HomeMy WebLinkAboutResolutions - 2005.03.10 - 27899February 17, 2005
MISCELLANEOUS RESOLUTION #05031
BY: Planning and Building Committee, Charles E. Palmer, Chairperson
IN RE: DEPARTMENTS OF DRAIN COMMISSIONER AND FACILITIES MANAGEMENT - APPROVAL
AND ACCEPTANCE OF LEASE AGREEMENT WITH D'ANCO PROPERTIES, LLC FOR USE OF
INDUSTRIAL BUILDING AND STORAGE YARD AT 30750 8 MILE ROAD, FARMINGTON HILLS,
MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the Oakland County Drain Commissioner presently provides water main service and
maintenance operations to numerous communities in Oakland County from its existing facility located at 8
Mile and Lahser Roads in the City of Southfield; and
WHEREAS, the present facility has proven inadequate as a service facility given the increased
demand for maintenance services in south Oakland County; and
WHEREAS, at the present time no adequate County owned facility exists on or off the Oakland
County Service Center, which would accommodate the maintenance and material storage needs of the
Drain Commissioner, and;
WHEREAS, it is the recommendation of the Departments of the Drain Commissioner and
Facilities Management that the Oakland County Board of Commissioners accept and approve the terms
and conditions of the attached Lease Agreement, and;
WHEREAS, under the terms and conditions of the attached Lease Agreement, the Drain
Commissioner would occupy approximately 4,300-sf of the industrial building and the north 150-ft. of the
storage yard located at 30750 8 Mile Road in the City of Farmington Hills for a period of three years at a
rental rate of $3,800.00 per month or $45,600 per year.
WHEREAS, the Departments of the Drain Commissioner, 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 part of the industrial building and storage
yard at 30750 8 Mile Road, Farmington Hills, Michigan between the County of Oakland and D'ANCO
Properties, 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 D'ANCO Properties, 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
A.14“ Planning & Building Committee Vote:
Motion carried on unanimous roll call vote with Palmer, Middleton and Molnar absent
LEASE
This Lease is made and entered into on the 10 th day of March 2005, by D'AN-CO Properties,
LLC, 25543 Ranchwood, Farmington Hills, Michigan 48335 ("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 TENANT, the LANDLORD leases to the TENANT and the TENANT rents from
the LANDLORD a portion of the industrial warehouse building and industrial site located at 30750
Eight Mile Road, Farmington Hills, Michigan, consisting of Four Thousand Three Hundred (4300)
square feet of the industrial building located on the site (as diagramed in Attachment A), and the rear
One Hundred and Fifty (150) by One Hundred (100) feet of the industrial site (as diagramed in
Attachment A), which taken together constitute the "Premises" that is being leased by TENANT,
including the right to use an Easement on the Westerly portion of the industrial site for access to the
rear of the Building and the rear of the Premises; and the right use the parking in the front and in the
rear of the building (see Attachment A). LANDLORD also grants TENANT an easement through
LANDLORD'S portion of the building for vehicular access to TENANTS portion of the building
for vehicles and other equipment used in TENANT'S business.
2. Term and Commencement Date. The Term of this Lease shall begin on the
Commencement Date, which is March 10, 2005, and shall run for three years from that date (Initial
Term). 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.
3. Option to Extend for Second Term. LANDLORD hereby grants to TENANT the
option to extend the Initial Term of this Lease for up to an additional three (3) year period
(hereinafter Second Term), said Second Term shall commence on the date the Initial Term expires.
All provisions of the existing Lease shall continue without modification during the Second Term.
The TENANT must provide the LANDLORD with notice of its desire to renew this Lease 90 days
before the expiration of the Initial Term.
4. Termination. Notwithstanding Paragraphs two (2) or three (3) (or any other term
of this Lease), should the Oakland County Board of Commissioners remove or revoke funding for
this Lease or any extension of this Lease, the LANDLORD grants TENANT the absolute right to
cancel this Lease upon thirty (30) days written notice to the LANDLORD with no penalty
whatsoever to TENANT.
5. Rent. From the date this Lease commences until the Lease expires or is terminated,
the TENANT agrees to pay the LANDLORD Thirty-eight Hundred Dollars ($3,800.00) per month.
This sum includes all utilities, structural maintenance, site maintenance, all snow removal, lawn
maintenance, trash removal, parking lot maintenance, taxes and special assessments for the Premises.
6. Rent for Lease Extension. From the commencement date of the Second Term,
TENANT agrees to pay LANDLORD monthly rental for the premises at the rate of $4,000.00 per
month.
7. 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.
8. 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 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.
9. 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.
10. Use and Occupancy. The Premises shall not be used in violation of any law,
municipal ordinance, or regulation. The Premises will be used to store motorized vehicles and
equipment and materials used in the construction, maintenance, and operation of water and sewer
mains, including sand, fill dirt, gravel, piping, fire hydrants, and the like. Some light maintenance
of vehicles will be performed on the Premises. 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.
11. 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.
12. Taxes. All taxes and special assessments are included in the rental payments due
under Paragraphs two (2) and three (3) of this Lease.
13. 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
systems, plumbing, 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 TENANT shall be responsible for making such repairs, unless such repairs
are covered by insurance as required by the insurance provisions of this Lease.
14. Utilities and Services.
a. Utilities. The LANDLORD shall be solely responsible for and promptly pay
2
all utilities including charges for water, gas, heat, electricity, sewer service and any other
utilities used by TENANT on the Premises. LANDLORD agrees to provide security lighting
for the exterior and interior of the Premises at no charge to TENANT.
b. Services. The TENANT agrees to pay all costs associated with maintaining
and operating its telephone system, computer system and any other system the TENANT
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 maintenance and lawn care services.
15. 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 ninety (90) days after the LANDLORD'S receipt of the written notice. If the LANDLORD
complies with the laws and regulations within the ninety (90) day period, then TENANT'S notice
will be deemed withdrawn.
16. 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 ninety (90) 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 the Premises are being repaired, the Rent owed by the TENANT shall be
reduced in proportion to the percentage of the Premises rendered unusable (in the discretion
of the TENANT) until the Premises are repaired or rebuilt. If the TENANT is required to
vacate the Premises during any period of repair the rent shall be entirely abated for that time.
If more than thirty-five percent (35%) of the Premises are damaged or destroyed by fire or
other 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 percentage of the Premises rendered unusable during the time of repair
(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. If the
TENANT is required to vacate the Premises during any period of repair, the rent shall be
entirely abated for that time.
17. Insurance. The TENANT is self-insured. The LANDLORD agrees to provide the
3
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 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 TENANT (his
agents and/or employees) shall not be liable to the LANDLORD and the LANDLORD shall
not be liable to the TENANT for any loss resulting directly or indirectly from fire, explosion,
smoke damage, vehicle damage, aircraft damage, riot and civil commotion, vandalism and
malicious mischief, or other similar event.
18. Indemnification. The LANDLORD shall save, defend, indemnify and hold the
TENANT harmless from and against any and all loss, cost, liability, damage, expense (including,
without limitation, reasonable attorneys' fees), penalties, fines and claims whatsoever in connection
with loss of life, personal injury and/or damage to property arising from any negligent or willful acts
or omissions of the LANDLORD, its agents or employees.
19. Alterations or Improvements. The TENANT shall not make any alterations or
improvements to or upon the Premises without the prior written consent of the LANDLORD. Any
alterations or improvements made to or upon the Premises shall become an integral part of the
Premises and shall become the sole property of the LANDLORD immediately upon the completion,
unless agreed to in writing by the Parties. Office furniture and trade fixtures used or installed in the
Premises shall not be deemed to be Alterations and shall remain the property of the TENANT.
20. Care of Premises. TENANT shall Keep the Premises in good repair, wear and tear
from reasonable use and damage from the elements excepted.
21. Access by TENANT. The TENANT acknowledges that during this Lease, the
LANDLORD has the right to have access to the Premises upon written request to the TENANT. The
LANDLORD will provide keys for the TENANT'S employees, agents, or independent contractors
to enter the Premises. TENANT shall have the right to install a security system of its choice on the
Premises. TENANT will pay the cost of installing, operating, and maintaining the security system.
TENANT shall have the right to remove the security system upon expiration or termination of this
Lease.
22. Access by LANDLORD. The TENANT shall allow the LANDLORD access to the
4
Premises during regular business hours for the purposes of inspecting, repairing and/or maintaining
the Premises when accompanied by an agent or employee of TENANT. The LANDLORD shall use
its best efforts not to disrupt the usual operations of the TENANT at the Premises. The TENANT
shall also allow the LANDLORD access to the Premises at any time in case of an emergency.
23. Signs. The TENANT may attach, install or erect signs on the interior walls of the
Premises as necessary for the TENANTS business at the Premises. The TENANT may attach,
install or erect signs on the exterior walls of the Premises, or the area surrounding the Premises, with
the written approval of the LANDLORD as to the form, content, material, lighting and structure
thereof, and in conformance with City regulations.
24. 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.
25. Parking. The LANDLORD agrees to provide sufficient parking to satisfy the
requirements of the TENANT.
26. 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 Premises are taken by any public authority
under the power of eminent domain, then the TENANT in its sole discretion may elect to terminate
this Lease upon thirty (30) days written notice to LANDLORD. In the event TENANT elects to
remain on the Premises after a partial taking of the Premises the rent shall be reduced in proportion
to the percentage of the Premises taken. Neither Party shall have any future liability or obligation
under the Lease if it is terminated pursuant to this Paragraph.
27. 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.
2g. Modifications. This Lease may be modified or amended only by written agreement
of the LANDLORD and the TENANT.
29. 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.
30. Gender. The gender of any word contained in this Lease shall not affect the meaning
of this Lease, and whenever herein the singular number is used, the same shall include the plural,
and any gender shall be deemed to include the masculine, feminine, or neuter genders.
31. 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
5
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.
32. Security Deposit. LANDLORD acknowledges that no security deposit is being
required of TENANT.
33. Governing Law. This Lease shall be interpreted under and governed by the laws of
the State of Michigan.
34. 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.
35. 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.
36. 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.
37. 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.
38. 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.
39. 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, return receipt requested, 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 three (3) days after the same is deposited
with the 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.
40. 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,
6
obligation, duty, capacity, or immunity of the TENANT.
IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above
written.
WITNESSES: DAN-CO Properties, LLC
By: Robert D'Angelo, Member
OAKLAND COUNTY
By: Bill Bullard, Jr., 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 day of February 2005, by ROBERT D'ANGELO, Member.
Michael D. Hughson
Notary Public, Acting in Oakland County, Michigan
My Commission Expires: May 5, 2008
STATE OF MICHIGAN )
) S S.
COUNTY OF OAKLAND )
The foregoing instrument was acknowledged before me in Oakland County, Michigan
this day of March 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, Acting in Oakland County, Michigan
My Commission Expires: May 5, 2008
NATEMPFILElnumber\2004\2004-1100 film 2004-1199\200 ,1-1140 Lease of Farmington Hills Industrial Bldg Construction Yard for Drain
Operations Stafffinal Lease.doc
7
tESS EASEMEP NORTH 150 Ft.
OF CONSTRUCTION YARD
,-777-777-7C-C70
LEASED BLDG.
(SOUTH 4300 Sq. Ft.)
OAKLAND COUNTY OPAIN COMMISSIONER
D.MINS. " MO ON iv.. I•olly
NeoMod sops w. Um/ a. eMe
So, IMMM1MI 41.111.11.4.1
EIGHTMILE
N
Legend
2003 Property Lines
Municipal District
ATTACHMENT "A"
D'ANCO PROPERTIES LEASE
30750 EIGHT MILE RD.
FARMING TON HILLS, MI 48336
Feet
0 50 100 200
ocbc
\ 101,1.111f11114 omitiiiiv
Photos 30750 8 Mile Rd., Farmington Hills
9/22/2004
Front
Interior
Interior
Rear Yard Area
$ 26,600.00
$ 26,600.00
9 -0-
FISCAL NOTE (MISC. 105031) March 10, 2005
BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON
IN RE: DEPARTMENTS OF DRAIN COMMISSIONER AND FACILITIES MANAGEMENT -
APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH D'ANCO PROPERTIES, LLC
FOR USE OF INDUSTRIAL BUILDING AND STORAGE YARD AT 30750 8 MILE ROAD,
FARMINGTON HILLS, 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 current leased facility at 8 Mile and Lahser Road in the
City of Southfield, Michigan is no longer adequate to meet the
growing community needs for water main service and maintenance
operations.
2. No adequate County facilities currently exist within the County
Complex or offsite to adequately meet the needs of the Drain
Commissioner in providing these services.
3. The Department of Facilities Management and the Drain
Commissioner have successfully negotiated with D'anco
Properties, LLC the terms of a three (3) year lease at the rate
of $3,800.00 a month for use of an industrial building located
at 30750 8 Mile Road in the City of Farmington Hills, Michigan.
4. To provide an adequate facility, the Oakland County Drain
Commissioner is requesting that the Oakland County Board of
Commissioner accept and approve the terms and conditions of the
lease agreement between Oakland County and D'anco Properties,
LLC.
5. The cost of the lease will be recovered through the water
rates.
6. The annual cost of $45,600 for FY 2006 will be included in the
FY 2006 County Executive Recommended Budget.
7. The following budget amendment is recommended for Fiscal Year
2005:
WATER AND SEWER TRUST FUND (701)
Revenue
61-121318-21100-1119 Water Sales
Expense
61-227318-21100-3476 Rent
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
Resolution #05031 February 17, 2005
The Chairperson referred the resolution to the Finance Committee. There were no objections.
Resolution #05031 March 10, 2005
Moved by Molnar supported by Melton the resolutions on the Consent Agenda, be adopted (with
accompanying reports being accepted).
AYES: Coleman, Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, KowaII, Long,
Melton, Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez,
Wilson, Woodward, Zack, Bullard. (24)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolutions on the Consent Agenda, were adopted (with
accompanying reports being accepted),
1".
I HEREBY APPROVE Tig FOREGOING RESOLUTEN
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, 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 10, 2005
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 10th day of March, 2005.
Ruth Johnson, County Clerk