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HomeMy WebLinkAboutAgenda - 06-26-1995 - VIII-U t i a 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. VI IL ACTION AGENDA ITEM ABSTRACT Meeting Date: June 26, 1995 SUBJECT: LEASE RENEWAL; GRAHAM BUILDING DEPARTMENT: PURCHASING AND CENTRAL SERVICES PUBLIC HEARING:YES: NO:xx ATTACHMENT(S): INFORMATION CONTACT: PAM JONES, ext.2650 Lease Telephone Number- Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider renewing a lease with Hillsborough Savings Bank, Inc. for the Graham Building,118 North Churton Street,Hillsborough. BACKGROUND: In 1991 the County executed a lease with Hillsborough Savings and Loan (now Hillsborough Savings Bank, Inc.) for the Graham Building, in which to locate the Veterans Administration offices and serve as a relief valve for DSS offices,which were severely overcrowded in the Whitted Building. Currently,the building is occupied by the Veteran's Administration offices and the Literacy Council. Highlights of the terms and conditions of this lease include: • Approximately 750 square feet. • Rent amount is$569 per month;$6828 annually(approx.$9.061s.f.); • Lease amount adjusted based on CPI; • Lease term is for three years(through June 30, 1998); • County to provide routine maintenance to facility(floor coverings, lights, plumbing,etc.), not to exceed$1,000 per year; • Landlord to maintain exterior of building and all major repairs and maintenance; • One parking space is assigned to building. RECOMMENDATION: The Manager recommends that the Board approve the lease renewal; and authorize the Chair to sign on behalf of the Board. NORTH CAROLINA LEASE ORANGE COUNTY This lease agreement, dated the 26th day of June, 1995, by and between the County of Orange, hereinafter called the County, and Hillsborough Savings Bank, Inc. hereinafter called the Landlord. Witnesseth: The Landlord hereby leases to the County and the County hereby leases from the Landlord, the following described property, sometimes hereinafter referred to as the Leased Premises to-wit: The Graham Building 118 North Churton Street Hillsborough, North Carolina 1. TERM: The term shall commence on the 1 st day of July, 1995 and shall end on the 30th day of June, 1998, on the terms and conditions set forth herein. 2. 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. 3. 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 $569 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. 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 Graham Building Lease;Page 1 3 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. 5. 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. 6. 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. 7. 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. 8. 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. 9. 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. 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. Graham Building Lease; Page 2 10. 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. 11. REPAIR AND MAINTENANCE: a.) COUNTY REPAIR AND MAINTENANCE: County agrees to keep the Leased Premises in good condition and repair, excepting repairs which are the responsibility of the Landlord or which are made necessary by reason of fire and other unavoidable casualties covered by the Landlord's fire and extended coverage insurance, and excepting reasonable wear and tear. Within such repair responsibilities of the County shall be included: repairs, maintenance of heating and air conditioning systems; normal plumbing maintenance (including stoppage but does not include repair to water, drainage or sewer lines); normal minor electrical maintenance; maintenance of floor or floor coverings. County's cost of such repairs and maintenance not to exceed $1000 per calendar year. It shall be the County's responsibility to paint walls and/or ceilings as necessary prior to occupying the Leased Premises. b.) Landlord'S REPAIR AND MAINTENANCE: The 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 the County Repair and Maintenance. If any portion of the Leased Premises which is the responsibility of the Landlord shall be at any time be in need of repairs, Landlord will promptly repair same upon receipt of written notice from the County to do so, except that the Landlord shall not be obligated to make or pay for any repairs rendered necessary by the fault, act or negligence of the 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 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 pluming, 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. 13. SERVICES: The County agrees to furnish the Leased Premises with electrical service suitable for the intended use as general office space, including fluorescent tube and ballast replacements and light bulb replacements, heating and air conditioning for the comfortable use and occupancy of the Leased Premises,janitorial and trash removal from the Leased Premises, telephone and associated deposits and connection fees. Graham Building Lease;Page 3 5 14. 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. 15. PARKING: It is understood and agreed that contained within the Leased Premises is one (1) parking space. The County will direct employees occupying the Leased Premises to park in the Municipal Parking Lot located next to the Hillsborough Police Department. 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. Hillsborough Savings Bank BY: ATTEST: (Title) Secretary Orange County Attest: BY: Moses Carey, Jr. 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 Graham Building Lease;Page 4 to 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 , 1995. Notary Public My Commission expires: STATE OF NORTH CAROLINA ORANGE COUNTY 1, ,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 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 Notary Public My Commission expires: Graham Building Lease;Page 5