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HomeMy WebLinkAboutAgenda - 04-01-1997 - 9e J 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ACTION AGENDA ITEM ABSTRACT Meeting Date: April 1, 1997 SUBJECT: LEASE APPROVAL; 112 N. CHURTON STREET, HILLSBOROUGH DEPARTMENT: PURCHASING AND Public Hearing: No CENTRAL SERVICES Budget Amendment Reqd? No ATTACHMENT(S): INFORMATION CONTACT: PAM JONES, ext. 2650 draft lease Telephone Number- Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider approving a lease for space at 112 N. Churton Street, Hillsborough. BACKGROUND: During their March 5, 1997 meeting, Commissioners received information regarding space needs as cited by the Courts as well as information about property available for lease at 112 N. Churton Street, previously the Hillsborough Savings Bank. It was proposed that the County lease the building for use by the Clerk of Court for the Estates and the Child Support Enforcement Divisions. The lease has been successfully negotiated with Hillsborough Savings Bank and the highlights are listed below: • Square footage: 3,336 • Square foot lease rate: $15; • Annual lease amount: $50,040 ($12,510 April 1 through June 30,97) • Term of lease: three (3) years; with one (1) three (3) year renewal • Escalation by CPI annually, with first escalation to begin July 1, 1998; • County provides utilities and janitorial services; • 15 parking spaces are included with the lease; • The County has chosen to continue to use some of the security equipment which is installed in the building, such as cameras, monitors, burglar alarm/robbery alarm. The County will maintain the service agreements for this equipment at an estimated $1,200 per year. • All building maintenance by Hillsborough Savings Bank; Includes First Right of Refusal, which preserves the County's options in the event the owners opt to sell the facility. • Includes a clause which allows Hillsborough Savings Bank to use a portion of the facility for a period not to exceed 14 calendar days in the event that a disaster totally devastates their facility. To remain in compliance with their mandated Disaster 2 t Recovery Plan, they must be able to cite where they would serve customers in the event their facility was rendered totally unusable. The 14 day period allows them to seek other suitable temporary space until such time their facility can be brought back on line fully. Tyson Clayton, President of the Hillsborough Savings Bank, indicates that they would operate only a skeleton operation, requiring one or two spaces for tellers. Joan Terry, Clerk of Court, has approved this agreement. RECOMMENDATION: The Manager recommends that the Board approve the substance of the lease for 112 N. Churton Street, Hillsborough and authorize the Chair to sign, contingent upon Attorney and staff review. l 3 NORTH CAROLINA LEASE ORANGE COUNTY This lease agreement, made and entered into this, the 1st day of April, 1997, by and between the County of Orange, hereinafter called the County, and Hillsborough Savings Bank, Inc. hereinafter called the Landlord. WITNESSETH: 1. PREMISES: Landlord hereby leases to the County and the County hereby leases from the Landlord, for the term and upon the terms and conditions hereinafter set forth, the premises located at 112 North Churton Street, Hillsborough, North Carolina containing approximately 3,336 square feet, hereinafter referred to as the Premises. 2. TERM: The term shall commence on the 2nd day of April, 1997 and shall end on the 30th day of June, 2000, on the terms and conditions set forth herein. The first year of the lease term shall be considered as April 1, 1997 through June 30, 1998. County shall have an option to renew this lease for one (1) additional term of three years each under the same terms and conditions thereof, except that the minimum rent during the option period shall be negotiated at the time of renewal. The option to renew must be exercised by the County on or before 90 days prior to the expiration of the then existing term. 3. USE AND POSSESSION: It is understood that the Leased Premises are to be occupied by the Orange County Departments or organizations and agencies to which the County provides financial or in-kind support for general office purposes. The County at the expiration of the term, shall deliver up the Leased Premises in good repair and condition, damages beyond the control of the County, reasonable use, ordinary decay, wear and tear excepted. 4. GUARANTEED MINIMUM RENT: The County agrees to pay to the Landlord at the office of the Landlord or at such other place designated by the Landlord, the guaranteed rental of $4,170 per month payable on or before the 1 st day of each calendar month commencing with the Commencement Date . Effective on the first day of each Lease Year after the first Lease Year("Adjustment Date"), the Guaranteed Minimum Rent shall be increased by the amount determined by multiplying the Initial rental rate by that percentage which represents any cost of living increase between the Commencement Date and the Adjustment Date. Such percentage shall be determined by utilizing the applicable indices determined by the United State Bureau of labor Statistics (or its successor organization) through its Consumer Price Index entitled "United States City Average-All items-All Urban Consumers Index". Such adjustment shall be made effective as of the Adjustment Date, as soon as possible after the index for the applicable month is published, with any deficiency due and payable with the next monthly installment of rental. Anything contained herein to the contrary notwithstanding, in the event that the adjustment would reduce the monthly rental from the monthly rental in effect for the preceding Lease Year, no such adjustment shall be made and the rental then in effect shall continue through the next Adjustment Date. 4 5. NOTICES: For the purpose of notice or demand, the respective parties shall be served by certified or registered mail, return receipt requested, addressed to the County or the Landlord at their respective office address, as set forth herein: To County: Orange County Department of Purchasing and Central Services PO Box 8181 Hillsborough, NC 27278 To Landlord: Hillsborough Savings Bank Attn: Mr. Tyson Clayton 260 S. Churton Street Hillsborough, NC 27278 or at such other address as may hereafter be designated in writing by either party hereto. The time and date on which mail is postmarked shall be the time and date on which such communication is deemed to have been given. 6. COVENANT OF TITLE: The Landlord covenants, represents and warrants that it has full right and power to execute and perform this Lease. If at any time during the term hereby demised the title of the Landlord shall fail or it shall be discovered that the Landlord's title does not permit the Landlord to grant the term hereby demised, the County's remedy, which shall be exclusive of all other remedies, shall be: 1.) annul and void this lease and 2.) the Landlord shall indemnify and hold the County harmless against any claims for rents resulting from title claim. 7. ASSIGNMENT AND SUBLEASE: The County agrees not to encumber or assign this lease or sublease all or any part of the Leased Premises without the written consent of the Landlord, which consent shall not be unreasonably withheld. Such assignment shall in no way relieve the County from any obligations hereunder for the payment of rents or the performance of the conditions and provisions of this lease. 8. QUIET ENJOYMENT: The Landlord agrees that the County upon 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 to the terms of this Lease. 9. RIGHT OF ENTRY: The County agrees that the Landlord or his designee shall have the right to enter the Lease Premises during normal business hours or any other time with consent of County. 10. INSURANCE: The Landlord shall provide Fire and Extended coverage insurance to the Leased Premises. Contents will be insured by the County; County shall also insure any improvements and betterments made by it to the Leased Premises to the insurable value thereof. Unless the parties hereto then agree otherwise, the proceeds collected upon all such policies of insurance shall be used to repair and/or replace the Leased Premises, improvements or betterments so damaged or destroyed, and such repairs or replacements shall be prosecuted promptly by both the Landlord and the County with insurance funds. 5 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 the Landlord and the County mutually agree to have the premises restored, during which restoration period the County shall be excused from the rental payment. In the event of partial destruction of the Leased Premises, rendering them unsuitable for the County's business, the parties shall repair and restore the Leased Premises as quickly as practical and during such period of repair and restoration there shall be an abatement to the County of the rental amount proportionate to the portion of the floor area of the Leased Premises rendered unsuitable for the County's business. 11. INDEMNITY: The County agrees to indemnify and save harmless to the extent permitted by the law and to the extent provided for by policies of insurance maintained by the County, the Landlord 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 County or an employee, agent, visitor, assign or undertenant of the County 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 Landlord 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 County. 12. REPAIR AND MAINTENANCE: County acknowledges that the Leased Premises are being delivered on an "as is, where is"basis, and that the Landlord shall not be required to perform any work of any kind or nature whatsoever to prepare the Premises for Tenant, except to have the Premises cleared of any litter, garbage or items owned by the Landlord not encompassed by this lease. After completion of any modifications made by the County pursuant to Section 12, the Landlord shall be responsible at its own costs for maintenance and repairs of the Leased Premises, provided however, that Landlord shall not be responsible for repairs occasioned by the negligent acts of County, County's employees, agents, contractors or business invitees, all of which shall be repaired at the sole cost and expense of County. 13. ALTERATIONS: Any alterations, additions, improvements or partitions permitted herein shall be made at the expense of the County. The County agrees that the County will make no alterations, additions or improvements to the Leased Premises without the written consent of the Landlord, such consent not to be unreasonably withheld. All alterations, additions or improvements made by and for the County, including but not limited to, any and all subdividing partitions, walls, special plumbing, electrical fixtures of whatever type, material or height, but excepting moveable office furniture put in at the County's expense shall, when made, be the property of the Landlord and shall remain upon and be surrendered with the Leased Premises as a part thereof at the expiration or earlier termination of this lease. 14. UTILITIES: County shall pay for all utility costs serving the Leased Premises. 6 15. SIGNS: The County reserves the right to affix a sign that it deems appropriate to properly direct the public to the offices housed in the Leased Premises. Prior to installation, the County agrees to submit plans to the Landlord for approval, which approval shall not be unreasonably withheld. All signs erected by the County shall comply with the requirements of public authorities having jurisdiction with respect thereto. 16. PARKING: It is understood and agreed that contained within the Leased Premises is fifteen (15) parking spaces. Signs may be erected to properly designate parking for the County. 17. RIGHT OF FIRST REFUSAL.: Landlord agrees that in the event that Landlord chooses to sell the leased premises, Landlord shall immediately notify the County of their intentions and provide ample time for the County to formulate an offer for the premises, should the County choose to do so. Should the County forego the option to negotiate for the purchase of the leased premises County will notify Landlord in writing within 45 days of notice of Landlord's intent to sell. It is understood and agreed that Landlord may then proceed with negotiating with other parties and the County's right of first refusal will be considered null and void. 18. DISASTER RECOVERY PLAN. The County agrees that in the event of disaster which totally destroys the Hillsborough Savings Bank facility at 260 S. Churton Street, Landlord may be open for business in the leased premises for a period not to exceed 14 calendar days, at which time, in accordance with the Hillsborough Savings Bank Disaster Recovery Plan, operations will be moved to an alternative location. It is understood and agreed to that a mutually acceptable area will be designated for Hillsborough Savings Bank operations in the front lobby of the leased premises and to the extent possible, that said operations will not conflict with the daily business being carried out in the County's offices. 19. EQUIPMENT. The County chooses to maintain use of certain security equipment presently installed in the leased premises(Appendix A) and which is pertinent to the County's work which is intended to occur in the Leased Premises. It shall be the responsibility of the County to pay all costs of maintenance contracts for equipment included on Appendix A. 20. ENTIRE AGREEMENT: This lease contains the entire agreement between the parties hereto, and no promises, agreements, conditions or stipulations not contained herein shall be binding upon either party hereto. 7 Hillsborough Savings Bank BY: ATTEST: (Title) Secretary Orange County Attest: BY: William L. Crowther, Chair Board of Commissioners Beverly A. Blythe Clerk to the Board This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act. Kenneth Chavious, County Finance Director 8 3 STATE OF NORTH CAROLINA COUNTY OF ORANGE I, , a Notary Public for said County and State, do hereby certify that , personally appeared before me this day and acknowledged that he/she is of Hillsborough Savings Bank, Inc, a corporation, and that by authority duly given and as the act of the corporation the foregoing instrument was signed in its name by its , sealed with its corporate seal and attested by himself/herself as its Witness my hand and official seal, this the day of 1997. Notary Public My Commission expires: STATE OF NORTH CAROLINA ORANGE COUNTY I, , a Notary Public for said County and State, do hereby certify that Beverly A. Blythe personally appeared before me this date and acknowledged that she is the Clerk to the Board of Commissioners of Orange County, and that by authority duly given and as the act of Orange County, the foregoing instrument was signed in its name by William L. Crowther., Chair, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of 11997. Notary Public My Commission expires: