HomeMy WebLinkAboutResolutions - 2008.09.04 - 9658MISCELLANEOUS RESOLUTION # 08168 August 21, 2008
BY: Planning and Building Committee, Sue Ann Douglas, Chairperson
IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT & ECONOMIC DEVELOPMENT AND
COMMUNITY AFFAIRS — REQUEST FOR APPROVAL OF LEASE AGREEMENT WITH ART OF
PONTIAC, LLC FOR USE OF OFFICE SPACE AT 17 SOUTH PERRY STREET, PONTIAC, MICHIGAN
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, the Main Street Oakland County Program (MSOC) was established in 2000 to
provide assistance to Oakland County Communities in their efforts to redevelop downtown'districts; and
WHEREAS, Grant funding totaling $10,000 has been pledged by the Pontiac Downtown
Development Authority and by the Arts Beats and Eats Foundation and an additional grant sponsorship of
$2,750 will be obtained; therefore, no County funding is required; and
WHEREAS, it is the recommendation of the Departments of Facilities Management and
Economic Development and Community Affairs that the Oakland County Board of ComMissioners
accepts and approves the terms and conditions of the attached Lease Agreement; .and
WHEREAS, under the terms and conditions of the attached Lease Agreement, the Main Street
Oakland County Program-Downtown Design Studio will 'occupy approximately -850-sf of office space at 17
S. Perry Street in the City of Pontiac for a period of one year. Rent will be $1,062.50 per Month or
$12,750 per year and is inclusive of all building and site maintenance, utilities, snow and ice rerhoval and
property taxes. The lease may be terminated by the Oakland County Board of Commissioners in the
event that grant funding for the project is not obtained; and
WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed
and/or prepared all necessary documents related to the attached lease agreement.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves and authorizes the attached Lease Agreement for office space at 17 S. Perry Street, Pontiac,
Michigan between the County of Oakland and Art of Pontiac, LLC.
BE IT FURTHER RESOLVED that the County of Oakland Board of Commissioners hereby directs
its Chairperson or his designee to execute the attached Lease Agreement and all other related documents
between the County of Oakland and Art of Pontiac, LLC, which may be required.
BE IT FURTHER RESOLVED that if grants and sponsorships fail to provide sufficient funding to
completely cover the costs associated with the Lease, the County shall have the right to cancel this Lease
with no penalty whatsoever; and
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Jacobsen absent.
Resolution #08168 August 21, 2008
The Chairperson referred the resolution to the Finance Committee. There were no objections.
Oakland County Department of Facilities Management
8/12/2008
Approval of Lease for the
Downtown Design Studio-Main Street Oakland County Program
Pursuant to Board of Commissioner's rules and procedures for purchase or lease of real property
the Departments of Facilities Management and Community and Economic Development are
seeking Board of Commissioners approval of the attached Lease Agreement for the use of
approximately 850-sf of office space at 17 South Perry Street in the City of Pontiac for a period
of one year.
The Main Street Oakland County (MSOC) Program was established in 2000 to provide
assistance to Oakland County Communities in their efforts to redevelop downtown districts.
Grant funding totaling approximately $12,750 annually has been pledged by the Pontiac
Downtown Development Authority and by the Arts Beats and Eats Foundation. Therefore, No
County funding is required. The grant funding will allow the Downtown Design Studio to
function with all operating expenses offset by the pledges.
Description of Facility
The subject property is located at 17 South Perry Street in the City of Pontiac. The suite to be
occupied consists of 850-sf, and provides direct Perry Street exposure and is ADA compliant.
Terms and Conditions of Lease
Commencement date: 8/15/2008.
Term of Lease: 1 year with a 6 month extension option.
Rent: $1,062.50 per month or $12,750 per year. All services with the exception of custodial
services and telephone expenses are included in the rent.
Owner/Landlord
The building is owned by Art of Pontiac, a Michigan Limited Liability Company, 107 Evaline,
Troy, Michigan, 48085. Jonathan Witz. Member.
Recommendation
• It is the recommendation of the Departments of Facilities Management and Community and
Economic Development that the Board of Commissioners authorize and approve the attached
Lease with Art of Pontiac, LLC for use of office space at 17 S. Perry Street, Pontiac, Michigan.
Mdh8/13/08
LEASE
This Lease is made and entered into on the 15th day of August, 2008, by Art of Pontiaci
LLC, a Michigan Limited Liability Corporation, whose address is 107 Evaline Dr., Troy, Michigan
48085 ("LANDLORD"), and the COUNTY Of' OAKLAND, a Michigan Constitutional
Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 ("TENANT").
1. Leased Premises. In consideration of the Rent to be paid and the covenants to be
performed by the TENANT, the LANDLORD leases to the TENANT and the TENANT rents from
the LANDLORD approximately 850-sf located in the front of the premises on the first floor of the
building located at 17 S. Perry Street, Pontiac, Michigan ("Premises").
2. Term and Commencement Date. The Term of this Lease shall begin on the
Commencement Date, which date shall be August 15, 2008 and shall end on August 14, 2009.
Tenant, at its option, may renew and extend this Lease for six (6) months beginning on August 15,
2009. All Terms and Conditions of this lease shall apply during any extension or renewal of this
Lease. The TENANT shall have possession of the Premises on the Commencement Date. Failure of
the LANDLORD to provide TENANT with possession on that date shall be deemed a Default under
the terms of this Lease. The TENANT must provide the LANDLORD with notice of its desire to
renew this Lease thirty (30) days before the expiration of the Term.
3. Termination. Notwithstanding Paragraph 2 (or any other term of this Lease), should
the Oakland County Board of Commissioners remove or revoke funding for this Lease because the
City of Pontiac Downtown Development Authority or Arts, Beats, and Eats Foundation fails to
provide sufficient funding to completely cover the costs associated with the Lease or any grant
source fails to provide sufficient funding to completely cover the costs associated with the Lease,
then TENANT shall have the right to cancel this Lease upon thirty (30) days written notice to the
LANDLORD with no penalty whatsoever.
4. Rent. From the date this Lease commences until the Lease expires or is tenninated,
the TENANT agrees to pay the LANDLORD One Thousand Sixty-two Dollars and
50/100($1,062.50) per month. This sum includes all utilities, structural maintenance, site
maintenance, snow removal, lawn maintenance, trash removal, and taxes for the Premises.
5. Partial Month Rent Proration. Should the Term of this Lease commence on a day
other than the first calendar day of a month, then the Rent for such month and the last month of the
Term shall be prorated upon a daily basis based upon a thirty (30) day calendar month.
6. Place and Date of Payment. Payments due under this Lease from the TENANT to the
LANDLORD shall be paid at the address of the LANDLORD set forth above, or at such other place
as LANDLORD may designate in writing. The Rent due under Paragraph 3 of this Lease shall be
paid on a monthly basis. The monthly rental payment shall be paid on the first calendar day of each
month or another date agreed to by both Parties. The Rent shall be paid without any deduction or set
off.
7. Hord Over: In the event the TENANT holds over after the e'xpiration of the original
Term of this Lease without a written agreement between the LANDLORD and the TENANT, the
hold over shall be construed to be a tenancy from month-to-month on the same terms and conditions
contained in this Lease, for a period not to exceed Six (6) months.
8. Build-Out. The Landlord shall be responsible for and provide at no cost to Tenant
an 850-sf. finished office suite inclusive of carpeted floors, painted walls, finished ceiling and light
fixtures on the first floor at the front of the premises.
The tenant shall have the right to install window treatments in its suite at its own cost.
9. Use and Occupancy. The Premises shall not be used in violation of any law,
municipal ordinance, or regulation. Upon expiration or termination of this Lease, the TENANT shall
surrender the Premises in the same condition as when taken (reasonable wear and tear excepted), and
shall remove its personal property.
10. Equipment and FurnishinRs. The TENANT shall provide, at its own expense,
furniture and equipment it deems necessary. The TENANT, at its own expense, shall be solely
responsible for the maintenance and repair of all furniture and equipment used on the Premises.
11. Taxes. All taxes are included in the rental payments due under Paragraph 4 of this
Lease.
12. Maintenance and Repairs. The LANDLORD shall maintain and keep the Premises in
good repair, including, but not limited to, the roof, ceilings, walls, floors, foundations, electrical and
plumbing systems, sidewalks, parking areas, exterior glass, heating and cooling systems, and the
replacement of light bulbs. If any repairs to the Premises are required (except for normal wear and
tear), as a result of the TENANTs actions, or the actions of its employees, agents, customers,
licensees or invitees, the TENANT shall be responsible for making such repairs, unless such repairs
are covered by insurance as required by the insurance provisions of this Lease.
13. Utilities and Services.
a. Utilities. The LANDLORD shall be solely responsible for and promptly , pay all
building utilities.
b. Services. The TENANT agrees to pay all costs associated with maintnining and
operating its telephone system, computer system and any other system the TENANT installs
in the Premises. The LANDLORD agrees to provide, at its own expense, trash removal,
snow and ice removal from sidewalks, steps and parking areas, complete parking lot and
building maintenance, custodial services for common areas and lawn care services.
LANDLORD shall keep the common areas in a safe and secure manner.
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14. Compliance with Laws. The LANDLORD agrees, at its own expense, to promptly comply
with all applicable federal, state and municipal laws and regulations affecting the Premises, including
any barrier-free requirements. If the LANDLORD fails to comply with such laws and regulations,
the TENANT may give the LANDLORD written notice of its intent to terminate the Lease one
hundred fifty (150) days after the LANDLORD'S receipt of the written notice. If the LANDLORD
complies with the laws and regulations within the one hundred fifty(150) day period, then
TENANT'S notice will be deemed withdrawn,
15. Destruction of Premises.
a.) In the event, the Premises are partially damaged or destroyed by fire or other casualty,
the damage to the Premises shall be promptly repaired or rebuilt by the LANDLORD. In the
event the Premises cannot be repaired or rebuilt within thirty (30) days after such destruction,
the TENANT shall have the right to terminate this Lease and vacate the Premises within
thirty (30) days after the occurrence of such damage or destruction. During the time between
when the Premises are damaged and the TENANT remains on the Premises during repair or
vacates the Premises altogether, the Rent owed by the TENANT shall be reduced in
proportion to the fraction of the Premises rendered unusable (in the discretion of the
TENANT). If more than thirty-five percent (35%) of the Premises are damaged or destroyed
by a casualty, the TENANT may elect to remain on the Premises or to vacate the Premises.
b.) In the event that more than thirty-five (35) percent of the Premises are damaged or
destroyed by fire or other casualty, the LANDLORD may elect to either repair or rebuild the
Premises, or to terminate this Lease by giving written notice to the TENANT within thirty
(30) days after the occurrence of such damage or destruction. TENANT will have thirty (30)
days from the date of the notice to vacate the Premises. lithe LANDLORD elects to rebuild
or repair the Premises, then the Rent owed by the TENANT shall be reduced in proportion to
the fraction of the Premises rendered unusable (in the discretion of the TENANT) until the
Premises are repaired or rebuilt. In no event shall the LANDLORD be required to repair or
replace any property of the IENANT.
c.) In the event that less than Thirty-five (35) percent of the Premises are damaged or
destroyed by fire or other casualty the Rent owed by the TENANT shall be reduced in
proportion to the fraction of the Premises rendered unusable -(in the discretion of the
TENANT) until the Premises are repaired or rebuilt
16. Insurance. The TENANT is self-insured. The LANDLORD agrees to provide the following
insurance or similar insurance:
a. Commercial General Liability Insurance in the minimum amount of
$1,000,000 Combined Single Limit per occurrence, including Contractual Liability
coverage recognizing this contract.
b. Workers' Compensation as required by statute. Employers Liability
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(coVerage 13) in the minimum amount of $500,000 per °eminence.'
c. All Insurance Certificates are to provide thirty (30) days notice of material
change or cancellation. Certificates of Insurance and insurance binders Must be
provided ten (10) working days before commencement of this Lease.
d. Mutual Waiver of Subrogation. With regard to the premises and/or contents,
to the extent that a loss is covered by insurance, the LANDLORD agrees that the
TENANT (his agents and/or employees) shall not be liable to the LANDLORD and
the LANDLORD shall not be liable to the TENANT for any loss resulting directly or
indirectly from fire, explosion, smoke damage, vehicle damage, aircraft damage, riot
and civil commotion, vandalism and malicious mischief, or other similar event.
17. Indemnification. The LANDLORD shall save, defend, indemnify and hold the
TENANT harmless from and against any and all loss, cost, liability, damage, expense (including,
without limitation, reasonable attorneys' fees), penalties, fines and claims whatsoever in connection
with loss of life, personal injury and/or damage to property arising from any negligent or willful acts
or omissions of the LANDLORD, its agents or employees.
18. Alterations or Improvements. The TENANT shall not make any alterations or
improvements to or upon the Premises without the prior written consent of the LANDLORD. Any
alterations or improvements made to or upon the Premises shall become an integral part of the
Premises and shall become the sole property of the LANDLORD immediately upon the completion,
unless agreed to in writing by the Parties. Office furniture and trade fixtures used or installed in the
Premises shall not be deemed to be Alterations and shall remain the property of the TENANT.
19. Care of Premises. TENANT shall keep the Premises in good repair, wear and tear
from reasonable use and damage from the elements excepted.
20. Security. The LANDLORD agrees to provide lighting for the interior and exterior of
the Premises including common areas, including parking areas directly adjacent to the Premises, in
an adequate manner consistent with other similar office buildings in the metropolitan Detroit area.
The LANDLORD will provide keys for the TENANT's employees, agents, or independent
contractors to enter the Premises. TENANT shall have the right to install a security system of its
choice on the Premises. TENANT will pay the cost of installing, operating, and maintaining the
security system. TENANT shall have the right to remove the security system upon expiration or
termination of this Lease.
21. Access. The TENANT shall allow the LANDLORD access to the Premises during
regular business hours for the purposes of inspecting, repairing and/or maintaining the Premises
when accompanied by an agent or employee of TENANT. The LANDLORD shall use its best efforts
not to disrupt the usual operations of the TENANT at the Premises. The TENANT shall also allow
the LANDLORD access to the Premises at any time in case of an emergency.
22. Signs. The TENANT may attach, install or erect signs on the interior and exterior
4
walls of the Premises as necessary for the TENANTS business at the Premise's. The TENANT may
not attach, install or erect any signs on the exterior walls of, or the area surrounding, the Premises
without the prior written approval of the LANDLORD and the City of Pontiac as to the form,
content, material, lighting and structure thereof. Any signage TENANT installs will comply with U$
Park Service historical requirements, if applicable.
23. Assignment, The TENANT shall not assign, sublet or in any manner transfer this
Lease or any estate or interest therein without the prior written consent of the LANDLORD.
24. Parking. The LANDLORD agrees to provide TENANT with three (3) assigned
parking spaces for TENANT'S exclusive use.
25. Eminent Domain. If the whole Premises is taken by any public authority under the
power of eminent domain, then this Lease shall be terminated on the day the public authority takes
possession of the whole Premises. If less than the whole, but more than thirty-five percent (35%) of
the Premises are taken by any public authority under the power of eminent domain, then either Party
may terminate this Lease upon thirty (30) days written notice to the other Party. In the event neither
Party elects to terminate this Lease, the Lease shall terminate on the date the public authority takes
possession of the Premises. Neither Party shall have any future liability or obligation under the
Lease if it is terminated under this Paragraph.
26. Quiet Enjoyment. Upon performance of its obligations under this Lease, the
• TENANT shall peacefully and quietly hold and enjoy the Premises for the Term of this Lease
without hindrance or interruption by the LANDLORD, its agents or employees, subject to the terms
of this Lease.
27. Modifications. This Lease may be modified or amended only by written agreement of
the LANDLORD and the TENANT.
28. Remedies not Exclusive. It is agreed that each and every right and benefit provided
by this Lease shall be cumulative, and shall not be exclusive of any other right, remedy and/or benefit
allowed by law or in equity to either party.
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. Common Areas. The term "Common Areas" shall include, facilities, service
corridors, pedestrian sidewalks, stairways, hallways, bathroom area, landscaped areas, parking areas,
access roads, driveways, loading areas, lighting and facilities which may be furnished by
LANDLORD in or near the building which are outside of the Premises, and designated from time to
time by Landlord as Common Areas. TENANT and its invitees shall have right to access the
common areas during the term of this Lease. LANDLORD shall at its sole cost and expense, operate
and maintain the common areas.
31. Security Deposit. LANDLORD acknowledges that no security deposit is being
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required of TENANT. '
32. Governing Law. This Lease shall be interpreted under and governed by the laws of
the State of Michigan.
33. Severability, if a term, condition, or provision of this Lease is found, by a court of
competent jurisdiction, to be invalid, unenforceable, or to violate or contravene federal or state law,
then the term, condition, or provision shall be deemed severed from this Lease; all other terms,
conditions and provisions shall remain in full force and effect.
34. Waiver. No waiver of any term, provision or condition of this Lease, whether by
conduct or otherwise, in one or more instances, shall be deemed or construed as a further continuing
waiver of a term, provision or condition of this Lease. No remedy available to a Party for the other
Party's breach of this Lease is intended to be an exclusive remedy. A Party's exercise of any remedy
for breach of this Lease shall not be deemed or construed to be a waiver of its right to pursue another
remedy.
35. Entire Agreement. This Lease constitutes the entire agreement of the Parties with
respect to the Premises, and all prior negotiations, agreements and understandings, either oral or
written, are merged herein.
36. 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.
37. Notice. Any notice or other communication required or desired to be given shall be
deemed to have been sufficiently given for all purposes if delivered personally to the Party to whom
the same is directed, or if sent by registered or certified mail, postage and charges prepaid, addressed
to the address of such Party as set forth above. Any notice which is .served personally shall be
deemed to be given on the date on which the same is actually served, and any notice which is sent by
mail shall be deemed given two (2) days after the same is deposited in a regularly maintained
receptacle for the deposit of United States mail, addressed as provided in the immediately preceding
sentence. Any Party may change its address for purposes of this Lease by giving the other Party
written notice of the address change.
38. Reservation of Rights. This Lease does not and is not intended to impair; divest,
delegate, or contravene any constitutional, statutory, and/or other legal right, privilege,' power,
obligation, duty, capacity, or immunity of the TENANT.
39. Default. If the TENANT defaults in any of its obligations under this Lease, the
LANDLORD shall have all remedies available to it under the law.
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IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above
written.
WITNESSES: ART OF PONTIAC, LLC (LANDLORD)
By:
Jonathan Witz, Member
STATE OF MICHIGAN )
) SS.
COUNTY OF OAKLAND )
The foregoing instrument was acknowledged before me this day of
2008, by Jonathan Witz, Landlord in Oakland County, Michigan.
Notary Public, Oakland County, Michigan
My Commission Expires:
COUNTY OF OAKLAND (TENANT)
By:
Michael D. Hughson BILL BULLARD, JR., Chairperson
Oakland County Board of Commissioners
STATE OF MICHIGAN )
) S S .
COUNTY OF OAKLAND )
The foregoing instrument was acknowledged before me in Oakland County, Michigan
this day of 2008. by BILL BULLARD, JR.. Chairperson of the Board of
Commissioners of the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, on
behalf of the Corporation.
Michael D. Hughson
Notary Public, Oakland County, Michigan
My Commission Expires: 5/5/2014
7
Resolution #08168 August 21, 2008
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FISCAL NOTE (MR #08168) September 4, 2008
BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON
IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND ECONOMIC DEVELOPMENT &
COMMUNITY AFFAIRS - REQUEST FOR APPROVAL OF LEASE AGREEMENT WITH ART OF
PONTIAC, LLC FOR USE OF OFFICE SPACE AT 17 SOUTH PERRY STREET, PONTIAC,
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. Oakland County is currently leasing office space at 17 S.
Perry Street, Pontiac, Michigan for the Downtown Design
Studio, Main Street Oakland Program for a three-year period
ending August 14, 2008.
2. The resolution approves and authorizes a Lease Agreement
between Oakland County and Art of Pontiac, LLC for the
lease of approximately 850 square feet of office space at
17 S. Perry Street, Pontiac, Michigan for the Downtown
Design Studio, Main Street Oakland County Program for a
one-year period commencing August 15, 2008 with a six-month
extension option.
3. The Main Street Oakland County Program was established in
2000 to provide assistance to Oakland County communities in
their efforts to redevelop downtown districts.
4. The annual cost of the lease is $12,750 and is inclusive of
all building and site maintenance, utilities, snow and ice
removal, and property taxes.
5. Funding totaling $10,000 has been pledged by the Pontiac
Downtown Development Authority and the Arts, Beats and Eats
Foundation and additional sponsorship of $2,750 is pending.
6. Sponsorship funding will be receipted in the Special
Revenue Community Partnerships Fund #21182 and lease costs
will be expended from the Special Revenue Community
Partnership Fund.
7. If sponsorships fail to provide sufficient funding to
completely cover the lease cost, the County has the right
to cancel the lease without penalty.
8. Telephone Communications charges, estimated at a yearly
cost of $480, are the responsibility of the County and
funding is available in the FY 2009 Recommended Planning &
Economic Development Services Division Budget.
9. No additional General Fund/General Purpose funding is •
required.
FINANCE COMMITTEE
FINANCE COMMITTEE: Motion carried unanimously on a roll call vote with
Coulter absent.
I HEREBY APPROVE FOREGOII
AO F/P/e9 1/
RESOLUTION
Resolution #08168 September 4, 2008
Moved by Long supported by Middleton the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Burns, Coleman, Coulter, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel,
Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potts, Rogers, Scott, Spector, Woodward,
Zack, Bullard. (22)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted (with accompanying reports being accepted).
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
September 4, 2008, 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 4th day of September, 2008.
Gat
Ruth Johnson, County Clerk