Loading...
HomeMy WebLinkAboutAgenda - 12-13-2011 - 5iORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 13, 2011 Action Agenda , Item No. J - I SUBJECT: Lease Approval: '1914 New Hope Church Road to Orange County Board of Education DEPARTMENT: Asset Management Services PUBLIC HEARING: (Y/N) No (AMS), County Attorney ATTACHMENT(S): Lease INFORMATION CONTACT: Pam Jones, AMS, 245-2652 John Roberts, County Attorney, 245-2318 PURPOSE: To consider approving along-term lease with the Orange County Board of Education for County-owned property at 1914 New Hope Church Road. BACKGROUND: On August 23, 2011 the Board of Commissioners authorized staff to negotiate terms of a long-term lease with the Orange County Board of Education (OCBOE) for property at 1914 New Hope Church Road, Chapel Hill. The results of that effort are reflected in the attached lease document. A summary of terms is as follows: • Term: 20 years beginning January 1, 2012 through December 31, 2031 • Rent Value: approximately $85,000 per year, suspended in favor of in-kind contribution to Orange County Schools • Permitted Use: Office space for administrative and support staff • Repair and Maintenance: responsibility of OCBOE • Modifications to building interior or exterior must be approved by County prior to commencement of work • Utilities: responsibility of OCBOE • Insurance: responsibility of OCBOE, with annual Certificate of Insurance reflecting replacement value of structure and appropriate Additional Insured as stipulated by the lease submitted to County • Environmental Impairment of site strictly prohibited • Site reverts to Orange County at termination of lease or should OCBOE deem it no longer appropriate for use. FINANCIAL IMPACT: Primary financial impact to the County would be reflected in the reduced operational costs associated with the maintenance and upkeep of the facility. The facility has not been actively used since 2009. Further budgetary reductions to reflect the reduced inventory will be minimal. RECOMMENDATION(S): The Manager recommends the Board approve the long-term lease with the Orange County Board of Education for County-owned property at 1914 New Hope Church Road; and authorize the Chair to sign on behalf of the Board. 3 NORTH CAROLINA ORANGE COUNTY LEASE This lease agreement dated the 5T" day of December, 2011 by and between Orange County, North Carolina, hereinafter called the 'County" and the Orange County Board of Education, hereinafter called the "OCBOE". WITNESSETH: The County hereby leases to OCBOE and OCBOE hereby leases from the County the following described property, hereinafter called the "Leased Premises". 1. LEASED PREMISES The Leased Premises is defined as the building and real estate owned by the County at 1914 New Hope Church Road, Chapel Hill, North Carolina; more particularly described in the Orange County land records system as PIN number 9872 86 2049. 2. TERM OF LEASE The term shall commence on the first-day of January, 2012 and shall terminate on December 31, 2031; or as otherwise provided in this lease. 3. RENT In partial consideration for its acquisition of rights to use the Leased Premises during the lease term, the OCBOE hereby agrees to pay to the County total rent for the lease term in the amount of $10, payable at the commencement of this lease, receipt of which the County acknowledges. The County and the OCBOE acknowledge their understanding that although the use of the County's property being provided to the OCBOE for use as operational offices represents substantial value to the OCBOE, any payment by the OCBOE of a market value rent would represent simply an accounting transaction, because the OCBOE's funding is primarily provided through the County. 4. USE OF LEASED PREMISES The OCBOE shall use the Leased Premises for the purpose of housing administrative and support staff. The property shall be used for no other purpose without the express written permission of the Orange County Board of Commissioners. 5. REPAIR AND MAINTENANCE OCBOE shall, at its own expense, keep the Leased Premises in good repair and in good operating condition, making from time to time all necessary repairs or replacements as may be needed. OCBOE may at its own expense make additions, modifications or improvements to the Leased Premises, provided none of these actions adversely affect the structural integrity of the building or reduce its value in any manner. OCBOE shall request written permission of changes, modifications and improvements from County prior to commencing such work; permission by County shall not be unreasonably withheld. 6. UTILITIES Utility costs shall be the sole responsibility of OCBOE. 7. SIGNS The OCBOE may provide signage that it deems appropriate to properly direct the students, staff and .public to the services being offered at the Leased Premises. All 4 signs erected by the OCBOE shall comply with all requirements of public authorities having jurisdiction with respect thereto. 8. INSURANCE During the Term, OCBOE shall keep the Leased Premises continuously insured against such risks as are customarily insured by OCBOE for buildings involving similar functions/activities as may be carried out at the Leased Premises, paying as the same become due all premiums in respect thereto. Coverage shall include, but not necessarily be limited to: (1) property insurance to the full insurable value, including any improvements, as determined on July 1 of each year of the Lease Term; (2) comprehensive liability insurance in the amount of at least $1 million primary/$2 million aggregate limit. The OCBOE shall obtain an endorsement to its comprehensive liability insurance policy naming the County, its Board of County Commissioners and employees as additional insureds. The OCBOE shall provide the County with and maintain current a certificate from its insurance carrier confirming the contractual liability endorsement required in this paragraph. The Certificate of Insurance shall indicate coverage cannot be cancelled or modified without a minimum of 30 day notification to County. 9. INDEMNITY To the extent permitted by law, the OCBOE shall and hereby agrees to indemnify and save the County harmless against and from all claims, by or on behalf of any person, firm, company or other legal entity, arising from the operation or management of the Leased Premises during the lease term, including any arising from (a) any condition of the Leased Premises; or (b) any negligent act of the OCBOE or any of its agents, contractors or employees or any violation of law by the OCBOE or breach of any covenant or warranty by the OCBOE under this lease. The OCBOE shall, upon notice from the County, defend or pay the cost of defending the County in any action or proceeding brought in connection with any claims arising out of circumstances described in (a) or (b) above. 10. ENVIRONMENTAL LAWS OCBOE shall comply with, and shall indemnify and hold County harmless from any loss, cost or expense, (including reasonable attorney fees, expert testing, analysis, or witness fees) arising from any actual or claimed failure to comply with the laws, regulations or requirements of any federal, state, or governmental authorities regarding OCBOE's use, storage, transportation, sale of disposition of any hazardous or toxic substances in or about the leased premises, including but not limited to all costs associated with testing, analysis, assessment, removal or abatement of such substances as may be required by such authorities or the County. 11. QUIET ENJOYMENT The County agrees that the OCBOE, upon paying the stipulated rental and keeping and performing the agreement and covenants herein contained, shall hold and enjoy the Leased Premises for the lease term, subject to the terms of this lease. 12. ASSIGNMENT AND SUBLETTING OCBOE shall not assign or sublet leased premises. 5 13. IMPROVEMENTS All additions, alterations, fixtures and improvements shall become the property of County and be surrendered with the premises at the termination of this lease. OCBOE shall have the right to remove or replace moveable fixtures provided OCBOE repairs damages caused by such removal. 14. ACCESS BY COUNTY OCBOE shall have the right to re-key the leased premises pursuant to current keying policies for school facilities. County shall have the right to enter the leased premises at reasonable times and with reasonable notice to inspect conditions of the leased premises as deemed appropriate. OCBOE shall accommodate such requests in a timely manner. 15. TERMINATION Upon mutual consent of both the County and OCBOE, this lease may be terminated by giving no less than 180 day written notice to the other party. 16. 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 OCBOE at their respective office address, as set forth herein: TO COUNTY: Orange County Director of Asset Management Services PO Box 8181 Hillsborough, NC 27278 TO OCBOE: Orange County Board of education Superintendent 200 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. 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 party hereto, 18. MODIFICATIONS This Lease may not be modified, except in writing and signed by authorized representatives of both parties. 19. SURVIVAL The representations, warranties and indemnifications contained herein shall survive the termination or expiration of this Lease. 6 The parties hereto have executed this lease as of the day and year first above written. County of Orange By: Chair-Orange County Commissioners Orange County Board of Education ey: Chair, Orange County Orange County Board of Education Attest: Donna S. Baker, Clerk to the Board STATE OF NORTH CAROLINA COUNTY OF ORANGE Attest: I, , a Notary Public for said County and State, do hereby certify that personally appeared before me this date and acknowledged that he/she is the to the Orange County OCBOE, and that by authority duly given and as the act of the OCBOE, the foregoing instrument was signed in its name by ,Chair, sealed with its official seal, and attested by himself/herself as its Witness my hand and official seal, this the day of , 2011. Notary Public My Commission expires: STATE OF NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Donna S. Baker 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 ,Chair, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of , 2011. Notary Public My Commission Expires: