HomeMy WebLinkAboutResolutions - 2006.01.19 - 28135PtAN IN AND MGAOMMITTEE
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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: S 180,393.50 rent + suite electric $ 19,000 est. 4- $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 1 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").
1. 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.
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8. 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 when taken, reasonable wear and tear excepted, and
shall remove its personal property.
9. Equipment and Furnishings. The TENANT shall provide, at its own expense, all
computer and telephone systems, furniture and equipment it deems necessary. The TENANT, at its
own expense, shall be solely responsible for the maintenance and repair of all computer and
telephone systems, furniture and equipment.
10. Taxes. All Real Estate Taxes assessed against the building at 2300 Dixie Highway
are included in the RENT except as follows:
During the First, Second, or any subsequent Term of this lease TENANT will pay for
any increase in the real estate taxes directly attributable to TENANT'S PREMISES (which premises
does not include any Common Areas except those included in the 9751 square feet of the Premises)
over the base year which shall be 2002. Any such amount duly assessed by the local Assessor shall
be paid by TENANT within thirty days of the date LANDLORD invoices TENANT.
11. 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, its employees, agents, customers, licensees or invitees, the TENANT shall be responsible for
making such repairs.
12. Utilities and Services.
a. Utilities. The LANDLORD shall be solely responsible for and promptly pay all
utilities, including water, gas, heat, electricity (except as described in the next sentence),
sewer service and any other utility used or furnished to the TENANT. The TENANT shall
be responsible for electric costs incurred in its suite at the Premises. The LANDLORD shall
be responsible for electric costs incurred outside the TENANT's suite at the Premises such at
electricity used in the parking lot and common areas of the Premises.
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, custodial services
(including, but not limited to, cleaning the Premises and providing paper towels, toilet paper,
and soap) trash removal, snow and ice removal from sidewalks, steps and parking areas,
complete parking lot maintenance and lawn care services.
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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
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TENANT (its 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.
16. 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.
17. 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.
18. Security. The TENANT acknowledges that during this Lease, the LANDLORD has
the right to have keys for access to the Premises upon written request by the LANDLORD. The
LANDLORD shall use the keys only for inspecting, repairing and/or maintaining the Premises. The
LANDLORD agrees to provide lighting for the interior and 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.
19. Access. The LANDLORD will provide keys and a key pad and code for the
TENANT's employees, agents, or independent contractors to enter the Premises. The TENANT shall
allow the LANDLORD access to the Premises during regular business hours for the purposes of
inspecting, repairing and/or maintaining the Premises. 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.
20. Signs. The TENANT may attach, install or erect signs on the interior walls of the
Premises as necessary for the TENANT'S business at the Premises. The TENANT may not attach,
install or erect any signs on the exterior walls of or the area surrounding, the Premises without the
prior written approval of the LANDLORD and the Township of Waterford as to the form, content,
material, lighting and structure thereof
21. 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.
22. Parking. The LANDLORD agrees to provide sufficient parking to satisfy the
requirements of the TENANT which is a minimum of 65 parking spaces. The TENANT may use
additional parking spaces, if available.
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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.
31. 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
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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.
33. 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.
34. 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.
IN WITNESS WHIREOF, the parties hereto have executed this Lease as of the day
and year above written.
WITNESSES: 2300 DIXIE HIGHWAY, LLC (LANDLORD)
By:
Derrick D. Hakim, Malinger
COUNTY OF OAKLAND (TENANT)
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 this day
of , 2005, by Derrick D. Hakim, Manager of 2300 DIXIE HIGHWAY, LLC.
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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: 515/2008.
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FISCAL NOTE (CR. #05311) January 19, 2006
BY: Finance Committee, Chuck Moss, 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:
Pursuant to Rule XII-C of this Board, the Finance Committee has
reviewed the above referenced Miscellaneous Resolution and finds:
1. The Department of Community Corrections is presently housed in
leased office space at 2300 Dixie Highway, Waterford, Michigan.
2. 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.
3. A new 3-year lease agreement has been negotiated that would commence
on October 19, 2005 and expire on October 18, 2008.
4. The rent is $18.50 a square foot, or $15,032.79 monthly or
$180,393.50 annually.
5. Sufficient Funds have been set aside for this agreement for FY 2006
and FY 2007. No budget amendment is required.
FINANCE COMMITTEE
C /(
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
Resolution #05311 December 8, 2005
The Chairperson referred the resolution to the Finance Committee. There were no objections.
Resolution #05311 January 19, 2006
Moved by Long supported by Coleman the resolutions on the Consent Agenda, as amended, be adopted
(with accompanying reports being accepted).
AYES: Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII, Long, Melton,
Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Wilson,
Woodward, Zack, Bullard, Coleman, Coulter. (25)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the Consent Agenda, as amended, were
adopted (with accompanying reports being accepted).
FINO•
APPROVE THE FORME RESOLUTION
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 January 19, 2006,
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 19th day of January, 2006.
Ruth JOhnson, County Clerk