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HomeMy WebLinkAboutResolutions - 2005.12.08 - 27827Rttlk-Nal NG AND BUIL-DING COMMITTEE December 8, 2005 MISCELLANEOUS RESOLUTION # 05311 BY: Planning and Building Committee, Charles E. Palmer, Chairperson IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH 2300 Dixie Highway, LLC FOR USE OF PROPERTY AT 2300 DIXIE HIGHWAY, WATERFORD, MICHIGAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Department of Community Corrections is presently housed in leased office space at 2300 Dixie Hwy., Waterford, Michigan; and WHEREAS, at the present time no adequate County owned facility exists, which would accommodate the office space requirements or daily functions of the Community Corrections Department, and WHEREAS, the Department of Facilities Management and 2300 Dixie Highway, LLC have negotiated the terms and conditions of the attached Lease Agreement, which will allow the Department of Community Corrections to continue to occupy the existing office space located at 2300 Dixie Highway for an additional three year term with the option to extend the lease for up to five additional one year terms, and WHEREAS, the term of the new lease shall commence on October 19, 2005 and expire on October 18, 2008. Rent for said term shall be at a rate of $18.50 per square foot or $15,032.79 monthly or $180,393.50 annually. WHEREAS, it is the recommendation of the Department of the Facilities Management that the Oakland County Board of Commissioners accept and approve the terms and conditions of the attached Lease Agreement, and; WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached lease agreement. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Lease Agreement for use of office facilities at 2300 Dixie Highway, Waterford, Michigan between the County of Oakland and 2300 Dixie Highway, 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 2300 Dixie Highway, LLC, which may be required. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. Planning & Building Committee Vote: Motion carried on unanimous roll call vote with Potter absent Oakland County Department of Facilities Management 11/29/2005 Acceptance and Approval of Lease 2300 Dixie Highway, LLC For Department of Community Corrections On April 5, 2005 pursuant to the rules and procedures of the Oakland County Board of Commissioners the Planning and Building Committee authorized the Department of Facilities Management to negotiate the terms of a new lease for the continued use of the existing office space located at 2300 Dixie Highway, Waterford. The present five year lease expired on October 18, 2005. Description of Facility The premises consist of a 9,751-sf portion of a two-story building located at 2300 Dixie Hwy, Waterford Township. Terms and Conditions of Lease Term of lease: Three-year original term with option to extend for five additional one-year terms. Any extension beyond a second term shall be via a new agreement. Termination of Lease: October 19, 2008. Landlord responsibilities: All maintenance of building and grounds inclusive of janitorial service, trash removal, snow and ice removal from sidewalks and parking lot. Oakland County responsibilities: Payment of rent, suite electric service and annual property tax increase. Provide and maintain telephone and computer system. Commencement date: 10/19/2005. Proposed annual costs per new agreement: $180,393.50 rent + suite electric $19,000 est. + $490.00 est. property tax increase= $199,883.50. The lease also provides for a three percent annual rent increase. Owner/Landlord Property owner: 2300 Dixie Highway, LLC 6230 North Service Drive, Waterford, MI 48327. Owners/Landlord: Derrick Hakim and Thomas Graham. Recommendation It is the recommendation of the Department of Facilities Management that the Oakland County Board of Commissioners accept and approve the terms and conditions of the attached Lease for the premises located at 2300 Dixie Hwy. Waterford, Michigan, 48328 between the County of Oakland as tenant and 2300 Dixie Highway, LLC as Landlord. Mdh I 1/17/05 LEASE This Lease is made and entered into on the day of , 2005, by 2300 DIXIE HIGHWAY LLC, a Michigan Limited Liability Company, 6230 North Service Drive, Waterford, Michigan 48327 ("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 ("TENANT"). I. Leased Premises. In consideration of the Rent to be paid and the covenants to be performed by the TENANT, the LANDLORD renews the lease with TENANT and the TENANT renews the lease with LANDLORD for the portion of the office building located at 2300 Dixie Highway, Waterford, Michigan 48328, containing 9751 square feet ("Premises"). 2. Term. The First Term of this renewal (hereinafter Lease) shall commence on October 19, 2005 and run through October 18, 2008. This Lease may be renewed for an additional five (5) one year options upon notice of the TENANT to LANDLORD, upon the same terms and conditions contained herein. The TENANT must provide the LANDLORD with notice of its desire to renew this Lease 180 day before the expiration of the First or any successive Term. Rent for any Term or successive Term after the First Term shall be 103% of the rent of the previous Term.. 3. Rent. TENANT agrees to pay LANDLORD rent in the amount If $ 18.50 per square foot for the first year of the First Term of this Lease. Rent for each successive year of the First Term shall increase by 3% over the previous year's rent. Rent includes all utilities (except for electric costs incurred by the TENANT in its suite at the Premises, for which Tenant shall be responsible), maintenance, custodial service, snow removal, lawn maintenance, trash removal, and taxes for the Premises. 4. 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. 5. 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. 6. Hold Over. In the event the TENANT holds over after the expiration of the original or Second 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, except that the Rent to be paid by the TENANT to the LANDLORD shall be equal to 110% of the Rent as defined in Paragraphs 2 and 3 of this Lease. 1 c. The LANDLORD shall, within one hundred and twenty (120) days of the commencement date if this First Term, complete the following maintenance items: 1) replace the carpeting in all hallways inclusive of the stairs in TENANT'S Premises and the carpeting in room numbered 202; 2) thoroughly clean the carpeting and/or flooring in all other rooms and public areas of TENANT'S Premises. 13. 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 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, the TENANT shall not have the right to terminate the Lease. 14. Destruction of Premises. In the event, the Premises are partially or totally 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 upon written notice to the LANDLORD, after the expiration of such one hundred eighty (180) day period. If more than thirty-five percent (35%) of the Premises are damaged or destroyed by a 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. If the LANDLORD elects not 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. 15. 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. c. All Insurance Certificates are to provide 30 days notice of material change or cancellation. Certificates of Insurance and insurance binders must be provided no less than ten (10) working days before commencement of this Lease. d. Mutual Waiver of Subrogation. With regard to the premises and/or contents, to the extent that a loss is covered by insurance, the LANDLORD agrees that the 3 23. 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. 24. 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. 25. Modifications. This Lease may be modified or amended only by written agreement of the LANDLORD and the TENANT. 26. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan. 27. 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. 28. 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. 29. 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. 30. 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. 3 I . 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. 32. Notice. Any notice or other communication required or desired to be given shall be Notary Public, Oakland County, Michigan Acting in Oakland County My Commission Expires: STATE OF MICHIGAN ) ) SS . COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me in Oakland County this day of , 2005, by BILL BULLARD, JR, 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 Acting in Oakland County My Commission Expires: 5/5/2008. IP' 7 .4. Resolution #05311 December 8, 2005 The Chairperson referred the resolution to the Finance Committee. There were no objections.