HomeMy WebLinkAbout1998 NS Lease Renewal 501-W Franklin St Suite 105 STATE OF NORTH CAROLINA
COUNTY OF ORANGE LEASE
THIS LEASE, made and entered into as of the 1st day of June, 1997, b and between
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The County of Orange, hereinafter referred to as "County," and Rental Resources of
Durham/Chapel Hill, hereinafter referred to as "Tenant;"
WITNESSETH:
THAT FOR and in consideration of the mutual covenants and conditions
hereinafter set forth, the parties hereto do hereby agree as follows:
1. Premises. County does hereby lease and let unto Tenant and Tenant
does hereby accept as Tenant those certain premises designated as Suite #105 of the
Bentley Building, 501 Franklin Street, Chapel Hill, Orange County, North Carolina, as
more particularly shown on EXHIBIT A appended hereto. In addition to the premises
assigned adjacent to the Bentley Building in common with other tenants of the Building.
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The Bentley Building is a smoke free building and does not permit tobacco use inside of
the building.
2. Acceptance of Premises. The Tenant represents that the lease property,
the sidewalks and structures adjoining the same, any subsurface conditions thereof,
and the present uses and nonuses thereof have been examined by the Tenant. The
Tenant accepts the same in the condition in which they now are without representation
or warranty, express or implied, in fact or by law, by the County, the nature, condition or
usability thereof, or the uses to which the leased property may be put. Provided,
County shall be responsible for insuring that the heating/air-conditioning system is 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
parking area and sidewalks are in good repair on the date of commencement of the
lease term. county represents and warrants to Tenant that it holds unencumbered fee
title to the lease premises. The county shall not be responsible for any latent defect or
change of condition in such building, improvements and personality, and the rent
hereunder shall in no case be withheld or diminished on account of any defect in such
property, any change in the condition thereof, any damage occurring thereto or the
existence with respect thereof of any violations of the laws or regulations of any
governmental authority, except as hereinafter provided.
3. Term and Rental.
(a) This lease shall commence on _June 1,_ 1998 and shall continue for a
term of Two 2 years, which ends on May 31, 2000, both dates inclusive, unless
sooner terminated as herein provided.
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(b) The Tenant agrees to pay the County without demand at its office, or at
such other place or places as County may from time to time designate in writing, the
following rents for the aforementioned Premises for the term of this lease:
Lease year 1 (June 1, 1998 through May 31, 1999): $12,807.58 per annum;
$1,050.63 per month;
Lease year 2 (June 1, 1999 through May 31, 2000): $12,922.88 per annum;
$1,078.89 per month;
(c) At the commencement of this Lease the Premises are owned by County
and as such are exempt from ad valorem taxes as provided in Article V, Section 2 (3) of
the North Carolina Constitution and North Carolina General Statutes 105-278.1. During
the term, Tenant agrees to make payments to County in lieu of taxes, as additional rent,
in amounts equivalent to Tenant's pro-rata share of property taxes that would be lawfully
assessed if the Premises were taxable by County and any municipality in which the
Premises is located. These payments are hereafter referred to as "the payments in
lieu. This agreement to make the payments in lieu is to eliminate the competitive
advantage accruing to Tenant, a profit-making enterprise, from the use for profit of
County's tax exempt property. County shall bill Tenant annually and no later than
December 1 of each year during the lease term for the full amount of the payments in
lieu. Tenant will submit payment to County on or before December 31, 1998 in an
amount equal to the payments in lieu for the period June 1, 1998 through May 31, 1999
and on or before December 31, 1999 in an amount equal to the payments in lieu for the
period June 1, 1999 through May 31, 2000. County and Tenant recognize that the
annual payments required in this subsection each span two tax years and will therefore
require estimates based on estimated tax rates. Upon receipt of actual tax rates,
County will reconcile the amount paid by Tenant and the actual amount due under this
subsection and provide Tenant with a copy of this reconciliation. Any difference
between what has been paid and what is due shall be paid on May 1 of each lease year
by Tenant as additional rent or credited on May 1 by County against rent. Tenant
agrees that the valuation of the Premises shall be made by County's Tax Assessor
according to the Schedule of Values adopted by County from time to time and that the
determination of the true value in money of the Premises shall be made by the County's
Tax Assessor.
Tenant may, at its expense, in good faith, contest any such taxes, assessments
and other similar charges or the valuation on which the same are based, and, in the
event of any such contest may pay the taxes, assessments or other charges under
protest during the period of such contest and any appeal therefrom. In the event it is
determined by Tenant and Landlord or by the tribunal which ordinarily has jurisdiction
that such tribunal does not have jurisdiction or is otherwise not permitted to act as a
forum in consequence of the fact that Tenant's liability for the tax is contractual rather
than imposed by law, then either party may submit a challenge to a tax, assessment or
other similar charge or valuation to arbitration by an arbitration panel made up of MAI
qualified/certified appraisers. County shall select one appraiser; Tenant shall select one
appraiser; the appraiser selected by County and Tenant shall select a third appraiser
and the decision of the arbitration panel shall be binding on both parties. To the extent
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that enforcement of the payment of any such taxes, assessments and other charges in
the event of any contest are legally stayed during the period of such contest, such taxes,
assessments and other charges may remain unpaid during the period of such contest
and any appeal therefrom.
(d) The extension of time for the payment of any installment of rent, or the
acceptance by the County of any money other than of the kind herein specified, shall
not be a waiver of the right of the County to insist on having all other payments of rent
made in the manner and at the time herein specified.
(e) If any installment of rent is not received by the fifth (5th) day of any
month it is due, Tenant shall pay as additional rent a late payment fee of Fifty Dollars
($50.00). This additional rent shall be due immediately without demand therefor and
shall be added to and paid as a part of the installment payment of rent with respect to
which it is incurred.
4. Holdover . If the Tenant shall remain in possession of the leased
property after the expiration of the original or renewal period as set out above, 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.
5. Insurance. The County shall keep in force insurance to provide for
property damage to the building for replacement cost purposes. Provided, however,
Tenant shall be responsible for and pay to County any increase in County's insurance
premium occasioned by the nature of the Tenant's business.
The Tenant shall maintain fire and casualty insurance covering the Tenant's
fixtures, equipment and other property located in the demised premises.
Tenant shall keep the leased property insured, at its sole cost and expense,
against claims for personal injury or property damage under a policy of general public
liability insurance, with limits of at least $1,000,000 for bodily injury and $100,000 for
property damage. Such policies shall name the County as additional named insured
under the policy.
The Tenant shall provide the County certificates of such insurance at or prior
to the commencement of the term of this lease, and thereafter within ten (10) days prior
to the expiration of such policies. Such policies shall provide that the same may not be
canceled without at least ten (10) days prior written notice to County.
G. Rental Adjustment. In addition to the base rental, the Tenant shall
assume and pay any additional fire insurance premium, hazard insurance premium, or
other extended coverage insurance premium required as a result of any particular
operation or use of said premises over and above the insurance premium required to
be paid by County in the absence of said operation or use.
7. Signs. The County will place and maintain in and about the leased
property at appropriately designated places, such neat and appropriate signs
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advertising the Tenant as such. Any special Tenant sign will be at the sole cost of the
tenant but in the same styling, provided, however, that County shall not unreasonably
withhold approval of such signs as Tenant may desire. Upon the termination of this
lease the Tenant shall remove all signs and repair any damage to the leased property
caused by the erection, maintenance or removal of such signs.
8. Repairs. The county shall maintain the roof and exterior walls of the
demised property including exterior paint, provided that in the event Tenant desires to
alter the exterior color scheme, said alteration must be approved by county and shall
be at the Tenant's expense. In addition, County shall maintain the paved parking area
and front entry to the building. The Tenant shall not cause or permit any waste,
damage or injury to the leased property. The Tenant, at its sole expense, shall keep
the leased property as clean and in good condition (reasonable wear and tear
excepted), and shall make all repairs, replacements and renewals, whether ordinary or
extraordinary, seen or unforeseen, including all structural repairs, necessary to maintain
the interior of the leased property. All repairs, replacements and renewals shall be at
least equal in quality of materials and workmanship to that originally existing in the
leased property. The County shall be responsible for repairs and maintenance of the
roof and outside walls and other structural member, including the foundation of the
leased premises. The county shall be responsible for maintenance of the heating plant
and air-conditioning systems in such condition as existed at the commencement of this
lease, which County warrants to be in good working condition as of the date of this
lease. The County shall be responsible for the removal of snow (in a timely manner)
from the parking lot and the walkways. The County shall in no event be required to
make any repair, alteration or improvement to the interior of the leased property. Any
equipment replaced by the Tenant shall belong to the Tenant, save equipment replaced
in connection with Tenant's obligation to maintain the premises in the same condition as
exists at the commencement of this lease, and all proceeds from the disposition thereof
may be retained by the Tenant. The Tenant shall indemnify the county against all
costs, expenses, liabilities, losses, damages, suits, fines, penalties, claims and
demands including responsible counsel fees, because of Tenant's failure to comply
with the foregoing. Maintenance of the paved parking area shall be defined as and
limited to maintaining and keeping the parking area in good condition with a hardtop
surface pavement and proper striping.
9.-.Improvements. No substantial alteration, addition or improvement to
the leased property shall be made by the Tenant without the written consent of the
County. Any alteration, addition or improvement made by the Tenant after such
consent shall have been given and any fixtures permanently installed as part thereof,
shall at the county's option, become the property of the county upon expiration of or
other sooner termination of this lease; provided however, that the County shall have the
right to require the Tenant to remove such fixtures at the Tenant's cost upon such
termination. This clause shall not preclude Tenant from decorating the interior of the
leased premises from time to time in Tenant's discretion.
10. Liens for Improvements by Tenant. The Tenant shall not permit any
mechanic's lien to be filed against the fee of the property by reason of work, labor,
services or materials supplied or claimed to have been supplied, whether prior or
subsequent to the commencement of the term hereof, to the Tenant or anyone holding
the leased property, through or under the Tenant. If any such mechanic's lien shall at
any time be filed against the leased property, the Tenant shall, within 30 days after
notice of the filing thereof, cause such lien to be discharged of record by payment,
deposit, bond, order of a court of competent jurisdiction, or otherwise. If the Tenant
shall fail to cause such lien to be discharged within such 30 day period, then, in
addition to any other right or remedy of the County, the County may, but shall not be
obligated to, discharge such lien either by paying the amount claimed to be due or by
procuring the discharge of such lien by deposit or by bonding proceedings, and in any
such event the County shall be entitled, if the County so elects, to compel the
prosecution of an action for the foreclosure of such mechanic's lien by the lienor and to
pay the amount of the judgment for and in favor of the lienor, with interest, costs and
all other allowances. Any amount paid by the County for any such purposes, with
interest thereon at the rate of 6% per annum from the date of payment, shall be repaid
by the Tenant to the County on demand, and if unpaid may be treated as additional
rent as provided for elsewhere in this lease. Nothing in this lease shall be construed in
any way as constituting the consent or request of the County, express or implied, by
inference or otherwise, to any contractor, subcontractor, laborer or materialmen for the
performance of any labor or the furnishing of any materials for any property or as giving
the Tenant the right, power of authority to contract for or permit the rendering of any
service or the furnishing of any material that would give rise to the filing of any _
mechanic's lien against the fee of the leased property.
11. Tenant's Warrant of Non-Disturbance. Tenant hereby expressly
covenants and agrees that the Tenant shall be responsible for controlling the noise
level emanating from the Tenant's use of the demised premises in such a way that
other occupants of the building of which the demised premises are a part shall not be
disturbed. Tenant shall be responsible for and pay for the installation of any special
padding for other noise suppression devices which may be required for control of the
level of sound emanating from the demised premises.
12. Tenants Obligation to Comply Armlicable Laws and Com liance with
Requirements of Insurance Policies. The Tenant shall throughout the term of this
lease, at its sole expense, promptly comply with all laws and regulations of all federal,
state and municipal governments and appropriate departments, commissions, boards
and officers thereof, and the orders and regulations of the National Board of Fire
Underwriters, or any other body now or hereafter exercising similar function, which
may be applicable to the leased property, the fixtures, and equipment therein, and the
sidewalks and curbs adjoining the leased property. The Tenant shall comply with the
requirements of all policies of public liability, fire and all other types of insurance at any
time in force with respect to the building and other improvements on the leased
property.
13. Utilities. The Tenant shall pay charges for gas, electricity, light and
power used, rendered or supplied upon or in connection with the leased property. The
County shall be responsible for the payment of all charges related to the supply of
water to the leased property.
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STATE OF NORTH CAROLINA
ORANGE COUNTY
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 Grange County, and that by authority duly given
and as the act of Orange County, the foregoing instrument was signed in its name by Margaret W.
Brown, Chair, sealed with its official seal, and attested by herself as its Clerk.
Witness my hand and official seal, this the day of 91997.
Notary Public
My Commission expires:
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
a Notary Public, do hereby certify that , personally
appeared before me this day and acknowledged the due execution of the foregoing Lease
Agreement.
WITNESS my hand and official seal this the day of , 19___^___.
Notary Public
My commission expires:
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