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HomeMy WebLinkAboutReports - 2023.12.07 - 40855 AGENDA ITEM: Approval and Acceptance of 1st Amendment to EasterSeals Morc Lease DEPARTMENT: Facilities Management MEETING: Board of Commissioners DATE: Thursday, December 7, 2023 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3624 Motion to approve the FIRST AMENDMENT to Easterseals MORC, Inc. lease and authorizes the Chair of the Board of Commissioners to execute the attached amendment; further, no budget amendment required. ITEM CATEGORY SPONSORED BY Lease Yolanda Smith Charles INTRODUCTION AND BACKGROUND The County has leased 1.57 acres of land at 1105 N Telegraph Road on County Campus to Easter Seals Morc of Michigan for approximately sixty-five (65) years; the last lease approved in Miscellaneous Resolution #11269. The existing 8200 square foot building on the County Campus, occupied by Easter Seals Morc, was built by Easter Seals in 1956. Easter Seals Morc desires to demolish the existing building and construct a new building approximately 16,000 square foot building for a state-of-the-art Autism Center. Easter Seals Morc wants to do their own grounds maintenance, so the lease is revised with an Amendment. The Amendment also guarantees access for the County through a second existing driveway that is part of the land lease description. The Departments of Facilities Management and Corporation Counsel have reviewed and approved the attached land lease. The Department of Facilities Management recommends that the Board of Commissioners approve the attached land lease. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Paul Zachos, Property Management Specialist Edward Joss, Director Facilities Management-APP ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 12/7/2023 AGENDA DEADLINE: 12/07/2023 6:00 PM ATTACHMENTS 1. 1st Amendment to Easter Seals Lease with Exhibit (Final Version) COMMITTEE TRACKING 2023-11-29 Economic Development & Infrastructure - Recommend to Board 2023-12-07 Full Board - Adopt Motioned by: Commissioner Charles Cavell Seconded by: Commissioner Ajay Raman Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault (18) No: None (0) Abstain: None (0) Absent: (0) Passed Page 1 of 3 1st Lease Amendment (Final Version) FIRST AMENDMENT TO EASTERSEALS MORC LEASE This First Lease Amendment (Amendment) is made by and between the COUNTY OF OAKLAND, a Michigan Municipal and Constitutional Corporation, 1200 N. Telegraph Road, Pontiac, Michigan 48341, (hereinafter “Landlord”) and the EASTERSEALS MORC, INC., a Michigan Nonprofit-Corporation, 2399 E. Walton Blvd., Auburn Hills, Michigan, 48326 (hereinafter “Tenant”). BACKGROUND A. For approximately 65 years, through a series of lease agreements, the Landlord has continuously leased the real property, owned by Landlord, to Tenant and Tenant’s predecessor, Easter Seals Michigan, to locate its administrative office. B. On July 6, 2023, the Parties entered into a new lease with a term of 40 years, which would allow Tenant to demolish its existing building on the real property and to construct a new building (“Lease”). The Lease is attached as Exhibit A and incorporated herein. C. At this time, the Parties desire to change certain terms and provisions of the Lease. D. In consideration of the mutual covenants contained in this Amendment, the Parties agree to the following terms and conditions: 1ST AMENDMENT §1. Incorporation of Background Paragraphs. The provisions contained in the Background Section of this Amendment are incorporated herein. §2. Landlord Services, Maintence, and Utilities. Section 9 of the Lease shall be entirely deleted and replaced with the following language: “Landlord shall provide the following services to Tenant: (1) trash removal for the existing and new Building and (2) maintenance for the existing Building’s HVAC system until the existing Building is demolished. Landlord, at its cost, shall be responsible to maintain the entrance to the Land marked “West Entrance” on Attachment A to the Lease. Landlord shall provide utilities for the existing Building, including electricity, steam heat, sanitary, and water, until it is demolished. Tenant shall provide and pay for its own utilities (electricity, gas, water, and sanitary) during construction of the new building and for the new building constructed on the Land; such utilities shall be placed in the name of the Tenant. Landlord shall invoice Tenant on a quarterly basis for the above-listed services and utilities and Tenant shall pay such invoice within thirty (30) days of receipt.” §3. Tenant Services and Maintenance. Section 11 of the Lease shall be entirely deleted and replaced with the following language: “Tenant shall provide the following services: (1) snow and ice removal, including salt or brine, for the sidewalks and parking lot on the Land and (2) grounds maintenance including lawn and turf care and tree and shrub care for the Land. Tenant shall keep the Building Page 2 of 3 1st Lease Amendment (Final Version) and/or Land in good repair, reasonable wear and tear excepted, and in a clean and healthful condition, including maintenance and repair of the parking lot and sidewalks on the Land. Because Tenant owns the Building, any repairs or replacements to the Building shall be at Tenant’s sole cost and expense, with materials and workmanship of the same character, kind, and quality as the original.” §4. All other terms and conditions of the Lease shall continue with full force and effect, except as modified herein. §5. This Amendment and the terms and conditions of the Lease, attached as Exhibit A, constitute the entire agreement and understanding between Landlord and Tenant and supersedes any and all other prior oral or written understandings, communications, or agreements between Landlord and Tenant. David T. Woodward acknowledges that he has been authorized by the County of Oakland to execute this Amendment on its behalf. LANDLORD: COUNTY OF OAKLAND By: ____________________________________ David T. Woodward, Chairperson Oakland County Board of Commissioners Date: ____________________________________ Subscribed and sworn to before me on the _____ day of ____________, 20__. ____________________________________ Notary Public, Oakland County, Michigan My Commission Expires: ________________ Acting in the County Oakland ____________________________________ acknowledges that they have been authorized by the EasterSeals MORC, Inc. to execute this Amendment on its behalf. Page 3 of 3 1st Lease Amendment (Final Version) TENANT: EASTERSEALS MORC, INC. By: _____________________________________ Date:__________________________________ ____ Subscribed and sworn to before me on the _____ day of ____________, 20__. ____________________________________ Notary Public Oakland County, Michigan My Commission Expires: ________________ Acting in the County of Oakland EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A EXHIBIT A