HomeMy WebLinkAbout1998 NS Lease Agreement - Lease Renewal - Space Reallocation for Court Offices at Carr Mill Mall and Moody Building 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No.
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 611998
SUBJECT: Lease renewal at Carr Mill Mall; space reallocation for court offices at Carr
Mill Mali and Moody Building
DEPARTMENT: PURCHASING AND Public Hearing: No
CENTRAL SERVICES Budget Amendment Re d? No
ATTACHMENTS): INFORMATION CONTACT:
PAM JONES, ext. 2550
Carr Mill Lease and renewal
Revised floor plan at Carr Mill Mall Telephone Number-
Proposed leased area for State at Moody Bldg. Hillsborough 732-8181
Chapel Hill 957-9251
Mebane 227-2931
Durham 588-7331
PURPOSE: To consider renewing the lease at Carr Mill Mall; and to consider re-
allocation of approximately 2,709 square feet of space to the Public Defender's office.
BACKGROUND: The County anticipated non-renewing this lease upon completion of
the Southern Human Services Center (SHSC). However, construction funds were
insufficient to build the dental clinic at the SHSC. In addition, the Chapel Hill/Carrboro
based court offices have grown in numbers which make it necessary to add space for
their function.
Following is a brief statement of historical background and a proposal which will
hopefully ease the overcrowded conditions which impinge upon the Court's ability to
function in their present location.
Inception of the Carr Mill lease
The County has leased space at Carr Mill Mall for the Health Department clinics since
March, 1979. In September, 1979 the County received grant funds from the Robert
Wood Johnson Foundation to operate a primary care dental clinic. An additional 1,444
square feet was leased for this purpose. The total amount of square footage leased at
this location is 5,580.
Dental Clinic space requirements
On March 16, 1998, the Health clinic was relocated to the recently completed Southern
Human Services Center on Homestead Road. The Board may recall that upon
completion of the Southern Human Services Center, it was anticipated that the leased
space at Carr Mill Mall would not longer be needed. The Board will further recall
however, that insufficient construction funds precluded the construction of the Dental
space at the new facility, thereby necessitating that the Clinic maintain it's current
location.
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Program growth and the inability to share space with the relocated Health clinics makes
it necessary to allocate additional space to the Dental function. Dr. Gene Sandler,
attending dentist, and County staff, in consultation with professionals who set up dental
clinics explored the functional space requirements for the clinic. This action reflected
the need for approximately 2,900 square feet for use by the Dental clinic.
Renewal terms
The Landlord has expressed a willingness to renew the lease for the total space (5,580
square feet) for $85,252, which represents an approximate 3% increase over the 1997
figure (CPI increases thereafter). The cost allocation for the Dental clinic portion of the
lease is approximately $44,335.
The lease includes all cleaning, maintenance, utilities and parking. In addition,
improvements to the property will be made including paint, re-carpeting as well as minor
modifications required by the Health Department's move to SHSC.
Court office space needs
It is further proposed that the County maintain the lease for the entire space included in
the existing lease and reallocate to the Public Defender those areas not used by the
Dental program.
The Board is no doubt cognizant of their statutory requirement to provide space for
Court functions. The July, 1995 Justice Facility Report reflected significant caseload
growth in the court system. The State is responding to the continued caseload growth
by approving new personnel for the court offices. The Facilities Report further indicated
a significant shortage of space in 1995, so with the new positions being approved, the
shortage has become a significant barrier to effective operations.
Three areas of significant impact are the offices of the Public Defender, Probation and
Parole and the Guardian Ad Litem program. Within the past year a total of two (Z) new
positions have been added to the Public Defender's office, with three (3) county
positions added to Probation and Parole. Each of these offices anticipate additional
positions during the next funding cycle.
The Guardian Ad Litem program has also expanded over the past several years, but
has continued to operate out of a single office. This shared office situation, however
limits their ability to see more than one client at a time, which hampers their ability to
keep up with their caseload.
Each of these functions is housed in approximately 4,800 square feet of space, which
the county leases on Laurel Avenue in Carrboro. The building in which these offices
are located (hereinafter referenced as the "Moody Building"), also houses offices for the
Community Services program and one Juvenile Court counselor. Although Housing and
Community Development recently vacated two offices when they moved to the SHSC,
we are still left with the need for no fewer than five (5) additional offices. It is not
possible to meet the space requirements for the Public Defender and the
Probationlparole offices for which the County is responsible within the Moody Building.
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Proposal
As a matter of explanation, space for the regular probation and parole officers (PPG's) is
the responsibility of the County, while housing for the intensive probation officers is the
responsibility of the State. Although different parties meet the Division's space
requirements, their responsibilties and activities are alike. If one explores the function of
the organization (not PPG's vs. intensive teams), it becomes evident that the function
operates more effectively when both sections are housed together.
In keeping with this concept, the Probation and Parole Supervisor of District 15B has
expressed a desire to consolidate the function into one location. Throughout the Justice
Facilities Study Group, the County has expressed an interest in seeing more efficient
operations of the courts. This would appear to be a good example.
In response to the ever-increasing space needs of the court system and to facilitate
greater efficiency in service delivery for the affected court agencies, the following
proposal is offered:
➢ The Public Defender would be relocated to Carr Mill Mali in the space previously
occupied by the Health Clinic;
♦ County cost of modifications requested by the Public Defender to make the
space a law office rather than a health clinic would be approximately $13,000.
This does not include the cost of carpet replacement and painting walls, which is
the responsibility of the Landlord. The necessary funds were included in the
1997-98 general fund allocation for the Courts.
♦ The lease amount for the space used by the Public Defender is anticipated to be
approximately $41,000. This includes all utilities, cleaning and maintenance.
➢ The Guardian Ad Litem program would expand into one additional office in the
Moody Building.
➢ The regular Probation and Parole office (our responsibility) would expand into areas
vacated by the Public Defender and Housing and Community Development in the
Moody Building.
➢ The County would allow the intensive probation team (State responsibility) to locate
in the Moody Building as well. The State will pay rent in an amount of $23,994 per
year for the space. This lease amount would include utilities, cleaning and
maintenance for which the County is responsible under the Moody Building lease. A
floor plan indicating the proposed areas for lease are attached. Renewal terms for
the Moody Building are cited on a separate abstract regarding the lease renewal for
that building.
A lease cost summary is as follows:
➢ Total Carr Mill rent costs (including Dental) $ 881 757
➢ Total Moody Building rent costs 41,040
➢ Total $ 1 271797
➢ Less State lease amount 17,922
➢ Net cost of rent to the County $ 1 09,875
Terms of the Carr Mill renewal as recommended are:
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➢ Five year lease term with one three year renewal;
➢ CPI adjustments used as annual escalators throughout the life of the lease and
renewals;
➢ Landlord will finish minor renovation work in the Dental area, including carpet and
paint wails at Landlord's expense;
➢ Landlord will finish carpet replacement and painting walls in Public Defender area at
Landlord's cost; County will reimburse Landlord approximately $13,000 for
renovation work to be accomplished in this area.
➢ All other terms and conditions remain the same as reflected in the existing lease and
subsequent renewals.
RECOMMENDATION: The Manager recommends that the Board approve the lease
renewal for Carr Mill Mail space as presented; approve the space reallocation plan as
presented; and authorize the chair to sign on behalf of the Board.
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?-0-0 OAK ;
CARR MILL
OFFICE COMPLEX
LEASE
NORTH CAROLINA
ORANGE COUNTY
THIS LEASE AGREEMENT made and entered into as of the 4th day of
October , 19 85 by and between J.W. FRENCH AND PATRICIA ANN
FRENCH, d.b.a. CARR MILL, having its principal office in Charlotte, North
Carolina, hereinafter referred to as the Lessor, and ORANGE COUNTY
HEALTH SERVICES ,
hereinafter referred to as the Lessee, of Orange Count
W I T N E S S E T H :
In consideration of the rents to be paid to the Lessor by the Lessee,
as hereinafter provided, and of the covenants and agreements upon the part
of the Lessor and the Lessee to be kept and performed, the Lessor hereby
demises and leases to the Lessee, and the Lessee leases and takes from the
Lessor the premises measuring 5580 square feet, as shown on the Floor
Plan attached hereto as Exhibit A and by references made a part hereof,
therein called the Leased Premises) located on the 2nd floor of that cer-
tain building known as Carr Mill Building (the Building which Building is
situated at the corner of Weaver and Greensboro Streets in the City of
Carrbaro, Orange County, North Carolina on the property shown as Exhibit S
attached hereto to be occupied and used as health service provider
and for no other purposes; upon the terms and condi-
tions herein set forth, together with the nonexclusive right to use all
coron areas of the building including but not limited to stairways, halls,
elevator*, restroom and parking facilities common areas.
* 1. Term of Lease: The term hereof shall commence on the 1st day
of November , 19 S5 and shall end at 12:00 midnight on the
31st day of October ,: 19 88 . Lessee shall have two options
to extend the term for two years for each option, said options to run conse-
cutively. Lessee shall exercise the first option by written notice to
Lessor given within ninety days of the expiration of the term and the second
option by written notice to Lessor given within ninety days of the expira-
tion of the first option term. -Lessor to have option to relocate Lessee
into comparable space in event Lessee options to renew lease at expiration
of the term.
2. Rental.
A., ��� Lessee shall pay to Lessor the sum of f if ty-f our thousand f our
hundred & 00/100 Dollars ($ 54,405.40 } per annum (hereinafter
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sometimes referred to as the "Annual Base Rent") payable in monthly install-
ments of forty-five hundred-thirty-three & 75/100 Dollars ($ 4,533.79
each due on the first day of each month, in advance, during the term of this
Lease, except that payment for the first such monthly installment shall be
made by Lease* to Lessor simultaneously with the execution of this Lease.
(b) For each lease year of the lease term commencing with the
second lease year, Lessee shall also pay to Lessor as additional rent along
with the Annual Base Rent a sum equal to the decrease, if any, in the pur-
chasing parer of the amount of the Annual Base Rent since the commencement
date of the lease term. The amount of any such decrease, the amount of the
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additional rent and the method of payment thereof shall be calculated and
determined in the manner set forth under the following paragraph.
(c) Within thirty (30) days after the publication and issuance
thereof, the Lessor shall deliver to the Lessee a copy of the Consumer Price
Index (hereinafter referred to as the "Index") for Atlanta, Georgia, for all
items of the Bureau 'of Labor Statistics of the United States Department of
Labor for the first month of the first lease year (hereinafter referred to
as the "Base Month") and for the corresponding month in each lease year
thereafter. If the Index for the first month of the second lease year and
for each corresponding month in each lease year thereafter shows a decrease
in the purchasing power of the amount of the Annual Base Rent as compared,
in each such case, to the Index for the Base Month, the Lessor, as soon as
possible after the delivery of each index subsequent to the Index for the
Base Month, shall furnish the Lessee with its computation of the amount
equal to such decrease, if any, and this amount shall be the amount of the
additional rent payable by the Lessee for the lease- year in question. Such
additional rent shall be divided and paid in twelve (12) equal monthly in-
stallments during each such lease year. Pending the determination of the
additional amount of rent, if any, to be paid by the Lessee; and when the
additional amount of rent has been determined, the Lessee on the first day
of the month immediately following the furnishing by the Lessor to the
Lessee of the computation thereof, shall pay the Lessor the number of in-
stallments that shall have lapsed from the commencement of the lease year in
question up to and including the first day of such month.
(d) If at the time required for the determination of the addi-
tional rent the Index is no longer published or issued,' the parties shall
use such other index as has been generally recognized and accepted for simi-
lar determinations of purchasing power. If the parties are unable to agree
on the selection of an index which would most accurately carry out the in-
tent hereof or if there is a dispute with respect to the computation of addi-
tional rent as herein provided, then the issue with respect thereto shall be
determined by an arbitrator appointed by the Carrboro, North Carolina Board
of Realtors.
(e) In no event shall the total annual rent due during any lease
year hereunder be less than the Annual Base Rent provided hereinabove.
M If any rent owing under this lease is collected by or through
an attorney-at-law, Lessee agrees to pay Lessor as Attorney's fees an amount
equal to twenty percent (20%) of the amount so collected.
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3. [Utilities. Lessor shall supply electric current for the Lighting
fixtures as installed in the leased area, corridors, toilets, and rest rooms
and for electric typewriters, mimeograph machines, adding machines and other
similar electrically powered office machines requiring comparable amounts of
electric power, and shall replace defective lights as needed; provided, how-
ever, the Lessor shall not be responsible for any power failure. Lessor
shall furnish a reasonable amount of hot and cold running water to lavato-
ries and toilets in or appurtenant to the Leased Premises and shall keep all
plumbing in repair. It is specifically agreed that Lessor undertakes to
furnish only a reasonable amount of electric current and water and that
Lessor reserves the right to install meters and to make extra rental charges
for any consumption of electric current or water which it deems to be
greater than normal, excessive or wasteful.
4. g Heatin and_ Air Conditioning. Lessor shall maintain and-operate
the heating and air conditioning systems for all parts of the building, ex-
cept storage space. The heating and air conditioning systems shall be opera-
ted and maintained between the hours of 8:04 A.M. and 6:00 P.M. every day
except Saturday and Sunday; however, if use of the building by Lessee and
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other lessees of the Lessor at other periods so indicates, Lessor shall in
its discretion operate the heating and air conditioning systems during such
other periods. Both heating and air Conditioning systems shall be operated
only when the Lessor, in its sole judgement, considers that the weather
requires it.
5. Elevators. Lessor shall furnish elevators to all floors of the
Building during ordinary business hours and make a reasonable number of ele-
vators available for such persons who may be permitted to enter the Building
at other times. All elevators may at the Lessor's option be self-service,
5. Interruption of Services. The Lessor shall not be or become liable
for damages to Lessee alleged to be caused or occasioned by or in any way
connected with or the result of any interruption, defect or breakdown from
any cause whatever in any of the services herein referred to in Paragraphs
3, 4, and 5 above. However, upon receipt of actual notice of any such inter-
ruption, defect or breakdown, Lessor will take such steps as it in its sole
discretion deems reasonable to restore any such interrupted service or to
remedy any such defect.
7. Alterations. Any alterations, additions, improvements or parti-
tious, excepting those partitions to be furnished by Lessor, permitted here-
in shall be made at the expense of the Lessee. The Lessee agrees that the
Lessee will make no alterations, additions or improvements to the Leased
Premises without the written consent of the Lessor, such consent not to-- be
unreasonably withheld, and that all alterations, additions or improvements
made by and for the Lessee, including but not limited to, any and all subdi-
viding partitions, walls, special plumbing, electrical fixtures or rail-
ings of whatever type, material or height, but excepting movable office fur-
niture put in at the expense of the Lessee, shall, when made, be the pro-
perty of the Lessor and shall remain upon and be surrendered with the Leased
premises as a part thereof at the expiration or earlier termination of this
lease. The Lessor, however, reserves the right to require the Lessee to
remove any paneling, decorations, partitions, walls, railings, floor cover-
ings, booths, plumbing, electrical fixtures or office furniture installed by
or at the request of the Lessee, by giving notice of such election to the
Lessee at any time prior to, or not later than ten days after, the expira-
tion or earlier termination of said term, in which event the Lessee, at the
Lessee's sole cost and expense shall remove the property so specified on or
before the date of expiration or earlier termination of this lease or a date
five days after the giving of such notice, whichever shall be the later, and
shall promptly reimburse the Lessor for the cost of restoring the premises
to their original condition.
S. Right of Ent U. The Lessee agrees that the Lessor shall have the
right to enter and to grant licenses to enter the Leased Premises at any
time (a) to examine the Leased Premises, (b) to make alterations and- repairs
to the Leased Premises or to the Building (including the right, during the
progress of such alterations or repairs, to keep and store within the Leased
Premises all necessary materials, tools and equipment), (c) for any purpose
which the Lessor may deem necessary for the operation and maintenance of the
Building, or (d) to exhibit the Leased Premises to applicants for hire or
prospective purchasers and that no such entry shall render the Lessor liable
to any claim or cause of action for loss of or damage to the business or
property of the Lessee, by reason thereof, nor in any manner affect the obli-
gations and covenants of this lease.
9. Use and Occupancy. Lessee agrees that the Leased Premises Will be
used only for the purposes hereinbefore set out in this lease, that no unlaw-
ful use of the Leased Premises will be made, that no sign, name, legend,
notice or advertisement of any kind will be fined, painted or displayed on
any part of the Building, except that the name and business or profession of
the Lessee may be painted with appropriate lettering approved by the Lessor
on the door or doors to the space le-ased by the Lessee; and upon the
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termination of this ?ease, Lessee will vacate and surrender
p ion
_he Leased Premises to the Lessor in a good condition as the Leas sd o
were at the commenc.sment of this Tease ordinary ear and tear zxeeoed W e tedraises
.
10. Insurance. Tenant's proportionate share of Landlord's cost of fire
and extended coverage insurance, including rental loss insurance on the
Center, shall be determined in the same manner as the additional rental a -
able for impositions. Such amount shall be payable P Y
wi Chia thirty (30) daps after Landlord has rendered yearly in advance
e ed an invoice for the same
=o Tenant.
Lessee shall, at Lessee's expense, obtain and keep in full force during the
term of this lease a Comprehensive Public Liability policy with limits of
$300►000/$300►000 for personal injury or death and $100,000 for property damage.
The Lessor shall be named as an additional insured in this policy. Lessee
shall deliver said policy or a certificate of insurance to Lessor together
with evidence of full payment of premiums. Lessor shall provide full Comprehensive
Public Liability insurance for all common areas of the Building.
To the extent permitted by law and to the extent provided for in insurance
contracts owned by Lessee. Less" shall indemnify and hold harmless Lessor
from- and against any and all claims arising from Lessee'a use of the.premises,
or from the conduct of lessee's business or from any activity, work or things
donee permitted or suffered by Lessee in or about the premises or elsewhere.
(Fire and Casualty Insurance). Lessor shall provide fire and ex-
tended coverage insurance on the Building and the Leased Premises. Lessee
shill provide' at its own cost sprinkler, fire and extended coverage in-
surance on its ovu property, furniture, fixtures and equipment, and on all
plate glass and other glass of the leased premises; and also on improvements
and betterments made by it to the leased premises to the insurable value
thereof. Unless the parties hereto then agree otherwise,, the proceeds col-
lected upon all such policies of insurance shall be used to repair and/or
replace the leased premises, improvements and betterments so damaged or de-
stroyed, and such repairs or replacements shall be prosecuted promptly by
both Lessor and Lessee with such insurance funds; and in the event such
funds are not adequate, then the deficiency shall be made up by Lessor as to
the premu.ses as leased and delivered co Lessee, and by the Lessee as to all
improvements and betterments made by it to the leased premises, provided,
havever, nothing herein shall be construed to require Lessee to repair or
replace the Leased Premises.
In the event of the total destruction of the leased premises by
fire or other casualty, this lease shall terminate as of the date of such
destruction, unless Lessor and Lessee mutually agree to have the premises
restored, during which restoration period Lessee shall be excused from Base
Rental payment.
In the event of partial destruction of the leased premises, render-
ing them unsuitable zor Lessee's business, the parties shall repair and re-
store the leased premises as quickly as practical and during such period of
repair and restoration there shall be an abatement to Lessee of the Base
Rent proportionate to the portion of the floor area of the Leased premises
rendered unsuitable- for Lessee's business.
11. Taxes. Tenant shall pay its proportionate snare of all assessments
or charges thereinafter sometimes called "Impositions") paid or incurred by
Landlord during each calendar year for public betterments or improvements,
ad volorem taxes, real estate taxes, or any other tax or rents or real
estate as such (other than income taxes thereon) from time to time directly
or indirectly assessed or imposed upon the Center and/or the portion of the
Land upoft which it is situated, including all costs and fees paid or incur-
red by Landlord in contesting, or in negotiating with the public authorities
as to the amount of such assessments, charges or taxes or the basis upon
•Mich the same viail be Is sessed. Tananc's pr:000r-ionate share 16 Said -nno-
�.tioas �aai: �e :canuted :v nuit�pi:,_ng _he :ce3i sum 3 Sala :mnosit=oa5
:or =he applicable period ',!)v a action. CRe iume;3=:r �)f which shall a ..`.e
:ti3Ger of 3CLiar ��.r Zer?:..be-Ore 3caced --a '�N __".e 3pDroxi=aca ar?3 7E :~�
t
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Premises and the denominator of which shall be the total square footage on
the shopping center tract. 5580
102,587 5*43928/"e
Tenant's proportionate share of said Impositions shall be paid,
along with monthly installments of minimum rent, in advance in monthly in-
stallments estimated by Landlord and subsequently adjusted, resulting from
the actual Impositions exceeding (or falling short of) estimated payments.
Tenant shall pay initial monthly installments for the calendar year during
which the term hereof begins in the amount of tWenty-six hundred seventy-eight & 40/'�
($-21678,40 per annum) Dollars, the same being based on Land-
lord's estimate of such Impositions at the commencement of the term.
Monthly installments for each subsequent calendar year shall thereafter be
estimated by Landlord at the beginning of each such year on the basis of the
actual Impositions for the preceding calendar year.
Within sixty (60) days of receipt of all the bills for such Imposi-
tions for each such calendar year, Landlord shall deliver to Tenant a state-
ment certifying the actual total amount thereof and the amount of Tenant's
proportionate share thereof. Along with the installment of minimum rent
next due following receipt of each such statement, Tenant shall pay to Land-
, lord such amounts as may be necessary to effect adjustment of the amount
paid or payable for the certified calendar year to the actual amount of
Tenant's proportionate share of such Impositions for such year. Landlord
shall credit any excess payments made by Tenant against future installments
to be paid by Tenant hereunder.
If the term of this Lease shall begin or end on a date other than
the first or last day of a calendar year, the first and/or final annual
charges to Tenant with respect to the aforesaid Impositions shall be pro-
rated on a daily basis on the basis of a three hundred and sixty-five (355)
day calendar year.
The foregoing provisions to the contrary notwithstanding, it is
understood and agreed that any and all assessments or charges for public
betterments or improvements ad valorem real estate taxes or other taxes on
business or personal property or any other tax on real estate or business or
personal property as such from time to time directly or indirectly assessed
or imposed upon or with respect to any alterations, additions or improve-
ments made to the premises by Tenant or under its direction or with respect
to any property of Tenant therein shall be borne and paid entirely by Tenant
and if any of said items or any portion thereof shall be paid by Landlord,
Tenant shall reimburse Landlord for the same immediately upon receipt by
Tenant of written demand therefore from Landlord.
12. Indemnit . The Lessee agrees to indemnify and save harmless the
Lessor and the agents, servants and employees of the Lessor 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
Leased Premises occasioned in whole or in part by any act or omission on the
part of the Lessee or an employee (whether or not acting within the scope of
employment), agent, visitor, assign or undertenant of the Lessee or by
reason of any unlawful use of the Leased Premises or any breach, violation
or nonperformance of any covenant in this lease on the part of the lessee to
be observed or performed, and also for any matter or thing growing out of
the occupancy or use of the Leased Premises by the Lessee or anyone holding
or claiming to hold through or under the Lessee. Lessee agrees to pay for
All damage to the Building as well as all damages &raising out of injury to
or death of other lessees or occupants thereof, caused by Lessee's misuse or
neglect of said Leased Premises, its apparatus or appurtenances. Lessor
shall not be liable to Lessee for any damage by or from any act or negli-
gence of any of adjoining contiguous property. Lessor agrees to indemnify
and save harmless the Lessee and the agents, servants and employees of the
Lessee from and against any and all claims by or on behalf of any person,
firm or corporation arising by reason of injury to person or damage to pro-
perty occurring in the common areas of the Building.
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13. Fit re_or Other Casual t7. In the event the Building in which the
Leased Premises are located is destroyed by fire, unavoidable accident or
casualty, this lease shall thereupon terminate.
In the event the Building in which the Leased Premises are located
is damaged by fire, unavoidable accident or casualty to such an extent that
in Lessor's opinion, the portion of said Building in which the Leased Pre-
mises are specifically located cannot be repaired within ninety (90) days to
its approximate condition existing immediately preceding such fire, unavoid-
able accident or casualty, this lease shall thereupon terminate.
In the event the portion of the Building in which the Leased Pre-
mises are specifically located damaged by fire, unavoidable accident, or
casualty and the same can be repaired within ninety (90) days from the date
of such fire, unavoidable accident or casualty, the parties hereto agree
that said Leased Premises shall be repaired and restored by Lessor to the
approximate condition of said Leased Premises existing before said fire,
unavoidable accident or casualty, and this lease shall remain in full force
and effect; provided, however, that the rent during the period of repair
shall be reduced to an amount which, in Lessor's opinion, bears the same
ratio to the rent provided for herein as the portion of the Leased Premises
then available for use bears to the entire Leased Premises. Upon completion
of such repairs the rent shall thereafter be paid as provided for herein as
the portion of the Leased Premises then available for use bears to the en-
tire Leased Premises. Upon completion of such repairs the rent shall
thereafter be paid as provided in the paragraph above designated RENT,--
14. Default. In the event the Lessee shall fail to pay any rent when
due in accordance with the terms of this lease and such default shall con-
tinue for a period of ten (10) days after written notice delivered to Lessee
at the Leased Premises of such default, the Lessor, without prejudice to any
other rights or remedies that it may have, shall have the right, immediately
or at any time thereafter, to re-enter. the Leased Premises and remove all
persons and property from the Leased Premises. In the event the Lessee
shall neglect to keep or perform any other covenant, agreement or condition
of this lease or shall fail to conform to any of the building rules and regu-
lations now in force or hereafter adopted by the Lessor, the Lessor shall
give written notice of such default to the Lessee; and in the event that
such default is not rectified within ten (ID) days from the date of such
notice, then the Lessor shall have the right to enter the Leased Premises
immediately or at any time thereafter and remove the Lessee therefrom with-
out prejudice to any other remedies of the Lessor. In the event of any such
re-entry, the Lessee hereby,waives all claims for damages which may be
caused by the re-entry of the Lessor and will save the Lessor harmless from
any loss, cost or damages occasioned by Lessor thereby, and no such re-entry
shall be considered or construed to be a forcible entry. Should the Lessor
elect to re-enter the Leased Premises as herein provided, or should it take
possession pursuant to legal proceedings, it may either terminate this lease
or it may, from time to time, without terminating this lease, re,-let the
Premises or any part thereof on Lessee's account for such time or tinges and
at such rental or rentals and upon such other terms and conditions as the
Lessor in its sole discretion may deem advisable, with the right to make
alterations and repairs to the Leased Premises, and the Lessee shall pay the
amount of rent due under this lease to the date of the beginning of payment
of rent pursuant to any such re-letting, together with the cost of such
re-letting including the cost of any alterations and repairs to the Leased
Premises, and Lessee will thereafter pay monthly during the remainder of the
term of this lease the difference, if any, between the rent collected from
such re-letting and the rent reserved in this lease if such rent collected
is less than that reserved in the lease. No such re-entry or taking posses-
sion of the Leased Premises by the Lessor shall be construed as an election
on its part to terminate this lease unless a written notice of such inten-
tion be given to the Lessee. Notwithstanding any such re-letting without
termination, the Lessor may, at any time after the occurrence of any default
set out in this Paragraph No. 14 elect to terminate this lease and may termi-
nate it by giving written notice to that effect to the Lessee.
If the Lessor shall at any time terminate this lease on account of
any default set out in this paragraph, in addition to other remedies it may
have, it may recover from the Lessee all damages that it may suffer by rea-
son of the termination of the lease, including, but not limited to, the cost
of recovering possession of the Leased Premises, and the excess, if any, of
the amount of rent and other amounts to be paid by the Lessee under the
terms of the lease for the remainder of the stated term, over the then rea-
sonable rental value of the premises for the remainder of the stated term.
In addition to the foregoing, if after a default by Lessee an
attorney is employed to enforce the monetary obligations evidenced by this
Agreement or to assist the Lessor in connection with its exercise of any
right, power, privilege or remedy referred to herein, Lessee agrees to pay
promptly all costs incurred by Lessor with respect to collection of enforce-
ment including reasonable attorney's ,fees and court costs..
The Lessee acknowledges that all accounts are due and payable as
required in the lease and a finance charge of 1 112% per month, which is an
annual percentage rate of 18% will be charged by Lessor on all past due
accounts.
15. Constructive Default. (1) If, before or during the term of this
lease, the Lessee shall be adjudged as bankrupt, or if any proceeding_under
the federal bankruptcy laws shall be filed by or against the Lessee, then
such occurrence shall be deemed a breach of this lease and, upon the happen-
ing of such event, this lease, IPSO FACTO. shall terminate, and the Lessee
shall be liable for all damages sustained by the Lessor as provided by law.
(2) If, before or during the term of this lease or any renewal
thereof (a) the Lessee shall make an assignment for the benefit of creditors
or (b) a receiver shall be appointed for the property of the Lessee by order
of a court of competent jurisdiction by reason of the insolvency or alleged
insolvency or otherwise of the Lessee, or (c) any department of the state or
federal government, or any officer thereof authorized by order of court
shall take possession of the business property of the Lessee by reason of
the insolvency or alleged insolvency of the Lessee, or (d) should execution
issue on any judgement and be levied against Lessee's interests in said
Leased Premises under this lease, then, upon the happening of any one or
more of such event, at the option of the Lessor, this lease may be termi-
nated by the Lessor by written notice to that effect to the Lessee, and the
Lessor shall, in addition to any other remedies provided by law in case of
default by the Lessee, be entitled to the damages set out in the last sen-
tence of Paragraph 14 above.
16. As_ signment and Subletting. Lessee shall not sell, assign, pledge
or hypothecate this lease, or sublet the Leased Premises or any part thereof
without the prior written consent of Lessor, which consent shall not be un-
reasonably withheld. Consent by Lessor to one assignment or subletting
shall not destroy or operate as a waiver of the prohibitions contained in
this paragraph as to future assignments or subleases and all such later
assignments or subleases shall be made only with Lessor's proper written
consent. In the event any assignment of the lease or subletting of the
Leased Premises is consented to by the Lessor, Lessee shall remain liable to
Lessor for payment of all rent herein provided for and for the faithful per-
formance of all the covenants and conditions of this lease by any assignee
or sublessees to the same extent as if the lease had not been assigned or
the Leased Premises sublet. If this lease shall be assigned or the premises
sublet by Lessee at a rental that exceeds all rental to be paid to Lessor
hereunder, then and in such event any such excess shall be paid over to
Lessor by Lessee.
17. Condemnation. In the event the whole or any part of the Building
shall be taken by eminent domain or in any manner for public use, the Lessor
may at its option terminate to such Lessee and upon the giving of such writ-
ten notice by Lessor the estate hereby granted and all rights hereunder
shall expire as of the earlier of the date when title to or the right to
possession of the Building or a part thereof shall vest in or be by public
authority as aforesaid and any rent paid for any period beyond said date
shall be repaid to Lessee. Lessee shall not be entitled to any part of any
award or payment which may be paid to Lessor or made for Lessor's benefit in
connection with such public use, and Lessee shall have no claim or rights as
against Lessor for the value or any unexpired term of this lease. It is
provided, however, that the widening of streets abutting the land on which
the Building stands shall not affect this lease, provided that no part of
the Building is so taken and provided that no part of the parking lot is
taken which mould render the remaining parking area insufficient for zoning
purposes.
1S. Subordination. Lessee agrees that this lease is and shall remain
subject and subordinate to and may be assigned as security for any present
and all future ground leases or underlying leases of the Building or of the
real property upon which the Building is located and to and for all mart-
gages or deeds of trust which may now-or hereafter affect such leases or the
Building or the real property upon which the Building is located and to and
for all renewals, modifications, consolidations, replacements and extensions
thereof. This clause shall be self-operative and no further instrument
shall be necessary to effect such subordination, however, Lessee shall exe-
cute promptly and deliver to Lessor any such certificate-or certificates in
writing as Lessor may request evidencing the subordination of this lease to
or the assignment of this lease as additional security for such ground
lease, underlying lease, mortgage or deed of trust and Lessee hereby consti-
tutes and appoints Lessor as Lessee's attorney-in-fact coupled with an in-
terest to execute any such certificate, certificates or assignment on
Lessee's behalf in default of such execution by Lessee. In the event the
Building or the real property upon which the Building is located or a lease-
hold interest in the Building or the real property upon which the Building
is located is sold pursuant to a court order in any foreclosure proceeding
• or is sold pursuant to a power of sale contained in any mortgage or deed of
trust, the Lessee agrees to execute an attornment agreement with such pur-
chaser not in conflict herewith at the request of such purchaser,
19. Notices. Any notice or demand which by any provision of this agree-
ment is required or allowed to be given by either party to the other shall
be deemed to have been sufficiently given for all purposes when made in
writing and sent in the United States mail as certified or registered mail,
postage prepaid and addressed (a) if to Lessee, to the suite number of the
Leased Premises at the Building and (b) if to Lessor, to the office of the
Building Manager at the Building or to such other place as Lessor may from
time to time designate in a notice to Lessee. Lessee hereby appoints as
its agent for service or process in all dispossesso,ry distraint and summary
ejectment proceedings which may be brought against it by Lessor, any person
occupying the Leased Premises, provided that if no person is occupying the
Leased Premises, then Lessee agrees that such service may be made by attach-
sent thereof to the main entrance to the Leased Premises.
ZU. Building Rules and Regulations. The Lessee has read the rules and
regulations hereto attached and made a part hereof and hereby agrees to
abide by and conform to the same and to such further rules and regulations
as the Lessor may from time to time make or adopt for the care, protection
and benefit of the Building or the general comfort and welfare of its occu-
pants. The Lessee further agrees that the Lessor shall have the right to
waive any or all of such rules in the case of any one or more lessees in
the Building without affecting the Lessee's obligations under this lease and
said rules and regulations, provided that any waiver shall not impair
Lessee's quiet enjoyment of the Leased Premises, and that the� Lessor shall
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1
not be responsible for the non-conformance by any other lessee to any of
said rules or regulations.
21. Security and Janitorial Services. The Lessor will provide reason-
able janitorial services as more^particularly described in the Building
Rules and Regulations; provided, however, the Lessor's sole responsibility
for and duty in respect of any such janitorial services shall be that of the
exercise of due care in the selection of any persons or firms which may be
engaged by Lessor for the purpose of actually rendering such janitorial ser-
vices. Lessor will provide adequate security for the Building.
22. Luiet Enjoyment. The Lessor agrees that the Lessee on paying the
stipulated rental and keeping and performing the agreement and covenants
herein contained, shall hold and enjoy the Leased Premises for the term
aforesaid, subject, however, to the terms of this lease.
23. Waiver. The waiver by Lessor of any breach of any covenant or
agreement herein contained shall not be deemed to be a waiver of such cove-
nant or agreement or any subsequent breach of the same or any othercovenant
or agreement herein contained. The subsequent acceptance of rent hereunder
by Lessor shall not be deemed to be a waiver of any preceding breach by
Lessee of any covenant or agreement of this lease other than the failure of
r
the Lessee to pay the particular rental so accepted, reagrdless of lessor's
knowledge of such preceding breach at the time of acceptance of such rent.
24. Possession After Termination. If Lessee shall fail to vacate and
surrender the possession of the Leased Premises at the termination of this
lease, whether by expiration of the term hereof, default or any other basis,
the Lessor shall, in addition to any and all other rights provided herein
and provided by Law and without waiving any such rights or extending the
term of this lease, be entitled to recover from the Lessee as liquidated
damages an amount equal to two times the amount of rental Lessee would have
paid for a period prior to termination equal in time to the period from the
termination of this lease until the date said premises are vacated and sur-
rendered.
2519 Delay in DeliveEX. In the event said Leased Premises, for any
cause whatever, are not delivered to the Lessee or to the Lessee's agent for
the purpose of performing Lessee's improvements thereto at the commencement
of term hereof, the rental shall abate until -said premises are made avaiable
to Lessee, but the term hereof shall not be extended by reason of such delay.
The rental payable for any fractional part of a month shall be prorated. In
the event the Leased Premises are not delivered within thirty (30) days
after the date fixed for the commencement of the term hereof, Lessee #hall
have the right to terminate this lease upon written notice to that effect to
the Lessor at any time thereafter but prior to the time said premises are
made available to Lessee, but in no event shall Lessor be liable to Lessee
for any damages allegedly resulting from any such delay or otherwise.
26. Integration Clause. Any stipulations, representations, promises or
agreements, ,oral or written, made prior to or contemporaneously with this
agreement shall have no legal or equitable consequences, and the only agree-
ment made and binding on the parties is contained herein and it is the com-
plete and total integration of the intent and understanding of Lessor and
Lessee.
27. Lessee has deposited with Lessor the sum of 0 _
as security for the performance by Lessee of the terms of this lease.
Lessor may use any part of the security to satisfy any default of Lessee and
any expenses arising from such default, including but not limited to any
damages or rent deficiency before or after re-entry by Lessor. Lessee
shall, upon demand, deposit with Lessor the full amount so used, in order
tht Lessor shall have the full security deposit on hand at all times during
the term of this lease. In the event of a sale or lease of the building
containing the premises, Lessor may transfer the security to the purchaser
L
I
or Lessee and Lessor shall thereupon be released from all liability for the
return of the security. This provision shall apply to every transfer or
assignment of the security to a new Lessor. Lessee shall have no legal
power to assign or encumber the security herein described.
28. Exculpation. At the commencement of this Lease, Tenant agrees that
it shall look solely to the estate and property of Landlord in the land and
buildings comprising the §bg=iag_c_eUteX of which the demised premises
are a part, for collection of any judgement for other judicial process),
requiring the payment of money by Landlord in the event of any default or
breach by Landlord with respect to any of the terms, covenants and condi-
tions of this Lease to be observed and/or performed by Landlord. No other
property or assets of Landlord shall be subject to levy, execution, or
other procedure for the satisfaction of Tenant's remedies, and there shall
be absolutely no personal liability on the part of any individual members of
Landlord or its successors, whether general partners, limited partners or
otherwise. SEE EXHIBIT F
IN WITNESS WHEREOF, the parties have caused this document to be
executed this the day and year first above written.
LANDLORD
CARR HILL
By .
J:_-w:--French
• PAricia Ann French
ATTEST: TENANT
f
By__
*NOTE: If Lessee is a corporation, Lease must be signed by an authorized
officer of the corporation and attested by a secretary or assistant
secretary of the corporation who must affix the corporate seal.
I
Premises. Repairs, painting, material moving and other similar work
that may be done to the Leased Premises by or for Lessee shall be per-
formed by any workmen employed, designated or approved by the Lessor.
12. The Lessor reserves the right at all times to exclude bootblacks, news-
boys (Loiterers), vendors, solicitors and peddlers From the building,
and to require registration, satisfactory identification and creden-
tials from all persons seeking access to any part of the building, at
times other than during ordinary business hours. The Lessor will exer-
cise its best judgement in the execution of such control but shall not
be held Liable for the granting or refusal of such access.
13. Lessor has right to assign all Lessees and their employees parking
spaces across the street at Roberson and Maple at the parking lot desig-
nated for office personnel, said parking to be supplied by Lessor as a
part of this lease.
EXHIBIT F
LANDLORD'S RIGHT TO MORTGAGE AND SELL
Estoppel Gcrtificate. Within ten (10) days after request therefor
5�• Lanc!Jo-c1, or in tlIr: event [ at upon any sale, assignment or hypothecation
? end/or the land thereunder by Landlord, an offset statement
shall i��' i yr.�.::'n►J from 'Tenant; Tenant agrees to deliver, in recordable farm, a
certi.`icatc to -iny proposed mortgagee or purchaser, or to Landlord certifying
(if suc'n be t-e case) that this Lease is in full force and effect and that there
+�a no defenses or offsets thereto, or stating those cl•eimed by Tenant.
Subordination and Attornment. This Lease is and shall be
subject and s.:'.�nr❑inate zit a Mmes to tie lien of any mortgages in any amount
or, a:r:au^is c�~J/or all or any part of the land or buildings comprising Carr [•till
•.;t�,�;�� and o •ill ground or underlying leases which exist or 1T.3y hereafter be
exccU112 �::`ec:ing such land and buildings, or either thereof, of Which the
nrer-:ses CTe part, or on or against Landlord's interest or estate therein, or
any r.c�:~t of cr interest in any of the foregoing-, or on or against any ground or
undcr`yina Ir Esc (and in all cases including all extensions, renewals, amendments
�nd s::apir~-e-.ts to any ground or underlying lease or mortgage), without the
necessit.1 o` tnc execution and delivery of any further instruments on the part
c: Tena ffectuate such subordination. Tenant covenants and agrees to
c;,:pC�:,s and dcliver upon demand such further instruments evidencing such
su5c- i.n•�Li�1n of this Lease to any such ground or underlying lease and to the
lien of ;!n•f mortgage as may be required by the Landlord. Notwithstanding
anvuhing t -rJ nabove contained, in the event the holder of any such mortgage
or the Landlord under any such ground or underlying lease shall at any time
elect to this Lease constitute d prior or superior lien to its mortgage or
lease, then ::n d in such event upon any such mortgag eholder or Landlord notify-
ing Tenant to that effect, this Lease shall be deemed prior and superior in lien
to such manage or lease, as the case may be. irrespective of whether this
Lease is da-trid prior to or subsequent to the date of such mortgage or lease.
If Landlord enters into one or more concurrent or successive mort-
gages or ground or underlying leases and Tenant is advised in writing of the
nam,! a,nd ar.'r'.:ess of the mortgagee or Landlord under such mortgage or gound
or un o'a rl yi r g lease, as the case may be, then this' Lease shall not be terminated
or c•inceiled on account of any default by the Landlord in the performance of
;;,lop of the tr:rms, covenants or conditions hereof vn its part contained, until
Tenant sha).l have given written notice of such default to such mortgagee or
Landlord, spccifying the default, and such mortgagee or Landlord shall have
the right fc; Thirty (30) days from the date of its receipt of such notice (and
such reasonable additional time as is required to effect the cure with due dili-
gence) to correct such default. ,
Ten•int shall, in the event any proceedings are brought for the
foreclosure of or in the event of exercise of the power of sale under any mort-
made L
gace •.• the Landlord covering the premises, attorn to the purchaser upon
Ln;. such foi eclosure or sale and recognize such purchaser as the Landlord
U.V1Ce&" this I case
Attorney-In-Fact. The Tenant` upon request of any party in
interest, s`��,3ll execute promptJy such instruments or. certificates to carry out
the intent of this section as shall be requested by the Landlord. The Tenant
hereb;r irrc•.•c-ably appoints the Landlord as Attorney-in-Fact for the Tenant
ith full po.-;er and authority to execute and deliver in the name of the Tenant
any sucl•- instruments or certificates. If fifteen (15) days after the date of a .
0r.•ri Lien recL e•s t by Landlord to t xecute such instruments, the Tenant sha:i not
have executed the same, the Landlord may, at its option, cancel this Lease
;Without incurring any liability on account thereof, and the term hereby granted
is ex,pressl}p limited accordingly,
Transfer of Landlord's Interest. Landlord shall have the right
to cvn e;:, trans r.r or assign, by sac or otherwise, all or any part of its
i n tcYelt in o;.is Leese or Carr mill village, including the Premises, at any time
ti=+,r to time and to any person, subject to the terms and conditions of
s L`=•�Se• All covenants and 'obligations of Landlord under this LOAse shall
c"-ase upon t~n execution of such conveyance, transfer or assignment, but such
co`•'e;-�:�~ts �� oblioaLions shall run with the land and shalt be binding upon the
suhs�?vent r•.•:ner(.,) thereof or of this Leese during the periods of their owner-
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STATE OF NORTH CAROLINA
COUNTY OF ORANGE LEASE AGREEMENT RENEWAL
THIS LEASE AGREEMENT RENEWAL made on the 8th day of May, 1998 by and
between CARR MILL MALL LIMITED PARTNERSHIP, a North Carolina Limited
Partnership, 280 N. Greensboro Street., Suite D-11, Carrboro, NC 27510 having its
principal business in Orange County, North Carolina, hereinafter referred to as "Owner"
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 4th day of
October, 1985, a copy of which is attached as Exhibit A, between J.W. and Patricia Ann
French, dlbla Carr Mill Mall and County;
WHEREAS, County and Owner desire to renew the lease agreement and amend it;
NOW THEREFORE, County and Owner mutually agree to the following: --
1. The Exhibit A lease agreement is renewed for a period commencing on
July 1, 1998 and continuing through June 38, 2883;
2. Section 2(a) of Exhibit A shall be modified to read:
County shall pay to the Owner as follows:
Base rent: Monthly Annually
July 1, 1998--June 30, 1999 $7,228.83 $88,758.98
July 1 each year through Rent will increase by the
June 38, 2883 change in the Consumer
Price Index (CPI) using as
the month of July as a basis
for calculation.
Rent is due and payable on the first day of each month, in advance, during the
term of this Lease.
3. improvements which have been agreed to by the Owner and the County and
pursuant to Attachment 1 of this Lease Agreement Renewal shall be
accomplished prior to June 15, 1998.
4. All other terms and conditions of Exhibit A shall remain the same.
1
This the day of , 1998.
Carr Mill Mail Limited Partnership Witness:
By: (Seal) _.,
General Partner
Grange County Attest:
BY nr.r�i nn...n• .n ..� (Seal)
Margaret W. Brown, Chair Beverly A. Blythe, Clerk
Board of County Commissioners Board of County Commissioner
MARYLAND
COUNTY
1 , a Notary Public for said County and State,
do hereby certify that , a general partner in
Carr Mill Mall Limited Partnership, 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 , 1998.
My commission expires: Notary Public
NORTH CAROLINA
ORANGE COUNTY
11 , 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 Margaret W. Brown, Chair, sealed with its official seal, and
attested by herself as its Clerk.
Witness my hand and official seal, this the day of
My commission expires: Notary Public
i
APR 29 '98 L 0.45 AM
FREIGHT
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APR 29 'so i d: 45 Ali
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Description of-Work
Orange C'o uun ty Lease
Carr Mill Mail
I.Demise premises into two separate spaces. One space to be relc
Clinic"" � �� rircd to as""Dental
' 'x and the other described as"'Public I3cfender s Off ice .
a. Add new wall in existing waiting area,,and at rear of space next to restrooms.
b. Remove four doors and frames and close up openings.
c, Move light switch.
d. Add new TO x 6"R""entry door into Dental irom hallway.
2. New vinyl composition talc in I ntaJ rooms as shown on plan.
3. New carpet in remainder of both spaces.
4. Point up walls and paint entire prcrW sees.
5. Demo 110 linear feet of interior walls.
6. Build 90 linear feet of new,walls.
7. Replace 1 500 square feet of ceiling where walls removed.
8- Add three interior doors by reusing existing doors and frames.
9. Remove three interior doors and frames and close openings its public Defender's
Office.
10. Fur out and sheet rack 100 linear feet of brick wall.
Sex attached drawing
The County will pay tO O"Ier the sum of$1 3,000,as reirnburscimcnt for its share of
leasehold changes. This amount will be due within.10 days of completion of the work.
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