HomeMy WebLinkAboutResolutions - 2021.04.29 - 34370MISCELLANEOUS RESOLUTION #21162 April 29, 2021
BY: Commissioner William Miller, Chairperson, Economic Development and Infrastructure Committee
IN RE: FACILITIES MANAGEMENT - EMERGENCY MANAGEMENT AND HOMELAND SECURITY —
APPROVAL OF LEASE AGREEMENT FOR NEW WAREHOUSE SPACE FOR PPE STORAGE
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Oakland County's Emergency Management & Homeland Security Department and the Health
Department are currently storing personal protection equipment (PPE) in buildings owned by the Penske
organization and are donated at no cost to the County; and
WHEREAS the licenses to utilize the two buildings expires on 04/15/21, and will not be renewed; and
WHEREAS appropriate warehouse space has been located that fits the parameters and needs of
Homeland Security in the City of Pontiac at 112 W Pike Street; and
WHEREAS the landlord (112 Pike, LLC) will lease the property and building for $11,756.25 per month for
two years beginning May 1, 2021, with the County paying for utilities, taxes, insurance and maintenance;
and
WHEREAS the lease may be renewed at the County's sale option for three (3) additional years for the
same terms and conditions except that the rent will increase by five percent in the renewal term; and
WHEREAS the landlord will install three new overhead doors with handheld openers and allow use of the
camera system as detailed in the lease agreement; and
WHEREAS Oakland County Corporation Counsel and the Department of Facilities Management has
reviewed the lease and have negotiated the terms and conditions for the warehouse space.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and authorizes the attached lease agreement.
BE IT FURTHER RESOLVED that the Oakland County 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 112 Pike, LLC which may be required.
BE IT FURTHER RESOLVED that a budget amendment is not required as there is sufficient funding
within the Emergency Management & Homeland Security's existing FY 2021 — FY 2023 General
Fund/General Purpose budget to cover the cost of the expenditures.
Chairperson, on behalf of the Economic Development and Infrastructure Committee, I move the adoption of
the foregoing resolution.
Commissioner William Miller, District #14
Chairperson, Economic Development and
Infrastructure Committee
ECONOMIC DEVELOPMENT AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
LEASE OF BUILDING LOCATED AT
112 PIKE STREET, PONTIAC, MICHIGAN
This Lease is entered into between 112 PIKE LLC, 1080 N Opdyke, Suite 101, Auburn Hills,
ML 48326 ("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional
Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 ("TENANT"). The Parties
agree to the following terms and conditions.
1. Leased Premises.
1.L LANDLORD leases to TENANT and TENANT leases from LANDLORD the real prop-
erty located at 112 W. Pike Street, Pontiac with the Parcel Identification Number 14-29-
453-033, including the building located thereon, which is approximately twenty-eight
thousand five hundred (28,500) square feet (collectively the "Premises"). The Premises
are illustrated in Exhibit A. Exhibit A is fully incorporated into this Lease.
2. Term and Renewal.
2.1. Term. This Lease shall begin on May 1, 2021 ("Commencement Date") and shall end
two (2) years from that date on April 30, 2023 ("Initial Term"). TENANT shall have
possession of the Premises on the Commencement Date. Failure of LANDLORD to
provide TENANT with possession on the Commencement Date and the continuation of
such failure for thirty (30) Calendar days shall entitle TENANT, as its sole remedy, to
terminate this Lease upon written notice to LANDLORD; otherwise the Commencement
Date shall be delayed until possession is delivered without any liability imposed upon
LANDLORD for such delay.
2.2. Renewal. So long as TENANT has not been in default and is not in default on the com-
mencement of a Renewal Term, this Lease may be renewed, at TENANT'S sole option,
for three (3) additional terms of one (1) year each upon written notice to LANDLORD
by TENANT (each a "Renewal Term"). LANDLORD must receive TENANT'S written
renewal notice at least one hundred (120) calendar days before the expiration of the Ini-
tial Term or each Renewal Term, absent which TENANT shall have no right to renew
this Lease. The renewal of this Lease shall be contained in an amendment to this Lease,
which may be executed on behalf of TENANT by its Director of Facilities Management
or successor. The same terms and conditions contained herein shall apply to the Re-
newal Term, except for Rent, which is set forth in Section 4. References herein to
"term" shall mean the Initial Term and any Renewal Term.
3. Default/Termination.
3.1. TENANT Pavment Default. If TENANT shall default in any payment or expenditure
other than rent required to be paid or expended by TENANT, LANDLORD may, at its
Page 1 of 13
Draft 3-29-21
option, make such payment or expenditure, in which event the amount thereof shall be
payable as rent to LANDLORD by TENANT on the next ensuring rent day together
with interest at twelve (12%) percent per annum from the date of such payment or ex-
penditure was made by LANDLORD.
3.2. Termination of Lease for Default. Upon written notice, a Party may terminate this
Lease for default by the other Party pursuant to the following procedure: (a) the non -de-
faulting Party gives the defaulting Party written notice specifically identifying the de-
fault(s) and (b) the defaulting Party does not cure the default within fifteen (15) calendar
days of receiving the written notice of default or the defaulting party does not commence
to cure the default within fifteen (15) calendar days of receiving written notice of the de-
fault and does not diligently pursue the cure to completion, if the default is of such a na-
ture that it cannot be cured within the fifteen (15) day period.
3.3. Remedies Provided by Law. If either Party defaults in any of its obligations under this
Lease (after expiration of the notice and cure periods in Section 3.2) the other Party shall
have all remedies available to it under the law, in addition to the rights and remedies set
forth herein.
3.4. Termination by TENANT DurinE Renewal Term. During any Renewal Term, TEN-
ANT may terminate this Lease at any time and for any reason, including convenience,
upon three hundred sixty-five (365) calendar days written notice to LANDLORD.
3.5. Surrender of Premises. Upon expiration or termination of this Lease or TENANT'S
right to possession, TENANT shall surrender the Premises in a similar condition as
when taken (reasonable wear and tear and damage from elements excepted) and shall re-
move its personal property on or before the date of expiration or termination. If TEN-
ANT does not remove its personal property within thirty (30) calendar days of the date
of expiration or termination, in addition to any other remedies of LANDLORD, such
items shall be deemed abandoned, and LANDLORD may cause such items to be stored,
removed or disposed of at TENANT'S expense, without notice to TENANT and without
obligation to compensate TENANT. Any damage caused to the Premises by the re-
moval of TENANT'S personal property shall be repaired and paid for by TENANT
within thirty (30) calendar days of the date of such damage. If TENANT does not repair
or commence repair of such damage within the thirty (30) day time period, then LAND-
LORD may repair and restore the Premises and TENANT shall pay the actual and rea-
sonable costs of such repair and restoration to LANDLORD, within thirty (30) days of
demand. LANDLORD shall provide TENANT with an itemized invoice for such repair
and restoration.
4. Rent and Date of Rent Pavment.
Page 2 of 13
Draft 3-29-21
4.1. Rent Amount. During the Initial Term, TENANT shall pay LANDLORD, as rent,
eleven thousand, seven hundred fifty-six dollars and twenty-five cents ($11,756.25) on
the Is' day of each and every month (plus taxes, maintenance and insurance as set forth
herein). During the Renewal Terms, Tenant shall pay Landlord the following rent on the
I" day of each and every month (plus taxes, maintenance and insurance as set forth
herein): (1) for year 3 twelve thousand, three hundred and forty-four dollars ($12,
344.00); (2) for year 4 twelve thousand, five hundred and ninety dollars and eighty-eight
cents ($12,590.88) (plus taxes ,maintenance and insurance as set forth herein); and (3)
for year 5 twelve thousand, eight hundred and forty-two dollars and seventy cents
($12,842.70) (plus taxes ,maintenance and insurance as set forth herein).
4.2. Place of Pavment. Payments due under this Lease from TENANT shall be paid to 112
Pike LLC at 1080 N Opdyke Rd, Suite 101, Auburn Hills, Michigan 48326 or at such
other place as LANDLORD may designate in writing.
4.3. Rent Setoff. If LANDLORD fails to perform or comply with any obligation or require-
ment of this Lease, TENANT shall give LANDLORD fifteen (15) calendar days written
notice of such failure. If LANDLORD does not cure the failure within fifteen (15) cal-
endar days after receipt of such written notice (or if a cure of such failure cannot reason-
ably occur within such fifteen (15) calendar days and LANDLORD does not commence
the cure within such fifteen (15) calendar day period and thereafter diligently pursue per-
formance or compliance), TENANT may upon written notice to LANDLORD perform
or comply with such obligation or requirement or may cause a third -party to perform or
comply with such obligation or requirement. TENANT may deduct the costs associated
with such performance or compliance from the Rent, if the LANDLORD'S failure to
perform or comply with an obligation or requirement substantially interferes with TEN-
ANT'S use of the Premises. Upon written request, TENANT shall provide LAND-
LORD with an itemized invoice or statement of costs associated with performance or
compliance of an obligation or requirement.
4.4. Partial Month Rent Proration. If this Lease terminates (other than due to a default by
TENANT) or expires other than the first calendar day of a month, then the Rent for such
month shall be prorated upon a daily basis.
5. Security DeDOSit. No security deposit is required of TENANT.
6. Hold Over. In the event TENANT holds over after the termination or expiration of this
Lease, without a written amendment, TENANT shall be a Tenant -At -Sufferance at two hun-
dred percent (200%) of the rent in effect at the end of the applicable term. TENANT shall
also continue to pay all other sums due hereunder. There shall be no renewal of this Lease
by operation of law. In addition to the foregoing, in the event that TENANT remains in pos-
Page 3 of 13
Draft 3-29-21
session of the Premises after the expiration or termination of the Term, TENANT shall be lia-
ble for all damages, direct and consequential, incurred by LANDLORD as a result of such
holdover. No receipt of money by LANDLORD from TENANT after the termination of this
Lease or TENANT'S right of possession of the Premises shall reinstate, continue, or extend
the Term or TENANT'S right of possession.
7. Use and Occunancv of the Premises.
7.1. Tenant's Use of Premises. TENANT shall use the Premises to store PPE and other
equipment and supplies, which are owned by TENANT or in TENANT'S possession be-
cause of the performance of a governmental function. The public will not have access to
the Premises. TENANT shall use the Premises in the performance of governmental
functions.
7.2. Documentation of Condition of Premises. On or before May 10, 2021, the Parties
shall create a document (in writing and with video) evidencing the current condition of
the Premises. This document shall establish the condition of the Premises on the Com-
mencement Date and shall form the basis for maintenance and repairs to the Premises.
7.3. Comoliance with Laws. TENANT shall not use the Premises in violation of any law,
municipal ordinance, or regulation. TENANT shall comply with, at its expense, with all
applicable laws, municipal ordinances, or regulations.
7.4. Liens. TENANT will permit no liens to attach to the Premises. Any liens attaching to
the Premises shall be discharged by TENANT within thirty (30) days of tiling.
7.5. No Waste. TENANTwilt use the Premises in a careful, safe, and proper manner, will
not commit waste to the Premises, and will not subject the Premises to use that would
damage the Premises. Except for the uses provided in this Lease, TENANT shall not use
the Premises in a manner to cause cancellation of, prevent the use of, or increase the rate
of, the insurance carried by LANDLORD.
7.6. Condition of Premises. TENANT shall keep the Premises in a good and clean condi-
tion and free of trash, wear and tear from reasonable use and damage from the elements
excepted.
7.7. Compliance with )'environmental Laws. TENANT's use of the Premises and its activi-
ties thereon shall comply with all "Environmental Laws," which, for purposes of this
Lease, shall mean all federal, state and local environmental laws, including, but not lim-
ited to, the Hazardous Materials Transportation Act, (47 USC §§ 1801 et seq.), Federal
Water Pollution Control Act (33 U.S.C. §§ 1251 et seq.) ("Clean Water Act"), the Re-
source Conservation & Recovery Act (42 U.S.C. §§ 6901 et seq.) ("RCRA"), Safe
Drinking Water Act (42 U.S.C. §§ 300f-j-26), Toxic Substances Control Act (15 U.S.C.
Page 4 of 13
Draft 3-29-21
§§ 2601 et seq.), Clean Air Act (42 U.S.C. §§ 7401 et sect.), the Comprehensive Envi-
ronmental Response, Compensation and Liability Act (42 U.S.C. §§ 9601 et seq.)
("CERCLA"), the Emergency Planning and Community Right to Know Act, 42 U.S.C.
§§ 11001 et seq. ("EPCRA"), the Michigan Natural Resources and Environmental Pro-
tection Act (MCL § 324.101 et seq.) the administrative rules and regulations promul-
gated under such statutes, or any other similar federal, state or local law or administra-
tive rule or regulation of similar effect, in effect and adopted as of the date of execution
of this Lease and as amended. "Hazardous Materials" shall mean any substances, com-
pounds, mixtures, wastes or materials that are defined to be, that are regulated as, that
are listed as or that (because of their toxicity, concentration or quantity) have character-
istics that are hazardous or toxic under any of the Environmental Laws, or any sub-
stances, compounds, mixtures, wastes or materials that are otherwise regulated under
any of the Environmental Laws.
7.8. Release of Hazardous Materials. TENANT shall not cause or permit the release of
Hazardous Materials into any environmental media such as air, water, or land, or into or
on the Premises in any manner. If such release shall occur, TENANT shall (a) take all
steps reasonably necessary to contain and control such release and any associated con-
tamination, (b) clean up or otherwise remedy such release and any associated contamina-
tion, and take any and all other actions required under, applicable Environmental Laws
and (c) notify and keep LANDLORD reasonably informed of such release and response.
7.9. Survival. The terms of Section 7 shall survive the expiration or termination of this
Lease.
8. Condition of Premises Upon Possession. TENANT has examined the Premises prior to the
execution of this Lease and TENANT accepts the Premises "AS -IS" except that: (a) LAND-
LORD shall perform the obligations contained in Section 12 of this Lease; and (b) LAND-
LORD warrants and certifies that all interior and exterior lighting fixtures, plumbing system,
electrical system, and HVAC system will be operational on the Commencement Date.
LANDLORD has made no representation or warranty as to the suitability of the Premises for
the conduct of TENANT'S business and TENANT waives any implied warranty that the
Premises are suitable for TENANT'S intended purposes.
9. Eouioment and Furnishinps. TENANT shall provide, at its own expense, furniture, and
equipment it deems necessary. TENANT, at its own expense, shall be solely responsible for
the maintenance and repair of its furniture and equipment used on the Premises.
10, Security of Premises.
10.1. Dav-to-Dav Security. TENANT shall be responsible for securing the Premises
on a day-to-day basis.
Page 5 of 13
Draft 3-29-21
10.2. Existing Kev and Devices. LANDLORD shall provide any existing keys to the
Premises for TENANT'S use and will provide any existing devices to TENANT for the
operation of the overhead doors at the Premises.
10.3. Existing Camera Svstem. TENANT may use the existing camera system on the
Premises. if TENANT chooses to use the camera system, LANDLORD shall provide
TENANT with all the information needed to operate such system, including permissions
to use any software.
10.4. Installation of New Securitv Svstem. TENANT shall have the right to install a
separate security system of its choice on and around the Premises, including changing
the locks on the building. TENANT will pay for all costs of installing, operating, and
maintaining the security system installed by TENAAT. The security system, installed
by TENANT shall remain the property of TENANT and TENANT shall remove such
security system upon expiration or termination of this Lease, including any fence gate
automation added by TENANT.
10.5. Windows. In addition to a security system and as part of securing the Premises,
TENANT, at its sole cost, may tint certain windows and cover the interior of certain
windows with plywood or aluminum sheeting (so long as TENANT removes such ply-
wood or aluminum upon the expiration or termination of this Lease).
11. Tenant Oblieations.
11.1. Taxes. TENANT shall pay all real property taxes and special assessments on the
Premises. At LANDLORD'S option, such taxes and assessments shall be paid directly to
the taxing authority (with evidence of payment provided to LANDLORD) or paid to
LANDLORD within thirty (30) Calendar days after receipt of an invoice from LAND-
LORD. At the beginning and end of this Lease, taxes and assessments shall be prorated
between the Parties on a calendar basis based upon the number of days this Lease in ef-
fect for the year in question.
11.2. Utilities. TENANT shall pay for all utilities for the Premises beginning May 1,
2021, including gas, electric, water, and sewer. These utilities shall be in the name of
TENANT. Until placed into TENANT'S name, TENANT shall reimburse LANDLORD
for any utility charges (such reimbursement to be paid within ten (10) Calendar days af-
ter receipt of an invoice from LANDLORD) beginning on May 1, 2021.
1 1.3. Services. TENANT shall pay all costs associated with installing, maintaining,
and operating its telephone system, computer system, security system, and any other sys-
tem TENANT installs in or around the Premises. All such systems shall remain the
property of TENANT, who shall remove them upon Lease termination or expiration.
Page 6 of 13
Draft 3-29-21
TENANT shall provide the following services at and around the Premises, at its own ex-
pense: (a) trash removal, (b) snow and ice removal from sidewalks, steps, and parking
areas, (c) custodial services, and (d) landscaping services.
11.4. Maintenance and Renairs of Premises Excluding Capital Improvements, as de -
tined herein, which are the responsibility of LANDLORD, TENANT shall be responsi-
ble to perform and pay for the maintenance and repairs to keep the Premises in substan-
tially the same condition which existed on the Commencement Date, normal wear and
tear and damage from the elements excepted. Such maintenance and repairs shall in-
clude, but are not limited to, maintenance and repairs to floors; windows; heating, cool-
ing, and ventilation system (HVAC); radiant heat system; electrical system; plumbing
system; restroom fixtures; sidewalks; parking lots: exterior and interior lighting fixtures;
and light bulb replacement; provided that Tenant shall not be obligated to pay more than
fifteen thousand dollars ($15,000) for maintenance and repairs in any one "Lease Year"
(the "Cap"). A "Lease Year" is defined as three hundred and sixty-five (365) calendar
days commencing on May ll� and ending on the following April 30". On May 1, 2022
and each May I" thereafter, the Cap shall increase by two percent (2.0%) from the Cap
for previous Lease Year. Subject to the limitations in Section 17.1, the Cap shall not ap-
ply to, the cost of repairs or replacements required due to the acts or omission of TEN-
ANT or its employees, agents, contractors, or invitees.
12. Landlord Obligations.
12.1. Overhead Doors. LANDLORD shall install, at its sole expense, three (3) over-
head doors in the building on the Premises by [INSERT DATE].
12.2. Maintenance and Renairs Exceeding the Can. Pay for any maintenance and
repairs, to the Premises, which are required for Tenant's use that exceed the Cap set
forth in Section 11.
12.3. Capital Improvements. Pay for and perform any Capital Improvements as set
forth in this Section. Capital Improvement" is defined as: (a) replacement of the roof,
generator, HVAC, ceilings, plumbing/electrical systems, or parking lots or (b) mainte-
nance or repair of any single item which exceeds ten thousand dollars ($10,000.00).
LANDLORD shall not be required to undertake such Capital Improvements, unless and
until TENANT agrees in writing that the Capital Improvement is approved by TENANT
and deemed necessary by TENANT for TENANT's use of the Premises. LANDLORD,
at its option, may amortize a Capital Improvement over its useful life (whereby the use-
ful life shall be reasonably agreed to by the Parties) according to the Generally Accepted
Accounting Principles, If LANDLORD amortizes a Capital Improvement and that Capi-
tal Improvement is necessary for TENANT's use of the Premises (as reasonably con-
firmed by TENANT as required above), then TENANT shall pay LANDLORD the
Page 7 of 13
Draft 3-29-21
yearly amortized portion of the Capital Improvement while this Lease is in effect. Pay-
ment of the yearly amortized portion shall commence on the date the Capital Improve-
ment is fully completed and shall be due thereafter on the anniversary of the completion
date. Payment of the yearly amortized portion shall cease on the date this Lease termi-
nates or expires, if this Lease expires or terminates on a date other than the anniversary
of completion, the yearly amortized portion shall be prorated on a daily basis and re-
funded to TENANT. The yearly amortized amount charged to TENANT under this Sec-
tion shall not be applied against the Cap under Section 11.
13. Alterations or Improvements. TENANT shall not make any alterations or improvements to
or upon the Premises without the prior written consent of LANDLORD. Except as otherwise
provided in this Lease, any alteration or improvement made to or upon the Premises shall be-
come an integral part of the Premises and shall become the sole property of the LANDLORD
immediately upon the completion, unless LANDLORD, at its option, requires TENANT to
remove such work upon the expiration or termination of this Lease or TENANT'S right to
possession (in which event, TENANT shall undertake such removal and restore the Premises
to a condition similar to which existed prior to TENANT undertaking such work). Office fur-
niture and trade fixtures used or installed in the Premises are not alterations or improvements
and shall remain the property of TENANT.
14. Siens. TENANT may attach, install, or erect signs on the interior walls of the Premises as
necessary for TENANT'S use of the Premises. 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 LANDLORD. TENANT shall remove its signs prior to the expiration or termi-
nation of this Lease.
15. Access. TENANT shall allow LANDLORD access to the Premises during regular business
hours (and at all other times in the event of an emergency) for the purposes of inspecting,
posting notices, repairing and/or maintaining the Premises, and to show the Premises to lend-
ers, potential buyers and/or potential tenants; provided however, LANDLORD, and any other
persons are accompanied, at all times, by an agent or employee of TENANT. TENANT rep-
resents that someone will be available to accompany LANDLORD on a 24/7/365 basis and
LANDLORD shall not be liable for delays in undertaking maintenance or other obligations
of LANDLORD hereunder if due to the unavailability of TENANT to accompany LAND-
LORD into the Premises. LANDLORD shall not unreasonably disrupt the operations of
TENANT at the Premises. TENANT shall also allow LANDLORD access to the Premises at
any time in case of an emergency, provided however, LANDLORD, and any other persons
shall be accompanied, at all times, by an agent or employee of TENANT.
16.Insurance.
Page 8 of 13
Draft 3-29-21
16.1. Real Property Insurance. LANDLORD shall cause the Premises, the building
and its improvements located there to be insured against loss or damage during this
Lease.
16.2. Liability Insurance. LANDLORD shall purchase liability insurance for the
Premises and name TENANT and its officers and employees as additional insured.
16.3. Personal Property Insurance. TENANT shall insure its personal property kept
on the Premises at its sole cost and in an amount and manner as TENANT deems fit.
16.4. Insurance Premium Pavments. LANDLORD shall be responsible to pay the
premiums for the property insurance for the Premises and the liability insurance for the
Premises, provided however, TENANT shall reimburse LANDLORD, on an annual ba-
sis, the actual amount of the premiums for the property insurance and the liability insur-
ance or ten thousand dollars ($10,000.00) toward such premium, whichever is less.
TENANT shall reimburse LANDLORD for the applicable premiums within ten (10)
days after receipt of an invoice from LANDLORD.
17. Indemnitication/Liability and Damaee to the Premises.
17.1. TENANT shall be responsible for property damage to the Premises, including the
building or fixtures attached to the building, which is caused by the acts or omissions of
TENANT or TENANT's employees, agents, contractors, or invitees; provided, however,
with respect to damage that is covered by LANDLORD's property insurance policy,
TENANT shall only be liable for up to ten thousand dollars ($10,000.00) per occurrence.
17.2. For purposes of this Lease, "Claims" means any loss; complaint; demand for re-
lief or damages; lawsuit; cause of action; proceeding; judgment; penalty; costs; or other
liability of any kind which is imposed on, incurred by, or asserted or for which a Party
may become legally or contractually obligated to pay or defend against, whether com-
menced or threatened, including, but not limited to, reimbursement for reasonable attor-
ney fees, mediation, facilitation, arbitration fees, witness fees, court costs, investigation
expenses, litigation expenses, or amounts paid in settlement.
17.3. Each Party shall be responsible for Claims made against that Party by a third party
and for the acts or omissions of its employees, agents or contractors related to the perfor-
mance of this Lease.
17.4. LANDLORD shall indemnify and hold TENANT harmless from all Claims, in-
curred by or asserted against TENANT by any person or entity, to the extent caused
from the acts or omissions of LANDLORD or its agents or employees.
17.5. TENANT's right to indemnification is in excess and above any insurance
rights/policies required by this Lease.
Page 9 of 13
Draft 3-29-21
17.6. LANDLORD shall not be liable to TENANT or to any other person for any dam-
age (to person or property) caused by: (a) failure in any utility or building system, (b)
failure of any security system, (c) by the bursting or leaking of any vessel or pipe in or
about the Premises, (d) by water, snow or ice coming into the Premises, or (e) from the
acts or neglect of occupants of adjacent property or the public. TENANT, rather than
LANDLORD, shall be responsible for the damage or theft of its personal property.
17.7. 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 TENANT.
17.8. The terms and conditions of Section 17 shall survive the expiration or termination
of this Lease.
18. Destruction of Premises.
18.1. Except as otherwise provided herein, in the event the Premises are partially dam-
aged or destroyed by fire or other casualty, the damage to the Premises shall be promptly
repaired or rebuilt by LANDLORD. In the event the Premises cannot be repaired or re-
built within ninety (90) calendar days after such damage or destruction, TENANT shall
have the right to terminate this Lease and vacate the Premises within thirty (30) calendar
days after the occurrence of such damage or destruction. If the Premises are damaged or
destroyed, TENANT may elect to remain on the Premises or to vacate the Premises (at
its sole option) until the repairs are complete. During the time between when the Prem-
ises are damaged and until the repairs or construction to the Premises are complete, the
Rent owed by TENANT shall be reduced in proportion to the portion of the Premises
rendered unusable (in the discretion of TENANT).
19.2. In the event (i) all or any portion of the Premises is damaged by fire or other casu-
alty and the time period reasonably determined by LANDLORD to be required for the
actual restoration or repair of the Premises will exceed ninety (90) calendar days from
the date the casualty occurs, or (ii) the Premises is damaged by fire or other casualty
within twelve (12) months preceding the end of the Term, or (iii) LANDLORD does not
anticipate receiving sufficient insurance proceeds to restore the Premises, or (iv) LAND-
LORD is required to pay any insurance proceeds arising out of the casualty to LAND-
LORD'S lender, or (v) LANDLORD determines in its sole discretion that it is not eco-
nomical to repair the casualty, then LANDLORD shall have the right, to be exercised by
giving written notice within thirty (30) Calendar days after the occurrence of the casu-
alty, to terminate this Lease. TENANT will have thirty (30) calendar days from the date
of the notice to vacate the Premises. If LANDLORD elects to rebuild or repair the
Premises, then the Rent owed by TENANT shall be reduced in proportion to the portion
of the Premises rendered unusable (in the discretion of TENANT) until the Premises are
Page 10 of 13
Draft 3-29-21
repaired or rebuilt. In no event, shall LANDLORD be required to repair or replace any
property of TENANT.
19. Eminent Domain.
19.1. If the whole Premises or any part thereof is taken by any public authority under
the power of eminent domain, TENANT has the right to terminate the Lease and vacate
the Premises anytime between the award of taking to the public authority and the day the
public authority takes possession.
19.2. If less than the whole of the Premises is taken by any public authority under the
power of eminent domain, and TENANT elects to remain on the Premises, the rent shall
be reduced in proportion to the amount of space taken by the public authority. Neither
Party shall have any future obligation or liability under the Lease (except as otherwise
stated herein), if the Lease is terminated pursuant to this Section.
20. Assienment. TENANT shall not assign, sublet, or in any manner transfer this Lease or any
estate or interest therein without the prior written consent of LANDLORD.
21. Ouiet Eniovment. Upon performance of its obligations under this Lease, TENANT shall
peacefully and quietly hold and enjoy the Premises without hindrance or interruption by
LANDLORD or its agents or employees.
22. Modifications. This Lease may be modified or amended only by written agreement of
LANDLORD and TENANT.
23. Bindine 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
(subject to the limits in Section 20). TENANT shall not record this Lease or a memorandum
of this in the Oakland County Register of Deeds Office.
24. Severability. If a term or condition of this Lease is found by a court of competent jurisdic-
tion to be invalid, unenforceable, or to violate federal or state law, then the term or condition
shall be deemed severed from this Lease; all other terms and conditions shall remain in full
force and effect.
25. Waiver. No waiver of any term 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 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 an-
other remedy.
Page 11 of 13
Draft 3-29-21
26. Use of Words. The pronouns and relative words used in this Lease shall be read inter-
changeably in masculine, feminine or neuter, singular or plural, as the context requires.
27. Notice. All notices required under this Lease shall be in writing. Notices shall be effective:
(a) the next Business Day, if personally delivered; (b) the third Business Day, if sent by U.S.
mail, postage prepaid, return receipt requested: (c) the next Business Day, if sent by a nation-
ally recognized overnight express courier with a reliable tracking system; or (d) the next
Business Day with a receipt of confirmation, if sent by e-mail or fax. Notice to LANDLORD
shall be sent to: 112 PIKE LLC, 1080 N Opdyke, Suite 101, Auburn Hills, MI. 48326. No-
tice to TENANT shall be sent to: (1) Oakland County Facilities Management, Director, One
Public Works Drive, Building 95 West, Waterford, Michigan 48328 and (2) Emergency
Management and Homeland Security, Director, 1200 N. Telegraph Road, Building 47 W,
Pontiac, MI 48341.
28. Force Maieure. LANDLORD shall not be in default under this Lease (and the time for
LANDLORD to perform shall be extended day for day) to the extent LANDLORD is unable
to perform any of its obligations on account of any adverse weather, strike or labor problem,
energy shortage, governmental pre-emption or prescription, national emergency or any other
cause of any kind beyond the reasonable control of LANDLORD.
29. Subordination/EstooDel. This Lease and all rights of TENANT hereunder shall be subordi-
nate to the lien and security title of any mortgage which may encumber the Premises. Upon
demand, TENANT shall execute and deliver to LANDLORD or to mortgagee any instru-
ments, requested by either of them, to evidence such subordination. Upon demand, TEN-
ANT will execute and deliver to LANDLORD, LANDLORD'S mortgagee, purchasers, or
any other third party designated by LANDLORD an estoppel certificate in the form and sub-
stance requested by LANDLORD, to the extent it is factually accurate.
30. Governine Law. This Lease shall be interpreted under and governed by the laws of the
State of Michigan.
31. Entire Agreement. This Lease constitutes the entire agreement of the Parties with respect to
the Premises. All prior negotiations, agreements, and understandings, either oral or written,
are merged into this Lease.
32. Authority: TENANT represents that it is authorized by all required governmental action to
enter into this Lease and the individual(s) signing this Lease on behalf of TENANT are au-
thorized to bind TENANT to its terms. LANDLORD represents that the individual(s) sign-
ing this Lease on behalf of LANDLORD are authorized to bind LANDLORD to its terms.
1N WITNESS WHEREOF, the parties execute this Lease.
(LANDLORD)
Page 12 of 13
Draft 3-29-21
MM
This Lease was acknowledged before me in Oakland County, Michigan this day of
2021, by
COUNTY OF OAKLAND (TENANT)
By:
David T. Woodward, Chairperson
Oakland County Board of Commissioners
Landlord.
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
This Lease was acknowledged before me in Oakland County, Michigan this day of
, 2021, by David T. Woodward, Chairperson, Oakland County Board of Com-
missioners,
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
Page 13 of 13
Draft 3-29-21
West Parking
lot notcificluded
a-f_
EXHIBIT A
112 W Pike St
Resolution #21162 April 29, 2021
Moved by Miller seconded by Weipert the resolution be adopted.
Discussion followed.
AYES: Gershenson, Hoffman, Jackson, Joliat, Kowall, Kuhn, Long, Luebs, Markham,
McGillivray, Miller, Moss, Nelson, Powell, Spisz, Weipert, Woodward, Cavell, Charles. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
I HEREBY APPROVE THE FOREGOING RESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 April 29, 2021,
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 Circuit Court at Pontiac,
Michigan this 291h day of April, 2021.
kw
-t'3
Lisa Brown, Oakland County