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HomeMy WebLinkAboutAgenda - 10-21-1997 - 9h 1 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. 4-6 ACTION AGENDA ITEM ABSTRACT Meeting Date: October 21, 1997 SUBJECT: Lease renewal; Sawyer Building DEPARTMENT: PURCHASING AND Public Hearing: No CENTRAL SERVICES Budget Amendment Reqd? No ATTACHMENT(S): INFORMATION CONTACT: PAM JONES, ext. 2650 Notice of Renewal Memorandum of Lease Telephone Number- Lease Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider renewing the lease for the Sawyer Building, 110 N. Churton, Hillsborough. BACKGROUND: The County has leased a building at 110 N. Churton Street since December, 1987. Although several County offices have been located in this building over the past ten years, the Child Support Enforcement office is the sole tenant at this time. Terms for the 1997 renewal were negotiated as the County was preparing to renew the lease in December, 1992 and are summarized as follows: • The renewal term will be December 1, 1997 through November 30, 2002. • The annual rent will be $40,548 over the life of the renewal period (5 years). • This equates to approximately $12.25 per square foot. • The County provides utilities and interior maintenance. • The County provides janitorial services. • The Landlord provides maintenance to all exterior items, including, but not limited to the roof. During the past five years, the Landlord made significant upgrades to the handicapped access to the building. • Six parking spaces are provided for exclusive use by the County. County funds needed to support this lease are approximately $13,500, since the Child Support function receives reimbursement of approximately 67% of rental expense. RECOMMENDATION: The Manager recommends that the Board approve the renewal and authorize the Chair to sign the Notice of Renewal and the Memorandum of Lease, which will be recorded with the Register of Deeds. � • Prepared by and Return to: Geoffrey E. Gledhill, Esquire, P.O. Drawer 1529, Hillsborough, NC 27278 NOTICE OF RENEWAL Orange County hereby provides notice to Seisin-in-Law of its renewal of a lease of the property known as the "Sawyer Building" and more particularly described in the deed recorded at Book 449, Page 149 of the Orange County Registry for a five year term commencing December 1, 1997 as provided in paragraph number 2 of the lease between Orange County and Seisin-in-Law dated November 2, 1992 . ORANGZ COUNTY William Crowther, Chair ATTEST: [OFFICIAL SEAL] Beverly A. Blythe, Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally came before me this day and acknowledged that sheds Clerk to the Board of Commissioners for Orange County and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by the Chairman of said Board of Commissioners and attested by her as Clerk to said Board of Commissioners. Witness my hand and official stamp or seal, this the day of 19 Notary Public My commission expires: [notary seal] 3 Prepared by and Return to: Geoffrey E. Gledhill, Esquire, P.O. Drawer 1529, Hillsborough, NC 27278 MEMORANDUM OF LEASE Seisin-in-Law, a North Carolina General Partnership, whose address is Post Office Drawer 1529, Hillsborough, North Carolina, hereby leases to Orange County, North Carolina, Post Office Box 8181, Hillsborough, North Carolina, for a term beginning the 1st day of December, 1997 and continuing for a maximum period of five years, pursuant to the notice, a copy of which is Exhibit A hereto, for the following property: Sawyer Building: - The property conveyed to Seisin-in-Law in the deed recorded at Book 449, Page 149 of the Orange County Registry. The provisions set forth in a written lease agreement between the parties dated November 2, 1992 are hereby incorporated into this memorandum. SBISIN-IN-LAN A North Carolina general partnership By: General Partner ORANGR COUNTY William Crowther, Chair ATTEST: [OFFICIAL SEAL] Beverly A. Blythe, Clerk to the Board of Commissioners a NORTH CAROLINA ORANGE COUNTY I, a Notary Public of said State and County, do hereby certify that a general partner in Seisin-in- Law, personally appeared before me this day and acknowledged the due execution of the foregoing Memorandum of Lease. Witness my hand and official stamp or seal, this the day of 19 Notary Public My commission expires: [notary seal] NORTH CAROLINA ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify. that Beverly A. Blythe personally came before me this day and acknowledged that she is Clerk to the Board of Commissioners for Orange County and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by the Chairman of said Board of Commissioners and attested by her as Clerk to said Board of Commissioners. Witness my hand and official stamp or seal, this the day of 19 Notary Public My commission expires: [notary seall lsg-10 seisloc.not NORTH CAROLINA LEASE ORANGE COUNTY This contract of lease made and entered into this 2nd day of November, 1992, by and between Orange County, North Carolina, hereinafter called "County, " and Seisin-in-Law, a North Carolina General Partnership, having its principal place of business in Orange County, North Carolina, hereinafter called "Landlord. " W I T N E E H E T H: Landlord hereby leases to County and County hereby leases from Landlord, the following described property: Sawyer Building: the property conveyed to the Landlord in the deed recorded at- Book 449, Page 149 of the Orange County Registry; and Collins Buildings the entire second floor together with ( 1) two (2) parking spaces associated with the Collins Building and located behind and east of the Collins Building and (2) the stairway and entranceway located on the north side of the property which property is described in the deed to B. Kenneth Collins and wife, Doris S. Collins, recorded at Book 316, Page 634 of the Orange County Registry. To have and to hold the lease premises together with all privileges: and appurtenances thereunto belonging, to County subject to the terms- and conditions hereinafter set forth: 1. This lease shall become effective and possession of the leased premises surrendered to County commencing on December 1, 1992 and unless sooner terminated as herein provided shall exist 6 and continue for a term of five (5) years. Provided, however, County has the right to terminate this lease during the lease term with respect to so much of the leased premises as is described herein as the "Collins Building" by giving Landlord notice of its intent to do so no less than six (6) months prior to the date County elects to terminate this lease as to the Collins Building. County shall have an option to renew this lease with respect to so much of the leased premises as is described herein as the "Sawyer Building" for additional terms of five (5) years. 2. Rent during the original five (5) year term shall be Forty-Seven Thousand One Hundred Thirteen Dollars ($47, 113) per year, payable in monthly installments of Three Thousand Nine Hundred Twenty-Six and 8/100 Dollars ($3,926.08) , each monthly installment payable on the first day of each month during the term of this lease and payable on the first day of each month during any renewal term of this lease. In the event County exercises its option to terminate this lease during the lease term as to the Collins Building, the annual rental shall be partially abated accordingly and, for the remainder of the lease term after the date of termination of this lease as to the Collins Building, shall be payable in monthly installments in the amount of Three Thousand Forty-Six and 8/100 Dollars ($3,046.08) . In the event County exercises its option to renew this lease as to the Sawyer Building, the annual rent during the first five (5) year renewal term shall be Forty Thousand Five Hundred Forty-Eight Dollars ($40,548) , payable in monthly installments on the first day of each month t during the first renewal term of this lease in the amount of Three Thousand Three Hundred Seventy-Nine Dollars ($3,379) . At the time County gives notice of its intent to renew after the first renewal term, the parties shall negotiate the monthly rental for the new term. County shall give Landlord notice of its intent to renew this lease during the last year of the term or any renewal thereof but in no event shall such notice be given later than ninety days from the end of said term. 3. Notices: For the purpose of notice or demand, the respective parties shall be served by certified or registered mail, return receipt requested, addressed to County or Landlord at their respective office address, as set forth herein: To County: Orange County Department of Purchasing and Central Services Post Office Box 8181 Hillsborough, NC 27278 To Landlord: Seisin-in-Law Post Office Drawer 1529 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. 4. Covenant of Title: 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 Landlord shall fail or it shall be discovered that Landlord's title does not permit Landlord to grant the term hereby S t demised, County's remedy, which shall be exclusive of all other remedies, shall be: 1. ) annul and void this lease; and 2. ) Landlord shall indemnify and hold County harmless against any claims for rents resulting from any title claim. 5. Subordination: County 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 mortgages 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, County shall execute promptly and deliver to Landlord any such certificate or certificates in writing as Landlord 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 County hereby constitutes and appoints Landlord as County's attorney-in-fact coupled with an interest to execute any such certificate, certificates or assignment on, County's behalf in default of such execution by County. In the event the Building or the real property upon which the Building is located or a leasehold interest in the Building or the real property upon which the Building is located is sold J 9 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, County agrees to execute an attornment agreement with such purchaser not in conflict herewith at the request of such purchaser. 6. Assignment and Sublease: County agrees not to encumber or assign this lease or sublease all or any part of the Leased Premises without, the written consent of Landlord, which consent shall not be unreasonably withheld. Such assignment shall in no way relieve County from any obligations hereunder for the payment of rents or the performance of the conditions and provisions of this lease. 7. Quite Enjoyment: Landlord agrees that 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. 8. Right of Entry: County agrees that Landlord or his designee shall have the right to enter the Leased Premises during normal business hours or any other time with consent of County. 9. Insurances Landlord shall provide Fire and Extended coverage insurance to the Leased Premises. Contents will be insured by 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 to r 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 Landlord and County with such insurance funds; and in the event such funds are not adequate, then the deficiency shall be made up by Landlord as to the premises as leased. 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 Landlord and County mutually agree to have the premises restored, during which restoration period County shall be excused from the rental payment. In the event of partial destruction of the Leased Premises, rendering them unsuitable for 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 County of the rental amount proportionate to the portion of the floor area of the Leased Premises rendered unsuitable for County's business. 10. Indemnitys 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 County, Landlord against and from any and all claims by or on behalf of any person, firm or corporations 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 County or an employee, agent, visitor, assign or undertenant of 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 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 County. 11. Repair and Maintenances a. ) County repairs and Maintenances County agrees to keep the leased premises in good condition and repair, excepting repairs which are the responsibility of Landlord or which are made necessary by reason of fire and other unavoidable casualties covered by Landlord's fire and extended coverage insurance, and excepting reasonable _ wear and tear. Within such repair responsibilities of County shall be included: the walls and ceiling (including the painting thereof) ; repairs, maintenance of heating and air conditioning systems (cost not to exceed $2000 per year) ; normal plumbing maintenance (including stoppage but does not include repair to water, drainage or sewer lines) ; normal minor electrical maintenance (cost not to exceed $500 per occurrence) ; maintenance of floor coverings. b. ) Landlord's Repairs and Maintenances Landlord agrees to keep, repair and maintain the exterior of the building (including the roof exterior walls, foundations, gutters and downspouts) , sidewalks,, parking area, supply pipes for gas (if any) and water, drainage and sewer pipes (excluding stoppage) , repairs of air conditioning and heating systems, plumbing and electrical above limits stipulated in County Repair and Maintenance. If any portion c tat of the Leased Premises which is the responsibility of Landlord shall at any time be in need of repairs, Landlord will promptly repair same upon receipt of written notice from County to do so, except that Landlord shall not be obligated to make or pay for any repairs rendered necessary by the fault, act or negligence of County, or any of its agents, employees or business invitees. 12. Alterations Any alterations, additions, improvements or partitions permitted herein shall be made at the expense of County. County agrees that County will make no alterations, additions or improvements to the Leased Premises without the written consent of Landlord, such consent not to be unreasonably withheld. All alterations, additions.- , or improvements made by and for County, including but not limited to, any and all subdividing partitions, walls, special plumbing, electrical fixtures or railings of whatever type, material or height, but excepting moveable office furniture put in at County's expense shall, when made, be the property of 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. 13. Services: County agrees to furnish the Leased Premises with electrical service suitable for the intended use as general office spacer including fluorescent tube and ballast replacements, heating and-air conditioning for the comfortable use and occupancy of the leased premises, janitorial and trash removal from Leased Premises and to pay all charges for utilities including i l3 electricity, water, gas, telephone and associated deposits and connection fees. 14. Signs: 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, County agrees to submit plans to Landlord for approval, which approval shall not be unreasonably withheld. All signs erected by County shall comply with all the requirements of public authorities having jurisdiction with respect thereto. County further agrees to maintain the designation of the Sawyer Building and will throughout the life of this lease keep permanently displayed and in its current location on the exterior of the building, the sign reading "Sawyer Building". 15. Parking: It is understood and agreed that contained within the Leased Premises are six (6) parking spaces associated with the Sawyer Building and two (2) spaces associated with the Collins Building. It is further understood that County shall, for the life of this lease, maintain rights to utilize the designated parking spaces to the rear of the Leased Premises which are associated with the respective buildings. 16. 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. Seisin In Law A General Partnership Byz General Vktner Orange County Attest: Beverly Blyth Moses Carey, Jr. Clerk t6 the Board Chair, -Board of Commfer rs This instrument has been preaudited in the ma equi red by the Local Government Budget and Fiscal Control Act. ,?.' —AV b�- 7 Finance Officer of Orange County