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HomeMy WebLinkAboutAgenda - 03-16-2004-9eORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 2004 Action Agenda Item No. I ° Q. SUBJECT: Lease Approval: Storage Facility and Emergency Management Overflow Office Space; Efland DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): Lease Building Information INFORMATION CONTACT: Pam Jones, (919) 245-2652 Nick Waters, (919) 245-3030 Durham 688-7331 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 336-227-2031 PURPOSE: To consider leasing a building in Efland, NC, in which to house certain Emergency Management functions and storage, as well as to provide storage for bulky institutional items for all County departments. BACKGROUND: The County has been offered the opportunity to lease a building in Efland previously used for manufacturing. The building, located at 3501-A Forrest Avenue in Efland, contains a total of 22,966 square feet of space, of which approximately 1,120 square feet is appropriate for office use. The building is centrally located and easily accessible via 1-85/40, which is approximately.3 miles away, and Highway 70, approximately 1 block away. Highlights of the lease terms proposed are as follows: • $2.25 per square foot ($51,674), plus reimbursement for taxes and insurance, approximately $5,000 per year; • 3% annual escalation on rent cost • Term: 5 years 22,966 square feet is contained within the building that would be used for office and storage purposes and is the basis of the rent assessment. A metal building, approximately 1,260 square feet is also on the site. • County responsibilities include: o Utilities o Janitorial services o Grounds care (minimal) o Interior systems maintenance (heating/a/c) o Maintenance of loading dock (new) Landlord responsibilities would include: o Exterior building maintenance (roof, gutter systems, etc,) o Maintaining property insurance on the building (costs to be reimbursed annually) o Right of First Refusal - should owner choose to sell building during or at the termination of the proposed lease. The Board is well aware of the significant need for storage by County departments. Items such as voting equipment consume valuable space in the basement of the Jail. Emergency Management supplies and equipment are stored at eight different locations across the County. Use of this building would be substantial progress in meeting those needs for the near and intermediate term. The building lease includes a Right of First Refusal (ROFR) that would enable the County to make this facility a permanent storage solution, assuming agreement on terms could be reached, or at the least, would allow storage solutions to be immediately implemented while a permanent solution was explored and funded. In addition to meeting specific storage needs, operational space needs for the Emergency Management Department could also be addressed through this facility. The space needs of Emergency Management, as articulated in the 2000 Space Needs Assessment, have been further exacerbated by the events following 9/11/01 and can no longer be met by the existing facility, The Emergency Management Director has proposed to move approximately eight employees in the Fire Marshal and Emergency Medical Divisions to this location. The almost immediate access to 1-85/40 (,3 miles to the south) and Highway 70 (approximately one block to the north) makes this site easily accessible to north, south and central points of the County, In addition, the building is easy to find and easily accessed by others in the event of a disaster. This is a primary benefit since proposed storage items include disaster supplies (cots, blankets, water food, chainsaws, etc), terrorism preparedness equipment (mobile hospital, shelters, decontamination supplies, respirators, pharmaceuticals) and Haz-Mat supplies and equipment (protective suits, respirators and containment supplies), many of which would be distributed to other government agencies or volunteers during disaster situation. Currently, these items are stored at up to eight different locations, many of which are not climate controlled, thereby significantly reducing the useful life of many of the items. This building would provide an opportunity for improvement in inventory control and significantly improve the distribution methods employed if a disaster situation arises. Beyond the Emergency Management need, the building would substantially address storage needs for bulky, institutional items used by County departments. The most frequently cited example is the voting equipment, which must be stored in a climate-controlled environment. The equipment currently consumes a substantial portion of the basement of the Jail. Should the Board choose to approve this lease, a survey will be conducted among County departments to update the needs information obtained in 2000. A floor plan would then be constructed to determine the availability of storage space based on priorities such as these: o Emergency Management storage of supplies and equipment (non-record related) o Other department institutional storage needs (non-records related. Example: Voting equipment, car seats for programs, baby formula, diapers, etc). • Climate control required • Non-climate control required o Permanent records storage needs o Non-permanent records storage needs 3 • A purge program would be developed and agreed to among departments to ensure records are kept in compliance with records retention requirements. ¦ A process for the annual disposal of records no longer meeting the retention requirements would be implemented as part of the policy, o Chain link, or other suitable material, would be used to create lockable, secure areas for departmental storage. Emergency Management has agreed to be responsible for ensuring access and logging visits to the general storage areas, however, departments would maintain keys to their individual storage areas. A floor plan and storage policy will be shared with the Board at such time they are completed, following approval of the proposed lease. FINANCIAL IMPACT: The first year lease amount is $51,674, plus approximately $5,000 for taxes and insurance. The approximately $12,918 needed for the lease through June 30, 2004 will be funded through funds in the Rents and Insurance and Emergency Services current year funds. 2004-2005 budget requests for the referenced departments will reflect full year costs for the lease year July 1, 2004 through June 30, 2005. Upfit costs will be determined at such time the floor plans are established following lease approval. Building infrastructure and systems are new or have been well-maintained, so the primary upfit costs will be centered around the chain link or other suitable material enclosures needed for departmental secure storage areas and the cosmetic upfit that may be needed for the office area. Efforts will be made to fund these expenses through existing budgets or Capital Investment Plan funds. However, should sufficient funds not be available, any overages will be included in upcoming budget requests for Board consideration within the next few months. RECOMMENDATION(S): The Manager recommends that the Board: o Approve a lease beginning April 1, 2004 through June 30, 2009 with Efland Leasing Company, for a building at 3501-A Forrest Ave, Efland, NC, substantially in compliance with the lease terms and conditions cited in the attached lease, contingent upon Attorney and staff review; and o Authorize staff to prepare a floor plan and corresponding policy governing storage in the facility, complete with cost estimates for upfit, which overage, if any, shall be included for consideration in the 2004-2005 budget process; and o Authorize the Chair to sign the lease on behalf of the Board. Cam 1 R E A L E S T A T E rm0,?V COMMERCIAL LEASE AGREEMEN ash ?TI1?, L)$ El ade is ?E day of l''`Febraa7 p' 20 04 , by and between p \ U > Efland Leasing Company ("Landlord") whose address is P.O. Box 246, Efland NC 27243 and County of Orange ("Tenant") whose address is P.O. Box 8181, Hillsborough, NC 27278 ; WITNESSETH: PREMISES 1. Landlord, for and in consideration of the rents, covenants, agreements, and stipulations hereinafter mentioned, provided for and covenanted to be paid, kept and performed by Tenant, leases and rents unto Tenant, and Tenant hereby leases and takes upon the terms and conditions which hereinafter appear, the following described property (hereinafter called the "Premises"), to wit: Address: 3501-A Forrest Avenue Efland NC 27243 Legal Description: PIN 9844-97-6945 TM 3.37.A.6 ? See attached Exhibit (? p for legal description of prtepises, 31)4-4 TERM APra 2. The Tenant shall have and hold ?F_UaFeh- remises fora term of five f years June, beginning on the 1st day of , 20 04 , and ending on the day of FebroatY- 20 0 at midnight unless sooner terminated as hereinafter provided. The first Lease Year Anniversary shall be the date twelve (12) calendar months after the first day of the first full month of the term hereof and successive Lease Year Anmversar shall be the date twelve (12) calendar mon from the previous Lease Year Anniversary. 1? I RENTAL ?3pG. 7 2y4G(o >< Z• 51 t (07? 3 Tenant agrees to pay Landlord or its Agent without de eductt or set off, an annual rental of $ o. payable in equal monthly installments of $ in advance on the first day onth during the term hereof. Upon execution of this Leas Tenant shat y to Landlord the first month's rent due hereunder. Rental for any period during the term hereof which is less tha ne month shall be the pro-rated portion of the monthly rental due. On each Lease Year Anniversary the annual rental payable hereunder (and accordingly the monthly installments) shall be adjusted: ? by any change in the Consumer Price Index, Urban Wage Earners and Clerical Workers, All Cities (CPI-W, 1982-1984=100) ("Index") by multiplying the then effective annual rental by the value of said Index for the month two months prior to the Lease Year Anniversary and dividing the product by the value of said Index for the month two months prior to the previous Lease Year Anniversary (in the instance of the fast Lease Year Anniversary the value of the Index for the month two months prior to the first full month of the term hereof). In the event the Index ceases to be published, there shall be substituted for the Index the measure published by the US Department of Labor which most nearly approximates the Index; X as follows: mp,. ry{4c(? jE {?fH? t5 ynd (ftv " Page 1 of 8 ® North Carolina Association of REALTORS, Inc. P LTO" Tenant Initials Landlord Initials A, tax- bldW STANDARD FORM 590-T ©7/2002 misiamPmamdt,yFormu/arneFamssofta 000336-1027 ? If this box is checked, Tenant shall pay all rental to Landlord's Agent at the following address: Dp (? O lJ(j l;, I I a? LATE CHARGES 4. If Landlord fails to receive any rent payment within roe days after it becomes due, Tenant shall pay Landlord, as additional rental, a late charge equal to five percent 5 (%) of the overdue amount or $ N/A whichever is greater, plus any actual bank fees incurred for returned or dishonored checks, The parties agree that such a late charge represents a fair and reasonable estimate of the cost Landlord will incur by reason of such late payment. SECURITY DEPOSIT 5. Tenant shall deposit with Landlord or its Agent upon execution of this Lease $? as a security deposit which shall be held as security for the full and faithful performance by Tenant of each and every term, covenant and condition of this Lease. If any of the rents or other charges or sums payable by Tenant shall be over-due and unpaid or should payments be made on behalf'of Tenant, or should Tenant fail to perform any of the terms of this Lease, then Landlord or its Agent may, at its option, appropriate and apply the security deposit, or so much thereof as may be necessary, to compensate toward the payment of the rents, charges or other sums due from Tenant, or towards any loss, damage or expense sustained by Landlord resulting from such default on the part of the Tenant; and in such event Tenant shall upon demand restore the security deposit to the original sum deposited. In the event Tenant furnishes Landlord with proof drat all utility bills have been paid through the date of Lease termination, and performs all of Tenant's other obligations under this Lease, the security deposit shall be returned in full to Tenant within thirty (30) days after the date of the expiration or sooner termination of the term of this Lease and the surrender of the Premises by Tenant in compliance with the provisions of this Lease. The Security Deposit may be placed in an interest bearing account and any interest thereon shall be the property of the party holding the same. ? If this box is checked, Agent shall hold the Security Deposit and shall be entitled to the interest thereon. UTILITY BILLS 6. (a) Tenant shall pay the following utilities: Water, electric, natural gas (all utilities), sewer if/when (b) Landlord shall pay the following utilities: N/A Responsibility to pay for a utility service shall include all metering, hook-up fees or other miscellaneous charges associated with the installation and maintenance of such utility in said party's name. COMMON AREA COSTS; RULES AND REGULATIONS T If the Premises are part of a larger building or group of buildings, Tenant shall pay as additional rental monthly, in advance, its pro rata share of common area maintenance costs as hereinafter more particularly set forth in the Special Stipulations (see Paragraph 38) The Rules and Regulations, if any, attached hereto are made a part of this Lease. Tenant agrees to perform and abide by these Rules and Regulations, if any, and such other Rules and Regulations, if any, as may be made from time to time by Landlord. USE OF PREMISES 8. „/i e, gMVn 4W?? V? The Premises shall be used for warehouse and office, O?0?11'i purposes only and no other The Premises shall not be used for any illegal purposes, nor in any manner to create any nuisance or trespass, nor in any manner to vitiate the insurance or increase the rate of insurance on the Premises. In the event Tenant's use of the Premises results in an increase in the rate of insurance on the Premises, Tenant shall pay to Landlord, upon demand and as additional rental, the amount of any such increase. Page 2 of 8 STANDARD FORM 590-T D 7/2002 Tenant Initials Landlord Initials Teisrortnproduced byFurmulat:ar PoonsSoftware 6oo•336.1027 U-8 a ? TAX AND INSURANCE ESCALATION B u 9. Tenant shall pay upon demand as additional rental during the term of this Lease, and any extension or renewal thereof; ? The amount by which all taxes (including but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises for each tax year exceed all taxes on the Premises for the tax year N/A ; or X All taxes (including, but not limited to, ad valorem taxes, special assessments and any other governmental charges) on the Premises for each tax year. In the event the Premises are less than the entire property assessed for such taxes for any such tax year, then the tax for any such year applicable to the Premises shall be determined by proration on the basis that the rentable floor area of the Premises bears to the rentable floor area of the entire property assessed. If the final year of the Lease term fails to coincide with the tax year, then any excess for the tax year during which the term ends shall be reduced by the pro rata part of such tax year beyond the Lease term. If such taxes for the year in which the Lease terminates are not ascertainable before payment of the last month's rental, then the amount of such taxes assessed against the property for the previous tax year shall be used as a basis for determining the pro rata share, if any, to be paid by Tenant for that portion of the last Lease year Tenant shall further pay upon demand as additional rental during the term of this Lease, and any extension or renewal thereof-. ? the excess cost of fire and extended coverage insurance including any and all public liability insurance on the building over the cost of the first year of the Lease term for each subsequent year during the term of this Lease; or X all fire and extended coverage insurance including any and all public liability insurance on the building In the event the Premises are less than the entire property, then the insurance payable by Tenant for the Premises shall be determined by proration on the basis that the rentable floor area of the Premises bears to the rentable floor area of the entire property. Tenant shall pay all taxes and insurance as provided herein within fifteen (15) days after receipt of notice from Landlord as to the amount due. Tenant shall be solely responsible for insuring Tenant's personal and business property and for paying any taxes or governmental assessments levied thereon. „ i,1s44: o the. Wtw Wmi gtd by Lao) mud iwcuraelu Pe I i e?cs Ofuru-d YND)EMNITY; INSiJI2ANCY ,? 10. ({fenan ag"f reel to' 'Hereby does indemnify and save Landlord harmless against all claims for damages to persons or property by reason of Tenant's use or occupancy of the Premises, and all expenses incurred by Landlord because thereof, including attorney's fees and court costs. Supplementing the foregoing and in addition thereto, Tenant shall during the term of this Lease and any extension or renewal thereof, and at Tenant's expense, maintain in full force and effect comprehensive general liability insurance with limits of $ 0000 000 per person and $ 1,000,000 per accident, and property damage limits of $ included in per person unit which insurance shall contain a special endorsement recognizing and insuring any liability accruing to Tenant under the first sentence of this paragraph and naming Landlord as additional in ed. Tena Bence of such insura Landlord prior to the commencement of the term of this Lease. Landlord and Tenant each hereby re ease eve the other, an warve any ng , or oss or amage ar g out of or incident to the perils insured against which perils occur in, on or about the Premises, whether due to the negligence of Landlord or Tenant or their agents, employees, contractors and/or invitees, to the extent that such loss or damage is within the policy limits of said comprehensive general liability insurance, Landlord and Tenant shall, upon obtaining the policies of insurance requrred, give notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Lease. Q?{VQCQ lrJ " 1 i f u{ ?1e14eG tnsureneR, Pars ? OJel1 dulib • -C REPAIRS B LANDLORD 11. Landlord agrees to keep in good repair the roof, foundation and exterior walls of the Premises (exclusive of all glass and exclusive of all exterior doors) and underground utility and sewer pipes outside the exterior walls of the building, except repairs rendered necessary by the negligence or intentional wrongful acts of Tenant, its agents, employees or invitees. If the Premises are part of a larger building or group of buildings, then to the extent that the grounds are common areas, Landlord shall maintain the grounds surrounding the building, including paving, the mowing of grass, care of shrubs and general landscaping. Tenant shall promptly report in writing to Landlord any defective condition known to it which Landlord is required to repair and failure to report such conditions shall make Tenant responsible to Landlord for any liability incurred by Landlord by reason of such conditions. Page 3 of 8 STANDARD FORM 590-T © 7/2002 Tenant Initials Landlord Initials TNslonproduccdby FA3B'MUla$Of Forms Solmam 888-336.1827 REPAIRS BY TENANT I10 " " ? I O 12. Tenant accepts the Premises in their present condition and as suited for the uses intended by Tenant. Tenant shall, throughout the initial term of this Lease, and any extension or renewal thereof, at its expense, maintain in good order and repair the Premises, including the building, heating and air conditioning equipment (including but not limited to replacement of parts, compressors, air handling units and heating units) and other improvements located thereon, except those repairs expressly required to be made by Landlord hereunder. Unless the grounds are common areas of a building(s) larger than the Premises, Tenant further agrees to care for the grounds around the building, including paving, the mowing of grass, care of shrubs and general landscaping. Tenant agrees to return the Premises to Landlord at the expiration or prior termination of this Lease, in as good condition and repair as when first received, natural wear and tear, damage by storm, fire, lightning, earthquake or other casualty alone excepted. Tenant, Tenant's employees, agents, contractors or subcontractors shall take no action which may void any manufacturers or installers warranty with relation to the Premises.?enantsha?indsmrttf3 end held bandderd hartnkss franranltebikitp claim demaml or cause ef-action arisi+rg erraeeounf of TenanES breaelre€the pravisians afkhisparagrapk 6(4ejd& ALTERATIONS 13. Tenant shall not make any alterations, additions, or improvements to the Premises without Landlord's prior written consent. Tenant shall promptly remove any alterations, additions, or improvements constructed in violation of this Paragraph upon Landlord's written request. All, approved alterations, additions,and improvements will be accomplished in a good and workmanlike manner, in conformity will all applicable laws and regulations, and by a contractor approved by Landlord, free of any liens or encumbrances. Landlord may require Tenant to remove any alterations, additions or improvements (whether or not made with Landlord's consent) at the termination of the Lease and to restore the Premises to its prior condition, all at Tenant's expense. All alterations, additions and improvements which Landlord has not required Tenant to remove shall become Landlord's property and shall be surrendered to Landlord upon the termination of this Lease, except that Tenant may remove any of Tenant's machinery or equipment which can be removed without material damage to the Premises. Tenant shall repair, at Tenant's expense, any damage to the Premises caused by the removal of any such machinery or equipment. REMOVAL OF FIXTURES 14. Tenant may (if not in default hereunder) prior to the expiration of this Lease, or any extension or renewal thereof, remove all fixtures and equipment which it has placed in the Premises, provided Tenant repairs all damage to the Premises caused by such removal, DESTRUCTION OF OR DAMAGE TO PREMISES 15. If the Premises are totally destroyed by storm, fire, lightning, earthquake or other casualty, this Lease shall terminate as of the date of such destruction and rental shall be accounted for as between Landlord and Tenant as of that date. If the premises are damaged but not wholly destroyed by any such casualties, rental shall abate in such proportion as effective use of the Premises has been affected and Landlord shall restore Premises to substantially the same condition as before damage as speedily as is practicable, whereupon full rental shall recommence. GOVERNMENTAL ORDERS 16. Tenant agrees, at its own expense, to comply promptly with all requirements of any legally constituted public authority made necessary by reason of Tenant's occupancy of the Premises, Landlord agrees to comply promptly with any such requirements if not made necessary by reason of Tenant's occupancy. It is mutually agreed, however, between Landlord and Tenant, that if in order to comply with such requirements, the cost to Landlord or Tenant, as the case may be, shall exceed a sum equal to one year's rent, then Landlord or Tenant, whichever is obligated to comply with such requirements, may terminate this Lease by giving written notice of termination to the other party by registered mail, which termination shall become effective sixty (60) days after receipt of such notice and which notice shall eliminate the necessity of compliance with such requirements by giving such notice unless the party giving such notice of termination shall, before termination becomes effective, pay to the party giving notice all cost of compliance in excess of one year's rent, or secure payment of said sum in manner satisfactory to the party giving notice. CONDEMNATION 17. If the whole of the Premises, or such portion thereof as will make the Premises unusable for the purposes herein leased, is condemned by any legally constituted authority for any public use or purpose, then in either of said events the term hereby granted shall cease from the date when possession thereof' is taken by public authorities, and rental shall be accounted for as between Landlord and Tenant as of said date. Such termination, however, shall be without prejudice to the rights of either Landlord or Tenant to recover compensation and damage caused by condemnation from the condemnor. It is further understood and agreed that Tenant shall not have any rights in any award made to Landlord by any condemnation authority. Page 4 of 8 STANDARD FORM 590-T D 7/2002 Tenant Initials Landlord Initials Thlalompmducedby F®d737Uila3rCeFo`ms5ollwam 800.338-7827 AB4TG11JM1?NT ANT 9TTRT.72TT1NA 18, Tenant shall not, without the prior written consent of Landlord, which shall not be unreasonably withheld, assign this Lease or any interest hereunder, or sublet the Premises or any part thereof, or permit the use of the Premises by any party other than the Tenant, Consent to any assignment or sublease shall not impair this provision and all later assignments or subleases shall be made likewise only on the prior written consent of Landlord. The Assignee of Tenant, at option of Landlord, shall become directly liable to Landlord for all obligations of Tenant hereunder, but no sublease or assignment by Tenant shall relieve Tenant of any liability hereunder. EVENTS OF DEFAULT 19. The happening of any one or more of the following events (hereinafter any one of which may be referred to as an "Event of Default") during the term of this Lease, or any renewal or extension thereof, shall constitute a breach of this Lease on the part of the Tenant: (a) Tenant fails to pay the rental as provided for herein; (b) Tenant abandons or vacates the Premises; (c) Tenant fails to comply with or abide by and perform any other obligation imposed upon Tenant under this Lease; (d) Tenant is adjudicated bankrupt; (e) A permanent receiver is appointed for Tenant's property and such receiver is not removed within sixty (60) days after written notice from Landlord to Tenant to obtain such removal; (f) Tenant, either voluntarily or involuntarily, takes advantage of any debt or relief proceedings under any present or future law, whereby the rent or any part thereof is, or is proposed to be, reduced or payment thereof deferred; (g) Tenant makes an assignment for benefit of creditors; or (h) Tenant's effects are levied upon or attached under process against Tenant, which is not satisfied or dissolved within thirty (30) days after written notice from Landlord to Tenant to obtain satisfaction thereof: REMEDIES UPON DEFAULT 20. Upon the occurrence of Event of Default, Landlord may pursue any one or more of the following remedies separately or concurrently, without prejudice to any other remedy herein provided or provided by law: (a) if the Event of Default involves nonpayment of rental and Tenant fails to cure such default within five (5) days after receipt of written notice thereof' from Landlord, or if the Event of Default involves a default in performing any of the terms or provisions of this Lease other than the payment of rental and Tenant fails to cure such default within fifteen (15) days after receipt of written notice of default from Landlord, Landlord may terminate this Lease by giving written notice to Tenant and upon such termination shall be entitled to recover from Tenant damages as may be permitted under applicable law; or (b) if the Event of Default involves any matter other than those set forth in item (a) of this paragraph, Landlord may terminate this Lease by giving written notice to Tenant and, upon such termination, shall be entitled to recover from the Tenant damages in an amount equal to all rental which is due and all rental which would otherwise have become due throughout the remaining term of this Lease, or any renewal or extension thereof (as if this Lease had not been terminated); or (c) upon any Event of Default, Landlord, as Tenant's agent, without terminating this Lease, may enter upon and rent the Premises, in whole or in part, at the best price obtainable by reasonable effort, without advertisement and by private negotiations and for any term Landlord deems proper, with Tenant being liable to Landlord for the deficiency, if any, between Tenant's rent hereunder and the price obtained by Landlord on reletting, provided however, that Landlord shall not be considered to be under any duty by reason of this provision to take any action to mitigate damages by reason of Tenant's default. In the event Landlord hires an attorney to enforce its rights upon default, Tenant shall in addition be liable for reasonable attorney's fees and all costs of collection. EXTERIOR SIGNS 21. Tenant shall place no signs upon the outside walls or roof of the Premises, except with the express written consent of the Landlord. Any and all signs placed on the Premises by Tenant shall be maintained in compliance with governmental rules and regulations governing such signs and Tenant shall be responsible to Landlord for any damage caused by installation, use or maintenance of said signs, and all damage incident to removal thereof LANDLORD'S ENTRY OF PREMISES 22. Landlord may advertise the Premises "For Rent" or "For Sale" 980 days before the termination of this Lease. Landlord may enter the Premises at reasonable hours to exhibit same to prospective purchasers or tenants and to make repahs required of Landlord under the terms hereof or to make repairs to Landlord's adjoining property, if any. EFFECT OF TERMINATION OF LEASE 23. No termination of this Lease prior to the normal ending thereof, by lapse of time or otherwise, shall affect Landlord's right to collect rent for the period prior to termination thereof. MORTGAGEE'S RIGHTS 24. Tenant's rights shall be subject to any bona fide mortgage, deed of trust or other security interest which is now or may hereafter be placed upon the Premises by Landlord, Tenant shall, if requested by Landlord, execute a separate agreement reflecting such subordination, and shall be obligated to execute such documentation as may facilitate Landlord's sale or refinancing of the Premises, including, but not limited to, estoppel certificates, subordination or attornment agreements. Page 5 of 8 STANDARD FORM 590-T © 7/2002 Tenant Initials Landlord Initials This fofm pmduced by FOrMUlat0£ Forms Sofiwam 888.3364627 Jd CA [ V It QUIET ENJOYMENT 25, So long as Tenant observes and performs the covenants and agreements contained herein, it shall at all times during the Lease term peacefully and quietly have and enjoy possession of the Premises, but always subject to the terms hereof; Provided, however, that in the event Landlord shall sell or otherwise transfer its interest in the Premises, Tenant agrees to attorn to any new owner or interest holder and shall, if requested by Landlord, execute a separate agreement reflecting such attornment, provided that said agreement requires the new owner or interest holder to recognize its obligations and Tenant's rights hereunder. HOLDING OVER 26. If Tenant remains in possession of the Premises after expiration of the term hereof, with Landlord's acquiescence and without any express agreement of the parties, Tenant shall be a tenant at will at the rental rate which is in effect at end of this Lease and there shall be no renewal of this Lease by operation of law. If Tenant remains in possession of the Premises after expiration of the term hereof without Landlord's acquiescence, Tenant shall be a tenant at sufferance and commencing on the date following the date of such expiration, the monthly rental payable under Paragraph 3 above shall for each month, or fraction thereof during which Tenant so remains in possession of the premises, be twice the monthly rental otherwise payable under Paragraph 3 above. ATTORNEY'S FEES 27, In the event that any action or proceeding is brought to enforce any term, covenant or condition of this Lease on the part of Landlord or Tenant, the prevailing party in such litigation shall be entitled to recover reasonable attorney's fees and costs. RIGHTS CUMULATIVE 28. All rights, powers and privileges conferred hereunder upon parties hereto shall be cumulative and not restrictive of those given by law. WAIVER OF RIGHTS 29. No failure of Landlord to exercise any power given Landlord hereunder or to insist upon strict compliance by Tenant of its obligations hereunder and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of Landlord's right to demand exact compliance with the terms hereof, hr ?1tib(G D n ? pr6val, Uq cu^k' ck /KS pry °--7 ?1( LPO t LAC ENVIRONME NTAL LAWS -4 (Vaal-?c.e5 (IAtq (3rt'ZO ti,?kpefGa#t?1f[,12 rvd6r()S enlfiY?M/t1 tuitQ ?111Qrhme 30. (a) Tenant shall not bring onto the Premises any Hazardous Materials (as defined below) without the prior written approval by Landlord. Any approval must be preceded by submission to Landlord of appropriate Material Safety Data Sheets (MSD Sheets). In the event of approval by Landlord, Tenant covenants that it will (1) comply with all requirements of any constituted public authority and all federal, state, and local codes, statutes, rules and regulations, and laws, whether now in force or hereafter adopted relating to Tenant's use of the Premises, or relating to the storage, use, disposal, processing, distribution, shipping or sales of any hazardous, flammable, toxic, or dangerous materials, waste or substance, the presence of which is regulated by a federal, state, or local law, ruling, rule or regulation (hereafter collectively referred to as "Hazardous Materials"); (2) comply with any reasonable recommendations by the insurance carrier of either Landlord or Tenant relating to the use by Tenant on the Premises of such Hazardous Materials; (3) refrain from unlawfully disposing of or allowing the disposal of any Hazardous Materials upon, within, about or under the Premises; and (4) remove all Hazardous Materials from the Premises, either after their use by Tenant or upon the expiration or earlier termination of this lease, in compliance with all applicable laws. (b) Tenant shall be responsible for obtaining all necessary permits in connection with its use, storage and disposal of Hazardous Materials, and shall develop and maintain, and where necessary file with the appropriate authorities, all reports, receipts, manifests, filings, lists and invoices covering those Hazardous Materials and Tenant shall provide Landlord with copies of all such items upon request. Tenant shall provide within five (5) days after receipt thereof, copies of all notices, orders, claims or other correspondence from any federal, state or local government or agency alleging any violation of any environmental law or regulation by Tenant, or related in any manner to Hazardous Materials In addition, Tenant shall provide Landlord with copies of all responses to such correspondence at the time of the response. i(t5eV+-3 Wte. MAA441.s?(_ as retvtrr? -flv 4t- lot past 5,49. (c6enant hereby inderaWifies and holds harmless Landlord, its successors and assigns from and against any and all losses, liabilities, damages, injuries, penalties, fines, costs, expenses and claims of any and every kind whatsoever (including attorney's fees and costs, expenses or claims asserted or arising under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, from time to time, and regulations promulgated thereunder, any so-called state or local "Superfund" or "Superlien" law, or any other federal, state or local statute, law or ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Materials) paid, incurred or suffered by, or asserted against, Landlord as a result of any claim, demand or judicial or administrative action by any person or entity (including governmental Page 6 of 8 STANDARD FORM 590-T (07/2002 Tenant Initials Landlord Initials This forth produced by F0rMU1a1t17 Forms Soltwam 880336-1827 or private entities) for, with respect to, or as a direct or indirect result of, the presence on or under or t j escape, s epage, le m spillage, discharge, emission or release from the Premises of any Hazardous Materials caused by Tenant or Tenant's agents, employees, invitees or successors in interest. This indemnity shall also apply to any release of Hazardous Materials caused by a fire or other casualty to the premises if such Hazardous Materials were stored on the Premises by Tenant, its agents, employees, invitees or successors in interest. (d) If Tenant fails to comply with the Covenants to be performed hereunder with respect to Hazardous materials, or if an environmental protection lien is filed against the premises as a result of the actions of Tenant, its agents, employees or invitees, then the occurrence of any such events shall be considered a default hereunder. (e) Tenant will give Landlord prompt notice of any release of Hazardous Materials, reportable or non-reportable, to federal, state or local authorities, of any fire, or any damage occurring on or to the Premises, (f) Tenant will use and occupy the Premises and conduct its business in such a manner that the Premises are neat, clean and orderly at all times with all chemicals or Hazardous Materials marked for easy identification and stored according to all codes as outlined above. (g) The warranties and indemnities contained in this Paragraph shall survive the termination of this Lease. TIME OF ESSENCE 31. Time is of the essence in this Lease ABANDONMENT 32. Tenant shall not abandon the Premises at any time during the Lease term. If Tenant shall abandon the premises or be dispossessed by process of law, any Personal Property belonging to Tenant and left on the Premises shall, at the option of Landlord, be deemed abandoned, and available to Landlord to use or sell to offset any rent due or any expenses incurred by removing same and restoring the Premises. DEFINITIONS 31 "Landlord" as used in this Lease shall include the undersigned, its heirs, representatives, assigns and successors in title to the Premises. "Agent" as used in this Lease shall mean the party designated as same in Paragraph 34, its heirs, representatives, assigns and successors. "Tenant" shall include the undersigned and its heirs, representatives, assigns and successors, and if this Lease shall be validly assigned or sublet, shall include also Tenant's assignees or sublessees as to the Premises covered by such assignment or sublease. "Landlord", "Tenant", and "Agent" include male and female, singular and plural, corporation, partnership or individual, as may fit the particular parties. NOTICES 34. All notices required or permitted under this Lease shall be in writing and shall be personally delivered or sent by U.S. certified mail, return receipt requested, postage prepaid. Notices to Tenant shall be delivered or sent to the address shown at the beginning of this Lease, excepfthat upon3enanHaking possession of the Eremises ilren the4misessl7all bo-Tenanr's ad l Pca for ?n h o doses Notices to Landlord shall be delivered or sent to the address shown at the beginning of this Lease and notices to Agent, if any, shall be delivered or sent to the address set forth in Paragraph 3 hereof. All notices shall be effective upon delivery. Any party may change its notice address upon written notice to the other parties, given as provided herein. ENTIRE AGREEMENT 35. This Lease contains the entire agreement of the parties hereto, and no representations, inducements, promises or agreements, oral or otherwise, between the parties, not embodied herein shall be of any force or effect. This Lease may not be modified except by a writing signed by all the parties hereto. AUTHORIZED LEASE EXECUTION 36. Each individual executing this Lease as director, officer, partner, member or agent of a corporation, limited liability company, or partnership represents and warrants that he is duly authorized to execute and deliver this Lease on behalf of such corporation, limited liability company, or partnership, Page 7 of 8 STANDARD FORM 590-T © 7/2002 Tenant Initials Landlord Initials This fonn produced by Form uli3rg7ef'ortns Sollwam 8003361027 TRANSFER OF LANDLORD'S INTEREST U L L ? U Ll // 37. In the event of the sale, assignment or transfer by Landlord of its interest in the Premises or in this Lease (other than a collateral assignment to secure a debt of Landlord) to a successor in interest who expressly assumes the obligations of Landlord under this Lease, Landlord shall thereupon be released and discharged from all its covenants and obligations under this Lease, except those obligations that have accrued prior to such sale, assignment or transfer; and Tenant agrees to look solely to the successor in interest of Landlord for the performance of those covenants accruing after such sale, assignment or transfer. Landlord's assignment of this Lease, or of any or all of its rights in this Lease, shall not affect Tenant's obligations hereunder, and Tenant shall attorn and look to the assignee as Landlord, provided Tenant has first received written notice of the assignment of Landlord's interest. SPECIAL STIPULATIONS 38. Any special stipulations are set forth in the attached Exhibit B Insofar as said Special Stipulations conflict with any of the foregoing provisions, said Special Stipulations shall control. MEMORANDUM OF LEASE 39. Upon request by either Landlord or Tenant, the parties hereto shall execute a short form lease (Memorandum of Lease) in recordable form, setting forth such provisions hereof (other than the amount of Base Monthly Rent and other sums due) as either patty may wish to incorporate. The cost of recording such memorandum of lease shall be borne by the party requesting execution of same. THIS DOCUMENT IS A LEGAL DOCUMENT. EXECUTION OF THIS DOCUMENT HAS LEGAL CONSEQUENCES THAT COULD BE ENFORCEABLE IN A COURT OF LAW. THE NORTH CAROLINA ASSOCIATION OF REALTORS@ MAKES NO REPRESENTATIONS CONCERNING THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS DOCUMENT OR THE TRANSACTION TO WHICH IT RELATES AND RECOMMENDS THAT YOU CONSULT YOUR ATTORNEY.. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals, the date and year first above written. LANDLORD: Individual Business Entity (SEAL) Efland Leasin m an (Namaa irn (SEAL) By: ".' (SEAL) Title: \\.1 Jy TENANT: Individual Business Entity (SEAL) County ran e (Na7 of n) n) (SEAL) By: .. `? (SEAL) Barry Acbbs Title: / Chairperson Page 8 of 8 STANDARD FORM 590-T © 7/2002 This loan pmduced by FMMUIOtUeFmns So(Iwam 800-3361027 J liU R ? 7 e EXHIBIT B ADDENDA TO COMMERCIAL LEASE AGREEMENT BETWEEN EFLAND LEASING COMPANY, LANDLORD AND COUNTY OF ORANGE, TENANT PROPERTY: 3501-A FORREST AVENUE EFLAND, NC 27243 Landlord grants Tenant a first right of refusal to purchase the building if Landlord decides to place the building on the market for sale, except when sale occurs between one or more of the current owners. Tenant shall have one hundred twenty (120) days from written notification to negotiate sale terms and enter into a contract to purchase prior to the property being offered for sale to the general market, Landlord recognizes the annual budget cycle in county government and will seek to reasonably accommodate an extended closing date while continuing to lease the building, TENANT: County of Orange By: LANDLORD: Efland Leasing Company Date: By: Date: 03 FOR LEASE Location Lease Rated Available Space Storage Building Zoning Parking Loading Dock Ceiling Height General Description From I-85/1-40, take Efland exit north across the railroad tracks to Forrest Avenue .3 miles from the interstate. Building is straight ahead with parking entrance to the right $2.25/SFplus utilities, janitorial, taxes, insurance, and grounds maintenance (NNN) 22,966 SF + metal storage building (see below) Approximately 1,260 SF for additional storage 1-2 Ample One dock high with leveler (new) 16 feet Combination of office and light manufacturing/warehouse. Approximately 1,120 SF of office and the remainder warehouse. Sprinklers installed fm fine protection. Three phase power throughout, new dock leveler, compactor pad, and new gas heaters in warehouse. Best Use Manufacturing/wareluouse/flex/office 3501-A Forrest Avenue, Efland, NC 27243