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HomeMy WebLinkAboutAgenda - 06-15-2021; 8-m - Lease for 110 E. King Street ORANGE COUNTY 1 BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 15, 2021 Action Agenda Item No. 8-m SUBJECT: Lease for 110 E. King Street DEPARTMENT: Asset Management Services ATTACHMENT(S): INFORMATION CONTACT: 1.) Lease for 110 E. King Street Steve Arndt, 919-245-2658 2.) Resolution Alan Dorman, 919-245-2627 PURPOSE: To review the lease for 110 E. King Street, adopt the resolution approving the lease, and authorize the Manager to sign the lease upon final review by the County Attorney. BACKGROUND: The Division of Adult Correction and Juvenile Justice with the North Carolina Department of Public Safety has occupied Court Street Annex at 110 E. King Street since 2011. The Division is responsible for the care, custody, and supervision of all adults and youth sentenced in Orange County after disposition for violations of North Carolina Law. North Carolina General Statute 15-209 requires the county commissioners in each County in which a community corrections office exists to provide, in or near the courthouse, suitable office space for those probation officers and court counselors assigned to the County who have probationary caseloads and their administrative support. The County and the Department of Public Safety have agreed to formalize the use of this building through a lease. The lease term is for three (3) years, beginning June 1, 2021, and ending on May 31, 2024, at an annual rate of $1 per year. FINANCIAL IMPACT: There will be no direct finical impact as the County has provided office space to the Department of Public Safety for many years. However, the County maintains this building, which is undergoing a significant renovation funded in the FY 2019-20 Capital Investment Plan (CIP). Additionally, a significant upgrade to the building's electrical system is included in the Manager's Recommend CIP for FY 2022-23 at the cost of$100,000. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this item: • GOAL: CREATE A SAFE COMMUNITY The reduction of risks from vehicle/traffic accidents, childhood and senior injuries, gang activity, substance abuse and domestic violence. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board review the lease for 110 E. King Street, adopt and authorize the Chair to sign the resolution approving the lease, and authorize the Manager to sign the lease upon final review by the County Attorney. 2 THIS LEASE DOES NOT BECOME EFFECTIVE UNTIL EXECUTED BY THE NORTH CAROLINA DEPARTMENT OF CORRECTION STATE OF NORTH CAROLINA LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this the day of , 2019, by and between COUNTY of ORANGE, hereinafter designated as Lessor, and the STATE OF NORTH CAROLINA, hereinafter designated as Lessee; WITNESSETH: WHEREAS, authority to approve and execute this lease agreement was delegated to the Department of Administration by resolution adopted by the Govenor and Council of State on the 1St day of September, 1981; and WHEREAS, the Department of Administration has delegated to this State agency the authority to execute this lease agreement by a memorandum dated the 17th day of April, 1985; and WHEREAS, the Department of Administration has delegated to this State agency the authority to execute this lease agreement by a memorandum dated the 18th day of January, 2017; and WHEREAS, the parties hereto have mutually agreed to the terms of this lease agreement as hereinafter set out, NOW THEREFORE, in consideration of the rental hereinafter agreed to be paid and the terms and conditions hereinafter set forth, Lessor does hereby let and lease unto Lessee and Lessee hereby takes and leases from Lessor for and during the period of time and subject to the terms and conditions hereinafter set out certain space in (See Below) County of Orange,North Carolina, more particularly described as follows: Being +/- 5,637 net square feet of office space located at 110 E. King Street, Hillsborough, Orange County,North Carolina. (DEPARTMENT OF PUBLIC SAFETY-Probation and Parole) THE TERMS AND CONDITIONS OF THIS LEASE AGREEMENT ARE AS FOLLOWS: 1. The term of this lease shall be for a period of three (3)years commencing on the 11t day of June, 2021 or as soon thereafter as the leased premises are ceded to the Lessee and terminating on the 3111 day of May, 2024. 2. The Lessee shall pay to the Lessor as rental for said premises the sum of$1.00 Dollars per term to be payable within five (5) days from receipt of invoice in triplicate. Page 1 of 6 3 The Lessee agrees to pay the aforesaid rental to Lessor at the address specified, or, to such other address as the Lessor may designate by a notice in writing at least 15 days prior to the due date. 3. Lessor agrees to furnish to the Lessee, as a part of the consideration for this lease, the following services and utilities to the satisfaction of the Lessee. A Heating facilities, air conditioning facilities, adequate electrical facilities, adequate lighting fixtures and sockets, hot and cold water facilities, and adequate toilet facilities. B. Janitorial services and supplies including maintenance of lawns, parking areas, common areas and disposal of trash. C. All utilities except telephone. D. Parking as available. E. The lessor covenants that the leased premises are generally accessible to persons with disabilities. This shall include access into the premises from the parking areas (where applicable), into the premises via any common areas of the building and access to an accessible restroom. 4. During the lease term, the Lessor shall keep the leased premises in good repair and tenantable condition, to the end that all facilities are kept in an operative condition. Maintenance shall include, but is not limited to furnishing and replacing electrical light fixture ballasts, air conditioning and ventilating equipment filter pads, if applicable, and broken glass. In case Lessor shall, after notice in writing from the Lessee in regard to a specified condition, fail, refuse, or neglect to correct said condition, or in the event of an emergency constituting a hazard to the health or safety of the Lessee's employees, property, or invitees, it shall then be lawful for the Lessee in addition to any other remedy the Lessee may have to make such repair at its own cost and to invoice the amount thereof to the Lessor for reimbursement. The Lessor reserves the right to enter and inspect the leased premises, at reasonable times, and to make necessary repairs to the premises. 5. It is understood and agreed that Lessor shall, at the beginning of said lease term as hereinabove set forth, have the leased premises in a condition satisfactory to Lessee, including repairs, painting, partitioning, remodeling, plumbing and electrical wiring suitable for the purposes for which the leased premises will be used by Lessee. 6. The Lessee shall have the right during the existence of this lease, with the Lessor's prior consent, to make alterations, attach fixtures and equipment, and erect additions, structures or signs in or upon the leased premises. Such fixtures, additions, structures or signs so placed in or upon or attached to the leased premises under this lease or any prior lease of which this lease is an extension or renewal shall be and remain the property of the Lessee and may be removed therefrom by the Lessee prior to the termination of this lease or any renewal or extension thereof, or within a reasonable time thereafter. The Lessee shall have no duty to remove any improvement or fixture placed by it on the premises or to restore any portion of the premises altered by it. In the event Lessee elects to remove his improvements or fixtures and such removal causes damage or injury to the demised premises, Lessee will repair only to the extent of any such damage or injury. 4 7. If the said premises be destroyed by fire or other casualty without fault of the Lessee, or of partial destruction or damage by fire or other casualty without fault of the Lessee, so as to render the premises untenantable in whole or in part, and during such period of repair, if the Lessor can not provide suitable office space, the Lessee shall have the right to obtain similar office space at the expense of Lessee with reimbursement from the County. 8. Lessor shall be liable to Lessee for any loss or damages suffered by Lessee which are a direct result of the failure of Lessor to perform an act required by this lease, and provided that Lessor could reasonably have complied with said requirement. 9. Upon termination of this lease, the Lessee will peaceably surrender the leased premises in as good order and condition as when received, reasonable use and wear and damage by fire, war, riots, insurrection, public calamity, by the elements, by act of God, or by circumstances over which Lessee had no control or for which Lessor is responsible pursuant to this lease, excepted. 10. The Lessor agrees that the Lessee, upon keeping and performing the covenants and agreements herein contained, shall at all times during the existence of this lease peaceably and quietly have, hold, and enjoy the leased premises free from the adverse claims of any person. 11. The failure of either party to insist in any instance upon strict performance of any of the terms and conditions herein set forth shall not be construed as a waiver of the same in any other instance. No modification of any provision hereof and no cancellation or surrender thereof shall be valid unless in writing and signed and agreed to by both parties. 12. Any hold over after the expiration of the said term or any extension thereof, shall be construed to be a tenancy from month to month, and shall otherwise be on the terms and conditions herein specified, so far as applicable; however, either party shall give not less than 60 days written notice to terminate the tenancy. 13. The parties to this lease agree and understand that the continuation of this lease agreement for the term period set forth herein, or any extension or renewal thereof, is dependent upon and subject to the appropriation, allocation or availability of funds for this purpose to the agency of the Lessee responsible for payment of said rental. The parties to this lease also agree that in the event the agency of the Lessee or that body responsible for the appropriations of said funds, in its sole discretion, determines, in view of its total local office operations that available funding for the payment of rent is insufficient to continue the operation of its local offices on the premise leased herein, it may choose to terminate the lease agreement set forth herein by giving Lessor written notice of said termination, and the lease agreement shall terminate immediately without any further liability to Lessee. 14. All notices herein provided to be given, or which may be given by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, certified and postage prepaid and addressed as follows: To the Lessor at P.O. Box 8181, Hillsborough, North Carolina 27278 and the Lessee at 3030 Hammond Business Place, 4227 Mail Service Center, Raleigh, North Carolina 27603-4227. Nothing herein contained shall preclude the giving of such notice Page 3 of 6 5 by personal service. The address to which notices shall be mailed as aforesaid to either party may be changed by written notice. "N.C.G.S. § 133-32 and Executive Order 24 prohibit the offer to, or acceptance by, any State Employee of any gift from anyone with a contract with the State, or from any person seeking to do business with the State. By execution of any response in this procurement, you attest, for your entire organization and its employees or agents, that you are not aware that any such gift has been offered, accepted, or promised by any employees of your organization." [Remainder of page intentionally left blank; signatures on following pages] 6 IN TESTIMONY WHEREOF, this lease has been executed by the parties hereto, in duplicate originals, as of the date first above written. LESSEE: STATE OF NORTH CAROLINA By: (SEAL) Joanne Rowland, Director DPS-Purchase and Logistics Office LESSOR: (SEAL) The County of Orange Bonnie B. Hammersley, County Manager ATTEST: Secretary (CORPORATE SEAL) Page 5 of 6 7 STATE OF NORTH CAROLINA COUNTY OF I, a Notary Public in and for the County and State aforesaid, do hereby certify that Bonnie B. Hammersley, personally came before me this day and acknowledged that s/he is the County Manager, and that by authority and given as an act of Orange County and acknowledged the due execution of the foregoing instrument in its name. WITNESS my hand and Notarial Seal, this the day of 92021. Notary Public My Commission Expires: STATE OF NORTH CAROLINA COUNTY OF I, Wanda B. Hicks, a Notary Public in and for the County of Johnston and State aforesaid, do hereby certify that Joanne Rowland, personally appeared before me this date and acknowledged the due execution by her of the foregoing instrument as Director of Purchasing and Logistics of the Department of Public Safety of the State of North Carolina, for the purposes therein expressed. WITNESS my hand and Notarial Seal, this the day of 92021. Notary Public My commission expires August 19, 2024 8 RES-2021-044 Attachment 2 ORANGE COUNTY BOARD OF COMMISSIONERS RESOLUTION LEASING PROPERTY FOR THREE YEARS Whereas, Orange County owns the County Street Annex, a building located at 110 E King Street, Hillsborough, NC, comprising approximately 8,500 square feet, located near the Orange County Courthouse; and Whereas, the North Carolina Department of Public Safety desires to lease the entirety of the Court Street Annex to provide offices for probation and parole officers and juvenile court counselors who work for the Division of Adult Correction and Juvenile Justice with the North Carolina Department of Public Safety; and Whereas, North Carolina General Statute 15-209 requires the county commissioners in each county in which a community corrections office exists to provide, in or near the courthouse, suitable office space for those probation officers and court counselors assigned to the county who have probationary caseloads and their administrative support; and Whereas, North Carolina General Statute 160A-274 authorizes the lease or sale of county-owned property to another governmental unit with or without consideration; and Whereas, the North Carolina Department of Public Safety desires to lease for a term of three years, beginning June 1St, 2021 and ending on May 31St, 2024; and Whereas, the Division has the responsibility for the care, custody and supervision of all adults and youth sentenced in Orange County after disposition for violations of North Carolina Law; and Whereas, in consideration of the valuable services provided by the Division of Adult Correction and Juvenile Justice with the North Carolina Department of Public Safety, the Board of Orange County Commissioners desires to lease Court Street Annex to the North Carolina Department of Public Safety, and the Board of Commissioners is convened at a regular meeting; NOW THEREFORE BE/T RESOLVED that the Board of Orange County Commissioners hereby approves the lease of the County property described above to the North Carolina Department of Public Safety, commencing June 1St, 2021 for a term of three (3) years, ratifies the signed lease, and directs the execution, registration, and filing of all necessary instruments accordingly. This the 15th Day of June 2021. Renee Price, Chair Orange County Board of Commissioners