep the Premises
in good repair, including, but not limited to, the roof, ceilings, walls, floors, foundations, electrical
and plumbing systems, sidewalks, parking areas, exterior glass, heating and cooling systems, and
the replacement of light bulbs. If any repairs to the Premises are required (except for normal wear
and tear), as a result of the TENANT's actions, or the actions of its employees, agents, customers,
licensees or invitees, the '1ENANT shall be responsible for making such repairs, unless such repairs
are covered by insurance as required by the insurance provisions of this Lease.
13, Utilities and Services.
a. Utilities. The LANDLORD shall be solely responsible for and promptly pay all
building utilities.
b. Services. The TENANT agrees to pay all costs associated with maintaining and
operating its telephone system, computer system and any other system the l'ENANT installs
in the Premises. The LANDLORD agrees to provide, at its own expense, trash removal,
snow and ice removal from sidewalks, steps and parking areas, complete parking lot and
building maintenance, custodial services for common areas and lawn care services.
LANDLORD shall keep the common areas in a safe and secure manner.
14. Compliance with Laws. The LANDLORD agrees, at its own expense, to promptly comply
with all applicable federal, state and municipal laws and regulations affecting the Premises, including
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any barrier-free requirements. If the LANDLORD fails to comply with such laws and regulations,
the TENANT may give the LANDLORD written notice of its intent to terminate the Lease one
hundred fifty (150) days after the LANDLORD'S receipt of the written notice. If the LANDLORD
complies with the laws and regulations within the one hundred fifty(150) day period, then
TENANT'S notice will be deemed withdrawn.
15. Destruction of Premises.
a.) In the event, the Premises are partially damaged or destroyed by fire or other
casualty, the damage to the Premises shall be promptly repaired or rebuilt by the
LANDLORD. In the event the Premises cannot be repaired or rebuilt within one hundred
eighty (180) days after such destruction, the TENANT shall have the right to terminate this
Lease and vacate the Premises within ninety (90) days after the occurrence of such damage
or destruction. During the time between when the Premises are damaged and the TENANT
remains on the Premises during repair or vacates the Premises altogether, the Rent owed by
the TENANT shall be reduced in proportion to the fraction of the Premises rendered
unusable (in the discretion of the TENANT). If more than thirty-five percent (35%) of the
Premises are damaged or destroyed by a casualty, the TENANT may elect to remain on the
Premises or to vacate the Premises.
b.) In the event that more than thirty-five (35) percent of the Premises are damaged or
destroyed by fire or other casualty, the LANDLORD may elect to either repair or rebuild the
Premises, or to terminate this Lease by giving written notice to the TENANT within ninety
(90) days after the occurrence of such damage or destruction. TENANT will have ninety (90)
days from the date of the notice to vacate the Premises. If the LANDLORD elects to rebuild
or repair the Premises, then the Rent owed by the TENANT shall be reduced in proportion
to the fraction of the Premises rendered unusable (in the discretion of the TENANT) until
the Premises are repaired or rebuilt. In no event shall the LANDLORD be required to repair
or replace any property of the TENANT.
c.) In the event that less than Thirty-five (35) percent of the Premises are damaged or
destroyed by fire or other casualty the Rent owed by the TENANT shall be reduced in
proportion to the fraction of the Premises rendered unusable (in the discretion of the
TENANT) until the Premises are repaired or rebuilt.
16. Insurance. The TENANT is self-insured. The LANDLORD agrees to provide the following
insurance or similar insurance:
a. Commercial General Liability Insurance in the minimum amount of
$1,000,000 Combined Single Limit per occurrence, including Contractual Liability
coverage recognizing this contract.
b. Workers' Compensation as required by statute. Employers Liability
(coverage B) in the minimum amount of $500,000 per occurrence.
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without the prior written approval of the LANDLORD and the City of Pontiac as to the form,
content, material, lighting and structure thereof. Any signage TENANT installs will comply with
US Park Service historical requirements, if applicable.
23. Assignment. The TENANT shall not assign, sublet or in any manner transfer this
Lease or any estate or interest therein without the prior written consent of the LANDLORD.
24. Parking. The LANDLORD agrees to provide TENANT with three (3) assigned
parking spaces for TENANT'S exclusive use
25. Eminent Domain. If the whole Premises is taken by any public authority under the
power of eminent domain, then this Lease shall be terminated on the day the public authority takes
possession of the whole Premises. If less than the whole, but more than thirty-five percent (35%)
of the Premises are taken by any public authority under the power of eminent domain, then either
Party may terminate this Lease upon thirty (30) days written notice to the other Party. In the event
neither Party elects to terminate this Lease, the Lease shall terminate on the date the public authority
takes possession of the Premises. Neither Party shall have any future liability or obligation under
the Lease if it is terminated under this Paragraph.
26. Quiet Enjoyment. Upon performance of its obligations under this Lease, the
TENANT shall peacefully and quietly hold and enjoy the Premises for the Term of this Lease
without hindrance or interruption by the LANDLORD, its agents or employees, subject to the terms
of this Lease.
27. Modifications. This Lease may be modified or amended only by written agreement
of the LANDLORD and the TENANT.
28. Remedies not Exclusive. It is agreed that each and every right and benefit provided
by this Lease shall be cumulative, and shall not be exclusive of any other right, remedy and/or
benefit allowed by law or in equity to either party.
29. Use of Words. The pronouns and relative words used in this Lease shall be read
interchangeably in masculine, feminine or neuter, singular or plural, as the context requires.
30. Common Areas. The term "Common Areas" shall include, facilities, service
corridors, pedestrian sidewalks, stairways, hallways, bathroom area, landscaped areas, parking areas,
access roads, driveways, loading areas, lighting and facilities which may be furnished by
LANDLORD in or near the building which are outside of the Premises, and designated from time
to time by Landlord as Common Areas. TENANT and its invitees shall have right to access the
common areas during the term of this Lease. LANDLORD shall at its sole cost and expense, operate
and maintain the common areas.
31. Security Deposit. LANDLORD acknowledges that no security deposit is being
required of TENANT.
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32. Governing Law. This Lease shall be interpreted under and governed by the laws of
the State of Michigan.
33. Severability. If a term, condition, or provision of this Lease is found, by a court of
competent jurisdiction, to be invalid, unenforceable, or to violate or contravene federal or state law,
then the term, condition, or provision shall be deemed severed from this Lease; all other terms,
conditions and provisions shall remain in full force and effect.
34. Waiver. No waiver of any term, provision or condition of this Lease, whether by
conduct or otherwise, in one or more instances, shall be deemed or construed as a further continuing
waiver of a term, provision or condition of this Lease. No remedy available to a Party for the other
Party's breach of this Lease is intended to be an exclusive remedy. A Party's exercise of any remedy
for breach of this Lease shall not be deemed or construed to be a waiver of its right to pursue another
remedy.
35. Entire Agreement. This Lease constitutes the entire agreement of the Parties with
respect to the Premises, and all prior negotiations, agreements and understandings, either oral or
written, are merged herein.
36. Binding Effect. The terms and conditions of this Lease shall be binding and shall
inure to the benefit of the Parties and their respective heirs, representatives, successors and assigns.
37. Notice. Any notice or other communication required or desired to be given shall be
deemed to have been sufficiently 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
written notice of the address change.
38. Reservation of Rights. This Lease does not and is not intended to impair, divest,
delegate, or contravene any constitutional, statutory, and/or other legal right, privilege, power,
obligation, duty, capacity, or immunity of the TENANT.
39. Default. If the TENANT defaults in any of its obligations under this Lease, the
LANDLORD shall have all remedies available to it under the law.
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IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above
written.
WITNESSES: ART OF PONTIAC, LLC (LANDLORD)
By:
Jonathan Witz, Member
STATE OF MICHIGAN )
) SS.
COUNTY OF OAKLAND )
The foregoing instrument was acknowledged before me this day of
2004, by Jonathan Witz, Landlord in Oakland County, Michigan.
Notary Public, Oakland County, Michigan
My Commission Expires:
COUNTY OF OAKLAND (TENANT)
By:
Michael D. Hughson THOMAS A. LAW, Chairperson
Oakland County Board of Commissioners
STATE OF MICHIGAN )
) SS.
COUNTY OF OAKLAND )
The foregoing instrument was acknowledged before me in Oakland County, Michigan
this 20th day of May 2004, by THOMAS A. LAW, Chairperson of the Board of Commissioners
of the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, on behalf of the
Corporation.
Michael D. Hughson
Notary Public, Oakland County, Michigan
My Commission Expires: 5/5/2008
4/20/04
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FISCAL NOTE (M.R. #04117) May 20, 2004
BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT -REQUEST FOR APPROVAL OF
LEASE AGREEMENT WITH ART OF PONTIAC, LLC FOR USE OF OFFICE SPACE AT 17
SOUTH PERRY STREET, PONTIAC, MICHIGAN
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 Agreement
between Oakland County and Art of Pontiac, LLC for the
lease of approximately 850 square feet of office space at
17 S. Perry Street, Pontiac, Michigan for the Downtown
Design Studio, Main Street Oakland County Program.
2. The Main Street Oakland County Program was established in
2000 to provide assistance to Oakland County communities in
their efforts to redevelop downtown districts.
3. The annual lease cost will be $12,750 and will include
building and site maintenance, utilities, snow and ice
removal, and property taxes.
4. Total annual operating costs for the Downtown Design Studio
are estimated at $14,975, including the lease cost of
$12,750 and custodial services and telephone expenses.
5. Annual funding of $15,250 has been pledged in support of
the program, including $10,000 by the Pontiac Downtown
Development Authority and $5,250 by Chrysler Arts Beats and
Eats, Inc.
6. The pledged funding will cover all operating expenses of
the Downtown Design Studio and no County funding will be
required.
7. The lease is for a three-year period and the estimated
lease commencement date is August 15, 2004.
8. Under terms of the lease agreement, should the Board of
Commissioners remove or revoke funding for the lease
because the Pontiac Downtown Development Authority or Arts
Beats and Eats Foundation fail to provide sufficient
funding to completely cover costs associated with the
lease, the County has the right to cancel the lease.
FINANCE COMMITTEE
etz/-ze-fc
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Crawford absent.
Resolution #04117 May 6, 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 pre County of Oakland at
Pontiac, Michigan this 20th day of May, 2004.
Resolution #04117 May 20, 2004
Moved by Palmer supported by Hatchett the resolution be adopted.
AYES: Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Law, Long, McMillin,
Middleton, Moss, Palmer, Patterson, Potter, Scott, Suarez, Webster, Wilson, Zack, Bullard,
Coleman, Coulter, Crawford. (23)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
ST2 /)0 41
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 May 20, 2004
with the original record thereof now remaining in my office.
G. William Caddell, County Clerk