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HomeMy WebLinkAboutAgenda - 06-02-1997 - 8e � 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. S-e, _ ACTION AGENDA ITEM ABSTRACT Meeting Date: June 2, 1997 SUBJECT: Lease renewal; Dickson House DEPARTMENT: PURCHASING AND Public Hearing: No CENTRAL SERVICES Budget Amendment Reqd? No ATTACHMENT(S): INFORMATION CONTACT: PAM JONES, ext. 2650 Lease Lease Renewal Telephone Number- Rent Analysis Information Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider renewing a lease with the Hillsborough Chamber of Commerce for the Dickson House. BACKGROUND: Since 1993 the County has leased property known as the Dickson House, at the corner of Cameron and King Streets, to the Hillsborough Chamber of Commerce. In 1993 the Chamber also operated the Visitor's Center, however, since 1995, Visitor's Center services have been provided by the Alliance for Historic Hillsborough. Pursuant to the terms of the lease between the County and the Chamber, the Chamber subleased the lower floor of the Dickson House to the Historic Alliance. The Chamber currently maintains their offices in approximately 562 square feet on the upper floor of the Dickson House. Negotiations of the lease renewal focused on two primary areas: 1. Since the Chamber no longer provides the County supported Visitor's Services, their rent assessment has been modified to $8 per square foot, which more accurately reflects the Hillsborough rent market for upstairs space; and 2. The lease acknowledges the contribution made by the Chamber in grounds and building maintenance by providing a rent set-off as cited on the attached analysis. Other lease terms will remain as in year's past, with the new expiration date to be June 30, 1999. The Hillsborough Chamber has reviewed and approved of the terms cited in the lease renewal. RECOMMENDATION: The Manager recommends that the Board approve a lease with the Hillsborough Chamber of Commerce for space located at the Dickson House, at a rate of $8 per square foot of occupied space through June 30, 1999; and authorize the Chair to sign on behalf of the Board. OZ NORTH CAROLINA ORANGE COUNTY LEASE This lease agreement, dated the first day of February, 1993, by and between Orange County, North Carolina, hereinafter called the "County" and the Hillsborough Chamber of Commerce, hereinafter called the "Chamber" . WITNESSETH: 1. PREMISES LZASED The County hereby leases to the Chamber and the Chamber hereby leases from the County the following described property, hereinafter called the "leased premises" . The property described in the deed recorded in Book 388 at page 365 in the Orange County Registry being the same property conveyed to the County from the Preservation Fund of Hillsborough, Inc . by deed recorded in Book at page in the Orange County Registry on , 199_ 2. TERM OF LEASE This lease shall become effective and possession of the leased premises surrendered to the Chamber commencing on March 1, 1993 and unless sooner terminated as herein provided shall exist and continue for a term of two years. The Chamber shall have an option to renew this lease for additional terms of two years upon such terms as are agreed by the Chamber and the County. 3. RENT The Chamber agrees to pay the County rent in the amount of $125 per month; payment due and payable, in advance, on the first 3 day of each and every month. Rent shall be paid to the County at such location as is designated by the County in writing to the Chamber. 4. DSE OF PREMISES The Chamber shall use the leased premises for the purpose of conducting Chamber business and the operation of the Orange County Visitors ' Center ( "the Center" ) . The Chamber may grant subleases to others engaged in work that is complementary to the operation of the Center under the stipulations set forth in paragraph 6 of this lease. 5. NOTICES For the purpose of notice or demand, the respective parties shall be personally delivered or served by certified or registered mail, return receipt requested, addressed to County or Chamber at their respective office address, as set forth herein: TO CODRM: Orange County Director of Purchasing and Central Services PO Box 8181 Hillsborough, NC 27278 TO CHEER: Hillsborough Chamber of Commerce Chamber President 150 East Ring 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. ASSI(NMIIT AND SUBLEASE Chamber shall not assign or sublet any part of the leased premises without the written consent of the County. Provided, however, written consent of the County is not required for any sublease or subleases that do not exceed sixty ( 60) days in duration and are with subtenants whose work is complementary to the operation of the Center. The County however, shall be notified in writing of any such sublease within thirty ( 30) days of commencement of the sublease. Such assignment or sublease shall in no way relieve the Chamber of any obligations hereunder for the payment of rents or the performance of the conditions and provisions of this lease. 7. COVSEAW OF TITLE The County 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 County's title shall fail or it shall be discovered that the County's title does not permit the County to grant the ttrm hereby demised, the Chamber's remedy, which shall be e=lusive of all other remedies shall be: a. Ak=1 and void this lease; and b. Be indemnified by the County against any claims against the Chamber for rents paid by the Chamber to the County under this lease. $. QUIET ENJOYMENT The County agrees that the Chamber, upon paying the stipulated rental and keeping and performing the agreement and covenants herein contained, shall hold and enjoy the leased premises for the lease term, subject to the terms of this lease. 9. RIGHT OF ENTRY The Chamber agrees that the County or its designee shall have the right to enter the leased premises for any lawful purpose during normal business hours or any other time with consent of the Chamber. 10. INSURANCZ PROPERTY DAMAGE: The County shall provide Fire and Extended coverage insurance to the leased premises. Contents shall be insured by the Chamber; the Chamber shall also insure any improvements and betterments made by it to the leased premises to the insurable value thereof. Unless the parties agree otherwise, any 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 and/or replacements shall be prosecuted promptly by both the County and the Chamber with such insurance funds. In the event of total destruction of the Dickson House located on the leased premises by fire or other casualty, this lease shall terminate as of the date of such destruction, unless the County, the Chamber and the Preservation Fund of Hillsborough mutually (o ' agree to in, some manner have the Dickson House restored, during which restoration period the Chamber shall be excused from the rental payment. In the event of partial destruction of the Dickson House which renders it unsuitable for the Chamber's business, the parties shall repair and restore the Dickson House as quickly as practical and during such period of repair and restoration there shall be an abatement to the Chamber of the rental amount proportionate to the portion of the floor area of the Dickson House rendered unsuitable for Chamber business. PUBLIC LIABILITY: The Chamber shall at all times during the term of this lease keep in effect comprehensive liability insurance in the amount of at least $1,000,000 for any occurrence resulting in bodily and personal injury to or the death of one person and consequential damages arising therefrom, and in the amount of at least $1,000,000 for any such occurrence for more than one person. 11. rNDBXMIT? The Chamber agrees to indemnify and save harmless the County 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 propertw4wenrring in the leased premises occasioned in whole or in part by aft act or omission on the part of the Chamber or an employee, agent, visitors, assign or undertenant of the Chamber 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 1 parr of the Chamber 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 Chamber. 12 . REPAIR AND MAINTENANCE COUNTY REPAIRS AND MAINTENANCE: The County agrees to: 1. Keep, repair and maintain the structural integrity of the buildings and maintain the exterior of the building not made necessary by the fault, act or negligence of the Chamber, its agents, sublessees, employees or business invitees. 2 . Maintain the grounds on the leased premises with the exception of the garden known as "Helen's Garden" and any other. garden areas which may be established in the future by the Chamber or at its direction. 3 . Keep, repair and maintain: heat and air conditioning systems in the leased premises, plumbing and electrical maintenance to services (not including routine plumbing and electrical repairs within the buildings) not made necessary by the fault, act or negligence of the Chamber, its agents, sublessees, employees or business invitees. 4 . Respond promptly to notice from the Chamber of needed repairs . CHAMBER REPAIRS AND MAINTENANCE: The Chamber agrees to: 1 . Keep the interior of buildings on the leased premises in good condition and repair, excepting obligations which are the t O responsibility of the County as noted above or which are made necessary by reason of fire and other unavoidable casualties covered by the County's fire and extended coverage insurance, and excepting reasonable wear and tear. Such repair and maintenance responsibility of the Chamber shall include: walls and ceilings (including the painting thereof) ; maintenance of floors, cleaning of all buildings; routine plumbing and electrical repairs within the buildings. 2 . The Chamber shall notify the County by contacting its Public Works Administrative office, of any needed repairs . 13. ADVISORY MI IT ER A committee shall be formed to advise the County and the Chamber on the operation of the visitor's center and on the maintenance of the leased premises . This committee shall consist of one representative from each of the following organizations: The County The Chamber The Hillsborough Preservation Fund The Town of Hillsborough The Alliance for Historic Hillsborough, Inc. Any repair, maintenance or alternation to the leased premises which a4NAWts the appearance of the interior or exterior of the buildin - Or the grounds on the leased premises, must receive approval of the committee prior to the commencement of any work. Repairs to heat and cooling systems, electrical and plumbing J 1 maintenance, cleaning of the buildings, and routine grounds maintenance shall not require prior approval by the committee. 14. ALTERATIONS Any alterations to the leased premises made by the Chamber upon approval of the Advisory Committee shall become property of the County and shall remain upon and be surrendered with the leased premises as a part thereof at the expiration or earlier termination of this lease. 15. DTILITISS The Chamber shall be solely responsible for and promptly pay all charges for heat, water, sewer, gas, electricity or any other utility used or consumed in the leased premises, including associated deposits and connection fees. 16, SINS The Chamber reserves the right to install signage it deems appropriate to properly direct the public to the services offered at the leased premises. Prior to sign installation the Chamber agrees to submit to County for County approval plans for signage, which approval shall not be unreasonably withheld. All signs erected by the Chamber shall comply with all requirements of public authorities having jurisdiction with respect thereto. 17. ENTIM 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. z iv 1 Hillsborough Chamber of Commerce By: Chamber President Attest: Chamber Secretary County of Orange By: Moses Carey, Jr. , Chair Attest: Beverly A. Blythe, Clerk This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act. By= Kenneth Chavious, Finance Director s NORTH CAROLINA COUNTY OF ORANGE LEASE RENEWAL Under the terms of a lease dated February 1, 1993, between the County of Orange and the Hillsborough Chamber of Commerce, pursuant to Section 2 of the attached lease (exhibit A), the Chamber and the County choose to renew lease for the leased premises known as the Dickson House for a period to commence upon signature of lease and continue through June 30, 1999. Section 3, Rent is modified as follows: The Chamber agrees to pay the County rent in the amount of$230, which includes an annual rent set-off of$1700 as acknowledgment for the grounds and building maintenance performed by the Chamber. Rent is due and payable, in advance, on the first day of each and every month and shall be paid to the County at such location asp is designated by the County in writing to the Chamber. All other terms and conditions remain the same. The parties hereto have executed this Lease Renewal as of the date and year first above written. Hillsborough Chamber of Commerce Attest: By: Chamber President Chamber Secretary County of Orange Attest: By: William L. Crowther, Chair Beverly A. Blythe, Clerk to the Board 1997 Chamber of Commerce lease renewal/Dickson House Existing lease Proposed lease Rent payment(annual) $3,200 ! $4,496 Maintenance Set-offs: Grounds $1,200 ! $1,235 Interior $500 $500 Total set-offs $1,700 $1,735 Annual cash rent $1,500 1 $2,761 Monthly $125 $230 Sq.ftg.calculations $6 $8 %increase 41