HomeMy WebLinkAboutResolutions - 2005.05.26 - 27935ING AND EilltMING COMMITTEE
May 12, 2005
MISCELLANEOUS RESOLUTION # 05096
BY: Planning and Building Committee, Charles E. Palmer, Chairperson
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE
AGREEMENT WITH NEWBERRY PROPERTIES, LLC FOR USE OF PROPERTY AT 48150 GRAND RIVER
AVE., NOVI, MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland is responsible for providing courthouse facilities for all four
divisions of the 52 nd District Court; and
WHEREAS, the 52 nd District Court 1 st Division is presently housed in leased office space at
48150 Grand River Ave., Novi, Michigan; and
WHEREAS, at the present time no adequate County owned facility exists, which would
accommodate the Court's functions, and
WHEREAS, the Department of Facilities Management and Newberry Properties, LLC have
negotiated the terms and conditions of the attached Lease Agreement, which will allow the Court to
continue to occupy the existing courthouse located at 48150 Grand River Ave. for an additional five
year term with the option to extend the lease an additional five years, and
WHEREAS, the term of the new lease shall commence on March 4, 2005 and expire on March
3, 2010. Rent for said term shall be at a rate of $17.68 per square foot or $38,062.25 monthly or
$456,747 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 48150
Grand River Ave., Novi, Michigan between the County of Oakland and Newberry 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 Newberry Properties, 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 a roll call vote with Gershenson voting No.
Oakland County Department of Facilities Management
5/3/2005
Acceptance and Approval of Lease
52-1 District Courthouse
Newberry Properties, LLC
On January 11, 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 52-1 District
Courthouse located at 48150 Grand River Avenue in the City of Novi. The present lease expired on
March 3, 2005.
Description of Facility
The premises consist of a one -story 25,833 -sf building located on 4.74-acres.
Terms and Conditions of Lease
Term of lease: Five-year original term with option to extend for an additional five-years. Any extension
beyond a second term shall be via a new agreement. Termination of Lease: The lease may be terminated
if the responsibility of the court ceases to be a function of Oakland County.
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, utilities and property taxes. Provide and maintain
telephone and computer system. Commencement date: 3/4/2005.
Costs per new agreement: $456,747 rent ± $53,135.00 est. property tax = $509,882.00.
Owner/Landlord
Property owner: Newberry Properties, LLC 1853 Rochester Industrial Court, Rochester Hills, MI 48309.
Owners/Landlord: Richard Dryden and Dennis Keat.
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 48150 Grand River Avenue, Novi, Michigan, 48374 between the County of Oakland as tenant
and Newberry Properties, LLC as Landlord.
Mdh4/22/05
LEASE
This Lease is made and entered into as of this M day of
, 2005, by and between NEWBERRY PROPERTIES, LLC,
chigan limited liability company, whose address is 1853
Rochester Industrial Court, Rochester Hills, Michigan 48309
(hereinafter referred to as "LANDLORD"), and the COUNTY OF
OAKLAND, a Michigan Constitutional Corporation, whose address is
1200 North Telegraph Road, Pontiac, Michigan 48341 (hereinafter
referred to as "TENANT").
1. Leased Premises. LANDLORD, in consideration of the
rent to be paid and the covenants to be performed by TENANT, does
hereby lease unto TENANT and TENANT hereby rents from LANDLORD
for use as a courthouse facility for the 52/1 District Court,
those certain premises located at 48150 Grand River Avenue, Novi,
Michigan, containing 25,833 square feet of office space,
including the adjacent parking facilities and grounds, legally
described on Exhibit A attached hereto and made a part hereof
(hereinafter referred to as the "Premises").
2. Term. The term of this Lease shall commence on March
4, 2005, and shall end on the date five (5) years after such
commencement date (hereinafter referred to as the "Initial
Term").
3. Rent. From the commencement date of this Lease until
the date five (5) years after such commencement date, TENANT
agrees to pay to LANDLORD, as fixed annual rent hereunder, Four
Hundred Fifty-Six Thousand Seven Hundred Forty-Seven Dollars and
00/100's ($456,747.00) per year (based on the approximate rate of
Seventeen Dollars and 68/100's Dollars ($17.68) per net square
foot per year), which sum shall be payable by TENANT to LANDLORD
in equal consecutive monthly installments of Thirty-Eight
Thousand and Sixty-Two and 25/100's Dollars ($38,062.25), on or
before the first day of each month, in advance, without any prior
demand therefor and without any deductions or set-offs
whatsoever.
4. Option to Extend for Second Term. LANDLORD hereby
grants to TENANT the option to extend the Initial Term of this
Lease for an additional five (5) year period (hereinafter
referred to as the "Second Term"), said Second Term to commence
on such date as the Initial Term ends, and said Second Term shall
end on the date five (5) years after the Second Term commenced.
All of the provisions of this Lease herein provided shall
continue without modification during a Second Term except that
during a Second Term of this Lease TENANT agrees to pay to
LANDLORD, as fixed annual rent hereunder, an amount equal to Four
Hundred Fifty-Six Thousand Seven Hundred Forty-Seven and 00/100's
Dollars ($456,747.00) multiplied by the "CPI Fraction", as
IssIsud-n124.doc
hereinafter defined, but in any event, not less than Four Hundred
Fifty-Six Thousand Seven Hundred Forty-Seven and 00/100's Dollars
($456,747.00) per year, which sum shall be payable by TENANT to
LANDLORD in equal consecutive monthly installments each equal to
one-twelfth (1/12th) of such revised fixed annual rent, on or
before the first day of each month, in advance, without any prior
demand therefor and without any deductions or set-offs
whatsoever. TENANT shall notify LANDLORD in writing of its
exercise of this option at least ninety (90) calendar days before
the expiration of the Initial Term of this Lease. A new Lease
agreement for a Second Term shall be unnecessary on such
extension, this Lease constituting a present demise for both the
Initial Term and any Second Term.
For purposes of this Lease, the term "CPI Fraction"
shall mean a fraction, the numerator of which is the Consumer
Price Index, as hereinafter defined, for the 57th month after the
commencement date of this Lease, and the denominator of which is
the Consumer Price Index for the month in which the commencement
date of this Lease occurs; provided, however, that in no event
shall the CPI be less than one (1). For the purposes of this
Lease, the term Consumer Price Index shall mean the revised
Consumer Price Index of the Bureau of Labor Statistics, United
States Department of Labor, for Detroit - Ann Arbor Region for
all Urban Consumers, or any comparable substitute index in the
event the Consumer Price Index is no longer published.
5. Partial Month Rent Proration. Should either the
Initial Term or Second Term of this Lease commence on a day other
than the first day of a calendar month, then the rental for such
month and the last month of the term hereof shall be prorated
upon a daily basis based upon a thirty (30) day calendar month.
6. Place of Payment. Payments due under this Lease from
TENANT to LANDLORD shall be paid at the address of LANDLORD set
forth above, or at such other place as LANDLORD may designate in
writing.
7. Holding 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
holding-over shall be construed to be a tenancy from month-to-
month. All of the provisions of this Lease herein provided shall
continue without modification during the Hold Over period of this
Lease, except that if TENANT holds over after the original term
of this Lease TENANT agrees to pay to LANDLORD, as fixed monthly
rent hereunder, an amount equal to Thirty Eight Thousand Sixty-
Two Dollars and 25/100 ($38,062.25) multiplied by the "CPI
Fraction", as defined in Paragraph 4 above calculated as of the
57th month after the commencement date of the Lease„ but in any
event, not less than Thirty Eight Thousand Sixty-Two Dollars and
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25/100 ($38,062.25), which sum shall be payable by TENANT to
LANDLORD monthly, on or before the first day of each month or any
other date agreed upon by both Parties, in advance, without any
prior demand therefor and without any deductions or set-off
whatsoever. A new Lease agreement shall be unnecessary, this
Agreement constituting a present demise for any Term or Holding-
over of this Lease.
In the event TENANT holds over after the expiration of
the Second Term of this Lease without a written agreement between
the LANDLORD and the TENANT, the holding-over shall be construed
to be a tenancy from month-to-month. All of the provisions of
this Lease herein provided shall continue without modification
during the Hold Over period of this Lease, except that TENANT
agrees to pay to LANDLORD, as fixed monthly rent hereunder, an
amount equal to the monthly rent established for the Second Term
multiplied by the "CPI Fraction", as defined in Paragraph 4 above
calculated as of the 117th month after the commencement date of
the Lease, but in any event, not less than the amount established
for the Second Term which sum shall be payable by TENANT to
LANDLORD monthly, on or before the first day of each month or any
other date agreed upon by both Parties, in advance, without any
prior demand therefor and without any deductions or set-off
whatsoever. A new Lease agreement shall be unnecessary, this
Agreement constituting a present demise for any Term or Holding-
over of this Lease.
8. Extension Beyond Second Term. If TENANT desires to
continue to lease the Premises after the expiration of the Second
Term of this Lease, TENANT shall give LANDLORD written notice of
such desire at least three (3) months prior to the expiration of
the Second Term of this Lease; provided, however, that any such
further extension of the term of this Lease shall be upon terms
and conditions then acceptable to LANDLORD in its sole
discretion.
9. Use and Occupancy. The Premises shall be used during
any term of this Lease only as the 52/1 District Court and/or for
municipal purposes for the State of Michigan. The Premises shall
not be used in violation of any law, municipal ordinance of
regulation.
10. Equipment and Furnishings. TENANT shall provide, at
its own expense, all telephone systems, furniture and equipment
it deems necessary in connection with its use and occupancy of
the Premises. TENANT shall be solely responsible for the
maintenance and repair of all such property at its own expense.
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11. Care of Premises. TENANT shall keep the Premises in
good repair, wear and tear from reasonable use and damage by the
elements excepted. If TENANT elects to continue the Lease into
the Second Term, then LANDLORD agrees to (a) repaint interior
walls of the Premises as needed and (b) either re-carpet or clean
the existing carpet at the Premises at that time.
12. Compliance with Law. 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 LANDLORD fails to
comply with such laws and regulations, TENANT may give LANDLORD
written notice of its intent to quit the Premises upon the date
ninety (90) days after LANDLORD'S receipt of such notice in the
event LANDLORD does not comply with such laws and regulations
within such ninety (90) day period. If LANDLORD complies with
such laws and regulations within such ninety (90) day period,
TENANT shall not have the right to quit the Premises.
13. 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 LANDLORD, unless LANDLORD shall elect not to
rebuild as hereinafter provided, and the rent payable by TENANT
hereunder shall be reduced in proportion to the fraction of the
Premises rendered untenantable until the Premises are repaired or
rebuilt. In no event shall LANDLORD be required to repair or
replace any property of TENANT. In the event the Premises cannot
be repaired or rebuilt within one hundred eighty (180) days after
such destruction, TENANT shall have the right to terminate this
Lease and vacate the Premises upon written notice to 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 such casualties as aforesaid, LANDLORD
may elect to either repair or rebuild the Premises or to
terminate this Lease by giving written notice thereof to TENANT
within ninety (90) days after the occurrence of such damage or
destruction.
14. Insurance. (a) LANDLORD shall maintain comprehensive
general liability insurance with respect to the Premises, at its
own expense, in at least the amount of One Million and 00/100
Dollars ($1,000,000.00) combined single limit coverage per
occurrence. TENANT shall be an additional named insured on such
policy. LANDLORD shall provide TENANT with an appropriate
Certificate of Insurance evidencing such insurance coverage as
aforesaid. TENANT has the right and obligation to self-insure
with respect to comprehensive general liability for the
Premises, in the amount of One Million and 00/100 Dollars
($1,000,000.00) combined single limit per occurrence, and also
for fire and casualty covering TENANT'S contents therein.
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(b) All Insurance Certificates of LANDLORD are to
provide thirty (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.
(c) Mutual Waiver of Subrogation. With regard to the
premises and/or contents, to the extent that a loss is covered by
insurance or self-insurance of TENANT, the parties agree 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.
15. Repairs. LANDLORD shall maintain and keep in good
repair the roof, ceilings, walls, floors, foundations, sidewalks,
parking areas, exterior glass, heating and cooling systems at the
Premises.
16. Alterations or Improvements. TENANT shall not make
alterations or improvements whatsoever to or upon the Premises
without the prior written consent of LANDLORD. Any alterations
or improvements made upon the Premises shall become an integral
part of the Premises and shall become the sole property of
LANDLORD immediately upon the completion thereof, unless
otherwise agreed to in writing by the parties hereto.
17. Security. TENANT hereby acknowledges that during any
term of this Lease, LANDLORD shall have the right to have keys
for access to the Premises and that LANDLORD shall have the right
to obtain such keys from TENANT upon written request therefor.
In the event LANDLORD obtains such keys from TENANT, LANDLORD
shall use such keys only for the purpose of inspecting, repairing
and/or maintaining the Premises. LANDLORD agrees to provide
lighting for the exterior of the Premises, including parking
areas directly adjacent to the Premises, in an adequate manner
consistent with other similar office buildings in the
metropolitan Detroit area.
18. Access. TENANT shall allow LANDLORD access to the
Premises during regular business hours for the purposes of
inspecting, repairing and/or maintaining the Premises; provided,
however, that LANDLORD shall use its best efforts not to disrupt
the usual operations of TENANT at the Premises. In addition to
the foregoing, TENANT shall allow LANDLORD access to the Premises
at any time in the event of an emergency. Prior to the
commencement date of this Lease, TENANT agrees to provide
LANDLORD with written notice indicating the name, address and
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telephone number of TENANT'S representative who will provide
LANDLORD with access to the Premises in emergency situations.
19. Signs. TENANT may attach, install or erect such signs
on the interior walls of the Premises as may be necessary in
connection with the conduct of TENANT'S usual business at the
Premises. TENANT may not attach, install or erect any signs
whatsoever on the exterior walls of, or the area surrounding, the
Premises without the prior written approval of LANDLORD as to the
form, content, material, lighting and structure thereof.
20. 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, unless by
statute the responsibility for the 52/1 District Court ceases to
be a function for TENANT. Notwithstanding the foregoing, in the
event the State of Michigan, by action of its legislature, takes
over and assumes responsibility for the 52/1 District Court, or
assigns, the responsibility for the Court to another governmental
entity, TENANT may assign its interest in this Lease to the State
of Michigan or other governmental entity, which shall in writing
assume all of the liabilities and obligations of TENANT under
this Lease.
21. Utilities. TENANT shall be solely responsible for and
promptly pay all charges for water, gas, heat, electricity,
telephone, sewer, and any other utility used or furnished to the
TENANT. LANDLORD agrees to provide utility service lines into
the Premises and separate meters for all utilities used upon or
furnished to the Premises.
22. Parking. LANDLORD agrees to provide sufficient parking
to satisfy the requirements of the City of Novi as of the date
hereof, but in no event less than two hundred twenty-seven (227)
dedicated spaces.
23. Taxes. From and after the commencement date of this
Lease, TENANT agrees to pay all real estate taxes assessed or
imposed against the Premises directly to the taxing authority
prior to the date on which any penalty for the nonpayment of such
taxes attaches. TENANT shall deliver to LANDLORD evidence of the
payment of such taxes prior to the date on which any penalty for
the nonpayment of such taxes attaches. Taxes for the years in
which any term of this Lease commences and ends shall be prorated
and adjusted between LANDLORD and TENANT on the due-date basis.
TENANT shall also be responsible for and shall pay before
delinquency, all taxes assessed during any term of this Lease
against any leasehold interest or personal property of any kind,
owned by or placed in, upon or about the Premises by TENANT.
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24. Services. LANDLORD agrees to provide, at its own
expense, and shall be responsible for all maintenance in the
interior of the Premises, including window washing, plumbing,
electrical system repairs, all custodial services, light bulb
replacement, leaky faucets, clogged toilets, drain repairs, etc.
LANDLORD is responsible, at its own expense for heating and
cooling maintenance and repairs, trash removal, snow and ice
removal from sidewalks, steps and parking areas, complete parking
lot maintenance, lawn care and landscaping services, and trees.
25. Eminent Domain. If the whole of the Premises shall, be
taken by any public authority under the power of eminent domain,
then the term of this Lease shall cease as of the day possession
shall be taken by such public authority. If less than the whole
but more than thirty-five percent (35%) of the Premises shall be
taken by any public authority under the power of eminent domain,
than either party hereto shall have the right to terminate this
Lease by written notice to the other within thirty (30) days
prior to the date possession shall be taken by such public
authority, in which event neither party hereto shall have any
further liability or obligation hereunder. In the event neither
party elects to terminate this Lease, the Lease term shall cease
only on the part so taken as of the day possession shall be taken
by such public authority, and thereafter the fixed annual rent
hereunder shall be reduced in proportion to the amount of the
Premises taken.
26. Quiet Enjoyment. Upon payment by TENANT of the rents
herein provided, and upon the observance and performance of all
of the terms, conditions and covenants required of TENANT
hereunder, TENANT shall peacefully and quietly hold and enjoy the
Premises for any term of this Lease or extension without
hindrance or interruption by LANDLORD or any person acting by,
through or under LANDLORD.
27. Liens. TENANT covenants and agrees that it will not
permit any liens or encumbrances of any kind or nature whatsoever
to attach to the Premises, by leasehold improvements at the
Premises or TENANT'S interest in this Lease by reason of any act
or omission of TENANT.
28. Modifications. This Lease may be modified or amended
only by the written agreement of LANDLORD and TENANT.
29. Governing Law. This Lease shall be interpreted under
and governed by the laws of the State of Michigan.
30. Severability. If any provisions of this Lease, or the
application thereof, to any extent become invalid or
unenforceable, the remainder of this Lease, or the application of
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such provision to the parties or circumstances other than those
to which it is invalid or unenforceable, shall not be affected
thereby, and each provision of this Lease shall be valid and
enforceable to the fullest extent permitted by law.
31. Waiver. One (1) or more waivers of any covenant,
condition or agreement by LANDLORD or TENANT shall not be
construed as a waiver of a subsequent breach of the same
covenant, condition or agreement. No breach of a covenant,
condition or agreement of this Lease shall be deemed to have been
waived by LANDLORD or TENANT unless such waiver be in writing
signed by LANDLORD or TENANT.
32. Entire Agreement. This Lease and any Exhibits attached
hereto constitute the entire agreement of the parties hereto with
respect to the Premises, and all prior negotiations, agreements
and understandings, either oral or written, are hereby merged
herein.
33. Binding Effect. The terms and conditions of this Lease
shall be binding and shall inure to the benefit of the parties
hereto and their respective heirs, representatives, successors
and assigns; provided, however, that no rights shall inure to the
benefit of any assignee of TENANT unless the assignment to such
assignee has been approved by LANDLORD in writing or as otherwise
provided for in this Lease.
34. Use of Words. The pronouns and relative words herein
used shall be read interchangeably in masculine, feminine or
neuter, singular or plural, as the respective case may be.
35. Notice. Any notice or other communication required or
desired to be given hereunder 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
Landlord as set forth above. Addressed to the Tenant at Property
Management Specialist, Oakland County, One Public Works Drive,
Waterford, Michigan 48328. 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 this Lease. Any party may
change its address for purposes of this Lease by giving the other
party notice thereof in the manner herein provided for the giving
of notices.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease as of the date and year first above written.
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NEWBERRY PROPERTIES, LLC
a Michigan limited liability
company
(LANDLORD)
N.,
COUNTY OF OAKLAND, a Michigan
constitutional corporation
(TENANT)
By:
Bill Bullard, Jr.,
Chairperson Oakland County
Board of Commissioners
STATE OF MICHIGAN
) SS
COUNTY OF OAKLAND
The foreoing instrument was acknowledged Wore me this
/Zclay ofA.c-y k , 2005, by bek.O.
on behalf of 'NEWBERRY ASSOCIATES, LLC, a Michiglan limited
liability company.
( ' C_Apt_x_sL
Notary Public, State of Mic- igan
Oakland County
My Commission Expires: 4-3-08
Acting in the County of Oakland
aiRISTME M. CROWLEY
- MARY PUBLIC OAKLAND en., r .4!
COMPAiSSiON EXPI.- • -
mstsud-n124.doc
9
STATE OF MICHIGAN )
) SS
COUNTY OF OAKLAND )
The foregoing instrument was acknowledged before me 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.
Notary Public, State of Michigan
Oakland County
My Commission Expires:
Acting in the County of Oakland
‘business1sud-n124.doc
1 0
EXHIBIT A
Legal Description
Parcel: 22-17-226-003
48150 Grand River Avenue
Novi, Michigan
Land situated in the City of Novi, Oakland County, Michigan:
A parcel of land situated in the Northeast 1/4 of Section 17,
T1N, R8E, City of Novi, Oakland County, Michigan, being more
particularly described as follows: Commencing at the North 1/4
corner of Section 17, T1N, R8E, City of Novi, Oakland County,
Michigan and proceeding along the North and South 1/4 line of
said Section 17, 502 °46'41"E 382.13-ft. to the point of
beginning; thence S73 °26'47"E 692.00-ft.; thence S16 °33'03"W
325.00-ft. to a point on the Northerly right of way line of Grand
River Ave. (100-ft. wide); thence along said Northerly right of
way line N73 °26'47"W 578.00-ft. to a point on the North and South
1/4 line of said Section 17; thence along the North and South 1/4
line of said Section 17, NO2 °46 1 41"W 344.42-ft. to the point of
beginning.
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FISCAL NOTE (MISC. 105096) • May 26, 2005
BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF
LEASE AGREEMENT WITH NEWBERRY PROPERTIES, LLC FOR USE OF PROPERTY AT
48150 GRAND RIVER AVE., NOVI, 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 authorizes a five (5) year lease agreement
extension, between the Department of Facilities Management
and landlord Newberry Properties, LLC., with an option to
extend the lease an additional five (5) years.
2. The leased space is located at 48150 Grand River Ave., in
Novi, Michigan for the operation of the 52-1 Novi District
Court.
3. The term of the new lease shall commence on March 4, 2005
and expire on March 3, 2010, with rent for said term set at
a rate of $17.68 per square foot or $38,062.25 monthly or
$456,747 annually.
4. In addition, estimated property tax is increased to $53,135
per year, for a total cost of $509,882 annually.
5. The increase in Rent and Property Tax will be included in
the FY 2006 and FY 2007 Executive Recommended Budget.
6. An amendment to the 52-1 Novi District Court budget is
recommended for FY 2005 as follows:
Fund 101 General Fund
52/1 District Court - Expenditures
2-32-201200-20001-3476 Rent
2-32-201200-20001-3360 Property Tax
FY 2005
$60,882
4,579
$65,461
Non-Departmental - Expenditure
2-90-290000-25000-2564 Contingency (65,461)
Total General Fund 0
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Melton, Crawford
and Woodward absent.
Resolution #05096 May 12, 2005
The Chairperson referred the resolution to the Finance Committee. There were no objections.
OM.
Resolution #05096 May 26, 2005
Moved by Long supported by Suarez the resolutions on the Consent Agenda be adopted (with
accompanying reports being accepted).
AYES: Coulter, Crawford, Douglas, Gershenson, KowaII, Long, Melton, Middleton, Molnar, Moss,
Nash, Palmer, Patterson, Scott, Suarez, Wilson, Woodward, Zack, Bullard. (19)
NAYS: None, (0)
A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted (with
accompanying reports being accepted).
I NM !PROVE WOE
STATE OF MICHIGAN) °044(11
•
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 May 26, 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 26th day of May, 2005.
Ruth Johnson, County Clerk
*tiumak-e