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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. 2 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. y 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: 4 ➢ 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. i ?-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 # p 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 f 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. r 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 i 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 i 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 i 9 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. 1 i 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 `t 1� 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- .J. i>J L•I��r�JI . ' r r1■•■ M 40 to A • � � Yr iYl • ■ T■ ■r•T • � * � +- f ..�. ems■ • -%swr r •� / '0 ryM r►Ka woo q seem" memo �M '�r »�.�....�-«�.. w.w��.�...-mow.� �•-r. r.w�.�.w.� �w� .�rwr ..r.rw�r i * s -4M-ft-4*-40-01--ft•40 40�0+-M= f'I18-w -49-410--40-- a��.�• »Y i-' � • ■ w + r r„•....�.��ww�w�+rra.�*rr.^r�..�-.w�,ar��! • ■ • � ti R / • • • • . +s� � ■ w • / M �• R � • � CAI .w w_ r _M r r w.■,r r�� w 7• MALL �y.►�y.r.y`�..�r�..'•..w,•.r w.w�f �.. �• y 1 .. Mi•.■M :�. 26 oilma I 4r L T 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 ELEVATOR SrQRAdE UTILITY STDPAC4 DENTAL tea. EXAM 5 LAB i } EQU I PM Elk T i- I, EXAM t T*l t X-RAYS a -p aF'6RATORY-2 EXAM E xAM 3 -.�... .c- ! OPERATORY-t OPERArORY-3 EXAN 7 _ EXAM 2 CHEST y X-RAY BREAD C� OFFICE 13 1�}OM �. � D�i`ICE �� Room CONTROLS �[alirl i . T FPIA TI EH T HOLOINO OFFICE 12 TOII�T-i ' 7MLET - OL C CL NURSE. OF E 10 • - AL EXAM OFFI F.-I I TORA GE Si�AGE WAI NO RO \ \ OFFICI' 2`� OFFIC 3 OFF1 IL \,O FFI!C 1 d 1 +�•R 1 - t - Y �. - � OFF[cE 5 0 E 6 WPfCE T PHONE TO I LEA TOIL T Roc le EOUIPM -A -3 APR 29 'so i d: 45 Ali w 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. y 7 ec. # g .. i g _ � --.. N,i� ti . F (Eqo%fk"t*4-T Lac..i c.ot A& I 'ST I pmm AP%-C-A A 19 SFA c r K'%J T V�E'GO LAR - - k NOW �E:A�E— �; .. ,� 4�A-Sc--- 5��cr C F lip 4L - t&A ki 0 y a. V-A . fro OA arLo. uv�R E R PIP yj N)C- Ko LO 00.K. A K UA opl/a Q Now LFA4f., 10A C-E S PACE MAO _ - DPFP AA97A r �1)c4 Fnif,4 Lb m CL)Vwl- CJ CoL)Aiq"wLj 2 NOPI 1 SCAV- Fff r kA L6 Wo"Al b" .�N �-_.-tom.�I�SMMV��I M.•a+_��w-'��rl�+�w�. ��_-_'���.�_�� -aa..�a Gr•�_.r i.a��.w++►_��IYY�/•wv.���e i�r--�a.��-v+.�. �_-+..--�_rr.--.FM^/.�- �'Y4^•�.� • • ! � �.. o u�