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Home My WebLink AboutAgenda - 06-01-1999 - 8lORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 1, 1999 Action Agenda Item No. A•~ SUBJECT: Lease Renewal; Jim Lilley Properties, Inc. DEPARTMENT: Purchasing & Central Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Lease Renewal 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 lease renewal for Jim Lilley Properties, Inc. at 501 West Franklin Street, Chapel Hill. BACKGROUND: James Lilley Properties, desires to renew their lease for Suite #106. The suite consists of approximately 552 square feet. Lilley operates a property management business from the leased space. The term of the proposed lease is for one year at a rate of $735 per month (approximately $15.97 per square foot), plus $67 per month for taxes in lieu. As the Board recalls, taxes in lieu is paid for the equivalent amount of taxes that would be assessed against the property if it were privately owned. Taxes are then distributed to the Town, County and school in accordance with the formula under which normal tax distribution is made. The premise is that for profit businesses should not benefit from the County's tax exempt status. The renewal is attached. FINANCIAL IMPACT: The County will receive $8,820 for the leased space. RECOMMENDATION: The Manager recommends that the Board approve a one year renewal lease with Jim Lilley Properties for the period June 1, 1999 through May 31, 2000 under the terms and conditions cited in the attached lease; and authorize the Chair to sign on behalf of the Board. STATE OF NORTH CAROLINA COUNTY OF ORANGE LEASE AGREEMENT RENEWAL THIS LEASE AGREEMENT RENEWAL made on the 1st day of June, 1999 by and between James P. Lilley d/b/a Jim Lilley Properties, 501 West Franklin Street, Suite 106, Chapel Hill, North Carolina, hereinafter referred to as Tenant and Orange County, a politic subdivision of the State of North Carolina, Post Office Box 8181, Hillsborough, North Carolina, hereinafter referred to as "County". WITNESSETH: WHEREAS, a lease agreement was made and entered into as of the 1st day of June, 1997, a copy of which is attached as Exhibit A, between the County and Tenant; WHEREAS, County and Tenant desire to renew the lease agreement and amend it; NOW THEREFORE, County and Tenant mutually agree to the following: Section 3 of Exhibit A shall be modified to read: 2 (a) This lease shall commence on June 1, 1999 and shall continue for a term of one year, which ends on May 31, 2000, both dates inclusive, unless sooner terminated as herein provided. 2. Section 2 (b) shall be modified to read: (b) The Tenant agrees to pay the County without demand at its office, or at such other place or places as County may from time to time designate in writing, the following rents and taxes for the aforementioned Premises for the term of this lease: Base rent: $735 per month; $8,820 annually; Taxes: $ 67 per month; $ 804 annually, subject to requirements pursuant to Section 3(c) of Exhibit A as modified below. 3. All other terms and conditions of Exhibit A shall remain the same. This the day of , 1999. Tenant: By: James P. Lilley Orange County By Witness: (Seal) Attest: (Seal) Beverly A. Blythe, Clerk Board of County Commissioner Alice M. Gordon, Chair Board of County Commissioners NORTH CAROLINA ORANGE COUNTY l~ , a Notary Public for said County and State, certify that personally came before me this day and acknowledged that she is 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 my hand and official seal, this the day of ~ ggg. My commission expires: NORTH CAROLINA ORANGE COUNTY I, Notary Public a Notary Public for said County and State, do hereby certify that ,personally appeared before me this day and acknowledged the due execution of the foregoing instrument. Witness my hand and official seal, this the day of , ~ ggg. My commission expires: Notary Public ORIGIINAL 3IGNAT[TRES STATE OF NORTH CAROLINA COPY ~+' - ~ _,_,_,.~ DIST: ~,Qc~', COUNTY OF ORANGE LEASE AGREEMENT RENEWAL THIS LEASE AGREEMENT RENEWAL made on the 4'h day of May, 1999 by and between James P. Lilley d/b/a Jim Lilley Properties, 501 West Franklin Street, Suite 106, Chapel Hill, North Carolina, hereinafter referred to as Tenant and Orange County, a politic subdivision of the State of North Carolina, Post Office Box 8181, Hillsborough, North Carolina, hereinafter referred to as "County". WITNESSETH: WHEREAS, a lease agreement was made and entered into as of the 1st day of June, 1997, a copy of which is attached as Exhibit A, between the County and Tenant; WHEREAS, County and Tenant desire to renew the lease agreement and amend it; NOW THEREFORE, County and Tenant mutually agree to the following: Section 3 of Exhibit A shall be modified to read: (a) This lease shall commence on June 1, 1999 and shall continue for a term of one year, which ends on May 31, 2000, both dates inclusive, unless sooner terminated as herein provided. 2. Section 2 (b) shall be modified to read: (b) The Tenant agrees to pay the County without demand at its office, or at such other place or places as County may from time to time designate in writing, the following rents and taxes for the aforementioned Premises for the term of this lease: Base rent: $735 per month; $8,820 annually; Taxes: $ 67 per month; $ 804 annually, subject to requirements pursuant to Section 3(c) of Exhibit A as modified below. 2. Section 3(c) of Exhibit A shall be modified to read: (c) At the commencement of this Lease the Premises are owned by County and as such are exempt from ad valorem taxes as provided in Article V, Section 2 (3) of the North Carolina Constitution and North Carolina General Statutes 105-278.1. During the term, Tenant agrees to make payments to County in lieu of taxes, as additional rent, in amounts equivalent to Tenant's pro-rata share of property taxes that would be lawfully assessed if the Premises were taxable by County and any municipality in which the Premises is located. These payments are hereafter referred to as "the payments in lieu". This agreement to make the payments in lieu is to eliminate the competitive advantage accruing to Tenant, aprofit-making enterprise, from the use for profit of County's tax exempt property. Tenant shall submit monthly amounts as specified annually by County, which payments will be held in escrow and distributed to the appropriate jurisdiction(s). ~ -/- 99 ~i~~ County and Tenant recognize that the annual payments required in this subsection each span two tax years and will therefore require estimates based on estimated tax rates. Upon receipt of actual tax rates, County will reconcile the amount paid by Tenant and the actual amount due under this subsection and provide Tenant with a copy of this reconciliation. Any difference between what has been paid and what is due shall be paid on May 1 of each lease year by Tenant as additional rent or credited on May 1 by County against rent. Tenant agrees that the valuation of the Premises shalt be made by County's Tax Assessor according to the Schedule of Values adopted by County from time to time and that the determination of the true value in money of the Premises shall be made by the County's Tax Assessor. Tenant may, at its expense, in good faith, contest any such taxes, assessments and other similar charges or the valuation on which the same are based, and, in the event of any such contest may pay the taxes, assessments or other charges under protest during the period of such contest and any appeal therefrom. In the event it is determined by Tenant and Landlord or by the tribunal which ordinarily has jurisdiction that such tribunal does not have jurisdiction or is otherwise not permitted to act as a forum in consequence of the fact that Tenant's liability for the tax is contractual rather than imposed by law, then either party may submit a challenge to a tax, assessment or other similar charge or valuation to arbitration by an arbitration panel made up of MAI qualified/certified appraisers. County shall select one appraiser; Tenant shall select one appraiser; the appraiser selected by County and Tenant shall select a third appraiser and the decision of the arbitration panel shall be binding on both parties. To the extent that enforcement of the payment of any such taxes, assessments and other charges in the event of any contest are legally stayed during the period of such contest, such taxes, assessments and other charges may remain unpaid during the period of such contest and any appeal therefrom. 4. All other terms and con itions of Exhibit A shall remain the same. This the __~ day of , 1999. Tena Witness: B : ~ Se l Y ( a) mes P. Lilley Orange County By ~ ~ . ,~~ Alice M. Gordon, Chair Board of County Commissioners Attes (Seal) Beverly A. lythe, Clerk Board of County Commissioner NORTH CAROLINA ORANGE COUNTY I, ~.~~G~~ /,~ ~~~~ , a Notary Public for said County and State, certify that l ~ personally came before me this day and acknowledged that s e is Clerk tot a 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 my hand and official seal, this the ~~ day ofC uxli , 199. My commission expires: l~ -/ ~ ~ 9~ NORTH CAROLINA ORANGE COUNTY tary Public ....,~-................,~..,.,~.....~rr.... OFFICIAL SEAL Nohry Pubtle • North Carolln• ORANGE COUNTY EVELYN M. CECIL My Commission Expires ...~.,:......~..,..r..,.......~,..~..~•.,..., I, ~o°~ /~ ~ ~C~-/' , a Notary Public for said County and State, do hereby certify that ~~~~ ~ ~`~'~~ ,personally appeared before me this day and acknowledged the due execution of the foregoing instrument. 9 Witness my hand and official seal, this the 1 day of , 199. ~:~ My commission expires: 1 U `/_3 ~ I cl Nota Public ~,,,.s..r.. ~.-.....«..,,-.,.. ,Y.r.~olaw+......F.a.... ,~'`~..~- OFPICIAL SEAL ~~ idalsty Phrbllo -Norm Caroline .. - C71~+4NgE COUNTY 4 EV~LYN M. CECIL My Cornmissi®n ~plras