HomeMy WebLinkAboutResolutions - 2026.05.21 - 42975
AGENDA ITEM: Amendment #2 to Lease Agreement with Rademacher Group One, LLC for the 52-2
District Court in Clarkston
DEPARTMENT: Facilities Management
MEETING: Board of Commissioners
DATE: Thursday, May 21, 2026 9:30 AM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2026-6544 _ 26-19
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Lease Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
The County has been leasing property at 5850 Lorac Drive in Clarkston as a courthouse since 1990,
and the lease term expires on May 31, 2026. The landlord has agreed to extend the term of the
Lease for an additional sixty-month term and lease additional space in the adjacent building. The
landlord will include new interior carpet and paint of the existing courthouse, and buildout the new
space to increase badly needed office capacity. Landlord will continue to maintain the property as
designated in the original lease, and agrees to shorter response time for repairs and emergency
needs for the building.
POLICY ANALYSIS
The lease is being extended for five years, running from June 1, 2026 through May 31, 2031, with
an additional five-year renewal option included.
Space & Location: The County will keep its current space (the entire 14,228 sq. ft. building at 5850
Lorac Drive) and expand by adding 1,100 sq. ft. at 5840 Lorac Drive (Suites 9–12).
Building Improvements: Since the new suites need some work, the Landlord has contracted LC
Custom Homes to handle the renovations. The goal is to have these improvements mostly finished
by September 1, 2026. Once the work is essentially complete, the Landlord will send the Court an
invoice for $73,700 to cover the costs.
FISCAL IMPACT: Budget Amendment Attached
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Brett Dery, District Court Administrator
Edward Joss, Director Facilities Management-APP
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 5/21/2026
David Woodward, Board of Commissioners Approved - 5/21/2026
Walt Herzig, Executive's Office Approved - 5/22/2026
Lisa Brown, Clerk/Register of Deeds Final Approval - 5/26/2026
AGENDA DEADLINE: 05/07/2026 4:30 PM
ATTACHMENTS
1. FM - 2026-6544 2nd Amendment to Lease for District Court II - Schedule A Updated
05.19.2026
2. 2nd Amendment to lease (52-2 District Court)(Final Version 05-13-26)
3. 1st Amendment - Rademacher Lease Final Version (3) (2)
4. Original Lease
COMMITTEE TRACKING
2026-05-13 Economic Development & Infrastructure - Recommend to Board
2026-05-21 Full Board - Adopt
Motioned by: Commissioner Michael Gingell
Seconded by: Commissioner Penny Luebs
Yes: Ann Erickson Gault, Michael Gingell, Marcia Gershenson, Robert Hoffman, Karen Joliat,
Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen Nelson, Angela Powell,
Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David
Woodward (17)
No: Charles Cavell (1)
Abstain: None (0)
Absent: Brendan Johnson (1)
Passed
May 21, 2026
RESOLUTION #2026-6544 _ 26-19
Sponsored By: Yolanda Smith Charles
Facilities Management - Amendment #2 to Lease Agreement with Rademacher Group One,
LLC for the 52-2 District Court in Clarkston
Chair and Members of the Board:
WHEREAS the County has been leasing property at 5850 Lorac Drive in Clarkston as a courthouse
since 1990; and
WHEREAS the lease term expires on May 31, 2026; and
WHEREAS the attached Second Amendment to the Lease will extend the lease for 5 additional years
until May 31, 2031 and allows the lease to be terminated with a 365 calendar days written notice; and
WHEREAS Oakland County Corporation Counsel and the Department of Facilities Management have
reviewed the attached Second Amendment to the Lease with Rademacher Group One, LLC; and
WHEREAS the Department of Facilities Management recommends the Oakland County Board of
Commissioners approve and authorize the execution of the attached Second Amendment.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves
the attached Lease Second Amendment to the Lease and directs its Chair or their designee to
execute the attached Second Amendment and all other related documents between the County of
Oakland and Rademacher Group One, LLC which may be required.
BE IT FURTHER RESOLVED that the FY 2026-2028 budget is amended as detailed in the attached
Schedule A.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: May 21, 2026
David Woodward, Commissioner
Date: May 22, 2026
Walt Herzig, Chief Deputy County Executive
Date: May 26, 2026
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2026-05-13 Economic Development & Infrastructure - Recommend to Board
2026-05-21 Full Board - Adopt
Motioned by Commissioner Michael Gingell seconded by Commissioner Penny Luebs to adopt the
attached Lease: Amendment #2 to Lease Agreement with Rademacher Group One, LLC for the 52-2
District Court in Clarkston.
Yes: Ann Erickson Gault, Michael Gingell, Marcia Gershenson, Robert Hoffman, Karen Joliat,
Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen Nelson, Angela Powell,
Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David
Woodward (17)
No: Charles Cavell (1)
Abstain: None (0)
Absent: Brendan Johnson (1)
Passed
ATTACHMENTS
1. FM - 2026-6544 2nd Amendment to Lease for District Court II - Schedule A Updated
05.19.2026
2. 2nd Amendment to lease (52-2 District Court)(Final Version 05-13-26)
3. 1st Amendment - Rademacher Lease Final Version (3) (2)
4. Original Lease
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 May
21, 2026, 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, May 21, 2026.
Lisa Brown, Oakland County Clerk / Register of Deeds
Oakland County, Michigan
Facilities Management - #2026-6544 Second Amendment to Lease Agreement 52-2 District Court (Clarkston)
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 2026
Amendment
FY 2027
Amendment
FY 2028
Amendment
E General Fund Non Departmental Transfers FND10100 CCN9090101 SC730359 PRG196030 730000 Contingency $(77,998.00)$(11,709.00)$(8,092.00)
E General Fund District Court II Administration FND10100 CCN3020301 SC731626 PRG121020 730000 Rent 4,298.00 11,709.00 8,092.00
E General Fund Non Departmental Operations FND10100 CCN9010101 SC788001 PRG196030 FND40400 788001 Transfers Out 73,700.00 --
Total Expenditures $-$-$-
R Project Work Orders Facilities Planning and Engineering FND40400 CCN1040801 RC695500 PRG148020 PRJ-18170 FND10100 695500 Transfers In 73,700.00 --
Total Revenues $73,700.00 $-$-
E Project Work Orders Facilities Planning and Engineering FND40400 CCN1040801 SC730352 PRG148020 PRJ-18170 730000 Construction 73,700.00 --
Total Expenditures $73,700.00 $-$-
SECOND AMENDMENT TO LEASE AGREEMENT
This Second Amendment to Lease Agreement (“Amendment”) is made as of the ____
day of April 2026, by and between Rademacher Group LLC, a Michigan limited liability
company (“Landlord”), and County of Oakland, a Michigan constitutional corporation
(“Tenant”).
W I T N E S S E T H:
WHEREAS, Landlord and Tenant entered into a Lease Agreement dated June 1, 2011,
as amended on December 8, 2016 (collectively referred to as the “Lease”) for the lease of the
Premises as defined in the Lease; and
WHEREAS, the current term of the Lease is to expire on May 31, 2026; and
WHEREAS, Landlord has agreed to extend the term of the Lease for an additional sixty-
month term, lease additional space to Tenant in an adjacent structure, and certain other
modifications.
NOW, THEREFORE, in consideration of the mutual agreements contained herein, the
parties agree to the following modifications affecting the Lease.
AGREEMENT
1. To reflect the additional space Tenant will occupy in the adjacent building
located at 5840 Lorac Drive, Suites 9, 10, 11 and 12, the description of the Premises
provision contained in Section 1 of the Lease is hereby modified and superseded in its
entirety as set forth below:
1. Leased Premises of Lease. In consideration of the Rent to be paid and the
covenants to be performed by Tenant, Landlord leases to Tenant, and Tenant
leases from Landlord, 14,228 rentable square feet consisting of the entire
building (13,128 sq. ft.) located at 5850 Lorac Drive, Clarkston, Michigan,
and Suites 9,10,11,and 12 (1,100 sq. ft.) located at 5840 Lorac Drive,
Clarkston, Michigan as depicted on Exhibit A attached hereto and
incorporated herein by reference (collectively referred to as the “Premises”).
2. To reflect Tenant’s additional sixty-month lease term, the term provision
contained in Section 2 of the Lease is hereby modified as set forth below:
2. Term. The term of this lease extension shall commence on June 1, 2026 and
expire on May 31, 2031.
3. Landlord shall have LC Custom Homes perform the building improvements as
set forth on the two LC Homes construction quotes dated January 8, 2024, and attached hereto
as Exhibit B and incorporated herein by reference (“Building Improvements”). Landlord shall
substantially complete the Building Improvements by September 1, 2026 provided Tenant has
removed all furniture, fixtures and personal property located in the currently existing file room
on or before May 31, 2026. Landlord shall invoice Tenant the aggerate sum of Seventy-Three
Thousand Seven Hundred and 00/100 ($73,700.00) Dollars upon substantial completion of the
Building Improvements, and Tenant shall have ten (10) business days thereafter to pay the
Landlord’s invoice in full.
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4. The rent provision contained in Section 3 of the Lease is hereby modified and
superseded in its entirety as set forth below:
3. Rent. The Rent during the term of this Lease for the Premises shall be Two
Million Fifty-One Thousand Five Hundred and 70/100 ($2,051,500.70)
Dollars, payable by Tenant in advance, in sixty (60) consecutive monthly
installments, due the first day of each and every month during the term of
the Lease, as follows:
June 1, 2026 – May 31, 2027: $32,851.09 per month
June 1, 2027 – May 31, 2028: $33,508.11 per month
June 1, 2028 – May 31, 2029: $34,178.27 per month
June 1, 2029 – May 31, 2030: $34,861.84 per month
June 1, 2030 – May 31, 2031: $35,559.08 per month
Said rent shall be payable at the address of the Landlord as provided herein,
without any prior demand and without any deduction or setoff whatsoever,
except as set forth in Section 12.
5. Tenant’s proportionate share of the amount of all real estate taxes and
assessments (general and special), and any other charges which may be levied, assessed or
charged against the Premises by any governmental or quasi-governmental agency in Section 9
of the Lease is fourteen thousand two hundred twenty-eight (14,228) square feet of the total
seventeen thousand nine hundred twenty-eight (17,928) square feet contained in 5850 Lorac
Drive, Clarkston, Michigan and 5840 Lorac Drive, Clarkston, Michigan.
6. Section 10 of the Lease is modified and superseded in its entirety with the
following: The Landlord shall maintain, repair, and keep the Premises in good repair, including,
but not limited to, the roof, ceilings, walls, floors, carpet, foundations, electrical systems,
plumbing, sidewalks, parking areas, exterior glass, heating and cooling systems, and the
replacement of light bulbs; provided that Tenant may make minor repairs to the Premises, at its
sole option and cost. Minor repairs as used herein means repairs that cost a total of $1,500.00
or less per repair. If any repairs to the Premises are required (except for normal wear and tear),
as a result of the Tenant’s actions or the actions of Tenant’s employees, agents, customers,
licensees, or invitees, Landlord shall make such repairs and Tenant shall reimburse Landlord
for the actual costs of such repairs upon receipt of an invoice itemizing the costs of such repair.
When the 52-2 District Court is open to the public, Landlord shall respond to a non-emergency
call, from Tenant, for repair, maintenance, and/or service to the Premises within one (1)
Business Day and take corrective action related to the repair, maintenance, or service, or create
a plan for corrective action within two (2) Business Days of the call. In an emergency situation,
Landlord shall respond within one (1) hour and take corrective action related to the repair,
maintenance, or service, or create a plan for corrective action within two (2) hours of the call.
If, in the emergency situation, the Landlord fails to respond within one (1) hour, theTenant may
perform the repair and deduct the actual costs from the Rent. Upon request, the Tenant shall
provide the Landlord with an itemized invoice or statement for the costs of performing or
complying with the obligations or requirements in the Lease, plus an additional ten percent
(10%) of the costs of performing work under this Section to cover Tenant’s administrative costs.
All repairs and maintenance performed on the Premises by Landlord or Landlord’s contractors
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shall be performed according to all applicable laws, rules, regulations, and codes and shall be
performed by qualified, licensed, and insured contractors. Landlord shall keep Tenant updated
with the phone numbers of Landlord’s contact persons.
19. Access. Tenant shall allow Landlord access to the Premises during regular
business hours or at other times mutually agreed to by the Parties for the
purposes of inspecting, repairing and/or maintaining the Premises as may be
required under this Lease. Landlord shall use its best efforts not to disrupt
the usual operations of Tenant at the Premises. Tenant shall also allow
Landlord access to the Premises at any time in case of an emergency. Given
Tenant's use of the Premises as a courthouse, an employee of Tenant may
have to escort Landlord or Landlord's agents or contractors while on the
Premises, in Tenant's sole discretion. Notwithstanding anything to the
contrary contained herein, Landlord shall have access to the Premises during
the last nine (9) months of the Term to show the Premises to prospective
tenants, purchasers or lenders; provided, however, that in such showings that
would include portions of the Premises to which the public does not have
unfettered access, Landlord shall not make such showing without being
accompanied by an appointed person of Tenant. Landlord shall give advance
notice, but in no case shall such notice be less than two (2) business days, to
Tenant of the scheduled showing and Tenant shall reasonably cooperate with
Landlord in the scheduling of such showing and the appointment of a person
to accompany Landlord.
36. Option to Renew. So long as Tenant is not in default under any of the terms
and conditions of the Lease beyond the expiration of any applicable notice,
grace and/or cure periods, Tenant shall have the option to elect to extend the
Term of this Lease, for an additional sixty (60) month term (“Option
Period”). The Rent during the Option Period shall be Two Million Two
Hundred Sixty-Five Thousand Twenty-Three and 54/100 ($2,265,023.54)
Dollars for the entire Option Period, with monthly installments payable by
Tenant in advance, due the first day of each and every month of the Option
Period, in sixty (60) consecutive monthly installments as follows:
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June 1, 2031 – May 31, 2032: $36,270.26 per month
June 1, 2032 – May 31, 2033: $36,995.66 per month
June 1, 2033 – May 31, 2034: $37,735.58 per month
June 1, 2034 – May 31, 2035: $38,490.29 per month
June 1, 2035 – May 31, 2036: $39,260.09 per month
All other terms and conditions of this Lease shall remain in full force and
effect during the Option Period. Notice of said election must be provided in
writing to Landlord, at least one hundred eighty (180) days prior to the
expiration of the initial Term.
11. Section 37 is hereby added to the Lease, which provides the following: Twice a
calendar year in the months of January and July, the Landlord and Tenant shall conduct joint
inspections of the Premises for the purposes of identifying issues at or around the Premises
relating to maintenance and repairs that need to be addressed. The inspections shall be attended
by: (a) a representative of the Landlord, (b) Tenant’s Director of Facilities Management or their
designee, and (c) the Court Administrator for the 52/2 District Court or their designee. After
the completion of the inspections, but no later than September 1st of the calendar year in which
the inspections were performed, the Landlord shall deliver to Tenant a report illustrating and
documenting the condition of the Premises, as observed or assessed during the inspections.
12. Landlord shall perform and complete the following one-time improvements to
the Premises, at no cost to Tenant: replace carpeting and repaint interior (based on Tenant’s
carpet and paint specifications and selections) of the existing courthouse that was not part of
the improvements performed in 2025. Provided, however, Landlord’s obligation is conditioned
on Tenant, at its sole cost, removing all furniture, fixtures and personal property located in such
areas prior to Landlord commencing the improvements.
13. At no costs to Tenant, when providing lawn care and landscaping services for
the Premises pursuant to the Lease, Landlord shall apply new mulch each spring and annual,
spring/summer plantings around the Premises. The annual spring/summer plantings shall be
maintained, weeded and watered in a manner to ensure best appearance.
14. Except as specifically amended by this Amendment, all provisions of the Lease
shall remain in full force and effect. This Amendment shall govern in the event that there is a
conflict between the Lease and this Amendment.
[SIGNATURES ON THE FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this Amendment by their duly
authorized officers as of the date first above written.
TENANT:
LANDLORD: