HomeMy WebLinkAboutResolutions - 2022.10.20 - 37665
AGENDA ITEM: Lease Amendment #2 for Extension of the Sheriff's Office's Lease at 2470
Elizabeth Lake Road, Waterford, Michigan 22-348
COMMITTEE MEETING: Board of Commissioners
DATE: Thursday, October 20, 2022 6:04 PM - Click to View Agenda
ITEM SUMMARY SHEET
DEPARTMENT SPONSORED BY
Facilities Management William Miller III
INTRODUCTION AND BACKGROUND
Renewal of existing lease that has expired for Sherrif's Office vehicle storage and operations
POLICY ANALYSIS
The resolution requests authorization for a second amendment to the lease agreement (approved MR #17336) between
the County of Oakland and 2470 Elizabeth Lake Road, LLC (Landlord). The lease is for a continuation of 47,141 square
feet of building space at 2470 Elizabeth Lake Road in Waterford. The lease period was extended through November 30,
2019, and on approval the lease will be effective November 30,2021 through November 29, 2026.
The County will pay for the expenses of heat, electricity, taxes, insurance and maintenance
reimbursement, grounds, custodial and pest. In consideration for the extension of the Lease, the landlord will contribute
$20,000 to make certain physical improvements and modifications to the building (see section 5. Page 3). The rent will
be as follows:
Year Date Monthly Rent
1 11/30/2021 - 11/29/2022 $12,712.42
2 11/30/2022 - 11/29/2023 $13,030.23
3 11/30/2023 - 11/29/2024 $19,249.24
4 11/30/2024 - 11/29/2025 $19,838.50
5 11/30/2025 - 11/29/2026 $20,427.77
The Departments of Facilities Management and Sheriff’s Office with the assistance of Corporation Counsel have
reviewed and approved the amendment. On final approval of the Board the Chairman will executed the lease
amendment. The FY 2023 budget shall be amended as reflected in the attached Schedule A - Budget Amendment.
BUDGET AMENDMENT REQUIRED: Yes
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.858.5115 (office) or andrewsmb@oakgov.com, or the department contact persons listed for
additional information.
CONTACT
Paul Zachos, Property Management
Specialist
zachosp@oakgov.com
ITEM REVIEW TRACKING
William Miller III, Created/Initiated - 10/20/2022
David Woodward, Board of Commissioners Approved - 10/20/2022
Hilarie Chambers, Executive's Office Approved - 10/21/2022
Lisa Brown, Clerk/Register of Deeds Final Approval - 10/26/2022
AGENDA DEADLINE: 10/20/2022 7:20 PM
COMMITTEE TRACKING
2022-10-12 Economic Development & Infrastructure - Recommend to Board
2022-10-20 Full Board - Adopted
ATTACHMENTS
1. Schedule A - Budget Amendment
2. Amendment #2 landlord signed 9_9_2022
3. Lease Amendment #2 Bckgrd 2021_2026
4. MR 2470 Elizabeth Lake Rd Lease Amendment #2 Draft
5. Lease Renewal Ltr 12_19 to 11_21
6. MR 17336
7. M.R.14264
October 20, 2022
RESOLUTION #2022-2097 _ 22-348
Sponsored By: William Miller III
Facilities Management - Lease Amendment #2 for Extension of the Sheriff's Office's Lease at
2470 Elizabeth Lake Road, Waterford, Michigan
Chairperson and Members of the Board:
WHEREAS the Oakland County Board of Commissioners, via MR# 14264 and MR# 17336,
authorized the Sheriff’s Office to lease the property at 2470 Elizabeth Lake Road Waterford Township
for storage of equipment; and
WHEREAS the Sheriff’s Office desires to renew and continue this Lease until November 29, 2026;
and
WHEREAS in consideration for the extension of the Lease, the landlord will contribute $20,000 to
make certain physical improvements and modifications to the building as detailed in the attached
Lease Amendment; and
WHEREAS the Sheriff’s Office, Facilities Management, and Corporation Counsel have reviewed
and/or prepared all necessary documents related to the attached Lease Amendment; and
WHEREAS the Sheriff’s Office and the Department of Facilities Management recommend approval
and execution of the attached Lease Amendment.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves
the attached Lease Agreement.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs the
Chairperson to execute the Lease Amendment and all other documents related to the Amendment,
which may be required.
BE IT FURTHER RESOLVED that the FY 2023 budget shall be amended as reflected in the attached
Schedule A - Budget Amendment.
Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller
III.
Date: October 20, 2022
David Woodward, Commissioner
Date: October 21, 2022
Hilarie Chambers, Deputy County Executive II
Date: October 26, 2022
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2022-10-12 Economic Development & Infrastructure - Recommend to Board
2022-10-20 Full Board - Adopted
VOTE TRACKING
Motioned by Commissioner Michael Gingell seconded by Commissioner Kristen Nelson to adopt the
attached Lease: Amendment #2 for Extension of the Sheriff's Office's Lease at 2470 Elizabeth Lake
Road, Waterford, Michigan.
Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen
Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Chuck
Moss, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Penny Luebs, Janet Jackson,
Gary McGillivray, Robert Hoffman, Adam Kochenderfer (20)
No: None (0)
Abstain: None (0)
Absent: (0)
Passed
ATTACHMENTS
1. Schedule A - Budget Amendment
2. Amendment #2 landlord signed 9_9_2022
3. Lease Amendment #2 Bckgrd 2021_2026
4. MR 2470 Elizabeth Lake Rd Lease Amendment #2 Draft
5. Lease Renewal Ltr 12_19 to 11_21
6. MR 17336
7. M.R.14264
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
October 20, 2022, 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 on Thursday, October 20, 2022.
Lisa Brown, Oakland County Clerk / Register of Deeds
Oakland County, Michigan
SHERIFF'S OFFICE – APPROVAL OF LEASE AMENDMENT #2 FOR EXTENSION OF THE LEASE AT 2470 ELIZABETH LAKE ROAD, WATERFORD, MICHIGAN
Schedule "A" DETAIL
R/E Fund Name Division Name
Fund #
(FND)
Cost Center
(CCN) #
Account #
(RC/SC)
Program #
(PRG)
Grant ID
(GRN) #
Project ID #
(PROJ)
Region
(REG)
Budget
Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2023
Amendment
FY 2024
Amendment
FY 2025
Amendment
R General Fund Sheriff Patrol Services FND10100 CCN4030601 RC631253 PRG110000 630000 Miscellaneous $20,000.00 $-$-
R General Fund Non-Departmental FND10100 CCN9010101 RC665882 PRG196030 665882 Planned Use of Balance $7,229.00 $-$-
Total Revenues $27,229.00 $-$-
E General Fund Sheriff Patrol Services FND10100 CCN4030601 SC730198 PRG110000 730000 Building Maintenance Charges $1,864.00 $2,516.00 $3,185.00
E General Fund Sheriff Patrol Services FND10100 CCN4030601 SC730940 PRG110000 730000 Insurance $175.00 $350.00 $525.00
E General Fund Sheriff Patrol Services FND10100 CCN4030601 SC731241 PRG110000 730000 Miscellaneous $20,000.00 $-$-
E General Fund Sheriff Patrol Services FND10100 CCN4030601 SC731479 PRG110000 730000 Property Taxes $2,000.00 $2,000.00 $2,000.00
E General Fund Sheriff Patrol Services FND10100 CCN4030601 SC731626 PRG110000 730000 Rent $3,190.00 $66,016.00 $84,347.00
E General Fund Non-Departmental FND10100 CCN9010101 SC796500 PRG196030 796500 Budgeted Equity Adjustments $-$(70,882.00)$(90,057.00)
Total Expenditures $27,229.00 $-$-
LEASE AMENDMENT #2
This Second Lease Amendment ("Amendment #2") is entered into effective as of
November 30, 2021 ("Effective Date"), between the COUNTY OF OAKLAND
("Tenant") and 2470 Elizabeth Lake Road, LLC ("Landlord").
WHEREAS, Tenant and Landlord are parties to a Lease that commenced on December
1, 2014 relating to the property commonly known as 24 70 Elizabeth Lake Road,
Waterford, Michigan 48328 (the "Original Lease"), which was amended on December 7,
2017 (the "Amendment #1 ") and renewed on September 27, 2019 (the "Renewal Letter").
The Original Lease, Amendment # 1, and Renewal Letter shall be collectively referred to
as the "Lease."
WHEREAS, Landlord and Tenant desire to continue and extend the Lease and amend
the Lease as set forth herein.
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby
acknowledged, it is agreed by the parties hereto as follows:
I.
2.
.) .
Definition of "Premises". Pursuant to Amendment #1, Tenant is now utilizing
the Unusable Space. Accordingly, the Premises being leased is the entire land and
approximately 47,141 square feet of building space located at 2470 Elizabeth
Lake Road, Waterford, Michigan and as depicted in the Original Lease.
Rent Amount for Premises. Notwithstanding any other provision of the Lease,
as of the Effective Date of this Amendment #2 Tenant shall pay Rent to Landlord
for the Premises in the amount set forth in the· below Rent Table. As of the
Effective Date of this Amendment #2, the Rent amounts set forth in the Rent
Table shall replace the Rent amounts in Section 4.1 of the Original Lease and in
Section 2 of Amendment #1. The Rent amounts set forth in the Rent Table will
not be adjusted pursuant to Section 4.3 of the Lease. The Rent shall be paid to
Landlord in the manner set forth in Section 4 of the Lease.
Rent Table for Premises:
Year
1
2
3
4
5
Date
11/30/2021 -11/29/2022
11/30/2022 -11/29/2023
11/30/2023 -11/29/2024
11/30/2024 -11/29/2025
11/30/2025 -11/29/2026
Monthly Rent
$12,712.42
$13,030.23
$19,249.24
$19,838.50
$20,427.77
Lease Continuation/Extension/Termination. The Lease is hereby continued and
extended until November 29, 2026. Provided, however, to the extent that Tenant
is not then in default hereunder, on or after November 30, 2024 the Tenant may
send Landlord a termination notice electing to terminate this Lease on a date
1
Client Documents\4880-7460-7405_3
4874-3878-7121_2
4862-4250-5777_2
4890-3588-5106 _ I
Departments of Facilities Management and Sheriff’s Office
10/12/2022
Acceptance and Approval of Lease Amendment #2
2470 Elizabeth Lake Road Waterford, Michigan
Pursuant to Board of Commissioner's rules and procedures for lease of real property the
Department of Facilities Management and the Sheriff’s Office is seeking Board of
Commissioners approval of the attached Lease Amendment #2. The landlord for 2470 Elizabeth
Lake Rd, Waterford, has provided and operated the building for Sheriff’s vehicle operations and
storage since 2014. The lease has been amended in 2017 and renewed in 2019 and is now being
amended to add five years.
Description of premises to be leased.
The property is approximately 7 acres with 47,141 square feet of storage and operations space
located in Waterford at 2470 Elizabeth Lake Rd.
Terms and Conditions of Lease
Original Commencement date: December 1, 2014
Amendment #2 date: November 29, 2021 (retroactive date)
Termination date: November 29, 2026
Rent: Rent schedule provided in the lease
County expenses: Heat, electricity, taxes, insurance and maintenance
reimbursement, grounds, custodial and pest.
Recommendation
It is the recommendation of the Oakland County Department of Facilities Management and the
Sheriff’s Office that the Board of Commissioners approve and accept the lease Amendment #2
renewal.
MISCELLANEOUS RESOLUTION #22xxx
BY: Commissioner William Miller, Chairperson, Economic Development and Infrastructure Committee
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT/SHERIFF’S OFFICE– APPROVAL OF LEASE
AMENDMENT #2 FOR EXTENSION OF THE LEASE AT 2470 ELIZABETH LAKE ROAD,
WATERFORD, MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Board of Commissioners, via MR# 14264 and MR# 17336, authorized
the Sheriff’s Office to lease the property at 2470 Elizabeth Lake Road Waterford Township for storage of
equipment; and
WHEREAS the Sheriff’s Office desires to renew and continue this Lease until November 29, 2026; and
WHEREAS in consideration for the extension of the Lease, the landlord will contribute $20,000 to make
certain physical improvements and modifications to the building as detailed in the attached Lease
Amendment; and
WHEREAS the Sheriff’s Office, Facilities Management, and Corporation Counsel have reviewed and/or
prepared all necessary documents related to the attached Lease Amendment; and
WHEREAS the Sheriff’s Office and the Department of Facilities Management recommend approval and
execution of the attached Lease Amendment.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the
attached Lease Agreement.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs the Chairperson to
execute the Lease Amendment and all other documents related to the Amendment, which may be required.
BE IT FURTHER RESOLVED that the budget is amended as follows:
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
mmissioner Philip Weipert, District #8
hairperson, Planning and Building Committee
MISCELLANEOUS RESOLUTION #17336 December 7, 2017
BY: Commissioner Philip J. Weipert, Chairperson, Planning and Building Committee
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT AND SHERIFF'S OFFICE - AMENDMENT TO
THE LEASE AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Board of Commissioners, via MR# 14264, authorized a three-year lease
with two one-year options, for the property at 2470 Elizabeth Lake Road for storage of equipment; and
WHEREAS the three-year lease term ends on November 30, 2017 and the Sheriffs Office has agreed to
extend the terms for an additional two years; and
WHEREAS the Sheriff's Office desires to exercise the two one-year options and also expand into more
space at the building; and
WHEREAS the Lease Amendment #1 agreement extends the current lease, and adds additional space
for a total two-year term, beginning December 1,2017 and expires on November 30, 2019; and
WHEREAS all other terms and conditions of the original lease will remain the same and in effect; and
WHEREAS Facilities Management and the Sheriff's Office recommends and requests that the Oakland
County Board of Commissioners approve and execute the attached Lease Amendment #1.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the
attached Lease Amendment #1 for the property at 2470 Elizabeth Lake Waterford, Michigan 48328.
BE IT FURTHER RESOLVED that the Board of Commissioners directs its Chairperson or designee to
execute the attached Lease Amendment on behalf of the County and all other related documents
between the County and 2470 Elizabeth Lake Road, LLC.
Chairperson, on behalf of the Planning and Building Committee, I move the adoptigp-11 the foregoing
resolution.
PLANNING AND BUILDING COMMITTEE
Motion carried unanimously on a roll call vote with Quarles absent.
ADR REVIEW SIGN OFF — Facilities Management and Sherif
f
'
s
O
f
f
i
c
e
RESOLUTION TITLE: Department of Facilities Management and Sheriffs Office — A
m
e
n
d
m
e
n
t
t
o
t
h
e
Lease Agreement with 2470 Elizabeth Lake Road, LLC
DEPARTMENT CONTACT PERSON: Dale Cunningham - Sheriffs Office 858-5512, and Paul Zachos -
F
M
O
248-858-5380
DATE: 11/8/2017
DEPARTMENT REVIEW
Corporation Counsel:
Approved —Jody Hall (11/2/2017)
Department of Human Resources:
HR Approved (No Committee) — Heather Mason (11/8/2017)
Department of Management and Budget:
Approved — Lynn Sonkiss (11/9/2017)
LEASE AMENDMENT #1
This First Lease Amendment "Amendment") is entered into effective as of , 2017
("Effective Date"), between the COUNTY OF OA
K
L
A
N
D
("Tenant") and 2470
Elizabeth Lake Road, LLC ("Landlord").
WHEREAS, Tenant and Landlord are parties to a Lease that comm
e
n
c
e
d
o
n
D
e
c
e
m
b
e
r
1, 2014 ("Lease") relating the property commonly known as 2470 Elizab
e
t
h
L
a
k
e
R
o
a
d
,
Waterford, Michigan 48328;
WHEREAS, Landlord and Tenant desire to renew the Lease and a
m
e
n
d
t
h
e
L
e
a
s
e
t
o
permit Tenant to use certain defined additional space at
t
h
e
P
r
e
m
i
s
e
s
.
NOW, THEREFORE, for good and valuable consideration, receipt of which
i
s
h
e
r
e
b
y
acknowledged, it is agreed by the parties hereto as follo
w
s
:
1. Use of "Unusable" Space at Premises. As permitted in Section 1.1 of the Lease,
Tenant exercises its right to use the "Unusable Space" a
s
d
e
f
i
n
e
d
i
n
t
h
e
L
e
a
s
e
a
n
d
as depicted in Exhibit A to the Lease. As of December
1
,
2
0
1
7
,
T
e
n
a
n
t
s
h
a
l
l
h
a
v
e
the right to use the "Unusable Space" according to
t
h
e
t
e
r
m
s
a
n
d
c
o
n
d
i
t
i
o
n
s
contained in the Lease. Provided, however, permitted
u
s
e
s
o
f
t
h
e
U
n
u
s
a
b
l
e
S
p
a
c
e
are limited to office, administrative, storage, and trai
n
i
n
g
u
s
e
s
.
T
e
n
a
n
t
h
e
r
e
b
y
accepts the "Unusable Space" in its "as is" conditi
o
n
.
I
f
L
a
n
d
l
o
r
d
d
o
e
s
n
o
t
remove its personal property from the "Unusable Sp
a
c
e
"
w
i
t
h
i
n
f
o
u
r
t
e
e
n
(
1
4
)
days after the Effective Date of this Amendment as set
f
o
r
t
h
i
n
S
e
c
t
i
o
n
1.2 of the
Lease, such items remaining in place shall be deemed
a
b
a
n
d
o
n
e
d
a
n
d
L
a
n
d
l
o
r
d
shall have no responsibility to remove such; rather Ten
a
n
t
m
a
y
,
a
t
i
t
s
c
o
s
t
r
e
m
o
v
e
such property and dispose of it, without notice, in Tena
n
t
'
s
s
o
l
e
d
i
s
c
r
e
t
i
o
n
.
2. Rent and Cap Amount for "Unusable" Spac
e
.
Notwithstanding any other
provision of the Lease, Tenant shall pay Landlor
d
t
w
o
t
h
o
u
s
a
n
d
d
o
l
l
a
r
s
($2,000.00) per month for the "Unusable Space," com
m
e
n
c
i
n
g
o
n
D
e
c
e
m
b
e
r
1
,
2017. This shall be the only rent due to Landlord for t
h
e
"
U
n
u
s
a
b
l
e
S
p
a
c
e
.
"
T
h
e
rent for the "Unusable Space" shall be due and pai
d
t
o
L
a
n
d
l
o
r
d
p
u
r
s
u
a
n
t
t
o
Section 4 of the Lease. This rent shall be adjusted pur
s
u
a
n
t
t
o
S
e
c
t
i
o
n
4
.
3
o
f
t
h
e
Lease beginning on December 1, 2018. The "Cap", a
s
d
e
f
i
n
e
d
i
n
t
h
e
L
e
a
s
e
,
f
o
r
maintenance and repairs shall remain at its curr
e
n
t
r
a
t
e
a
n
d
s
h
a
l
l
n
o
t
proportionally increase due to Tenant's use of the "Unu
s
a
b
l
e
"
S
p
a
c
e
.
"
3. Lease Renewal/Renewal Options. As permitted in Section 2.2 of the Lease,
Tenant exercises its right to renew the Lease. The Lea
s
e
i
s
h
e
r
e
b
y
r
e
n
e
w
e
d
a
n
d
extended until November 30, 2019. So long as Tenant h
a
s
n
o
t
b
e
e
n
i
n
d
e
f
a
u
l
t
a
n
d
is not in default on the commencement of the Renew
a
l
T
e
r
m
,
t
h
i
s
L
e
a
s
e
m
a
y
b
e
renewed, at Tenant's sole option, for two (2) addition
a
l
t
e
r
m
s
o
f
t
w
o
(
2
)
y
e
a
r
s
each upon written notice to Landlord by Tenant (e
a
c
h
a
"
R
e
n
e
w
a
l
T
e
r
m
"
)
.
Landlord must receive Tenant's written renewal notice
a
t
l
e
a
s
t
s
i
x
t
y
(
6
0
)
c
a
l
e
n
d
a
r
days before November 30, 2019 or the last day o
f
f
i
r
s
t
R
e
n
e
w
a
l
T
e
r
m
(
a
s
applicable), absent which Tenant shall have no right
t
o
r
e
n
e
w
t
h
i
s
L
e
a
s
e
.
T
h
e
1
FINAL VERSION (10-2547)
Detroit_14914$91_2
renewal of this Lease shall be contained in an amendment to this Lease, w
h
i
c
h
may be executed on behalf of Tenant by its Director of Facilities Managemen
t
o
r
successor and the Oakland County Sheriff. The same terms and conditions
o
f
t
h
e
Lease shall apply to the Renewal Teini, including the same annual increas
e
s
i
n
Rent. References herein to "term" shall mean the Initial Term and any Rene
w
a
l
Term.
4. Obligations and Duties for "Unusable" Space. As of December 1, 2017, all
duties and obligations that Landlord and Tenant have for the Premises
s
h
a
l
l
equally apply to the "Unusable" Space, including but not limited to, Landlo
r
d
'
s
obligation and responsibility for maintenance and repairs and Tenant's obliga
t
i
o
n
s
for the payment of utilities, taxes and insurance.
5. Document Evidencing Condition of "Unusable" Space. On or before
December 1, 2017, the Parties shall create a document (in writing and
w
i
t
h
pictures) evidencing the condition of the "Unusable" Space on the Effective
D
a
t
e
of this Amendment. Such document shall establish the condition o
f
t
h
e
"Unusable" Space on the Effective Date of this Amendment and shall form
t
h
e
basis for maintenance and repairs to the "Unusable" Space.
6. HVAC Filter. Notwithstanding anything in the Lease to the contrary, as of the
Effective Date of this Amendment, Tenant shall, at Tenant's cost, have the fil
t
e
r
s
for the HVAC units replaced on a quarterly basis. Within 10 days after
s
u
c
h
replacement has occurred, Tenant shall provide Landlord with w
r
i
t
t
e
n
confirmation of such replacement.
7. Generator Maintenance. Notwithstanding anything in the Lease to the
contrary, as of the Effective Date of this Amendment, Tenant shall, at Tena
n
t
'
s
cost, cause to be performed on a quarterly basis the manufacturer recommen
d
e
d
maintenance for the generator servicing the Premises. Within 10 days after
s
u
c
h
maintenance has occurred, Tenant shall provide Landlord with wri
t
t
e
n
confirmation of such maintenance.
8. Continuation of Terms and Conditions. Excepted as specifically modified in
this Amendment, all terms and conditions of the Lease shall remain the sam
e
a
n
d
in effect. This Amendment shall be incorporated into and made part of the Le
a
s
e
.
In the event of any conflict between the terms and conditions contained in
t
h
i
s
Amendment and the terms and conditions contained in the Lease, the term
s
a
n
d
conditions of this Amendment shall control. This Amendment may be exe
c
u
t
e
d
in two or more counterparts, each of which shall be deemed an original but
a
l
l
o
f
which shall constitute one and the same instrument. A copy of a signat
u
r
e
received through telefax transmission or other electronic means (including f
i
l
e
s
i
n
Adobe .pdf or similar format) shall bind the party whose signature is so recei
v
e
d
,
and shall be considered for all purposes, as if such signature were an origina
l
.
2
FINAL VERSION (10-25-17)
Detroit 1491489[2
TENANT:
COUNTY OF OAKLAND
By:
Michael J. Gingell, Chairperson
Oakland County Board of Commissioners
This Lease was acknowledged before me in Oakland County, Michigan this day of
, 201 , by , Tenant.
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
LANDLORD:
2470 Elizabeth Lake Road, LLC
By:
Title:
This Lease was acknowledged before me in Oakland County, Michigan this day of
, 201 , by , Landlord.
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
3
FINAL VERSION (10-25-17)
Detroit_14914891_2
LEASE OF BUILDING LOCATED AT
2470 ELIZABETH LAKE ROAD, WATERFOR
D
,
M
I
C
H
I
G
A
N
This Lease is entered into between 2470 Elizabe
t
h
L
a
k
e
R
o
a
d
,
L
L
C
(
"
L
A
N
D
L
O
R
D
"
)
w
h
o
s
e
address is 500 S. Opdyke Road, Pontiac, Michig
a
n
4
8
3
4
1
,
a
n
d
t
h
e
C
O
U
N
T
Y
O
F
O
A
K
L
A
N
D
,
a
Michigan Constitutional Corporation, 1200 North
T
e
l
e
g
r
a
p
h
R
o
a
d
,
P
o
n
t
i
a
c
,
M
i
c
h
i
g
a
n
4
8
3
4
1
("TENANT'). The Parties agree to the followin
g
t
e
r
m
s
a
n
d
c
o
n
d
i
t
i
o
n
s
.
Leased Premises.
1.1. LANDLORD leases to TENANT and TEN
A
N
T
l
e
a
s
e
s
f
r
o
m
L
A
N
D
L
O
R
D
t
h
e
r
e
a
l
property located at 2470 Elizabeth Lake Road, W
a
t
e
r
f
o
r
d
,
M
i
c
h
i
g
a
n
4
8
3
2
8
w
i
t
h
t
h
e
Parcel Identification Number 13-25-200-007 (ap
p
r
o
x
i
m
a
t
e
l
y
s
e
v
e
n
(
7
)
a
c
r
e
s
)
,
i
n
c
l
u
d
i
n
g
the building located thereon (approximately for
t
y
-
s
e
v
e
n
t
h
o
u
s
a
n
d
o
n
e
h
u
n
d
r
e
d
a
n
d
f
o
r
t
y
-
one (47,141) square feet) (the "Premises"). The P
r
e
m
i
s
e
s
a
r
e
i
l
l
u
s
t
r
a
t
e
d
i
n
E
x
h
i
b
i
t
A
.
Exhibit A is fully incorporated into this Lease. N
o
t
w
i
t
h
s
t
a
n
d
i
n
g
t
h
e
d
e
f
i
n
i
t
i
o
n
o
f
"Premises," TENANT shall not use the showroo
m
a
n
d
p
a
r
t
s
d
e
p
a
r
t
m
e
n
t
i
n
t
h
e
b
u
i
l
d
i
n
g
(approximately 16,800 square feet) which are de
p
i
c
t
e
d
o
n
E
x
h
i
b
i
t
A
a
s
U
n
u
s
a
b
l
e
S
p
a
c
e
,
unless TENANT pays rent of three dollars and f
i
f
t
y
c
e
n
t
s
(
$
3
,
5
0
)
p
e
r
s
q
u
a
r
e
f
o
o
t
o
r
t
h
e
adjusted rent amount. If TENANT chooses to u
s
e
t
h
e
"
U
n
u
s
a
b
l
e
S
p
a
c
e
"
t
h
e
P
a
r
t
i
e
s
s
h
a
l
l
execute an amendment to this Lease codifying thi
s
f
a
c
t
(
i
n
c
l
u
d
i
n
g
t
h
e
r
e
n
t
d
u
e
f
o
r
s
u
c
h
space and a proportional increase in the cap on m
a
i
n
t
e
n
a
n
c
e
c
o
s
t
s
e
t
f
o
r
t
h
i
n
S
e
c
t
i
o
n
12.1). TENANT'S Director of County Facilities
M
a
n
a
g
e
m
e
n
t
Or successor and the
Sheriff are authorized to sign the Amendment on
b
e
h
a
l
f
o
f
t
h
e
C
o
u
n
t
y
.
1.2. LANDLORD shall not be required to remov
e
a
n
y
o
f
i
t
s
p
e
r
s
o
n
a
l
p
r
o
p
e
r
t
y
f
r
o
m
t
h
e
Unusable Areas, unless TENANT chooses to us
e
t
h
i
s
s
p
a
c
e
.
I
f
T
E
N
A
N
T
c
h
o
o
s
e
s
t
o
u
s
e
the Unusable Space, LANDLORD shall remove
i
t
s
p
e
r
s
o
n
a
l
p
r
o
p
e
r
t
y
f
r
o
m
this space
within fourteen (14) calendar days after execution
o
f
a
l
e
a
s
e
a
m
e
n
d
m
e
n
t
c
o
v
e
r
i
n
g
s
u
c
h
space.
1.3. LANDLORD shall not use the Unusable Sp
a
c
e
f
o
r
a
n
y
p
u
r
p
o
s
e
,
e
x
c
e
p
t
f
o
r
s
t
o
r
i
n
g
i
t
s
personal property. LANDLORD shall not permit
a
t
h
i
r
d
p
a
r
t
y
t
o
u
s
e
t
h
e
U
n
u
s
a
b
l
e
S
p
a
c
e
for any purpose.
1.4. Included in this Lease is the right of TENAN
T
t
o
u
s
e
t
h
e
g
e
n
e
r
a
t
o
r
c
u
r
r
e
n
t
l
y
l
o
c
a
t
e
d
o
n
the Premises. The generator is the personal prop
e
r
t
y
o
f
L
A
N
D
L
O
R
D
a
n
d
s
h
a
l
l
r
e
m
a
i
n
the personal property of LANDLORD,
2. Term and Renewal.
2.1, Term. This Lease shall begin on the December 1, 201
4
(
"
C
o
m
m
e
n
c
e
m
e
n
t
D
a
t
e
"
)
a
n
d
shall end three (3) years from that date on Nove
m
b
e
r
3
0
,
2
0
1
7
(
"
I
n
i
t
i
a
l
T
e
r
m
"
)
.
TENANT shall have possession of the Premises
(
o
t
h
e
r
t
h
a
n
t
h
e
U
n
u
s
a
b
l
e
S
p
a
c
e
)
o
n
t
h
e
Commencement Date. Failure of LANDLORD
t
o
p
r
o
v
i
d
e
T
E
N
A
N
T
w
i
t
h
p
o
s
s
e
s
s
i
o
n
o
n
the Commencement Date and the continuation o
f
s
u
c
h
f
a
i
l
u
r
e
f
o
r
t
h
i
r
t
y
(
3
0
)
C
a
l
e
n
d
a
r
Page 1 of 12
Finai Version Detroit 4394583_2
days shall entitle TENANT, as its sole remedy, to terminate this
L
e
a
s
e
u
p
o
n
w
r
i
t
t
e
n
notice to LANDLORD; otherwise the Commencement Date sha
l
l
b
e
d
e
l
a
y
e
d
u
n
t
i
l
possession is delivered without any liability imposed upon LAN
D
L
O
R
D
f
o
r
s
u
c
h
d
e
l
a
y
.
2.1 Renewal. So long as TENANT has not been in default and is not in defa
u
l
t
o
n
t
h
e
commencement of the Renewal Term, this Lease may be renew
e
d
,
a
t
T
E
N
A
N
T
'
S
s
o
l
e
option, for two (2) additional terms of one (1) year each upon w
r
i
t
t
e
n
n
o
t
i
c
e
t
o
LANDLORD by TENANT (each a "Renewal Term"). LANDLO
R
D
m
u
s
t
r
e
c
e
i
v
e
TENANT'S written renewal notice at least sixty (60) calendar da
y
s
b
e
f
o
r
e
t
h
e
e
x
p
i
r
a
t
i
o
n
of the Initial Term or the Renewal Term, absent which TENAN
T
s
h
a
l
l
h
a
v
e
n
o
r
i
g
h
t
t
o
renew this Lease. The renewal of this Lease shall be contained
i
n
a
n
a
m
e
n
d
m
e
n
t
t
o
t
h
i
s
Lease, which may be executed on behalf of TENANT by its Dir
e
c
t
o
r
o
f
F
a
c
i
l
i
t
i
e
s
Management or successor and the Oakland County Sheriff. The same terms and
conditions contained herein shall apply to the Renewal Term. R
e
f
e
r
e
n
c
e
s
h
e
r
e
i
n
t
o
"term" shall mean the Initial Term and any Renewal Term.
3. Default/Termination.
3.1. Upon written notice, a Party may terminate this Lease for d
e
f
a
u
l
t
b
y
t
h
e
o
t
h
e
r
P
a
r
t
y
pursuant to the following procedure: (a) the non-defaulting Par
t
y
g
i
v
e
s
t
h
e
d
e
f
a
u
l
t
i
n
g
Party written notice specifically identifying the default(s) and (b)
t
h
e
d
e
f
a
u
l
t
i
n
g
P
a
r
t
y
does not cure the default within fifteen (15) calendar days of rec
e
i
v
i
n
g
t
h
e
w
r
i
t
t
e
n
n
o
t
i
c
e
of default or the defaulting party does not commence to cure th
e
d
e
f
a
u
l
t
w
i
t
h
i
n
f
i
f
t
e
e
n
(15) calendar days of receiving written notice of the default and
d
o
e
s
n
o
t
d
i
l
i
g
e
n
t
l
y
pursue the cure to completion, if the default is of such a nature
t
h
a
t
i
t
c
a
n
n
o
t
b
e
c
u
r
e
d
within the fifteen (15) day period.
3.2. If either Party defaults in any of its obligations under this Le
a
s
e
(
a
f
t
e
r
e
x
p
i
r
a
t
i
o
n
o
f
t
h
e
notice and cure periods in Section 3.1) the other Party shall hav
e
a
l
l
r
e
m
e
d
i
e
s
a
v
a
i
l
a
b
l
e
to it under the law, in addition to the rights and remedies set fo
r
t
h
h
e
r
e
i
n
.
3.3. During any Renewal Term, TENANT may terminate this L
e
a
s
e
a
t
a
n
y
t
i
m
e
a
n
d
f
o
r
a
n
y
reason, including convenience, upon three hundred sixty-five (3
6
5
)
c
a
l
e
n
d
a
r
d
a
y
s
written notice to LANDLORD.
3.4. Upon expiration or termination of this Lease or TENANT'
S
r
i
g
h
t
t
o
p
o
s
s
e
s
s
i
o
n
,
TENANT shall . surrender the Premises in a similar condition as when taken (re
a
s
o
n
a
b
l
e
wear and tear excepted) and shall remove its personal property o
n
o
r
b
e
f
o
r
e
t
h
e
d
a
t
e
o
f
expiration or termination. If TENANT does not remove its personal property within
fifteen (15) calendar days of the date of expiration or terminatio
n
,
i
n
a
d
d
i
t
i
o
n
t
o
a
n
y
other remedies of LANDLORD, such items shall be deemed aba
n
d
o
n
e
d
,
a
n
d
LANDLORD may cause such items to be stored, removed or di
s
p
o
s
e
d
o
f
a
t
T
E
N
A
N
T
'
S
expense, without notice to TENANT and without obligation to
c
o
m
p
e
n
s
a
t
e
T
E
N
A
N
T
.
Any damage caused by the removal of TENANT'S personal pro
p
e
r
t
y
s
h
a
l
l
b
e
r
e
p
a
i
r
e
d
and paid for by TENANT within thirty (30) days of the date of
e
x
p
i
r
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
.
If TENANT does not repair or commence repair of such damag
e
w
i
t
h
i
n
t
h
i
r
t
y
(
3
0
)
d
a
y
s
Page 2 of 12
Final Version Detroit 4394583_2
of the date of expiration or termination, then LANDLORD
m
a
y
r
e
p
a
i
r
a
n
d
r
e
s
t
o
r
e
t
h
e
Premises and TENANT shall pay the actual and reasonab
l
e
c
o
s
t
s
,
p
r
i
o
r
t
o
p
a
y
m
e
n
t
,
o
f
such repair and restoration to LANDLORD, within thirty
(
3
0
)
d
a
y
s
o
f
d
e
m
a
n
d
.
LANDLORD shall provide TENANT with an itemized in
v
o
i
c
e
f
o
r
s
u
c
h
r
e
p
a
i
r
a
n
d
restoration.
4. Rent and Date of Rent Payment.
4.1. Rent Amount. From December 1, 2014 until the date the Lease expires or is
terminated, TENANT agrees to pay LANDLORD, one h
u
n
d
r
e
d
a
n
d
s
i
x
t
h
o
u
s
a
n
d
a
n
d
forty-four dollars and no cents ($106,044.00) annually a
s
R
e
n
t
f
o
r
t
h
e
P
r
e
m
i
s
e
s
,
s
u
b
j
e
c
t
to annual increases set forth in Section 4.3. This annual
a
m
o
u
n
t
s
h
a
l
l
b
e
p
a
i
d
i
n
t
w
e
l
v
e
equal installments of eight thousand eight hundred and th
i
r
t
y
-
s
e
v
e
n
d
o
l
l
a
r
s
a
n
d
n
o
c
e
n
t
s
($8,837.00) due on the first calendar day of each month,
a
s
a
d
j
u
s
t
e
d
i
n
a
c
c
o
r
d
a
n
c
e
w
i
t
h
Section 4.3,
4.2. Place of Payment. Payments due under this Lease from TENANT shall be
p
a
i
d
a
t
t
h
e
address of LANDLORD set forth above or at such other
p
l
a
c
e
a
s
L
A
N
D
L
O
R
D
m
a
y
designate in writing
4.3. Rent Adjustments. On December 1, 2015 and each December 1 st thereafter, the Rent
shall increase by two and a half percent (2.5%) from the
p
r
e
v
i
o
u
s
t
w
e
l
v
e
(
1
2
)
m
o
n
t
h
s
'
Rent.
4.4, Rent Setoff. If LANDLORD fails to perform or comply with any ob
l
i
g
a
t
i
o
n
Or
requirement of this Lease, TENANT shall give LANDL
O
R
D
f
i
f
t
e
e
n
(
1
5
)
c
a
l
e
n
d
a
r
d
a
y
s
written notice of such failure. If LANDLORD does not cu
r
e
t
h
e
f
a
i
l
u
r
e
w
i
t
h
i
n
f
i
f
t
e
e
n
(15) calendar days after receipt of such written notice (or
i
f
a
c
u
r
e
o
f
s
u
c
h
f
a
i
l
u
r
e
c
a
n
n
o
t
reasonably occur within such fifteen (15) calendar days a
n
d
L
A
N
D
L
O
R
D
d
o
e
s
n
o
t
commence the cure within such fifteen (15) calendar day
p
e
r
i
o
d
a
n
d
t
h
e
r
e
a
f
t
e
r
d
i
l
i
g
e
n
t
l
y
pursue performance or compliance), TENANT may upon
w
r
i
t
t
e
n
n
o
t
i
c
e
t
o
L
A
N
D
L
O
R
D
perform or comply with such obligation or requirement o
r
m
a
y
c
a
u
s
e
a
t
h
i
r
d
-
p
a
r
t
y
t
o
perform or comply with such obligation or requirement.
T
E
N
A
N
T
m
a
y
d
e
d
u
c
t
t
h
e
c
o
s
t
s
associated with such performance or compliance from th
e
R
e
n
t
,
i
f
t
h
e
L
A
N
D
L
O
R
D
'
S
failure to perform or comply with an obligation or requi
r
e
m
e
n
t
s
u
b
s
t
a
n
t
i
a
l
l
y
i
n
t
e
r
f
e
r
e
s
with TENANT'S use of the Premises. Upon written requ
e
s
t
,
T
E
N
A
N
T
s
h
a
l
l
p
r
o
v
i
d
e
LANDLORD with an itemized invoice or statement of co
s
t
s
a
s
s
o
c
i
a
t
e
d
w
i
t
h
performance or compliance of an obligation or requireme
n
t
.
4.5. Partial Month Rent Proration. If this Lease commences, terminates (other than due to
a default by TENANT), or expires other than the first cal
e
n
d
a
r
d
a
y
o
f
a
m
o
n
t
h
,
t
h
e
n
t
h
e
Rent for such month shall be prorated upon a daily basis.
5. Security Deposit. No security deposit is required of TENANT.
6. Hold Over. In the event TENANT holds over after the termination
o
r
e
x
p
i
r
a
t
i
o
n
o
f
t
h
i
s
Lease, without a written amendment, TENANT shall be
a
T
E
N
A
N
T
-
A
T
-
S
U
F
F
E
R
A
N
C
E
a
t
two hundred percent (200%) of the base rent in effect at t
h
e
e
n
d
o
f
t
h
e
a
p
p
l
i
c
a
b
l
e
t
e
r
m
.
Page 3 of 12
Final Version Detroit 43945832
TENANT shall also continue to pay all other sums due hereunder. There s
h
a
l
l
b
e
n
o
r
e
n
e
w
a
l
of this Lease by operation of law. In addition to the foregoing, in the event
t
h
a
t
T
E
N
A
N
T
remains in possession of the Premises after the expiration or termination of
t
h
e
T
e
r
m
,
TENANT shall be liable for all damages, direct and consequential, incurre
d
b
y
L
A
N
D
L
O
R
D
as a result of such holdover. No receipt of money by LANDLORD from T
E
N
A
N
T
a
f
t
e
r
t
h
e
termination of this Lease or TENANT'S right of possession of the Premise
s
s
h
a
l
l
r
e
i
n
s
t
a
t
e
,
continue Or extend the Term or TENANT'S right of possession,
7, Use and Occupancy of the Premises.
7,1 TENANT shall use the Premises to store motorized vehicles and other
e
q
u
i
p
m
e
n
t
,
w
h
i
c
h
are owned by TENANT or in TENANT'S possession because of the perfo
r
m
a
n
c
e
o
f
a
governmental function. TENANT may perform light maintenance of these
v
e
h
i
c
l
e
s
a
t
the Premises. The public will not have access to the Premises. TENANT
s
h
a
l
l
u
s
e
t
h
e
Premises in the performance of governmental functions.
7.2 TENANT shall not use the Premises in violation of any law, municipal
o
r
d
i
n
a
n
c
e
,
Or
regulation.
7.3 TENANT shall comply with, at its expense, with all applicable laws, mu
n
i
c
i
p
a
l
ordinances, or regulations.
7.4 TENANT will permit no liens to attach to the Premises. Any liens attac
h
i
n
g
t
o
t
h
e
Premises shall be discharged by TENANT within thirty (30) days of filing.
7.5 TENANT will use the Premises in a careful, safe, and proper manner, w
i
l
l
n
o
t
c
o
m
m
i
t
waste to the Premises, will not overload the floor or structure of the Premis
e
s
,
o
r
w
i
l
l
n
o
t
subject the Premises to use that would damage the Premises.
7.6 TENANT shall keep the Premises in good and clean condition and free
o
f
t
r
a
s
h
,
w
e
a
r
a
n
d
tear from reasonable use and damage from the elements excepted.
7,7 Except for the uses provided in this Lease, TENANT shall not use the P
r
e
m
i
s
e
s
i
n
a
manner to cause cancellation of, prevent the use of, or increase the rate of,
t
h
e
i
n
s
u
r
a
n
c
e
carried by LANDLORD.
7.8 TENANT' s use of the Premises and its activities thereon shall comply
w
i
t
h
a
l
l
"Environmental Laws," which, for purposes of this Lease, shall mean all fe
d
e
r
a
l
,
s
t
a
t
e
and local environmental laws, including, but not limited to, the Hazardous
M
a
t
e
r
i
a
l
s
Transportation Act, (47 U.SC §§ 1801 et seq.), Federal Water Pollution Cont
r
o
l
A
c
t
(
3
3
U.S.C. §§ 1251 et seq.) ("Clean Water Act"), the Resource Conservation &
R
e
c
o
v
e
r
y
A
c
t
(42 U.S.C. §§ 6901 et seq.) ("RCRA"), Safe Drinking Water Act (42 U.S
.
C
.
§
§
3
0
0
f
ij
26), Toxic Substances Control Act (15 U.S.C. §§ 2601 et seq.), Clean Air A
c
t
(
4
2
U
.
S
.
C
,
§§ 7401 et seq.), the Comprehensive Environmental Response, Compensati
o
n
a
n
d
Liability Act (42 U.S.C. §§ 9601 et seq.) ("CERCLA"), the Emergency Plan
n
i
n
g
a
n
d
Community Right to Know Act, 42 U.S.C. §§ 11001 et seq. ("EPCRA"), th
e
M
i
c
h
i
g
a
n
Natural Resources and Environmental Protection Act (MCL § 324.101 et se
q
.
)
t
h
e
administrative rules and regulations promulgated under such statutes, or an
y
o
t
h
e
r
s
i
m
i
l
a
r
federal, state or local law or administrative rule or regulation of similar effe
c
t
,
i
n
e
f
f
e
c
t
Page 4 of 12
Final Version
Detroit 4394553_2.
and adopted as of the date of execution of th
i
s
L
e
a
s
e
a
n
d
a
s
a
m
e
n
d
e
d
.
"
H
a
z
a
r
d
o
u
s
Materials" shall mean any substances, compo
u
n
d
s
,
m
i
x
t
u
r
e
s
,
w
a
s
t
e
s
o
r
m
a
t
e
r
i
a
l
s
t
h
a
t
a
r
e
defined to be, that are regulated as, that are li
s
t
e
d
a
s
o
r
t
h
a
t
(
b
e
c
a
u
s
e
o
f
t
h
e
i
r
t
o
x
i
c
i
t
y
,
concentration or quantity) have characteristic
s
t
h
a
t
a
r
e
h
a
z
a
r
d
o
u
s
o
r
t
o
x
i
c
u
n
d
e
r
a
n
y
o
f
the Environmental Laws, or any substances,
c
o
m
p
o
u
n
d
s
,
m
i
x
t
u
r
e
s
,
w
a
s
t
e
s
o
r
m
a
t
e
r
i
a
l
s
that are otherwise regulated under any of the
E
n
v
i
r
o
n
m
e
n
t
a
l
L
a
w
s
.
7.9 TENANT shall not cause or permit the re
l
e
a
s
e
o
f
H
a
z
a
r
d
o
u
s
M
a
t
e
r
i
a
l
s
i
n
t
o
a
n
y
environmental media such as air, water or lan
d
,
o
r
i
n
t
o
Or on the Premises in any manner.
If such release shall occur, TENANT shall (a
)
t
a
k
e
a
l
l
s
t
e
p
s
r
e
a
s
o
n
a
b
l
y
n
e
c
e
s
s
a
r
y
t
o
contain and control such release and any asso
c
i
a
t
e
d
c
o
n
t
a
m
i
n
a
t
i
o
n
,
(
b
)
c
l
e
a
n
u
p
o
r
otherwise remedy such release and any assoc
i
a
t
e
d
c
o
n
t
a
m
i
n
a
t
i
o
n
,
a
n
d
t
a
k
e
a
n
y
a
n
d
a
l
l
other actions required under, applicable Envir
o
n
m
e
n
t
a
l
L
a
w
s
a
n
d
(
e
)
n
o
t
i
f
y
a
n
d
k
e
e
p
LANDLORD reasonably informed of such rel
e
a
s
e
a
n
d
r
e
s
p
o
n
s
e
.
7.10 The terms of Section 7 shall survive the expir
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
o
f
t
h
i
s
L
e
a
s
e
8. Equipment and Furnishings. TENANT shall provide, at its own expense,
f
u
r
n
i
t
u
r
e
a
n
d
equipment it deems necessary. TENANT, at
i
t
s
o
w
n
e
x
p
e
n
s
e
,
s
h
a
l
l
b
e
s
o
l
e
l
y
r
e
s
p
o
n
s
i
b
l
e
f
o
r
the maintenance and repair of its furniture an
d
e
q
u
i
p
m
e
n
t
u
s
e
d
o
n
t
h
e
P
r
e
m
i
s
e
s
.
9. Condition of Premises. TENANT has examined the Premises prior
t
o
t
h
e
e
x
e
c
u
t
i
o
n
o
f
t
h
i
s
Lease and TENANT accepts the Premises "A
S
-
I
S
"
e
x
c
e
p
t
t
h
a
t
(
a
)
L
A
N
D
L
O
R
D
s
h
a
l
l
perform the obligations contained in Section
1
1
o
f
t
h
i
s
L
e
a
s
e
;
a
n
d
(
b
)
L
A
N
D
L
O
R
D
w
a
r
r
a
n
t
s
and certifies that all interior and exterior ligh
t
i
n
g
f
i
x
t
u
r
e
s
w
i
l
l
b
e
o
p
e
r
a
t
i
o
n
a
l
o
n
t
h
e
Commencement Date, LANDLORD has mad
e
n
o
r
e
p
r
e
s
e
n
t
a
t
i
o
n
o
r
w
a
r
r
a
n
t
y
a
s
t
o
t
h
e
suitability of the Premises for the conduct of
T
E
N
A
N
T
'
S
b
u
s
i
n
e
s
s
a
n
d
T
E
N
A
N
T
w
a
i
v
e
s
a
n
y
implied warranty that the Premises are suita
b
l
e
f
o
r
T
E
N
A
N
T
'
S
i
n
t
e
n
d
e
d
p
u
r
p
o
s
e
s
,
10. Security of Premises. LANDLORD will provide any existing key
s
t
o
t
h
e
P
r
e
m
i
s
e
s
f
o
r
TENANT'S use and will provide any existing
d
e
v
i
c
e
s
t
o
T
E
N
A
N
T
f
o
r
t
h
e
o
p
e
r
a
t
i
o
n
o
f
t
h
e
overhead doors at the Premises. TENANT sh
a
l
l
b
e
r
e
s
p
o
n
s
i
b
l
e
f
o
r
s
e
c
u
r
i
n
g
t
h
e
P
r
e
m
i
s
e
s
o
n
a day-to-day basis. TENANT shall have the
r
i
g
h
t
t
o
i
n
s
t
a
l
l
a
s
e
c
u
r
i
t
y
s
y
s
t
e
m
o
f
i
t
s
c
h
o
i
c
e
o
n
and around the Premises. TENANT will pay
f
o
r
a
l
l
c
o
s
t
s
o
f
i
n
s
t
a
l
l
i
n
g
,
o
p
e
r
a
t
i
n
g
,
a
n
d
maintaining the security system. The security
s
y
s
t
e
m
s
h
a
l
l
r
e
m
a
i
n
t
h
e
p
r
o
p
e
r
t
y
o
f
T
E
N
A
N
T
and TENANT shall remove the security syst
e
m
u
p
o
n
e
x
p
i
r
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
o
f
t
h
i
s
L
e
a
s
e
,
including any fence gate automation added b
y
T
E
N
A
N
T
.
I
n
a
d
d
i
t
i
o
n
t
o
a
s
e
c
u
r
i
t
y
s
y
s
t
e
m
and as part of securing the Premises, TENAN
T
,
a
t
i
t
s
s
o
l
e
c
o
s
t
,
m
a
y
t
i
n
t
c
e
r
t
a
i
n
w
i
n
d
o
w
s
a
n
d
cover the interior of certain windows with ply
w
o
o
d
Or aluminum sheeting (so long as
TENANT removes such plywood or aluminu
m
u
p
o
n
t
h
e
e
x
p
i
r
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
o
f
t
h
i
s
Lease).
11. Landlord Obligations, Prior to December 1, 2014, LANDLORD sh
a
l
l
p
e
r
f
o
r
m
o
r
c
a
u
s
e
t
o
be performed the following at its sole cost:
Page 5 of 12
Final Version Detroit_4394583 2
11.1. Remove all hoists in Service and Body Shop areas of the Premises, e
x
c
e
p
t
f
o
r
t
h
e
hoists that TENANT indicates not to be removed (which indications
m
u
s
t
h
e
p
r
o
v
i
d
e
d
within three (3) calendar days after the execution of this Lease);
11.2. Repair the broken windows in Service and Body Shop area of the Pr
e
m
i
s
e
s
;
11.3. Clean out the slow drain in rear parking area of the Premises; and
11.4. Replace the broken section of fence on the west side of rear lot of th
e
P
r
e
m
i
s
e
s
.
12, Maintenance and Repairs of Premises.
121 LANDLORD shall be responsible to perform and pay for the maint
e
n
a
n
c
e
a
n
d
repairs to keep the Premises (other than the Unusable Space) in sub
s
t
a
n
t
i
a
l
l
y
t
h
e
s
a
m
e
condition which existed on the Commencement Date, subject to no
r
m
a
l
w
e
a
r
a
n
d
t
e
a
t
Such maintenance shall include, but is not limited to, maintenance a
n
d
r
e
p
a
i
r
s
t
o
,
r
o
o
f
;
ceiling; walls; floors; windows; heating, cooling, and ventilation sy
s
t
e
m
(
H
V
A
C
)
;
radiant heat system; electrical system; plumbing system; restroom f
i
x
t
u
r
e
s
;
s
i
d
e
w
a
l
k
s
;
parking lots; exterior and interior lighting fixtures; light bulb repla
c
e
m
e
n
t
;
a
n
d
generator. TENANT shall reimburse LANDLORD the actual cost o
f
t
h
e
m
a
i
n
t
e
n
a
n
c
e
and repairs per Fiscal Year or twenty-two thousand five hundred dol
l
a
r
s
(
$
2
2
,
5
0
0
,
0
0
)
per Fiscal Year (the "Cap"), whichever is least, provided, however,
t
h
a
t
t
h
e
a
m
o
u
n
t
f
o
r
the first Fiscal Year shall not exceed eighteen thousand seven hund
r
e
d
a
n
d
f
o
r
t
y
d
o
l
l
a
r
s
($18,740,00). On December 1, 2015 and each December l st thereafter, the Cap shall
increase by two and a half percent (2.5%) from the Cap for previou
s
F
i
s
c
a
l
Y
e
a
r
.
A
Fiscal Year is defined as three hundred and sixty-five (365) calenda
r
d
a
y
s
c
o
m
m
e
n
c
i
n
g
on October l and ending on September 30 th , The first Fiscal Year shall be abbreviated
because the Lease Commencement Date is December 1 St ; thus, the first Fiscal Year is
December 1, 2014 to September 30, 2015. LANDLORD shall invo
i
c
e
T
E
N
A
N
T
o
n
a
quarterly basis for the maintenance and repair costs. TENANT shal
l
p
a
y
t
h
e
i
n
v
o
i
c
e
within ten (10) business days of receipt. TENANT must provide L
A
N
D
L
O
R
D
w
i
t
h
prompt written notice of needed maintenance. Subject to the limitat
i
o
n
s
i
n
S
e
c
t
i
o
n
2
0
.
1
,
the Cap shall not apply to, and TENANT shall be obligated to reim
b
u
r
s
e
L
A
N
D
L
O
R
D
for the cost of repairs Or replacements required due to the acts or omission of TENANT
Or its employees, agents, contractors or invitees. TENANT acknowled
g
e
s
t
h
a
t
a
n
a
i
r
handler in the Premises is not currently functional and LANDLORD has no obligation to
replace or repair such handler; provided however, that TENANT sh
a
l
l
n
o
t
b
e
r
e
s
p
o
n
s
i
b
l
e
for any costs associated with the repair or replacement of such hand
l
e
r
.
12.2. On or before December 3, 2014, the Parties shall create a document (
i
n
w
r
i
t
i
n
g
and with pictures) evidencing the current condition of the Premise
s
.
T
h
i
s
d
o
c
u
m
e
n
t
shall establish the condition of the Premises on the Commencement
D
a
t
e
a
n
d
s
h
a
l
l
f
o
r
m
the basin for maintenance and repairs to the Premises.
12.3. Notwithstanding the foregoing, if any of the LANDLORD'S mainten
a
n
c
e
obligations under Section 12.1 involve Capital Improvements to the
P
r
e
m
i
s
e
s
,
LANDLORD shall not be required to undertake such Capital Impro
v
e
m
e
n
t
s
u
n
l
e
s
s
a
n
d
Page 6 of 12
Final Version Detroit 4394583_2
until TENANT agrees in writing that the Capital Improvement is approved by
T
E
N
A
N
T
and deemed necessary by TENANT for TENANT's use of the Premises; in wh
i
c
h
e
v
e
n
t
,
LANDLORD may elect to charge TENANT under this Section, rather than un
d
e
r
Section 12,1. Capital Improvement is defined as: (a) replacement of the roof; g
e
n
e
r
a
t
o
r
,
HVAC, ceilings, plumbing/electrical systems, or parking lots or (b) maintenan
c
e
o
r
repair of any single item which exceeds ten thousand dollars ($10,000.00).
LANDLORD, at its option, may amortize a Capital Improvement over its usef
u
l
l
i
f
e
(whereby the useful life shall be reasonably agreed to by the Parties) according
t
o
t
h
e
Generally Accepted Accounting Principles. If LANDLORD amortizes a Capi
t
a
l
Improvement and that Capital improvement is necessary for TENANT's use o
f
t
h
e
Premises (as reasonably confirmed by TENANT as required above), then TEN
A
N
T
shall pay LANDLORD the yearly amortized portion of the Capital Improvem
e
n
t
w
h
i
l
e
this Lease is in effect. Payment of the yearly amortized portion shall commen
c
e
o
n
t
h
e
date the Capital Improvement is fully completed and shall be due thereafter on
t
h
e
anniversary of the completion date. Payment of the yearly amortized portion
s
h
a
l
l
c
e
a
s
e
on the date this Lease terminates or expires, if this Lease expires or terminates
o
n
a
d
a
t
e
other than the anniversary of completion, the yearly amortized portion shall b
e
p
r
o
r
a
t
e
d
on a daily basis and refunded to TENANT. The yearly amortized amount cha
r
g
e
d
t
o
TENANT under this Section shall not be applied against the Cap under Section
1
2
.
1
.
13, Alterations or Improvements. TENANT shall not make any alterations or improvements to
or upon the Premises without the prior written consent of LANDLORD. Exce
p
t
a
s
o
t
h
e
r
w
i
s
e
provided in this Lease, any alteration or improvement made to or upon the Pr
e
m
i
s
e
s
s
h
a
l
l
become an integral part of the Premises and shall become the sole property of th
e
LANDLORD immediately upon the completion, unless LANDLORD, at its op
t
i
o
n
,
r
e
q
u
i
r
e
s
TENANT to remove such work upon the expiration or termination of this Leas
e
Or
TENANT'S right to possession (in which event, TENANT shall undertake suc
h
r
e
m
o
v
a
l
a
n
d
restore the Premises to a condition similar to which existed prior to TENAN
T
u
n
d
e
r
t
a
k
i
n
g
such work). Office furniture and trade fixtures used or installed in the Premises are not
alterations or improvements and shall remain the property of TENANT.
14, Utilities. TENANT shall pay for all utilities for the Premises beginning December 1,
2
0
1
4
,
including gas, electric, water, and sewer. These utilities shall be in the-name o
f
T
E
N
A
N
T
.
Until placed into TENANT'S name, TENANT shall reimburse LANDLORD f
o
r
a
n
y
u
t
i
l
i
t
y
charges (such reimbursement to be paid within ten (10) Calendar days after re
c
e
i
p
t
o
f
a
n
invoice from LANDLORD).
15. Services. TENANT shall pay all costs associated with installing, maintaining and op
e
r
a
t
i
n
g
its telephone system, computer system, security system, and any other system
T
E
N
A
N
T
installs in or around the Premises. All such systems shall remain the property
o
f
T
E
N
A
N
T
,
who shall remove them upon Lease termination or expiration. TENANT shall
p
r
o
v
i
d
e
t
h
e
following services at and around the Premises, at its own expense; (a) trash re
m
o
v
a
l
,
(
b
)
Page 7 of 12
Final Version
Detroit 4394583 . 2
snow and ice removal from sidewalks, steps and pa
r
k
i
n
g
a
r
e
a
s
,
(
c
)
c
u
s
t
o
d
i
a
l
s
e
r
v
i
c
e
s
,
(
d
)
landscaping services, and (e) fuel to operate the ge
n
e
r
a
t
o
r
.
16. Signs. TENANT may attach, install or erect signs on the
i
n
t
e
r
i
o
r
w
a
l
l
s
o
f
t
h
e
P
r
e
m
i
s
e
s
a
s
necessary for TENANT'S use of the Premises. TEN
A
N
T
m
a
y
n
o
t
a
t
t
a
c
h
,
i
n
s
t
a
l
l
o
r
e
r
e
c
t
a
n
y
signs on the exterior walls of or the area surroundin
g
t
h
e
P
r
e
m
i
s
e
s
w
i
t
h
o
u
t
t
h
e
p
r
i
o
r
w
r
i
t
t
e
n
approval of LANDLORD. TENANT shall remove
i
t
s
s
i
g
n
s
p
r
i
o
r
t
o
t
h
e
e
x
p
i
r
a
t
i
o
n
o
r
termination of this Lease.
17, Access. TENANT shall allow LANDLORD access to the
P
r
e
m
i
s
e
s
d
u
r
i
n
g
r
e
g
u
l
a
r
b
u
s
i
n
e
s
s
hours (and at all other times in the event of an eme
r
g
e
n
c
y
)
f
o
r
t
h
e
p
u
r
p
o
s
e
s
o
f
i
n
s
p
e
c
t
i
n
g
,
posting notices, repairing and/or maintaining the P
r
e
m
i
s
e
s
,
a
n
d
t
o
s
h
o
w
t
h
e
P
r
e
m
i
s
e
s
t
o
lenders, potential buyers and/or potential tenants;
p
r
o
v
i
d
e
d
h
o
w
e
v
e
r
,
L
A
N
D
L
O
R
D
,
a
n
d
a
n
y
other persons accompanied, at all times, by an agen
t
o
r
e
m
p
l
o
y
e
e
o
f
T
E
N
A
N
T
.
T
E
N
A
N
T
represents that someone will be available to accom
p
a
n
y
L
A
N
D
L
O
R
D
o
n
a
2
4
1
7
/
3
6
5
b
a
s
i
s
and LANDLORD shall not be liable for delays in u
n
d
e
r
t
a
k
i
n
g
m
a
i
n
t
e
n
a
n
c
e
o
r
o
t
h
e
r
obligations of LANDLORD hereunder if due to the
u
n
a
v
a
i
l
a
b
i
l
i
t
y
o
f
T
E
N
A
N
T
t
o
a
c
c
o
m
p
a
n
y
LANDLORD into the Premises. LANDLORD shal
l
n
o
t
u
n
r
e
a
s
o
n
a
b
l
y
d
i
s
r
u
p
t
t
h
e
o
p
e
r
a
t
i
o
n
s
of TENANT at the Premises. TENANT shall also a
l
l
o
w
L
A
N
D
L
O
R
D
a
c
c
e
s
s
t
o
t
h
e
Premises at any time in case of an emergency, prov
i
d
e
d
h
o
w
e
v
e
r
,
L
A
N
D
L
O
R
D
,
a
n
d
a
n
y
other persons shall be accompanied, at all times, b
y
a
n
a
g
e
n
t
o
r
e
m
p
l
o
y
e
e
o
f
T
E
N
A
N
T
.
18. Taxes. TENANT shall pay all real property taxes an
d
s
p
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
o
n
t
h
e
P
r
e
m
i
s
e
s
.
At LANDLORD'S option, such taxes and assessme
n
t
s
s
h
a
l
l
b
e
p
a
i
d
d
i
r
e
c
t
l
y
t
o
t
h
e
t
a
x
i
n
g
authority (with evidence of payment provided to LA
N
D
L
O
R
D
)
o
r
p
a
i
d
t
o
L
A
N
D
L
O
R
D
within thirty (30) Calendar days after receipt of an i
n
v
o
i
c
e
f
r
o
m
L
A
N
D
L
O
R
D
.
A
t
t
h
e
beginning and end of this Lease, taxes and assessm
e
n
t
s
s
h
a
l
l
b
e
p
r
o
r
a
t
e
d
b
e
t
w
e
e
n
t
h
e
P
a
r
t
i
e
s
on a calendar basis based upon the number of days
t
h
i
s
L
e
a
s
e
i
n
e
f
f
e
c
t
f
o
r
t
h
e
y
e
a
r
i
n
question.
19. Insurance.
19.1. Real Property Insurance. LANDLORD shall cause the Premises, the buildin
g
and its improvements located there to be insured ag
a
i
n
s
t
l
o
s
s
o
r
d
a
m
a
g
e
d
u
r
i
n
g
t
h
i
s
Lease,
19.2. Liability Insurance. LANDLORD shall purchase liability insurance fo
r
t
h
e
Premises.
19.3, Personal Property Insurance. TENANT shall insure its personal property kept
on the Premises at its sole cost and in the amount a
n
d
m
a
n
n
e
r
a
s
T
E
N
A
N
T
d
e
e
m
s
f
i
t
,
19,4. Insurance Premium Payments. LANDLORD shall be responsible to pay the
premiums for the property insurance for the Premi
s
e
s
a
n
d
t
h
e
l
i
a
b
i
l
i
t
y
i
n
s
u
r
a
n
c
e
f
o
r
t
h
e
Premises, provided however, TENANT shall reimb
u
r
s
e
L
A
N
D
L
O
R
D
,
o
n
a
n
a
n
n
u
a
l
basis, the actual amount of the premium for the pr
o
p
e
r
t
y
i
n
s
u
r
a
n
c
e
a
n
d
t
h
e
l
i
a
b
i
l
i
t
y
insurance or seven thousand dollars ($7,000.00) to
w
a
r
d
s
u
c
h
p
r
e
m
i
u
m
,
w
h
i
c
h
e
v
e
r
i
s
less. The seven thousand dollar ($7,000.00) figure
s
h
a
l
l
b
e
i
n
c
r
e
a
s
e
d
i
n
t
h
e
s
a
m
e
Page 8 of 12
Final Version Detroit 4394583_2
manner as the Rent, set forth in Section 4.3. TENANT shall reimbu
r
s
e
L
A
N
D
L
O
R
D
f
o
r
the applicable premium charge within ten (10) days after receipt of
a
n
i
n
v
o
i
c
e
f
r
o
m
LANDLORD.
20. Indemnification/Liability and Damage to the Premises.
20.1. TENANT shall be responsible for property damage to the Premises,
i
n
c
l
u
d
i
n
g
t
h
e
building or fixtures attached to the building, which is caused by the
a
c
t
s
o
r
o
m
i
s
s
i
o
n
s
o
f
TENANT or TENANT' s employees, agents, contractors or invitees
;
p
r
o
v
i
d
e
d
,
h
o
w
e
v
e
r
,
with respect to damage that is covered by LANDLORD's property i
n
s
u
r
a
n
c
e
p
o
l
i
c
y
,
TENANT shall only be liable for up to ten thousand dollars ($10,00
0
.
0
0
)
p
e
r
o
c
c
u
r
r
e
n
c
e
.
20.1 For purposes of this Lease, "Claims" means any loss; complaint; dem
a
n
d
f
o
r
relief or damages; lawsuit; cause of action; proceeding; judgment; p
e
n
a
l
t
y
;
c
o
s
t
s
;
o
r
other liability of any kind which is imposed on, incurred by, or asse
r
t
e
d
o
r
f
o
r
w
h
i
c
h
a
Party may become legally or contractually obligated to pay or defen
d
a
g
a
i
n
s
t
,
w
h
e
t
h
e
r
commenced or threatened, including, but not limited to, reimbursem
e
n
t
f
o
r
r
e
a
s
o
n
a
b
l
e
attorney fees, mediation, facilitation, arbitration fees, witness fees,
c
o
u
r
t
c
o
s
t
s
,
investigation expenses, litigation expenses, or amounts paid in settl
e
m
e
n
t
,
20.3. Each Party shall be responsible for Claims made against that Party
b
y
a
t
h
i
r
d
p
a
r
t
y
and for the acts or omissions of its employees, agents or contractors related to the
performance of this Lease.
20.4. LANDLORD shall indemnify and hold TENANT harmless from al
l
C
l
a
i
m
s
,
incurred by or asserted against TENANT by any person or entity, t
o
t
h
e
e
x
t
e
n
t
c
a
u
s
e
d
from the acts or omissions of LANDLORD or its agents or employ
e
e
s
.
20.5, '1ENANT's right to indemnification is in excess and above any ins
u
r
a
n
c
e
rights/policies required by this Lease.
20.6. LANDLORD shall not be liable to TENANT or to any other person
f
o
r
a
n
y
damage (to person or property) caused by: (a) failure in any utility o
r
b
u
i
l
d
i
n
g
s
y
s
t
e
m
,
(b) failure of any security system, (c) by the bursting or leaking of
a
n
y
v
e
s
s
e
l
o
r
p
i
p
e
i
n
or about the Premises, (d) by water, snow or ice coming into the Pre
m
i
s
e
s
,
or (e) from
the acts or neglect of occupants of adjacent property or the public
.
T
E
N
A
N
T
s
h
a
l
l
maintain all desired insurance covering its personal property and TE
N
A
N
T
,
r
a
t
h
e
r
t
h
a
n
LANDLORD, shall be responsible for the damage or theft of its per
s
o
n
a
l
p
r
o
p
e
r
t
y
.
20.7. This Lease does not and is not intended to impair, divest,
d
e
l
e
g
a
t
e
,
o
r
c
o
n
t
r
a
v
e
n
e
any constitutional, statutory, and/or other legal right, privilege, pow
e
r
,
o
b
l
i
g
a
t
i
o
n
,
d
u
t
y
,
capacity, or inununity of TENANT.
20.8. The terms and conditions of Section 20 shall survive the expiration or termination
of this Lease.
21. Destruction of Premises.
21.1. Except as otherwise provided herein, in the event the Premises are
p
a
r
t
i
a
l
l
y
damaged or destroyed by fire or other casualty, the damage to the Premises shall be
promptly repaired or rebuilt by LANDLORD. In the event the Pre
m
i
s
e
s
c
a
n
n
o
t
b
e
Page 9 of 12
Final Version Detroit_4394583_2
repaired or rebuilt within ninety (90) Calendar days after such destru
c
t
i
o
n
,
T
E
N
A
N
T
shall have the right to terminate this Lease and vacate the Premises w
i
t
h
i
n
t
h
i
r
t
y
(
3
0
)
Calendar days after the occurrence of such damage or destruction. I
f
t
h
e
P
r
e
m
i
s
e
s
a
r
e
damaged or destroyed, TENANT may elect to remain on the Premis
e
s
o
r
t
o
v
a
c
a
t
e
t
h
e
Premises (at its sole option) until the repairs are complete. During t
h
e
t
i
m
e
b
e
t
w
e
e
n
when the Premises are damaged and until the repairs or construction
t
o
t
h
e
P
r
e
m
i
s
e
s
a
r
e
complete, the Rent owed by TENANT shall be reduced in proportio
n
t
o
t
h
e
p
o
r
t
i
o
n
o
f
the Premises rendered unusable (in the discretion of TENANT).
21.2. In the event (i) all or any portion of the Premises is damaged by fire
o
r
o
t
h
e
r
casualty and the time period reasonably determined by LANDLOR
D
t
o
b
e
r
e
q
u
i
r
e
d
f
o
r
the actual restoration or repair of the Premises will exceed ninety (9
0
)
C
a
l
e
n
d
a
r
d
a
y
s
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,
o
r
(
i
i
i
)
L
A
N
D
L
O
R
D
does not anticipate receiving sufficient insurance proceeds to resto
r
e
t
h
e
P
r
e
m
i
s
e
s
,
o
r
(iv) LANDLORD is required to pay any insurance proceeds arising
o
u
t
o
f
t
h
e
c
a
s
u
a
l
t
y
t
o
LANDLORD'S lender, or (v) LANDLORD determines in its sole dis
c
r
e
t
i
o
n
t
h
a
t
i
t
i
s
n
o
t
economical to repair the casualty, then LANDLORD shall have the
r
i
g
h
t
,
t
o
b
e
e
x
e
r
c
i
s
e
d
by giving written notice within thirty (30) Calendar days after the oc
c
u
r
r
e
n
c
e
o
f
t
h
e
casualty, to terminate this Lease. TENANT will have thirty (30) C
a
l
e
n
d
a
r
d
a
y
s
f
r
o
m
t
h
e
date of the notice to vacate the Premises. If LANDLORD elects to r
e
b
u
i
l
d
o
r
r
e
p
a
i
r
t
h
e
Premises, then the Rent owed by TENANT shall be reduced in prop
o
r
t
i
o
n
t
o
t
h
e
p
o
r
t
i
o
n
of the Premises rendered unusable (in the discretion of TENANT) u
n
t
i
l
t
h
e
P
r
e
m
i
s
e
s
a
r
e
repaired or rebuilt. In no event, shall LANDLORD be required to re
p
a
i
r
o
r
r
e
p
l
a
c
e
a
n
y
property of TENANT,
22. Eminent Domain.
22,1, 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 t
h
e
L
e
a
s
e
a
n
d
v
a
c
a
t
e
the Premises anytime between the award of taking to the public auth
o
r
i
t
y
a
n
d
t
h
e
d
a
y
t
h
e
public authority takes possession.
22.2. If less than the whole of the Premises is taken by any public authori
t
y
u
n
d
e
r
t
h
e
power of eminent domain, and TENANT elects torcmain on the Pr
e
m
i
s
e
s
,
t
h
e
r
e
n
t
s
h
a
l
l
be reduced in proportion to the amount of space taken by the public
a
u
t
h
o
r
i
t
y
.
N
e
i
t
h
e
r
Party shall have any future obligation or liability under the Lease (e
x
c
e
p
t
a
s
o
t
h
e
r
w
i
s
e
stated herein), if the Lease is terminated pursuant to this Section.
23. Assignment. TENANT shall not assign, sublet, or in any manner transfer this L
e
a
s
e
o
r
a
n
y
estate or interest therein without the prior written consent of LAND
L
O
R
D
.
24. Quiet Enjoyment. Upon performance of its obligations under this Lease, TENANT
s
h
a
l
l
peacefully and quietly hold and enjoy the Premises without hindran
c
e
o
r
i
n
t
e
r
r
u
p
t
i
o
n
b
y
LANDLORD, its agents or employees, subject to the terms of this L
e
a
s
e
,
Page 10 of 12
Final Version Detroit . 4394583_2
25. Modifications. This Lease may be modified or amended only by written a
g
r
e
e
m
e
n
t
o
f
LANDLORD and TENANT.
26. Bindina Effect. The terms and conditions of this Lease shall be binding an
d
s
h
a
l
l
i
n
u
r
e
t
o
the benefit of the Parties and their respective heirs, representatives, success
o
r
s
a
n
d
a
s
s
i
g
n
s
(subject to the limits in Section 23), TENANT shall not record this Lease
Or a memorandum
of this in the Oakland County Register of Deeds Office,
27. Severability. If a term or condition of this Lease is found by a court of com
p
e
t
e
n
t
jurisdiction to be invalid, unenforceable, or to violate federal or state law,
t
h
e
n
t
h
e
t
e
r
m
o
r
condition shall be deemed severed from this Lease; all other terms and co
n
d
i
t
i
o
n
s
s
h
a
l
l
remain in fall force and effect.
28. Waiver. No waiver of any term or condition of this Lease, whether by condu
c
t
o
r
o
t
h
e
r
w
i
s
e
,
in one or more instances, shall he deemed or construed as a further continuing waiver of a
term or condition of this Lease. No remedy available to a Party for the oth
e
r
P
a
r
t
y
'
s
b
r
e
a
c
h
of this Lease is intended to be an exclusive remedy. A Party's exercise of an
y
r
e
m
e
d
y
f
o
r
breach of this Lease shall not be deemed or construed to be a waiver of its r
i
g
h
t
t
o
p
u
r
s
u
e
another remedy.
29. Use of Words. The pronouns and relative words used in this Lease shall be
r
e
a
d
interchangeably in masculine, feminine or neuter, singular or plural, as the c
o
n
t
e
x
t
r
e
q
u
i
r
e
s
.
30. Notice. All notices required under this Lease shall be in writing. Notices s
h
a
l
l
b
e
e
f
f
e
c
t
i
v
e
:
(a) the next Business Day, if personally delivered; (b) the third Business Da
y
,
i
f
s
e
n
t
b
y
U
.
S
.
mail, postage prepaid, return receipt requested; (c) the next Business Day, i
f
s
e
n
t
b
y
a
nationally recognized overnight express courier with a reliable tracking sys
t
e
m
;
o
r
(
d
)
t
h
e
next Business Day with a receipt of confirmation, if sent by e-mail or fax. Notice to
LANDLORD shall be sent to: 500 S. Opdyke Road, Pontiac, Michigan 4
8
3
4
1
.
N
o
t
i
c
e
t
o
TENANT shall be sent to: (1) Oakland County Facilities Management, Di
r
e
c
t
o
r
,
O
n
e
P
u
b
l
i
c
Works Drive, Building 95 West, Waterford, Michigan 48328 and (2) The Oa
k
l
a
n
d
C
o
u
n
t
y
Sheriff, Law Enforcement Complex, 1200 North Telegraph Road, Buildin
g
3
8
E
a
s
t
,
P
o
n
t
i
a
c
,
Michigan 48341.
31. Force Majeure. LANDLORD shall not be in default under this Lease (an
d
t
h
e
t
i
m
e
f
o
r
LANDLORD to perform shall be extended day for day) to the extent LAN
D
L
O
R
D
i
s
u
n
a
b
l
e
to perform any of its obligations on account of any adverse weather, strike
Or labor problem,
energy shortage, governmental pre-emption or prescription, national emer
g
e
n
c
y
o
r
a
n
y
o
t
h
e
r
cause of any kind beyond the reasonable control of LANDLORD.
32, Subordination/Estoppel. This Lease and all rights of TENANT hereun
d
e
r
s
h
a
l
l
b
e
subordinate to the lien and security title of any mortgage which may encum
b
e
r
t
h
e
P
r
e
m
i
s
e
s
.
Upon demand, TENANT shall execute and deliver to LANDLORD or to mortgagee any
instruments, requested by either of them, to evidence such subordination. U
p
o
n
d
e
m
a
n
d
,
TENANT will execute and deliver to LANDLORD, LANDLORD'S mortg
a
g
e
e
,
p
u
r
c
h
a
s
e
r
s
,
or any other third party designated by LANDLORD an estoppel certificate
i
n
t
h
e
f
o
r
m
a
n
d
substance requested by LANDLORD, to the extent it is factually accurate.
Page 11 of 12
Final Version
Detroit_4394583_2
By:
Mi6hael J. GingellMiairper n
Oakland County Board of Commissioners
33. Governing Law. This Lease shall be interpreted under and governed by the laws of the
State of Michigan.
34. 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.
35. Authority: TENANT represents that is authorized by all required governmental action to
enter into this Lease and the individual(s) signing this Lease on behalf of TENANT are each
authorized to bind TENANT to its terms.
IN WITNESS WHEREOF, the parties execute this Lease.
(LANDLORD)
By:
This Lease was acknowledged before me in Oakland County, Michigan this/.1:)---4 day of
A)z) _, 201V , by 1.,..),/1/4wL f-Le )),i) , Landlord.
-
//-
Notary Publir-,-baiqtnd unty, Michigan
Acting in Oakland e9
My Commissid.
COUNTY OF OAKLAND (TENANT)
rdTh._a a. -+E.-
—PAUL 0 ZACHOS
Notary Public - Michigan
Oakland County
My Commission expires Sep 30, 2019
Acting In the County of
This Lease was acknowledged before me in Oakland County, Michigan this VIM day of
V40--c4v\ 2014, by Michael J. Gingell, Chairperson, Oakland County Board of
Commissioners,
JOANN M. STRINGFELLOW
Notary Public - State of Michigan
County of Oakland
My Commission Expires June 28, 2020
Acting in the County of A)PAcjAlz...1:1_,
N tary Public, Oak1an1dCounty, Michigan
Acting in Oakland County
My Commission Expires: • ;AC,
Page 12 of 12
Final Version
Detroit 4394583_2
2470 ELIZABETH LAKE RD.
U nNoinnly n siin Iwn Irowl n IN•wommI
3.50,06
FENCED AREA
FENCED AREA
LEGEND
• I= UNUSABLE SPACE
gm g PROPERTY LIMITS
•
UPSTAIRS
MEZZANINE
•
•
EXHIBIT A
SF. CALCULATIONS
AREAS SF.
UNUSABLE SPACE 116,840 EXISTING BUILDING
TOTAL BUILDING 1 47,141 FENCED AREA
PATIO
•
QUALITY PONflAC I - WAREHOUSE LEASE
SCALE: NOT TO SCALE
10/14/14
PRODUCED 6128114 BY MM AND JL1 OAKLAND COUNTY FACILMES PLANNING B ENGINEERING - DIVISION OF
FACILITIES MAINTENANCE AND OPERATIONS.
AREA OF ENTIRE BUILDING 47,141 SF. (GROSS)
FISCAL NOTE
December 7, 2017
(IYIIS51 . #17336)
BY: Commissioner T omas Middleton, Chairperson
,
F
i
n
a
n
c
e
C
o
m
m
i
t
t
e
e
IN RE: DEPARTMENT OF FACILITIES MANAGEM
E
N
T
A
N
D
S
H
E
R
I
F
F
'
S
O
F
F
I
C
E
—
A
M
E
N
D
M
E
N
T
T
O
T
H
E
L
E
A
S
E
AGREEMENT WITH 2470 ELIZABETH LAKE ROA
D
,
L
L
C
TO THE OAKLAND COUNTY BOARD OF COMMIS
S
I
O
N
E
R
S
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Co
m
m
i
t
t
e
e
h
a
s
r
e
v
i
e
w
e
d
t
h
e
a
b
o
v
e
r
e
f
e
r
e
n
c
e
d
r
e
s
o
l
u
t
i
o
n
a
n
d
f
i
n
d
s
:
1. The resolution authorizes an amendment to the lea
s
e
a
g
r
e
e
m
e
n
t
(
a
p
p
r
o
v
e
d
v
i
a
M
.
R
.
#
1
4
2
6
4
)
b
e
t
w
e
e
n
t
h
e
County of Oakland and 2470 Elizabeth Lake Road, L
L
C
t
o
e
x
e
r
c
i
s
e
t
h
e
t
w
o
o
n
e
-
y
e
a
r
o
p
t
i
o
n
s
a
t
t
h
e
f
o
r
m
e
r
Quality Pontiac car dealership building at 2470 Elizab
e
t
h
L
a
k
e
R
o
a
d
,
W
a
t
e
r
f
o
r
d
,
M
i
c
h
i
g
a
n
.
T
h
e
l
e
a
s
e
p
e
r
i
o
d
i
s
extended through November 30, 2019.
2. The Sheriff's Office currently uses County facilities lo
c
a
t
e
d
o
n
B
r
o
w
n
R
o
a
d
i
n
A
u
b
u
r
n
H
i
l
l
s
.
H
o
w
e
v
e
r
,
w
i
t
h
t
h
e
recent completion of the new Animal Control and P
e
t
A
d
o
p
t
i
o
n
C
e
n
t
e
r
l
o
c
a
t
e
d
o
n
t
h
e
P
o
n
t
i
a
c
C
o
u
n
t
y
c
a
m
p
u
s
,
the County plans to sell the Brown Road property.
3. As a result of the expected Brown Road operations
r
e
l
o
c
a
t
i
o
n
,
a
d
d
i
t
i
o
n
a
l
s
p
a
c
e
i
s
n
e
e
d
e
d
b
y
t
h
e
S
h
e
r
i
f
f
s
Office and this lease amendment provides for additio
n
a
l
s
p
a
c
e
a
t
2
4
7
0
E
l
i
z
a
b
e
t
h
L
a
k
e
R
o
a
d
.
4. The Departments of Facilities Management and She
r
i
f
f
'
s
O
f
f
i
c
e
w
i
t
h
t
h
e
a
s
s
i
s
t
a
n
c
e
o
f
C
o
r
p
o
r
a
t
i
o
n
C
o
u
n
s
e
l
have negotiated terms and conditions for the lease
o
f
t
h
e
a
d
d
i
t
i
o
n
a
l
s
p
a
c
e
.
5. The monthly lease amount will increase $2,000 and
i
s
t
o
b
e
a
d
j
u
s
t
e
d
p
e
r
S
e
c
t
i
o
n
4
.
3
o
f
t
h
e
o
r
i
g
i
n
a
l
l
e
a
s
e
agreement.
6. The County will continue to provide certain mainten
a
n
c
e
s
e
r
v
i
c
e
s
s
u
c
h
a
s
c
u
s
t
o
d
i
a
l
,
s
n
o
w
&
t
r
a
s
h
r
e
m
o
v
a
l
,
etc. of an estimated annual amount of $22,500 for a
n
n
u
a
l
i
n
c
r
e
a
s
e
o
f
$
9
,
5
0
0
a
n
d
e
s
t
i
m
a
t
e
d
a
n
n
u
a
l
a
m
o
u
n
t
o
f
$77,700 for insurance premium, utilities and property
t
a
x
e
s
f
o
r
a
n
n
u
a
l
s
a
v
i
n
g
s
o
f
$
1
,
5
4
5
.
7. Most maintenance services such as HVAC repairs, r
o
o
f
r
e
p
a
i
r
s
,
e
l
e
c
t
r
i
c
a
l
,
e
t
c
.
w
i
l
l
c
o
n
t
i
n
u
e
t
o
b
e
p
r
o
v
i
d
e
d
b
y
2470 Elizabeth Lake Road, LLC and the County will
b
e
r
e
s
p
o
n
s
i
b
l
e
t
o
r
e
i
m
b
u
r
s
e
2
4
7
0
E
l
i
z
a
b
e
t
h
L
a
k
e
R
o
a
d
,
LLC currently up to $23,063 per year and shall be ad
j
u
s
t
e
d
p
e
r
S
e
c
t
i
o
n
1
2
.
1
o
f
t
h
e
o
r
i
g
i
n
a
l
l
e
a
s
e
a
g
r
e
e
m
e
n
t
.
Amendment #1 does include a change that requires
t
h
e
C
o
u
n
t
y
t
o
p
r
o
v
i
d
e
t
h
e
H
V
A
C
f
i
l
t
e
r
r
e
p
l
a
c
e
m
e
n
t
s
o
n
a
quarterly basis as well as performing quarterly gene
r
a
t
o
r
m
a
i
n
t
e
n
a
n
c
e
.
8. All capital improvements provided by 2470 Elizabeth
L
a
k
e
R
o
a
d
,
L
L
C
t
h
a
t
a
r
e
d
e
e
m
e
d
n
e
c
e
s
s
a
r
y
f
o
r
t
h
e
County's continued use of the building, will continue
t
o
b
e
p
a
i
d
b
y
t
h
e
C
o
u
n
t
y
i
n
t
h
e
a
m
o
u
n
t
o
f
t
h
e
p
e
r
y
e
a
r
amortized costs based on the capital improvement's
u
s
e
f
u
l
l
i
f
e
;
f
u
n
d
i
n
g
f
o
r
s
u
c
h
c
a
p
i
t
a
l
i
m
p
r
o
v
e
m
e
n
t
s
w
i
l
l
need to be identified before such improvements are a
p
p
r
o
v
e
d
.
9. Any facility renovation needs at 2470 Elizabeth Lake
R
o
a
d
a
s
a
r
e
s
u
l
t
o
f
B
r
o
w
n
R
o
a
d
o
p
e
r
a
t
i
o
n
s
relocation/lease amendment will be considered sep
a
r
a
t
e
l
y
.
10. Annual estimated prorated costs for FY 2018 total $2
1
7
,
8
9
4
;
a
n
n
u
a
l
e
s
t
i
m
a
t
e
d
c
o
s
t
s
f
o
r
F
Y
2
0
1
9
t
o
t
a
l
$265,504; and annual estimated costs for FY 2020 t
o
t
a
l
$
2
6
9
,
6
3
6
.
11. The overall impact to the budget is an increase of $4
,
9
9
0
i
n
F
Y
2
0
1
8
,
a
n
d
n
o
o
v
e
r
a
l
l
c
h
a
n
g
e
t
o
t
h
e
b
u
d
g
e
t
f
o
r
FY 20'19 and FY 2020.
12. Subsequent to the sale of the Brown Road property,
t
h
e
r
e
w
i
l
l
b
e
a
r
e
d
u
c
t
i
o
n
i
n
f
a
c
i
l
i
t
y
v
a
r
i
a
b
l
e
c
o
s
t
s
,
n
a
m
e
l
y
utilities, which will be reflected in future Building Spa
c
e
C
o
s
t
A
l
l
o
c
a
t
i
o
n
r
a
t
e
s
.
T
h
e
b
u
d
g
e
t
a
m
e
n
d
m
e
n
t
f
o
r
F
Y
2019 and FY 2020 anticipates a reduction to the Bu
i
l
d
i
n
g
S
p
a
c
e
C
o
s
t
A
l
l
o
c
a
t
i
o
n
i
n
o
r
d
e
r
t
o
c
o
v
e
r
t
h
e
incremental costs associated with the lease amendm
e
n
t
.
13. As denoted in the Fiscal Note for M.R. #14264, the m
o
n
t
h
l
y
r
e
n
t
l
i
n
e
i
t
e
m
(
#
7
3
1
6
2
6
)
a
t
2
4
7
0
E
l
i
z
a
b
e
t
h
L
a
k
e
Road, was to be split based on a weighted percentag
e
o
f
e
s
t
i
m
a
t
e
d
f
a
c
i
l
i
t
y
u
s
e
b
e
t
w
e
e
n
t
h
e
f
o
l
l
o
w
i
n
g
departments; Sheriff (76%), Homeland Security (13%
)
,
a
n
d
H
e
a
l
t
h
(
1
1
%
)
.
14. Effective with the lease amendment, the new monthl
y
r
e
n
t
l
i
n
e
i
t
e
m
(
#
7
3
1
6
2
6
)
,
w
i
l
l
b
e
s
p
l
i
t
b
e
t
w
e
e
n
t
h
e
departments as follows; Sheriff (80%), Homeland Se
c
u
r
i
t
y
(
1
1
%
)
,
a
n
d
H
e
a
l
t
h
(
9
%
)
.
15. All other expenses (utilities, insurance, taxes, etc.) e
x
c
e
p
t
R
e
n
t
(
#
7
3
1
6
2
6
)
w
i
l
l
c
o
n
t
i
n
u
e
b
e
i
n
g
c
h
a
r
g
e
d
t
o
t
h
e
Sheriff's budget.
16. The FY 2018-2020 budget amendments are recomm
e
n
d
e
d
a
s
d
e
t
a
i
l
e
d
b
e
l
o
w
:
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
$ 4,990
$ 4,990
($ 323)
( 114)
660
( 4,092)
562
5,750
2,547
o
$ 4,990
$ 2,446
200
1,031
( 4,092)
1,139
9,500
2,547
(12,771)
$ 0
$ 5,285
513
1,401
( 4,092)
1,730
9,500
2,547
(16,884)
$ 0
$ 0 $ 0
$ 0
$ 5,750
$._5,zia
$ 9,500
$ 9,500
l
ommissioner Thomas Middleton, District #4
Chairperson, Finance Committee
FY 2018 FY 2019 FY 2020
GENERAL FUND (#10100)
Revenues:
9010101-196030-665882 Planned Use of Balance
Total Revenue
Expenditures:
4030601-110000-731626 Rent
1060201-133150-731626 Rent
1060601-115090-731626 Rent
4030601-110000-731269 Natural Gas
4030601-110000-730198 Building Maintenance
9010101-148050-775754 Maintenance Dept Chgs
4030601-110000-731479 Property Taxes
9010101-148050-770631 Bldg Space Cost Allocation
Total Expenditures
FACILITIES MAINTENANCE & OPERATIONS FUND (#63100)
Revenue:
1040702-140010-631134 Maintenance Dept Chgs
Total Revenue
$ 5,750
$ 9,500
$ 9,500
$ 5,750
$ 9,500
$ 9,500
Expense:
1040719-141000-731878 Sublet Repairs
Total Expense
$ 9,500
$ 9,500
Resolution #17336 December 7, 2017
Moved by KowaII supported by Jackson the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Fleming, Gershenson, Gingell, Hoffman, Jackson, KowaII, Long, McGillivray,
Middleton, Quarles, Tietz, Weipert, Woodward, Zack, Berman, Crawford. (17)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
GERALD D. POISSON
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 4%559A(7)
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 December 7,
2017, 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 7 th day of December, 2017.
-
Lisa Brown, Oakland County
MISCELLANEOUS RESOLUTION #14264 November 19, 2014
BY: Planning and Building Committee, Jim Runestad, Chairperson
IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT/SHERIFF'S OFFICE - APPROVAL AND
ACCEPTANCE OF LEASE AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC, FOR USE OF
THE QUALITY PONTIAC BUILDING FOR STORAGE OF EQUIPMENT AT 2470 ELIZABETH LAKE
ROAD, WATERFORD, MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Sheriff's Office/Marine Unit currently has a maintenance shop and stores boats at
a pole barn adjacent to the old trustee camp and Animal Shelter on Brown Road in Auburn Hills; and
WHEREAS the Sheriff's Office currently stores certain law enforcement vehicles at a Water
Resources Commissioner's warehouse on Opdyke Road; and
WHEREAS the pole barn on Brown Road is dilapidated and must be essentially rebuilt; and
WHEREAS the Water Resources Commissioner has requested that the Sheriff's Office move out
of the warehouse on Opdyke Road; and
WHEREAS at the present time no adequate County-owned facility exists which would
accommodate storage of all of the above vehicles and equipment; and
WHEREAS in response to this situation, the Sheriff's Office and Department of Facilities
Management have visited numerous buildings throughout Pontiac, Auburn Hills, and Waterford to identify
an adequate facility; and
WHEREAS the former Quality Pontiac car dealership building at 2470 Elizabeth Lake Road has
an adequate facility and its location near campus is advantageous; and
WHEREAS the Homeland Security Division and the Health Division of the Health & Human
Services Department have several trucks and trailers for emergency response use being stored on
campus and at the South Oakland Office Building that could be centrally stored indoors at 2470 Elizabeth
Lake Road; and
WHEREAS the Sheriff's Office and Department of Facilities Management, with the assistance of
Corporation Counsel, have negotiated the terms and conditions of the attached Lease; and
WHEREAS it is the recommendation of the Departments of the Sheriff's Office and Facilities
Management that the Oakland County Board of Commissioners accepts and approves the terms and
conditions of the attached Lease; and
WHEREAS under the terms and conditions of the attached Lease with 2470 Elizabeth Lake
Road, LLC, the County would lease the real property located at 2470 Elizabeth Lake Road, including the
building for a term of three years commencing December 1, 2014, with two, one-year optional renewals;
and
WHEREAS the rate will increase 2.5% each subsequent year; and
WHEREAS the County will pay the utilities, insurance premium (up to $7,000 per year), and
property taxes estimated at $69,757 per year; and
WHEREAS 2470 Elizabeth Lake Road, LLC, agrees not to lease any other portion of the building
for security reasons while this Lease is in effect; and
WHEREAS the County will provide certain maintenance services directly, such as for custodial,
snow removal, trash removal, pest control, etc., estimated at $13,000 per year; and
WHEREAS 2470 Elizabeth Lake Road, LLC, will provide all other maintenance services, such as
for HVAC repairs, etc., and in exchange the County will reimburse 2470 Elizabeth Lake Road, LLC, up to
$22,500 per year; and
WHEREAS 2470 Elizabeth Lake Road, LLC, will perform all capital improvements to the building,
such as roof replacement, parking lot repaving, etc., and in exchange the County will pay 2470 Elizabeth
Lake Road, LLC, for just those capital improvements deemed necessary for the County's continued use
of the building, in the amount of the per year amortized cost based on the capital improvements' useful
life; and
WHEREAS the 2470 Elizabeth Lake Road building will require ID scanners, cameras, window
bars and tinting, etc., for security purposes at a one-time cost of $95,751; and
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Runestad and Bosnic absent.
WHEREAS, the Sheriffs Office, Department of Facilities Management, and Corporation Counsel
have reviewed and/or prepared all necessary documents related to the attached Lease.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and authorizes the attached Lease for use of the former Quality Pontiac car dealership building at
2470 Elizabeth Lake Road, Waterford, Michigan.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby approves
the one-time expenditure of $95,751 for building security-related costs.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its
Chairperson or his designee to execute the attached Lease and all other related documents between the
County of Oakland and 2470 Elizabeth Lake Road, LLC, which may be required.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
LEASE OF BUILDING LOCATED AT
2470 ELIZABETH LAKE ROAD, WATERFORD, MICHIGAN
This Lease is entered into between 2470 Elizabeth Lake Road, LLC ("LANDLORD") w
h
o
s
e
address is 500 S. Opdyke Road, Pontiafc, Michigan 48341, and the COUNTY OF OAKL
A
N
D
,
a
Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48
3
4
1
("TENANT"). The Parties agree to the following terms and conditions.
1, Leased Premises.
1.1. LANDLORD leases to TENANT and TENANT leases from LANDLORD the real
property located at 2470 Elizabeth Lake Road, Waterford, Michigan 48328 with the
Parcel Identification Number 13-25-200-007 (approximately seven (7) acres), including
the building located thereon (approximately forty-seven thousand one hundred and forty-
one (47,141) square feet) (the "Premises"). The Premises are illustrated in Exhibit A.
Exhibit A is fully incorporated into this Lease. Notwithstanding the definition of
"Premises," TENANT shall not use the showroom and parts department in the building
(approximately 16,800 square feet) which are depicted on Exhibit A as Unusable Space,
unless TENANT pays rent of three dollars and fifty cents ($3.50) per square foot or the
adjusted rent amount. If TENANT chooses to use the "Unusable Space" the Parties sha
l
l
execute an amendment to this Lease codifying this fact (including the rent due for such
space and a proportional increase in the cap on maintenance cost set forth in Section
12.1). TENANT'S Director of County Facilities Management or successor and the
Sheriff are authorized to sign the Amendment on behalf of the County.
1.2. LANDLORD shall not be required to remove any of its personal property from the
Unusable Areas, unless TENANT chooses to use this space. If TENANT chooses to us
e
the Unusable Space, LANDLORD shall remove its personal property from this space
within fourteen (14) calendar days after execution of a lease amendment covering such
space.
1.3. LANDLORD shall not use the Unusable Space for any purpose, except for storing i
t
s
personal property. LANDLORD shall not permit a third party to use the Unusable Spac
e
for any purpose.
1.4. Included in this Lease is the right of TENANT to use the generator currently located on
the Premises. The generator is the personal property of LANDLORD and shall remain
the personal property of LANDLORD.
2. Term and Renewal.
2.1. Term. This Lease shall begin on the December 1, 2014 ("Commencement Date") a
n
d
shall end three (3) years from that date on November 30, 2017 ("Initial Term").
TENANT shall have possession of the Premises (other than the Unusable Space) on the
Commencement Date. Failure of LANDLORD to provide TENANT with possess
i
o
n
on the Commencement Date and the continuation of such failure for thirty (30) Calendar
Page 1 of 12
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Detroit...4394583 2
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
commencement of the Renewal Term, this Lease may be renewed, at TENANT'S sole
option, for two (2) 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 sixty (60) calendar days before the expiration
of the Initial Tenn or the 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 and the Oakland County Sheriff. The same terms and
conditions contained herein shall apply to the Renewal Term. References herein to
"term" shall mean the Initial Term and any Renewal Tettn,
3. Default/Termination.
3.1. Upon written notice, a Party may terminate this Lease for default by the other Party
pursuant to the following procedure: (a) the non-defaulting Party gives the defaulting
Party written notice specifically identifying the default(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 default and does not diligently
pursue the cure to completion, if the default is of such a nature that it cannot be cured
within the fifteen (15) day period.
3.2. If either Party defaults in any of its obligations under this Lease (after expiration of the
notice and cure periods in Seetion 3.1) the other Party shall have all remedies available
to it under the law, in addition to the rights and remedies set forth herein.
3.3. During any Renewal Term, TENANT 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.
3.4. 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 excepted) and shall remove its personal property on or before the date of
expiration or termination. If TENANT does not remove its personal property within
fifteen (15) 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 by the removal of TENANT'S personal property shall be repaired
and paid for by TENANT within thirty (30) days of the date of expiration or termination.
If TENANT does not repair or commence repair of such damage within thirty (30) days
Page 2 of 12
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Detroit_4394583 2
of the date of expiration or termination, then LANDLORD may repair and restore the
Premises and TENANT shall pay the actual and reasonable costs, prior to payment, 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 Payment.
4.1. Rent Amount. From December 1, 2014 until the date the Lease expires or is
terminated, TENANT agrees to pay LANDLORD, one hundred and six thousand and
forty-four dollars and no cents ($106,044.00) annually as Rent for the Premises, subject
to annual increases set forth in Section 4.3. This annual amount shall be paid in twelve
equal installments of eight thousand eight hundred and thirty-seven dollars and no cents
($8,837.00) due on the first calendar day of each month, as adjusted in accordance with
Section 4.3.
4.1 Place of Pqyment. Payments due under this Lease from TENANT shall be paid at the
address of LANDLORD set forth above or at such other place as LANDLORD may
designate in writing
4.3. Rent Adjustments. On December 1, 2015 and each December i st thereafter, the Rent
shall increase by two and a half percent (2.5%) from the previous twelve (12) months'
Rent.
4.4. Rent Setoff. If LANDLORD fails to perform or comply with any obligation or
requirement 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) calendar days after receipt of such written notice (or if a cure of such failure cannot
reasonably 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 performance 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 perfolina.nce or compliance from the Rent, if the LANDLORD'S
failure to perform or comply with an obligation or requirement substantially interferes
with TENANT'S use of the Premises. Upon written request, TENANT shall provide
LANDLORD with an itemized invoice or statement of costs associated with
performance or compliance of an obligation or requirement.
4.5. Partial Month Rent Proration. If this Lease commences, tei ninates (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 Deposit. 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 hundred percent (200%) of the base rent in effect at the end of the applicable teun.
Page 3 of 12
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Detroit 4394583 2
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 possession of the Premises after the expiration or termination of the Term,
TENANT shall be liable 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 Occupancy of the Premises.
7.1 TENANT shall use the Premises to store motorized vehicles and other equipment, which
are owned by TENANT or in TENANT'S possession because of the performance of a
governmental function. TENANT may perfoun light maintenance of these vehicles at
the Premises. The public will not have access to the Premises. TENANT shall use the
Premises in the performance of governmental functions.
7.2 TENANT shall not use the Premises in violation of any law, municipal ordinance, or
regulation.
7.3 TENANT shall comply with, at its expense, with all applicable laws, municipal
ordinances, or regulations.
7.4 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 filing.
7.5 TENANT will use the Premises in a careful, safe, and proper manner, will not commit
waste to the Premises, will not overload the floor or structure of the Premises, or will not
subject the Premises to use that would damage the Premises.
7.6 TENANT shall keep the Premises in good and clean condition and free of trash, wear and
tear from reasonable use and damage from the elements excepted.
7.7 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.
7.8 TENANT' s use of the Premises and its activities 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 limited 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 Resource 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. §§ 2601 et seq.), Clean Air Act (42 U.S.C.
§§ 7401 et seq.), the Comprehensive Environmental 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. §§ 11.001 et seq. ("EPCRA"), the Michigan
Natural Resources and Environmental Protection Act (MCL § 324.101 et seq.) the
administrative rules and regulations promulgated under such statutes, or any other similar
federal, state or local law or administrative rule or regulation of similar effect, in effect
Page 4 of 12
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Detroit 4394583 2
and adopted as of the date of execution of this Lease and as amended. "Hazardou
s
Materials" shall mean any substances, compounds, mixtures, wastes or materials
t
h
a
t
a
r
e
defined to be, that are regulated as, that are listed as or that (because of their toxi
c
i
t
y
,
concentration or quantity) have characteristics that are hazardous or toxic under
a
n
y
o
f
the Environmental Laws, or any substances, compounds, mixtures, wastes or ma
t
e
r
i
a
l
s
that are otherwise regulated under any of the Environmental Laws.
7.9 TENANT shall not cause or permit the release of Hazardous Materials into an
y
environmental media such as air, water or land, or into or on the Premises in any
m
a
n
n
e
r
.
If such release shall occur, TENANT shall (a) take all steps reasonably necessar
y
t
o
contain and control such release and any associated contamination, (b) clean up
o
r
otherwise remedy such release and any associated contamination, and take any a
n
d
a
l
l
other actions required under, applicable Environmental Laws and (c) notify and
k
e
e
p
LANDLORD reasonably informed of such release and response.
7.10 The terms of Section 7 shall survive the expiration or termination of this Lease
8. Equipment and Furnishings. TENANT shall provide, at its OW11 expense, furniture and
equipment it deems necessary. TENANT, at its own expense, shall be solely res
p
o
n
s
i
b
l
e
f
o
r
the maintenance and repair of its furniture and equipment used on the Premises.
9. Condition of Premises. TENANT has examined the Premises prior to the execution of this
Lease and TENANT accepts the Premises "AS-1S" except that: (a) LANDLOR
D
s
h
a
l
l
perform the obligations contained in Section 11 of this Lease; and (b) LANDLO
R
D
w
a
r
r
a
n
t
s
and certifies that all interior and exterior lighting fixtures will be operational on t
h
e
Commencement Date. LANDLORD has made no representation or warranty as
t
o
t
h
e
suitability of the Premises for the conduct of TENANT'S business and TENANT
w
a
i
v
e
s
a
n
y
implied warranty that the Premises are suitable for TENANT'S intended purposes
.
10. Security of Premises. LANDLORD will provide any existing keys to the Premises for
TENANT'S use and will provide any existing devices to TENANT for the operat
i
o
n
o
f
t
h
e
overhead doors at the Premises. TENANT shall be responsible for securing the P
r
e
m
i
s
e
s
o
n
a day-to-day basis. TENANT shall have the right to install a security system of
i
t
s
c
h
o
i
c
e
o
n
and around the Premises. TENANT will pay for all costs of installing, operatin
g
,
a
n
d
maintaining the security system. The security system shall remain the property
o
f
T
E
N
A
N
T
and TENANT shall remove the security system upon expiration or termination o
f
t
h
i
s
L
e
a
s
e
,
including any fence gate automation added by TENANT. In addition to a secur
i
t
y
s
y
s
t
e
m
and as part of securing the Premises, TENANT, at its sole cost, may tint certain
w
i
n
d
o
w
s
a
n
d
cover the interior of certain windows with plywood or aluminum sheeting (so lo
n
g
a
s
TENANT removes such plywood or aluminum upon the expiration or terminatio
n
o
f
t
h
i
s
Lease).
11. Landlord Obligations. Prior to December 1, 2014, LANDLORD shall perfonn or cause to
be performed the following at its sole cost:
Page 5 of 12
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Detroit 4394583 2
11.1. Remove all hoists in Service and Body Shop areas of the Premises, except for the
hoists that TENANT indicates not to be removed (which indications must be provided
within three (3) calendar days after the execution of this Lease);
11.2. Repair the broken windows in Service and Body Shop area of the Premises;
11.3. Clean out the slow drain in rear parking area of the Premises; and
11.4. Replace the broken section of fence on the west side of rear lot of the Premises.
12. Maintenance and Repairs of Premises.
12.1. LANDLORD shall be responsible to perform and pay for the maintenance and
repairs to keep the Premises (other than the Unusable Space) in substantially the same
condition which existed on the Commencement Date, subject to normal wear and tear.
Such maintenance shall include, but is not limited to, maintenance and repairs to, roof;
ceiling; walls; floors; windows; heating, cooling, and ventilation system (HVAC);
radiant heat system; electrical system; plumbing system; restroom fixtures; sidewalks;
parking lots; exterior and interior lighting fixtures; light bulb replacement; and
generator. TENANT shall reimburse LANDLORD the actual cost of the maintenance
and. repairs per Fiscal Year or twenty-two thousand five hundred dollars ($22,500.00)
per Fiscal Year (the "Cap"), whichever is least, provided, however, that the amount for
the first Fiscal Year shall not exceed eighteen thousand seven hundred and forty dollars
($18,740.00). On December 1, 2015 and each December l st thereafter, the Cap shall
increase by two and a half percent (2.5%) from the Cap for previous Fiscal Year. A
Fiscal Year is defined as three hundred and sixty-five (365) calendar days commencing
on October 1 st and ending on September 30 th . The first Fiscal Year shall be abbreviated
because the Lease Commencement Date is December 1 st ; thus, the first Fiscal Year is
December 1, 2014 to September 30, 2015. LANDLORD shall invoice TENANT on a
quarterly basis for the maintenance and repair costs. TENANT shall pay the invoice
within ten (10) business days of receipt. TENANT must provide LANDLORD with
prompt written notice of needed maintenance. Subject to the limitations in Section 20.1,
the Cap shall not apply to, and TENANT shall be obligated to reimburse LANDLORD
for the cost of repairs or replacements required due to the acts or omission of TENANT
or its employees, agents, contractors or invitees. TENANT acknowledges that an air
handler in the Premises is not currently functional and LANDLORD has no obligation to
replace or repair such handler; provided however, that TENANT shall not be responsible
for any costs associated with the repair or replacement of such handler.
12.2. On or before December 3, 2014, the Parties shall create a document (in writing
and with pictures) evidencing the current condition of the Premises. This document
shall establish the condition of the Premises on the Commencement Date and shall foirn
the basis for maintenance and repairs to the Premises.
12.3. Notwithstanding the foregoing, if any of the LANDLORD'S maintenance
obligations under Section 12.1 involve Capital Improvements to the Premises,
LANDLORD shall not be required to undertake such Capital Improvements unless and
Page 6 of 12
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Detroit 4394583_2
until TENANT agrees in writing that the Capital Improvement is approved
b
y
T
E
N
A
N
T
and deemed necessary by TENANT for TENANT's use of the Premises; i
n
w
h
i
c
h
e
v
e
n
t
,
LANDLORD may elect to charge TENANT under this Section, rather tha
n
u
n
d
e
r
Section 12.1. Capital Improvement is defined as: (a) replacement of the ro
o
f
,
g
e
n
e
r
a
t
o
r
,
HVAC, ceilings, plumbing/electrical systems, or parking lots or (b) mainte
n
a
n
c
e
o
r
repair of any single item which exceeds ten thousand dollars ($10,000.00
)
.
LANDLORD, at its option, may amortize a Capital Improvement over its
u
s
e
f
u
l
l
i
f
e
(whereby the useful life shall be reasonably agreed to by the Parties) acco
r
d
i
n
g
t
o
t
h
e
Generally Accepted Accounting Principles. If LANDLORD amortizes a
C
a
p
i
t
a
l
Improvement and that Capital Improvement is necessary for TENANT'S
u
s
e
o
f
t
h
e
Premises (as reasonably confirmed by TENANT as required above), then
T
E
N
A
N
T
shall pay LANDLORD the yearly amortized portion of the Capital Improv
e
m
e
n
t
w
h
i
l
e
this Lease is in effect. Payment of the yearly amortized portion shall com
m
e
n
c
e
o
n
t
h
e
date the Capital Improvement is fully completed and shall be due thereafte
r
o
n
t
h
e
anniversary of the completion date. Payment of the yearly amortized porti
o
n
s
h
a
l
l
c
e
a
s
e
on the date this Lease terminates or expires, if this Lease expires or termin
a
t
e
s
o
n
a
d
a
t
e
other than the anniversary of completion, the yearly amortized portion shal
l
b
e
p
r
o
r
a
t
e
d
on a daily basis and refunded to TENANT. The yearly amortized amount
c
h
a
r
g
e
d
t
o
TENANT under this Section shall not be applied against the Cap under Sec
t
i
o
n
1
2
.
1
.
13. Alterations or Improvements. TENANT shall not make any alterations or improvements to
or upon the Premises without the prior written consent of LANDLORD.
E
x
c
e
p
t
a
s
o
t
h
e
r
w
i
s
e
provided in this Lease, any alteration or improvement made to or upon th
e
P
r
e
m
i
s
e
s
s
h
a
l
l
become an integral part of the Premises and shall become the sole propert
y
o
f
t
h
e
LANDLORD immediately upon the completion, unless LANDLORD, at
i
t
s
o
p
t
i
o
n
,
r
e
q
u
i
r
e
s
TENANT to remove such work upon the expiration or termination of thi
s
L
e
a
s
e
o
r
TENANT'S right to possession (in which event, TENANT shall undertak
e
s
u
c
h
r
e
m
o
v
a
l
a
n
d
restore the Premises to a condition similar to which existed prior to TEN
A
N
T
u
n
d
e
r
t
a
k
i
n
g
such work). Office furniture and trade fixtures used or installed in the Pre
m
i
s
e
s
a
r
e
n
o
t
alterations or improvements and shall remain the property of TENANT.
14. Utilities. TENANT shall pay for all utilities for the Premises beginning December
1
,
2
0
1
4
,
including gas, electric, water, and sewer. These utilities shall be in the na
m
e
o
f
T
E
N
A
N
T
.
Until placed into TENANT'S name, TENANT shall reimburse LANDLO
R
D
f
o
r
a
n
y
u
t
i
l
i
t
y
charges (such reimbursement to be paid within ten (10) Calendar days after receipt of an invoice from LANDLORD).
15, Services. TENANT shall pay all costs associated with installing, maintaining and
o
p
e
r
a
t
i
n
g
its telephone system, computer system, security system, and any other syst
e
m
T
E
N
A
N
T
installs in or around the Premises. All such systems shall remain the prope
r
t
y
o
f
T
E
N
A
N
T
,
who shall remove them upon Lease termination or expiration. TENANT s
h
a
l
l
p
r
o
v
i
d
e
the following services at and around the Premises, at its own expense: (a) trash re
m
o
v
a
l
,
(
b
)
Page 7 of 12
Final Version
Detroit_4294583_2
snow and ice removal from sidewalks, steps and parking areas, (c) custodial services, (d)
landscaping services, and (e) fuel to operate the generator.
16. Signs. 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
termination of this Lease.
17. 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
lenders, potential buyers and/or potential tenants; provided however, LANDLORD, and any
other persons accompanied, at all times, by an agent or employee of TENANT. TENANT
represents 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
LANDLORD 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.
18. 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 LANDLORD. 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 effect for the year in
question.
19. Insurance.
19.1. 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.
19.2. Liability Insurance. LANDLORD shall purchase liability insurance for the
Premises.
19.3. Personal Property Insurance. TENANT shall insure its personal property kept
on the Premises at its sole cost and in the amount and manner as TENANT deems fit.
19.4. Insurance Premium Payments. 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
basis, the actual amount of the premium for the property insurance and the liability
insurance or seven thousand dollars ($7,000.00) toward such premium, whichever is
less. The seven thousand dollar ($7,000.00) figure shall be increased in the same
Page 8 of 12
Final Version
Detroit 4394583 2
manner as the Rent, set forth in Section 4.3. TENANT shall r
e
i
m
b
u
r
s
e
L
A
N
D
L
O
R
D
f
o
r
the applicable premium charge within ten (10) days after rece
i
p
t
o
f
a
n
i
n
v
o
i
c
e
f
r
o
m
LANDLORD.
20. Indemnification/Liability and Damage to the Premises.
20.1. TENANT shall be responsible for property damage to the Pre
m
i
s
e
s
,
i
n
c
l
u
d
i
n
g
t
h
e
building or fixtures attached to the building, which is caused
b
y
t
h
e
a
c
t
s
o
r
o
m
i
s
s
i
o
n
s
o
f
TENANT or TENANT's employees, agents, contractors or in
v
i
t
e
e
s
;
p
r
o
v
i
d
e
d
,
h
o
w
e
v
e
r
,
with respect to damage that is covered by LANDLORD's pro
p
e
r
t
y
i
n
s
u
r
a
n
c
e
p
o
l
i
c
y
,
TENANT shall only be liable for up to ten thousand dollars ($
1
0
,
0
0
0
.
0
0
)
p
e
r
o
c
c
u
r
r
e
n
c
e
.
20.2. For purposes of this Lease, "Claims" means any loss; complai
n
t
;
d
e
m
a
n
d
f
o
r
relief or damages; lawsuit; cause of action; proceeding; judgm
e
n
t
;
p
e
n
a
l
t
y
;
c
o
s
t
s
;
o
r
other liability of any kind which is imposed on, incurred by,
o
r
a
s
s
e
r
t
e
d
o
r
f
o
r
w
h
i
c
h
a
Party may become legally or contractually obligated to pay o
r
d
e
f
e
n
d
a
g
a
i
n
s
t
,
w
h
e
t
h
e
r
commenced or threatened, including, but not limited to, reim
b
u
r
s
e
m
e
n
t
f
o
r
r
e
a
s
o
n
a
b
l
e
attorney fees, mediation, facilitation, arbitration fees, witness
f
e
e
s
,
c
o
u
r
t
c
o
s
t
s
,
investigation expenses, litigation expenses, or amounts paid i
n
s
e
t
t
l
e
m
e
n
t
,
20.3. Each Party shall be responsible for Claims made against that
P
a
r
t
y
b
y
a
t
h
i
r
d
party and for the acts or omissions of its employees, agents or contr
a
c
t
o
r
s
r
e
l
a
t
e
d
t
o
t
h
e
performance of this Lease.
20.4. LANDLORD shall indemnify and hold TENANT harmless f
r
o
m
a
l
l
C
l
a
i
m
s
,
incurred by or asserted against TENANT by any person or ent
i
t
y
,
t
o
t
h
e
e
x
t
e
n
t
c
a
u
s
e
d
from the acts or omissions of LANDLORD or its agents or e
m
p
l
o
y
e
e
s
.
20.5. TENANT's right to indemnification is in excess and above a
n
y
i
n
s
u
r
a
n
c
e
rights/policies required by this Lease.
20.6. LANDLORD shall not be liable to IENANT or to any other
p
e
r
s
o
n
f
o
r
a
n
y
damage (to person or property) caused by: (a) failure in any ut
i
l
i
t
y
o
r
b
u
i
l
d
i
n
g
s
y
s
t
e
m
,
(b) failure of any security system, (c) by the bursting or leakin
g
o
f
a
n
y
v
e
s
s
e
l
o
r
p
i
p
e
i
n
or about the Premises, (el) by water, snow or ice coming into t
h
e
P
r
e
m
i
s
e
s
,
o
r
(
e
)
f
r
o
m
the acts or neglect of occupants of adjacent property or the pu
b
l
i
c
.
T
E
N
A
N
T
s
h
a
l
l
maintain all desired insurance covering its personal property
a
n
d
T
E
N
A
N
T
,
r
a
t
h
e
r
t
h
a
n
LANDLORD, shall be responsible for the damage or theft of i
t
s
p
e
r
s
o
n
a
l
p
r
o
p
e
r
t
y
.
20.7. This Lease does not and is not intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or other legal right, privilege
,
p
o
w
e
r
,
o
b
l
i
g
a
t
i
o
n
,
d
u
t
y
,
capacity, or immunity of TENANT.
20.8. The terms and conditions of Section 20 shall survive the expir
a
t
i
o
n
o
r
t
e
r
m
i
n
a
t
i
o
n
of this Lease.
21. Destruction of Premises.
21.1. Except as otherwise provided herein, in the event the Premises
a
r
e
p
a
r
t
i
a
l
l
y
damaged or destroyed by fire or other casualty, the damage to the Premises sha
l
l
b
e
promptly repaired or rebuilt by LANDLORD. In the event the Pr
e
m
i
s
e
s
c
a
n
n
o
t
b
e
Page 9 of 12
Final Version
Detroit 4394583 2
repaired or rebuilt within ninety (90) Calendar days after such 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 Premises 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).
2L2. In the event (i) all or any portion of the Premises is damaged by fire or other
casualty 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) LANDLORD is required to pay any insurance proceeds arising out of the casualty to
LANDLORD'S lender, or (Y) LANDLORD determines in its sole discretion that it is not
economical 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
casualty, 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
repaired or rebuilt. In no event, shall LANDLORD be required to repair or replace any
property of TENANT.
22. Eminent Domain.
22.1. 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.
22.2. 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.
23. Assignment. 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.
24. Quiet Enioyment. Upon performance of its obligations under this Lease, TENANT shall
peacefully and quietly hold and enjoy the Premises without hindrance or interruption by
LANDLORD, its agents or employees, subject to the terms of this Lease.
Page 10 of 12
Final Version
Detroit 4394583 2
25. Modifications. This Lease may be modified or amended only by written agreement of
LANDLORD and TENANT.
26. 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
(subject to the limits in Section 23). TENANT shall not record this Lease or a memorandum
of this in the Oakland County Register of Deeds Office.
27. Severability. If a term or condition of this Lease is found by a court of competent
jurisdiction 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.
28. 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
another remedy.
29, 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.
30. 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
nationally 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: 500 S. Opdyke Road, Pontiac, Michigan 48341. Notice to
TENANT shall be sent to: (1) Oakland County Facilities Management, Director, One Public
Works Drive, Building 95 West, Waterford, Michigan 48328 and (2) The Oakland County
Sheriff, Law Enforcement Complex, 1200 North Telegraph Road, Building 38 East, Pontiac,
Michigan 48341.
31. 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.
32. Subordination/Estoppel. This Lease and all rights of TENANT hereunder shall be
subordinate 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 instruments, requested by either of them, to evidence such subordination. Upon demand,
TENANT 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
substance requested by LANDLORD, to the extent it is factually accurate.
Page 11 of 12
Final Version
Detroit 4394583 2
33. Governing Law. This Lease shall be interpreted under and governed by the laws of the
State of Michigan.
34. 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.
35. Authority: TENANT represents that is authorized by all required governmental action to
enter into this Lease and the individual(s) signing this Lease on behalf of TENANT are each
authorized to bind TENANT to its terms.
IN WITNESS WHEREOF, the parties execute this Lease.
(LANDLORD)
By:
This Lease was acknowledged before me in Oakland County, Michigan this day of
, 201 , by , Landlord.
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
COUNTY OF OAKLAND (TENANT)
By:
Michael 3. Gingell, Chairperson
Oaldand County Board of Commissioners
This Lease was acknowledged before me in Oakland County, Michigan this day of
201_, by Michael 3. Gingell, Chairperson, Oakland County Board of
Commissioners,
Notary Public, Oakland County, Michigan
Acting in Oakland County
My Commission Expires:
Page 12 of 12
Final Version
Detroit_4394583 2
LII:=EIL=Ibl=t1 =113==1:1 1=131t=1[11==I3 333,00'
FENCED AREA
SF. CALCULATIONS
AREAS SF.
UNUSABLE SPACE 16,840
TOTAL BUILDING
LEGEND
47,141
1.•
=:1 =2 UNUSABLE SPACE
=3 c=1 PROPERTY LIMITS
UPSTAIRS
MEZZANINE
CMIZESII 1711 GI E.---.3
G-Grl D=MIU 1=Mi.5
EXHIBIT A
2470 ELIZABETH LAKE RD.
QUALITY PONTIAC - WAREHOUSE LEA
S
E
SCALE: NOT TO SCALE
10/14/14 PRODUCED 5128114 UY MM AND JU OAKLAND C
O
U
N
T
Y
F
A
C
I
L
/
T
I
E
$
F
L
A
M
I
N
G
&
E
N
G
I
N
E
E
R
I
N
G
.
1
3
1
V
i
S
1
M
O
F
FACILITIES MAINTENANCE AND OPERATIONS.
AREA OF ENTIRE BUILDING 47,141 SF. (GR
O
S
S
)
FISCAL NOTE (MIK . #14264) November 19, 2014
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT/SHERIFF'S OFFICE — APPROVAL AND
ACCEPTANCE OF LEASE AGREEMENT WITH 2470 ELIZABETH LAKE ROAD, LLC, FOR USE OF THE
QUALITY PONTIAC BUILDING FOR STORAGE OF EQUIPMENT AT 2470 ELIZABETH LAKE ROAD,
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 resolution
and finds:
1. The resolution approves and authorizes a lease agreement between the County of Oakland and 2470
Elizabeth Lake Road, LLC for use of space located at the former Quality Pontiac car dealership
building at 2470 Elizabeth Lake Road, Waterford, Michigan.
2. No adequate County owned facility exists to accommodate storage of vehicles and equipment for the
Sheriff's Office as well as emergency response equipment for both Homeland Security Division and
Health Division of Health and Human Services Department.
3. Facilities Management and the Sheriff's Office have determined that the former Quality Pontiac car
dealership building at 2470 Elizabeth Lake Road will provide adequate space and the location is
advantageous near the county campus.
4. The Departments of Facilities Management and Sheriff's Office with the assistance of Corporation
Counsel has negotiated terms and conditions of the new lease.
5. The annual lease amount is $106,044 and shall increase by 2.5% each subsequent year.
6. The term of the lease shall be three years commencing on December 1, 2014 and ending on
November 30, 2017 and maybe renewed at the County's discretion on a year-to-year basis for up to
an additional two years.
7. The County will provide certain maintenance services such as custodial, snow & trash removal, etc. of
an estimated annual amount of $13,000 and estimated annual amount of $69,757 for utilities,
insurance premium and property taxes.
8. Other maintenance services such as HVAC repairs, roof repairs, electrical, etc. will be provided by
2470 Elizabeth Lake Road, LLC and the County will be responsible to reimburse 2470 Elizabeth Lake
Road, LLC up to $22,500 per year.
9. All capital improvements provided by 2470 Elizabeth Lake Road, LLC that are deemed necessary for
the County's continued use of the building, will be paid by the County in the amount of the per year
amortized costs based on the capital improvements useful life; funding for such capital improvements
will need to be identified before such improvements are approved.
10. The County will pay for security enhancements to the building at a one-time cost of $95,751 which will
include ID Scanners, cameras, window bars, and tinting; funding for the one-time cost is available from
General Fund Assigned Fund Balance for Homeland Security Enhancements (G/L Account #383455).
11. Annual estimated prorated costs for FY 2015 are $176,084; annual estimated costs for FY 2016 are
$213,952; and annual estimated costs for FY 2017 are $216,670.
12. The annual estimated costs are partially offset by amounts previously budgeted in the Sherriffs rent
line item for FY 2015 $62,083; FY 2016 $74,500; and FY 2017 $74,500.
13. The monthly rent line item (#731626) will be split based on a weighted percentage to account for total
estimated costs and to avoid having all individual bills (utilities, insurance, building maintenance, etc.)
split and routed to multiple departments for approval; Sheriff 76%, Health 11%, and Homeland
Security 13%.
14. All other expenses (utilities, insurance, taxes, etc.) except Rent (#731626) will be charged to the
Sheriff's budget.
15. The FY 2015-2017 budget amendments are recommended as detailed below:
FY 2015 FY 2016 FY 2017
General Fund #10100 (GL#383455)
Revenue:
9010101-196030-665882 Planned Use of Balance
Total Revenue
$ 95,751 $ -0-
$ 95,751 $ -0- $ -0-
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Scott and Crawford absent.
$ 228,002
114,001)
$ 114,001
$278,904
(139,452)
$139,452
$284,340
(142,170)
$142,170
$ 114,001
$139,452
$142,170
$ 114,001
$139,452
$142,170
Expenditure:
4030601-110000-788001-40400 Transfr Out-Proj Wrk Order $ 95,751 $ -0-
Total Expenditure $_2515.1 $ -0-
$ -0-
$ -0-
Project Work Order Fund #40400 Project ID#100000002093
Revenue:
1040101-148020-695500-10100 Transfer In-General Fund
Total Revenue
95,751 $-0-
95,751 $ -0-
-0-
-0-
Expense:
1040101-148020-796500 Budgeted Equity Adjustments $ 95,751 $ -0-
Total Expense $ 95,751 $ -0- $ -0-
General Fund #10100
Revenues:
9010101-196010-620302 Convention Facility Liquor Tax
9010101-196030-665882 Planned use of Balance
Total Revenue
Expenditures:
9010101-134790-740160 Substance Abuse Coord Agency
4030601-110000-731626 Rent
1060201-133150-731626 Rent
1060601-115090-731626 Rent
4030601-110000-730562 Electrical Service
4030601-110000-731269 Natural Gas
4030601-110000-730940 Insurance
4030601-110000-730198 Building Maintenance
9010101-148050-775754 Maintenance Dept Chgs
4030601-110000-731479 Property Taxes
4030601-116200-770631 Bldg Space Cost Allocation
9010101-148050-770631 Bldg Space Cost allocation
Total Expenditures
Facilities Maintenance & Operations Fund #63100
Revenue:
1040702-140010-631134 Maintenance Dept Chgs
Total Revenue
Expense:
1040719-141000-731878 Sublet Repairs
Total Expense
$ 4,981
10,054
11,252
12,677
11,743
5,833
18,750
10,833
27,878
(25,017)
25,017
$114,001
$ 10,833
$ 10,833
$ 10,833
$ 10,833
$ 7,989
12,367
13,839
15,212
14,092
7,000
22,500
13,000
33,453
(35,691)
35,691
$139,452
$ 13,000
$ 13,000
$ 13,000
$ 13,000
$ 10,051
12,676
14,186
15,212
14,092
7,000
22,500
13,000
33,453
(35,842)
35,842
$142,170
$ 13,000
$ 13,000
$ 13,000
$ 13,000
/c.efs_d_
Resolution #14264 November 19, 2014
Moved by Spisz supported by Quarles the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Gershenson, Gingell, Gosselin, Hatchet( Jackson, Long, Matis, McGillivray, Middleton,
Quarles, Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Dwyer. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
H0401VY APPROVE THIS RESOLUTION
ib:PUTY COUNTY EXECUTIVE
KIRSUANT TO MCL 45.559A (7)
(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 November
19th, 2014, 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 19 th day of November 2014.
Lisa Brown, Oakland County