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HomeMy WebLinkAboutAgenda - 03-19-1996 - IX-A i 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. I X- A ACTION AGENDA ITEM ABSTRACT Meeting Date: March 19, 1996 SUBJECT: LEASE APPROVAL; 503 WEST FRANKLIN STREET DEPARTMENT: MANAGER, ECONOMIC DEVELOPMENT Public Hearing: No AND PURCHASING Budget Amendment Require: Yes ATTACHMENT(S): INFORMATION CONTACT: I. Proposed Programming Plan Albert Kittrell ext 2300; Pam Jones, ext. 2650 or II. Lease Ted Abernathy, ext. 2325 TELEPHONE NUMBER- Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To receive information regarding programming for the proposed Skill Development Center, and to consider a lease for the building at 503 West Franklin Street in which to house the Center. At the February 20, 1996 Commissioners meeting, the Board requested information regarding proposed programming for the Skill Development Center. Attachment I provides a description of the programs, number of staff by agency, projected number of clients and funding contributions. The Department of Social Services (DSS), Durham Technical Community College (DTCC), Joint Orange Chatham Community Action Agency(JOCCA), Orange Literacy Council and Employment Security Commission (ESC)will occupy the building with an array of skill development programs. Co-located in the building will be DSS - Work First, DTCC - curriculum programs and specific programs designed for Orange County residents, JOCCA- JTPA programs, Literacy Council - Small group and one-to-one program, and a selected number of ESC programs will be offered. Four(4)DSS staff will work with 250 families during the first phase of Work First and with the 750 families on AFDC as the program progresses. DTCC will initially have three (3) individuals working at the Center, faculty members and other College staff will rotate on an as needed basis to teach classes and meet with the anticipated 500 students that will enroll the first academic year. JOCCA will require three (3) staff to work with the 500 projected clients per year. Literacy Council will have two (2) staff and numerous volunteer tutors that will see 100 clients annually. ESC currently serves 5,000 clients per year with (6)to (8) staff members. Although not finalized,ESC can staff the Center with(1)to (7) staff members depending on the available space at the Center. 2 All agencies, except DTCC, can contribute to the funding of the building through lease amounts, federal reimbursements and grants. DTCC can use state funds to hire instructors and provide instructional support. In addition, funding from two grant initiatives can contribute to the Skill Development Center. (1) The Private Industry Council (PIC) has received a $25,000 planning grant from the State Commission on Workforce Preparedness to develop an implementation grant proposal for a one-stop employment information center. The implementation grant will be submitted to the State in the Fall 1996 with grant award in January 1997. The PIC anticipates requesting $120,000 for the three county service delivery area of Orange, Alamance and Randolph. Two(2)Orange County Schools with the assistance of the County submitted on February 19, 1996 to the State Commission on Workforce Preparedness a county-wide Job Ready School-To-Work grant. Grant award is scheduled for early April 1996 and the amount requested for the County is $150,000. Funds will be used to develop a comprehensive program that will include academics, vocational education, employability training, life- coping skills, and other activities directed toward students and youth. A final lease, which incorporates the comments made by the Board during their February 6, 1996 meeting has been prepared and negotiated with the Landlord for the above mentioned property. The two primary modifications from the lease presented on February 5 include additional language to ensure that the Landlord maintains the property in a manner satisfactory to the County and the addition of a section which addresses the County's option to purchase the property. As a reminder, the lease terms negotiated are as follows: Amount of square footage included in lease: 13,232 Lease rate: $7.50/s.f. (includes all taxes) Total lease annual lease obligation: $993240 Term of lease: 5 years; 5 year renewals Escalation term: CPI Utilities: County responsibility Cleaning: County responsibility Maintenance: County provides routine maintenance for walls & ceilings (painting), floor coverings, normal plumbing repairs, minor electrical repairs. Landlord will provide all maintenance to HVAC, roof, exterior of building, sidewalks, parking lot and any other repairs which exceed the ceiling amount established as County responsibility. Upfit: The Landlord has agreed to complete the following work: Construct restrooms; and Replace HVAC equipment. An option to purchase clause has been added to the lease as well. During the February 5, 1996 Board meeting, the Board authorized Staff to pursue other options which might reduce the overall County cost. One such option appears to be outright acquisition of the facility. In order to pursue the negotiation of an offer to purchase the property, we request at the end of the regular meeting that the Board hold these discussions in closed session. RECOMNIIENDATION: The Manager recommends that the Board receive the Proposed Programming Plans as information and adjourn to closed session at the end of the regular meeting for the purposes of providing direction regarding the County's negotiating position with respect to the price and other terms of contract to acquire the property. 3 ATTACHMENT I Existing collaborative relationships with Department of Social Services(DSS) - Work First, Durham Technical Community College (DTCC), Joint Orange Chatham Community Action Agency/Job Training Partnership Act (JOCCA/JTPA), Orange County Literacy Council (OCLC), and Employment Security Commission(ESC)already strengthens the County's ability to serve citizens. The Skill Development Center will provide for co-location of these programs while improving the relationship among agencies and promoting simpler and immediate access to services for clients. I. Proposed Programs in Skill Development Center A. DSS Work First which represents North Carolina's welfare reform initiative, is an employment and training program designed to enable Aid to Families with Dependent Children (AFDC) recipients to become self-sufficient and self-supporting. The program revamps the welfare system by emphasizing full-time employment (paid or unpaid) within a designated time period or short-term training for at least 30 hours per week. The program strives to improve the employability of AFDC recipients through training enhancement of job seeking and keeping skills and the provision of supportive services such as child care. The success of the Work First program is contingent on coordination and collaboration with numerous agencies and employers. B. DTCC Human Resources Development - DTCC personnel will work with the Orange County Department of Social Services, the Inter-Faith Council, JTPA and other human services agencies to identify students who will benefit from this federally-funded program for the chronically unemployed. Each HRD class will be designed to meet the specific needs of the population to be served; therefore, the length of the classes will vary between 40 and 80 hours. Computer Classes-A series of short-and long-term microcomputer classes will be offered in a computer lab. In addition to the eleven week college credit course, Introduction to Mcrocomputers,the college will offer short-term, non-credit classes in Windows, Microsoft Works, Microsoft Word, Excel, Pagemaker, Computer Aided Drafting, and others as the need arises. Classes will be offered both during the day and evening hours. Nursing Assistant I-A non-credit certificate program for nursing assistants will be offered. The Nursing Assistant I course prepares students to perform basic nursing. skills under professional supervision. Between 100 and 120 hours of instruction are required for the certificate. 4 Small Business Seminars-DTCC's Small Business Center will offer seminars and courses on small business topics, including taxes, management, marketing and business planning. These offerings will be presented during both day and evening hours. Other College Credit Classes - An array of other classes from DTCC's 34 curriculum programs will be offered to meet the needs and demands of the citizens. Classes will include accounting,business administration, early childhood associate, office technologies, college transfer, architectural drafting, fire protection, general education, and other programs. Continuing Education and Community Service Classes - DTCC personnel will meet with community leaders and business owners to identify and develop specific programs of instruction to meet the unique needs of Orange County businesses. Classes may be offered at the business location, at the Skill Development Center, or both to ensure Orange County citizens are trained to work in Orange County businesses. C. JOCCA/(JTPA) Individual Classes/Curriculum - To obtain certificate, degree or diploma in areas of interest, ability and aptitude. To prepare groups of individuals for employer specified positions. Work Experience - To provide opportunity to obtain skills and knowledge needed to perform a job. Basic Skills GEDIESIJABE-Classes designed to improve basic skills in reading, math and writing. Human Resource Development - Provide classes to develop pre-employment and self- esteem and motivational skills. Job Search - Assistance to clients to find suitable employment. Recruitment, Assessment, Intake and Referral - Develop advertisement material and disseminate. Determine program eligibility, assess needs, skills and abilities and refer to appropriate program. Community Based Alternatives - To provide meaningful work experience, counseling, human resource development, and basic skill instruction to at-risk and court involved youth. 5 D. OCLC One-to-one program, trained OCLC tutors use a variety of methods and materials to tailor instruction to the individual student's long and short-term goals. Job-related goals may include completing forms, using computers, improving communication skills, and basic math or spelling, among many others. Small group classes will be offered to groups of 3 to 10 students and will also be learner- centered and based on the goals of the group. As community needs dictate, classes may be offered on specific topics or more general classes covering a variety of job- and home- related skills. E. ESC Job Listings - Database lists openings with both public and private sector employers. Listings include local vacancies, vacancies in other locations throughout the State, as well as listings in other states for those clients who are willing to relocate. Career Information - Clients can access valuable information about careers, vocational preparation, and job seeking skills. Much of this information is compiled by the Department of Labor. Some of the information is automated and available for self-directed searches. Other information is printed or in video form. Job Seeking/Job Retention Skills Workshops - Through workshops of varying durations clients can receive group exposure to these skills. The program includes videos, printed materials and handbooks, practice sessions, etc. Career Counseling-In group and individual sessions clients can receive counseling to assist them in making a vocational choice, making a vocational change, or in making the necessary adjustments to the world of work. Specialized Placement - Specialists will be available to provide individual assistance to certain applicant groups including veterans, older workers, youth, and the disabled. Testing-ESC will offer aptitude and interest measurements, as well as testing instruments such as an automated typing test, spelling test, etc. r 6 II. Advantages of Skill Development Center • an opportunity to move from a program driven to a customer driven system of service delivery • ability to offer a comprehensive menu of services to citizens • flexibility in type or depth of service (self-directed or intensive) • services can be customized to meet customer need (no single flow chart of service) • a resource for citizens that offer labor market information, training and case management • case managers that are available to assist citizens with decision making and focus on career planning • the development of a integrated service delivery system • the center allows for and encourages employer involvement • an avenue for job development and job matching which benefits citizens and employers • services designed to meet the needs of the changing workplace • a permanent location with telephone access for Orange County citizens who may want to drop in or call to discuss how they can take advantage of the quality, and affordable education and training available through North Carolina's system of community colleges • an opportunity to offer day classes and programs of study that require dedicated space because of laboratory activities required • a location with easy access because of its proximity to public transportation and parking • a location close to potential students who can benefit from the education and training opportunities • an opportunity to work with other agencies to devise ways to leverage funding and programming to provide Orange County citizens the kind of support they need to seek education and training and eventually better their standard of living • a headquarters for all DTCC Orange County offerings so instructors and students will have easier access to support services such as duplicating, telephone messages, courier delivery, admissions, registration, counseling, etc. 7 III. Projected Staff and Number of Clients A. DSS Staff. 4 Everyone receiving AFDC is required to participate in the Work First Program. The first phase of the program will target parents of school age children. There are approximately 750 AFDC families and 250 are in the first phase of Work First. B. DTCC Staff. 3 permanent instructors rotating It is anticipated that approximately 500 individuals will enroll in DTCC classes offered at the Center during the first academic year. C. JOCCA/JTPA Staff. 3 The projected number of clients annually is 500. D. OCLC Staff. 2 OCLC serves approximately 150-175 clients annually. This number includes several other programs as well as clients served through our Hillsborough office. It is estimated that OCLC could serve 75-100 clients through the two programs proposed for the facilities on Franklin Street. E. ESC Staff. 1 to 7 ESC currently serves approximately 5,000 clients per year with 6 to 8 staff members at any given time. All staff assigned to the Center can expect to serve a pro-rated share of clients. f 8 IV. Funding Contributing by Agency A. DSS County can claim the percentage of the total cost for the space occupied by these four staff as part of its indirect cost plan. B. DTCC State money will be used by DTCC to hire instructors and support instruction offered at the Center. C. JOCCA/JTPA Staff resources and computers. D. OCLC OCLC currently pay $625 per month in rent, for an annual total of$6,900. E. ESC ESC should be able to pay for the space occupied by their agency. Their contributions will have to be negotiated. ' ATTACHMENT II 9 STATE OF NORTH CAROLINA COUNTY OF ORANGE LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into as of the 20th day of February, 1996, by and between DEVISEES OF ORVILLE B. CAMPBELL, hereinafter referred to as "Landlord, " and COUNTY OF ORANGE, NORTH CAROLINA, hereinafter referred to as "Tenant. " WITNESSBTH: THAT FOR and in consideration of the mutual covenants and conditions hereinafter set forth, the parties hereto do hereby agree as follows: 1. Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord for the term and upon the terms and conditions hereinafter set forth, the premises designated as 503 West Franklin Street, Chapel Hill, Orange County, North Carolina, as more particularly shown on EXHIBIT A-1 and A-2 appended hereto including the parking area adjacent to the building located on the premises which parking area is also shown on Exhibit , together with the right to use all driveways, sidewalks, roads, alleys and means of ingress and egress to the premises, insofar as Landlord has the power to lease or license the use thereof (all hereinafter referred to as "the Premises") . The portion of the buildinq leased that is located on the Premises contains approximately 13,232 square feet. 2. Acceptance of Premises. Landlord shall make the improvements, additions and modifications to the Premises that are specified in Exhibit Tenant accepts the Premises in its 1 10 , t present condition, as improved, added to and modified as specified in Exhibit Landlord warrants to Tenant that the heating and air conditioning systems are in good operating condition; the exterior walls and roof, the lighting system (excluding such additions as may be required for Tenant's particular business operation) and the driveways, parking area and sidewalks are in good repair on the date of commencement of the Lease term. Landlord warrants to Tenant that Landlord holds unencumbered fee simple title to the Premises. 3. Term. The term of this lease shall be five (5) years, commencing on March 1, 1996 ( "Commencement Date") , and terminating on February 28, 2001, unless sooner terminated as herein provided. Tenant shall have an option to renew this lease for one additional term of five (5) years. Tenant 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 (90) days prior to the end of said term. Tenant's right of renewal during the lease term shall be exercised only by Tenant and may not be exercised by any transferee, sublessee or assignee of Tenant. 4. Rent. Tenant agrees to pay to Landlord at the office of Landlord or at such other place designated by Landlord, the guaranteed rent of $8,270 per month payable on or before the first day of each calendar month commencing with the Commencement Date ( "Initial Rental Rate") . 2 11 .t... • tw ''.{vt::it4nn 'ivi.w"tnx : i4Y:. i{{p� ..• ..:.'dCG ..'.� ?t,•. \'{�:+i4G.f': tK ... µ' •.. '.'...�' .. �X•''-:,. I' '7'iu..; :.•.�.•• ;::{n}..txw:• •}}f.}•nvx;}t:}}v{.•:;.uw .v. i}: :+i{.�.:.:;:: •• 't• •. NO ..M1: 'q;.w.:m!{{.:. ..'•:!i+!!{!.:•Yr:!•}CN:nwt.t.{i 'Y :•{ny:{r.{.. {ry.•:{.Y{•r}:i:•.}:•::?Hw+i+• .v'i:{.. Y-..... +9e .... i .:: .. h*]9i l..: "+++,'A:M6:Mr>YK2tiA}Y.•....+�Y. . ..:................:„ t,..•}:-..:.... .:♦ •:•iv:; .•_....• y: WIN 'h•.;.{... •n}..................:'. J, .Yi...Y. .... •:::.:.:. SY9.n<Sid+4r"ri+O•�RS•'{:5w':tG•l.S::iwF.:: •N'.'-.v..'`".':•.•n':.v` '”tx`:,..t..:.,..•:....,..::o}r.:.n•}:.•n-::5;:.: :••}:w:ti {x nxe+ •..... w?:ii.:::.;•:.;•.:r:::� ::->:cu;.....ii,:}.. E:,.; Effect € on the first day of each lease year after the first lease year ( "Adjustment Date" ) , the guaranteed 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 States Bureau of Labor Statistic (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 rent. Anything herein to the contrary notwithstanding, in the event that the adjustment would reduce the monthly rent from the monthly rent in effect for the preceding lease year, no such adjustment shall be made and the rent then in effect shall continue through the next Adjustment Date. 3 12 5. Quiet Enjoyment. Upon payment by Tenant of the rents herein provided and upon the observance and performance of all the covenants, terms and conditions on Tenant's part to be observed and performed, Tenant shall peaceably and quietly hold and enjoy the Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject nevertheless, to the terms and conditions of this Lease. 6. Right of Entry. Landlord shall have the right to enter upon the Premises at all reasonable times during the term of this Lease for the purposes of inspection, maintenance, repair and at mutually agreeable times for the purpose of alteration and to show the same to prospective tenants or purchasers. Any Ouch entry shall require at least 24 hours prior notice in person or by telephone or facsimile, except in the event of an emergency, whereupon no notice shall be required. 7 . Use of Premises; Tenant's Warranty of Non-Disturbance. Tenant shall use the premises for a Skill Development Center Training Center, general offices or other governmental purpose. Tenant shall not use or permit the premises to be used for any other purpose or purposes except with the prior written consent of Landlord. Tenant covenants and agrees that it shall be responsible for controlling the noise level emanating from its use of the Premises in such a way that other occupants of the building of which the Premises is a part shall not be 4 13 unreasonably disturbed. Tenant shall be responsible for the cost of any noise suppressing devices which may be necessary for noise mitigation. 8. Assignment and Sublease. Tenant agrees not to encumber or assign this lease or sublease all or any part of the Premises without the written consent of Landlord, which consent shall not be unreasonably withheld. Any such assignment shall not relieve Tenant from any obligations hereunder for the payment of rent or the performance of any other condition or provision of this lease. Landlord acknowledges and agrees that Tenant intends to develop a Skill Development Center on the Premises and that said - Skill Development Center may involve the use of the Premises by government and non-profit agencies other than Tenant. Landlord agrees that the use of the Premises by these agencies as part of the Skill Development Center shall not be considered a sublease for the purpose of this Lease no matter the form of any contractual or other agreement between Tenant and these agencies. And, Landlord expressly consents to the use of the Premises by Tenant and these agencies for the Skill Development Center purpose. 9. Repair and Maintenance. as Tenant repair and maintenance. Tenant agrees to keep the 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 5 -- t 14 1 excepting ordinary wear and tear. Such repair responsibilities of Tenant shall includes the walls and ceiling (including painting thereof) ; repairs and normal plumbing maintenance (including stoppage but not including repair to water, drainage or sewer lines outside of the building located on the Premises) ; normal minor electrical maintenance; maintenance of floor coverings. Tenant shall, during the term of this Lease and any renewal or extension hereof, at its sole expense, cause the Premises to be kept clean and in a manner satisfactory to the Landlord. b. Landlord's repairs and maintenance. Landlord agrees to keep, ... ....r y;}:::.•:^?y v4:M•W'•:'ii:A`'-0OLiYrbC rY• }•;r•:4:+v'.:..' .iry:•:•i}:i:i RZ.".X.:Jj•:-0:it ••4:v .M}... ;..:...:v.�..:>' >•.:,:::,r:�.f :::::`>:<... .A . ..: . .:.�: ..�', the roof, exterior walls, foundations, gutters and downspouts, party wall repairs made necessary by damage to a party wall or walls caused by the use, misuse or negligence of other of the tenants of Landlord, sidewalks, driveways and other parking area access ways, supply pipes for gas (if any) , 'and water drainage and sewer pipes (excluding stoppage) , repairs of air conditioning and heating systems and plumbing and electrical repairs not the responsibility of Tenant. Landlord shall promptly make any repair that is its responsibility upon receipt of written notice from Tenant to do so. Provided, however, Landlord shall not be responsible for repairs occasioned by the negligent or intentional acts of Tenant, Tenant's employees, agents, 6 15 1 contractors or business invitees, all of which shall be repaired at the sole cost and expense of Tenant. 10. Improvements/Alterations. No substantial alteration, addition or improvement to the Premises shall be made by Tenant without the written consent of Landlord. Any alteration, addition or improvement made by Tenant and any fixtures permanently installed by Tenant shall, at Landlord's option, become the property of Landlord upon expiration of or other sooner termination of this lease; provided, however, Landlord has the option to require Tenant to remove any such fixture at Tenant's cost upon such termination. 11. Utilities. Tenant shall pay all charges for gas, electricity, light and power used, rendered or supplied upon or in connection with the Premises. Landlord shall pay all charges for the supply of water to the Premises. 12. Signs. Landlord shall place and maintain in and about the Premises at appropriately designated places, such neat and appropriate signs advertising Tenant as such. Any special Tenant sign may be placed and maintained by Tenant at its sole cost but shall be in the same styling. Provided, however, Landlord shall not unreasonably withhold approval of such signs as Tenant may select. upon the termination of this lease Tenant shall remove all signs and repair any damage to the Premises caused by erection, maintenance or removal of such signs. 13. Insurance of Premises, Fixtures and Contents. Landlord shall provide Fire and Bxtended' Coverage insurance on the 7 16 ' Premises. Contents will be insured by Tenant or the non-Tenant agency to which contents belong. Tenant shall also insure any improvements and betterments made by it to the Premises to the insurable value thereof. 14 . Liability Insurance. Tenant shall maintain insurance, at it's sole expenses, against claims for personal injury or property damage under a policy of public liability insurance, with limits of no less than $1,000,000 for bodily injury and $100,000 for property damage. Such policy or policies will name Landlord as additional insured under the policy and a certificate verifying coverage shall be issued to Landlord within 10 days of execution of this lease. The certificate of coverage shall indicate that the policy will not be cancelled without a minimum of 30 days prior written notice to Landlord. Tenant may, with the approval of Landlord, which approval shall not be unreasonably withheld, satisfy this liability insurance requirement through "self insurance" or "pooled insurance" or some combination of self insurance, pooled insurance and commercial insurance as determined by Tenant to be in Tenant's best interest. 15. Indemnity. Tenant will, to the extent permitted by law and to tho extent provided through insurance, indemnify Landlord and save it harmless from and against any and all claims, actions, damages, liability and expense in connection with loss of life, personal injury and/or damage to property arising from or out of any occurrence in, upon or at the Premises, or the 8 1 17 occupancy or use by Tenant of the Premises or any part thereof, or occasioned wholly or in part by any act or omission of Tenant, its agents, contractors, employees, servants, lessees or concessionaires. In case Landlord shall, without fault on its part, be made a party to any litigation commenced by or against Tenant, then Tenant shall, to the extent permitted by law and to the extent provided through insurance, protect and hold Landlord harmless and shall pay all costs, expenses and reasonable attorney's fees incurred or paid by Landlord in connection with such litigation. 16. Damage to Premises. In the event the Premises are hereafter damaged or destroyed or rendered partially untenable for their permitted uses by fire or other casualty insured under the coverage which Landlord carries, and Landlord's architect certifies that the extent of such damage or destruction is less than 20% of the replacement value of the premises immediately prior to the occurrence of such damage or destruction, then Landlord shall promptly repair said Premises and restore the same substantially to the condition in which they were immediately prior to the happening of such casualty (excluding wall coverings and drapes) . Notwithstanding any such casualty, until the Premises are so repaired and restored, rental payments shall not abate and the full rental reserved herein shall be due and payable. Anything contained herein to the contrary notwithstanding, in the event that the Premises shall be damaged or destroyed and Landlord's architect shall certify that the 9 1 18 I extent of such damage or destruction is 20% or more of the replacement value thereof immediately prior to the occurrence of such damage or destruction, Landlord shall have the option to terminate this Lease by giving notice in writing any time within ninety (90) days after the occurrence of such casualty. Unless this Lease is terminated by Landlord, Landlord shall repair and restore of the Premises, including heating, ventilation and air conditioning, and Tenant shall repair, refixture and restock the interior of the Premises, all in a manner and to a condition equal to that existing prior to the destruction or casualty. After such damage and destruction, and during any repair or restoration period in which the Premises are not available, in whole or in part, for occupancy by Tenant, rental hereunder shall abate proportionately. 17 . Holding Over. If Tenant remains in possession of the Premises after the expiration of the term of this Lease with the Landlord's acquiescence and without any written agreement of the parties, such possession shall be as a month-to-month tenant. During such month-to-month tenancy, rent shall be payable at the same rate as that in effect during the last month of the term immediately preceding, and the provisions of this lease shall be applicable. 18. Surrender of Premises. Tenant shall return the Premises to Landlord in their condition on the Commencement Date, alterations, improvements, additions and ordinary wear and tear excepted. Tenant shall remove all its property from the Premises 10 1 19 no later than Noon on the day upon which this Lease terminates, whether upon notice or by holdover or otherwise. Landlord shall have the same rights to enforce this covenants by ejectment and for damages or otherwise as for the breach of any other condition or covenant of this Lease. Tenant may at any time prior to or upon the termination of this Lease or any renewal or extension thereof remove from the Premises all materials, equipment, and property of every sort or nature installed by Tenant, provided that such property is removed without substantial injury to the Premises. No injury shall be considered substantial if it is promptly corrected by restoration to the condition prior to the installation of such property. Any such property not removed shall become the property of Landlord. 19. Assignment of Interest in Rents. Landlord shall have the right, without selling its fee interest in the Premises or assigning its interest in this Lease, to assign from time to time the whole of the net rent at any time payable hereunder to persons, firms, corporations, trusts or other entities designated by Landlord in a written notice to Tenant, and in any such case Tenant shall pay the net rent, subject to the terms of this Lease, to the Landlord's designee as directed by Landlord for the period covered by such assignment. 20. Subordination. Tenant 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 Premises or of the real property upon 11 1 20 f which the Premises is located and to and for all mortgages or deeds of trust which may now or hereafter affect such leases or the Premises or the real property upon which the Premises is located and to and for all renewals, modifications, consolidations, replacements and extension thereof. This clause shall be self-operative and no further instrument shall be necessary to effect such subordination. However, Tenant 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. In the event the Premises or the real property upon which the Premises is located or a leasehold interest in the Premises or the real property upon which the Premises 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, Tenant agrees to execute an attornment agreement with such purchaser not in conflict herewith at the request of such purchaser. 21. Condemnation. If the whole of the Premises, or such portion thereof as will make the Premises unsuitable for the purposes herein leased, is condemned for any public use or purpose by any legally constituted authority, then in either of such events this Lease shall cease from the time when possession is taken by such public authority and rent shall be accounted for between Landlord and Tenant as of the date of the surrender of 12 1 21 t possession. Such termination shall be without prejudice to the rights of either Landlord or Tenant to recover compensation from the condemning authority for any loss or damage caused by such condemnation. Neither Landlord nor Tenant shall have any rights in or to any award made to the other by the condemning authority. 22v—Right–e€ glost Re€esa! Laadlevd beeeby ygents te Weeast–a--919M e€ fkest *ague&! te–pumehase–the Peemises,--wish must be e*eeeksedy 4:9 &:b &146, in the sapRer heveinaiter set fat as. &TIChe event t=sat the-z-a-m-d-le-ed reeelyes a 1-de-6figer te-Pevehase the Premises on poise, teses and eenditleas--wh#eh it F111kay te aseept, 4A shall YL-ve peempt written Reties of sash assay to Tenant sepy eg sush eggs*, pesvided that Landlewd may delete the name ef with the :be� theveed in %he event that WeaarA 9&4:19 :be 13 • z<. k u $a 'J -->aat s �af..' 8 pS6 :x: E• =Rw a ,os,�s: UAMA ,>5ia 5. 3 ix } jrr +4 + 2 'i '95'" :. v Arznc. . ...' s + -cila. . x. '�" t �.. _.. .":.. } ,N,S a, _ ;..,y 'yl as 2 h .;$•2 :,L �.5.'PuS�e' r +Yri.i S:C.a.� X+:.✓ a %M ,j•-y.'S.dJ:. .$'.. : 'l' rxw r o. ara :g s t K'°.oocfw;a Y > , ..>. �. 1, .,n4.v, n°•mz a.�b{.:C2:: `..ocr..{x::{9�oN,' o>.a x. .y,x,•, ao ,oc •x, G nP k \' x. Y � XT -:_ aW,k'•�a mg .,x:zl P kBNL qa�.AN in x OEM "Al ZZ t .a.'C'^)a+•... .Y'?.,.�. :w,.:g:, a z';^i' ::�{.+ci. .;:...cT+ ;'. ., ::.A°AY:. .� ..,.:.:r'. 5 "-9 ,2. �.a}-: ;..,;.:. ;:.0 tM D:b _p .2•.$Y{ �"a'i 42 A4g7:K :.•$ �istvx'.ACY!S?'9$'..ti.'lcY •{.;J''.:>. W v wT ., 6. P ..-,:'::..,n :.• ,.:. .. 2 a :.< 9 of 2t'i2 '� S` k a ap y% 'c<y.'W ya T - %<S .�2��' '�i° •'�Y x> �f+4 .. .. 1 24 . ;.;:w 23. Notices. For the purposes of notice or demand, the respective parties shall be served by certified or registered mail, return receipt requested, addressed to Tenant or Landlord at their respective office address, as set forth herein. To Tenant: County of Orange Director of Purchasing and Central Services Post Office Boa 8181 Hillsborough, NC 27278 To Landlord: Devisees of Orville B. Campbell C/o Stephen J. Manton, agent ESX Dissociates Post Office Boa 4523 Chapel Hill, NC 27515 24. Entire Agreement; Waiver of Landlord's Rights Only by Written Instrument. This Lease contains the entire agreement between the parties hereto, and no promises, agreements, conditions or stipulations not contained herein shall be binding 16 t 25 upon either party hereto. No failure by the Landlord to insist upon the strict performance of any item or condition of this Lease or to exercise any right or remedy available on a breach thereof, and no acceptance of full or partial rent during the continuance of any such breach shall constitute a waiver of any breach or of any such term or condition. No term or condition of this Lease required to be performed by Tenant, and no breach thereof, shall be waived, altered or modified, except by a written instrument executed by Landlord. No waiver of any breach shall affect or alter any term or condition in this Lease, and each such term or condition shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. IN TESTIMONY WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. LANDLORD: DEVISEES OF ORVILLE B. CAMPBELL BY: (SEAL) Stephen J. Manton, Agent TENANT: ORANGE COUNTY, NORTH CAROLINA BY: (SEAL) Moses Carey, Jr. , Chair to the Board of Commissioners ATTEST: Beverly A. Blythe, Clerk Orange County Board of Commissioners 17 . 26 STATE OF NORTH CAROLINA COUNTY OF ORANGE I, , a Notary Public, do hereby certify that Stephen J. Manton, Agent, personally appeared before me this day and acknowledged the due execution of the foregoing Lease Agreement on behalf of the Devisees of Orville B. Campbell. WITNESS my hand and official seal, this the day of 1996 . Notary Public My commission expires: STATE OF NORTH CAROLINA COUNTY OF ORANGE I, a Notary Public, 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 Moses Carey, Jr. , Chair, sealed with its official seal, and attested by herself as its Clerk. WITNESS my hand and official seal, this the day of 1996. Notary Public My commission expires: lag-3 503wfran.lea 18