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HomeMy WebLinkAboutAgenda - 06-21-1999 - 8sORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 21, 1999 Action Agenda Item No. $- S SUBJECT: Dickson House: 30 Day Lease Extension for Chamber of Commerce; and Consideration to Allow the Historic Alliance to Remain in the Dickson House Pending Negotiation of Lease Terms DEPARTMENT: Purchasing 8~ Central Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Lease extension Warranty deed Operating agreement with Chamber Lease with Chamber INFORMATION CONTACT: Pam Jones extension 2652 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider approving a 30 day lease extension for the Hillsborough Chamber of Commerce for space presently leased at the Dickson House; and to consider allowing the Alliance for Historic Hillsborough to occupy the space without a lease until details of a new lease with them can be established. BACKGROUND: On June 8, the Hillsborough Chamber of Commerce president requested a 30-day extension to the Dickson House lease. The Chamber of Commerce plans to relocate their offices, however, they will be unable to complete their move by the end of the current lease period, which expires on June 30, 1999. The action requested of the Board would have the lease extension expire at 12:00 midnight on July 31, 1999. The Historic Alliance, which operates the Visitor's Center from the Dickson House, contacted the County on June 11 to request that they be allowed to continue operation from this location. The Alliance currently shares expenses of upkeep for the Dickson House with the Chamber. It is unclear, however, whether their budget can support the lease amount and grounds care that is now included in the County's lease with the Chamber. The Purchasing Director will meet with the Executive Director of the Alliance to discuss the possibilities and pursue a proposal for presentation to the Board of Commissioners at their August 18, 1999 meeting. It is recommended that the Alliance remain in the space without a tease for the period of August 1 through August 18, or until the Board of Commissioners take action on a lease. It is anticipated that the County will begin maintenance of the grounds beginning August 1 ~`, but that the Alliance will pay for full utilities used at the Dickson House for the period beginning August 1, 1999. This assumes that the 30-day extension for the Chamber is approved. If that were not to be the case, the County would assume grounds care responsibilities effective July 1, 1999 and the Alliance would need to pick up full utilities effective the same date. The operation of the Visitor's Center from this location is consistent with the covenants agreed to when the Historic Preservation Fund purchased the house and moved it to County owned property at the corner of King and Cameron Streets in Hillsborough. The warranty deed, complete with covenants, the operating agreement with the Chamber as well as the original lease for the building is at~dched for your information. This information was also included in a memo dated April 3, 1999 to the Board regarding this matter. FINANCIAL IMPACT: If the 30 day extension is approved, the County will continue to coNect rent in the amount of $230 per month and the Chamber will continue to maintain the grounds for the month of July, 1999. If the 30-day extension is not approved, the $230 will not be received and the County staff will begin maintenance of the grounds effective July 1, 1999. RECOMMENDATION(S): The Manager recommends that the Board approve the 30-day extension of the lease with the Hillsborough Chamber of Commerce; and authorize the Alliance for Historic Hillsborough to remain in the space without a lease for a period August 1, 1999 until the lease terms have been considered by the Board at their August 17, 1999 meeting; and authorize the Chair to sign the lease extension on behalf of the Board. - -~ -02/ /9~~ ORIG [NAL SIGNATURES ao~K2p42 P~I:E 50 NORTH CAROLINA COPY ~' / ~~rn~f~~ LEASE ORANGE COUNTY DIST: - This lease agreement, dated the seventeenth day of August, 1999, by and between Orange County, North Carolina, hereinafter called the `County" and the Alliance for Historic Hillsborough, Inc. hereinafter called the "Alliance". WITNESSETH: O~g~~}-~~0'3~~ ~ The County hereby leases to the Alliance and the Alliance hereby leases from the County the following described property, hereinafter called the "premises". 1. PREMISES The Alexander Dickson House, approximately 2,713 square feet in size, and its lot, 150 East King Street, Hillsborough, together with the outbuildings situated thereon, one of which is known as "the office" and the other of which contains restrooms, all of the property being herein referred to as "the premises". 2. TERM OF LEASE The term shall commence on the first of August, 1999 and shall end on the 30th day of June, 2003, on the terms and conditions set forth herein. 3. RENT Rent for the premises shall be assessed at $32,556 per year, of which $29,796 shall be considered in-kind support of the Visitor's Center efforts to enhance tourism in Orange County. The Alliance agrees to pay the County cash rent in the amount of $2760 per year; payable $230 per month payment due and payable, in advance, on the first day of each and every month. Rent shall be paid to the County at such location as is designated by the County in writing to the Alliance. 4. USE OF PREMISES The Alliance shall use the premises for the purpose of operating the Orange County Visitors' Center ("the Center'). The Alliance may grant subleases to others engaged in work that is complementary to the operation of the Center under the stipulations set forth in paragraph 6 of this lease. 5. NOTICES For the purpose of notice or demand, the respective parties shall be personally delivered or served by certified or registered mail, return receipt requested, addressed to County or Alliance at their respective office address, as set forth herein: TO COUNTY: I ~~~ Orange County Director of Purchasing and Central Services PO Box 8181 Hillsborough, NC 27278 TO ALLIANCE: Alliance for Historic Hillsborough Executive Director 150 East King Street Hillsborough, NC 27278 or at such other address as may hereafter be designated in writing by either party hereto. The time and date on which mail is postmarked shall be the time and date on which such communication is deemed to have been given. BooK2002 Par; 51 6. ASSIGNMENT AND SUBLEASE Alliance shall not assign or sublet any part of the premises without the written consent of the County. Provided, however, written consent of the County is not required for any sublease or subleases that do not exceed sixty (60) days in duration and are with subtenants whose work is complementary to the operation of the Center. The County however, shall be notified in writing of any such sublease within thirty (30) days of commencement of the sublease. Such assignment or sublease shall in no way relieve the Alliance of any obligations hereunder for the payment of rents or the performance of the conditions and provisions of this lease. 7. COVENANT OF TITLE The County covenants, represents, and warrants that it has full right and power to execute and perform this lease. If at any time during the term hereby demised the County's title shall fail or it shall be discovered that the County's title does not permit the County to grant the term hereby demised, the Alliance's remedy, which shall be exclusive of all other remedies shall be: a. Annul and void this lease; and b. Be indemnified by the County against any claims against the Alliance for rents paid by the Alliance to the County under this lease. 8. GIUIET ENJOYMENT The County agrees that the Alliance, upon paying the stipulated rental and keeping and performing the agreement and. covenants herein contained, shall hold and enjoy the premises for the lease term, subject to the terms of this lease. 9. RIGHT OF ENTRY The Alliance agrees that the County or its designee shall have the right to enter the premises for any lawful purpose during normal business hours or any other time with consent of the Alliance. 10. INSURANCE Property Damage The County shall provide Fire and Extended coverage insurance to the premises. Contents shall be insured by the Alliance; the Alliance shall also insure any improvements and betterments made by it to the premises to the insurable value thereof. Unless the parties agree otherwise, any proceeds collected upon all such policies of insurance shall be used to repair and/or replace the premises, improvements or betterments so damaged or destroyed, and such repairs and/or replacements shall be prosecuted promptly by both the County and the Alliance with such insurance funds. In the event of total destruction of the Dickson House located on the premises by fire or other casualty, this lease shall terminate as of the date of such destruction, unless the County, the Alliance and the Preservation Fund of Hillsborough mutually agree to in, some manner have the Dickson House restored, during which restoration period the Alliance shall be excused from the rental payment. In the event of partial destruction of the Dickson House which renders it unsuitable for the Alliance's business, the parties shall repair and restore the Dickson House as quickly as practical and during such period of repair and restoration there shall be an abatement to the Alliance of the rental amount proportionate to the portion of the floor area of the Dickson ~ House rendered unsuitable for Alliance business. • General Liability coverage: The Alliance shall at all times during the term of this lease keep in effect comprehensive liability insurance in the amount of at least $1,000,000 for any occurrence resulting in bodily and personal injury to or the death of one person and consequential damages arising therefrom, and in the amount of at eoo~2002 P,~rE 52 least $1,000,000 f or any such occurrence for more than one person. The Alliance shall obtain an endorsement to its comprehensive liability insurance policy naming the County, its Board of County Commissioners and employees as additional insureds. The Alliance shall provide the County with and maintain current a certificate from its insurance carrier confirming the contractual liability endorsement required in this paragraph. 11. INDEMNITY The Alliance agrees to indemnify and save harmless the County against and from any and all claims by or on behalf of any person, firm or corporation arising by reason of injury to person or damage to property occurring in the premises occasioned in whole or in part by any act or omission on the part of the Alliance or an employee, agent, visitors, assign or undertenant of the Alliance or by reason of any unlawful use of the premises or any breach violation or nonperformance of any covenant in this lease on the part of the Alliance to be observed or performed, and also for any matter or thing growing out of the occupancy or use of the premises by the Alliance. 12. REPAIR AND MAINTENANCE County Responsibilities for Maintenance and Repairs: 1. Keep, repair and maintain the structural integrity of the buildings and maintain the exterior of the building not made necessary by the fault, act or negligence of the Alliance, its agents, sublessees, employees or business invitees. 2. Mow grass on the premises . 3. Keep, repair and maintain: heat and air conditioning systems in the premises, plumbing and electrical maintenance to services (not including routine plumbing and electrical repairs within the buildings) not made necessary by the fault, act or negligence of the Alliance, its agents, sublessees, employees or business invitees. Alliance Responsibilities for Maintenance and Repairs: 1. Keep the interior of buildings on the premises in good condition and repair, excepting obligations which are the responsibility of the County as noted above or which are made necessary by reason of fire and other unavoidable casualties covered by the County's fire and extended coverage insurance, and excepting reasonable wear and tear. Such repair and maintenance responsibility of the Alliance shall include: walls and ceilings (including the painting thereof); maintenance of floors, cleaning of all buildings; routine plumbing and electrical repairs within the buildings. 2. The Alliance shall be responsible for grounds care except for mowing, to exclude those duties associated with Helen's Garden. 3. The Alliance shall notify the County by contacting its Public Works Administrative office, of any needed repairs. 4. Keep repair and maintain those things that are the responsibility of the County in the event that repair and maintenance is necessary because of the fault, act or negligence of the Alliance, its agents, sublessees, employees or business invitees. 13. ADVISORY COMMITTEE A committee consisting of representatives from the County, the Alliance, the Hillsborough Preservation Fund and the Town of Hillsborough shall be convened to advise the County in the event any repair, maintenance or alternation to the premises shall affect the appearance of the interior or exterior of the buildings or the grounds on the premises. Such approval shall be rendered prior to the commencement of any work. Repairs to heat and cooling systems, electrical and plumbing maintenance, cleaning of the buildings, and routine grounds maintenance shall not require prior approval by the committee. 14. ALTERATIONS Any alterations to the premises made by the Alliance upon approval of the Advisory Committee shall become property of the County and shall remain upon and be surrendered with the premises as a part thereof at the expiration or earlier termination of this lease. 15. UTILITIES Ba~K2~~2 °~~f E 53 The Alliance shall be solely responsible for and promptly pay all charges for heat, water, sewer, gas, electricity or any other utility used or consumed in the premises, including associated deposits and connection fees. 16. SIGNS The Alliance reserves the right to install signage it deems appropriate to properly direct the public to the services offered at the premises. Prior to sign installation the Alliance agrees to submit to County for County approval plans for signage, which approval shall not be unreasonably withheld. All signs erected by the Alliance shall comply with all requirements of public authorities having jurisdiction with respect thereto. 17. ENTIRE AGREEMENT This lease contains the entire agreement between the parties hereto, and no promises, agreements, conditions or stipulations not contained herein shall be binding upon either parry hereto. The parties hereto have executed this lease as of the day and year first above written. County of Orange Alliance for Historic Hillsborough, Inc. By: ~~ ~M , By. Alice M. Gordon, Chair hair, Alli for Hist is Isborough Board of Directors Attest: Attest: (/ r WNC~ Beverly A. he, Clerk to a Board Se etary ;~ .. ;~Q`~. M~ ~ ~= ,~„ ,,~. STATE OF NORTH CAROLINA BoaK2002 P,~rE 54 COUNTY OF 0R•Rfd&E ~u ~-~a.•r`~ I, ~Y~9 ~ ~~, S ~ ~ e/ _, a Notary Public for said County and State, do hereby certify that ~•~~~-~~~ ~~ ~ ' ~ ,personally appeared before me this day and acknowledged that he/she is e.%a~ ~ of the Alliance for Historic Hillsborough, Inc. and that by authority du~lly given and as the act of the Alliance the foregoing instrument was signed in its name by its ~n..M~ Yh~_ .~>1~__Qsealed with its corporate seal and attested by himself/herself as its T~_~.`fQi /t.1 Witness my hand and official seal, this the ~3 day of C''`fa'' 1'999. `,pane na•rra~~ (~ ,o° ~EGOR Y ''~~. ,,` ~ ~~.... O fP •.~e . s ~ " ota o :' ~ 4T Public My Commission expires: q . _ ' ~ s ,~ ~~ ~ s m = _ J ~ O ~ ~.c- 1w ~ i '°~ ~ a ~~~ ~y ~ ` .• •~. •• N' ~~T'Y , . , iaah of 11 N N at~~,`` STATE OF NORTH CAROLI NA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Beve A. Blythe personally appeared before me this date and acknowledged that she is the Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as the act of Orange County, the foregoing instrument was signed in its name by Alice M. Gordon, Chair, sealed with its official seal, and attested by herself as its Clerk. Witness myha+ad,and official seal, this the :3y day of , 1999. \~` /~i Notary Public (,~,`'c~r~rnissionte,es: ;a v FILED i9 [1i:T 1999, at 03: id:5ipm Bnok. ;2Dt~2, Page 5d - 54 .7oyc_e H. Pearson t~eg i ~~te.r o.f Deeds, Qrange County, N. C. State of Noah Carolina-Orange County The Foregoingt~certificate(ys),of ~ ~ (~, ~,~ ~ Y~ L e A Cl. R nf'A p 2 ~ ,NWC~JL ~- ~~teta~~Notaries) Public for the Designated Govern- mental units k (are) certified to be correct. See filing certificates herein. This the I Q ~ day of m c ~' A.D. 19~_ Joyce H. Pearson Register of Deeds By: -~iest~t / Dep