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Agenda 03-19-24; 8-f - Renewal of the Lease for the Dickson House
1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 19, 2024 Action Agenda Item No. 8-f SUBJECT: Renewal of the Lease for the Dickson House DEPARTMENT: Asset Management Services ATTACHMENT(S): INFORMATION CONTACT: 1.) Lease Amendment Alan Dorman, Assistant Director of Asset 2.) Original Lease Management Services, 919-245-2627 3.) Resolution Steven Arndt, Director of Asset Management Services, 919-245-2658 PURPOSE: To adopt a resolution approving an amendment for a lease renewal with The Alliance for Historic Hillsborough, Inc. for the Dickson House, and to authorize the Chair to sign the lease upon final review of the County Attorney. BACKGROUND: The Dickson House encompasses a 0.79-acre parcel located at 150 E. King Street in downtown Hillsborough. This property includes the Historic Alexander Dickson House, built around 1790, and two outbuildings. Since 1999, The Alliance for Historic Hillsborough has leased the Dickson House and grounds from the County, utilizing the premises to foster community engagement and education through visitor services and programming initiatives. Originally, the lease stipulated an annual rent of $2,760. Since the original term, the lease has been extended several times, with the last term ending in December 2020. Since then, the Alliance has been on a month-to-month tenancy based on the current lease agreement. The proposed lease amendment extends the lease for an additional three years and three months, commencing on April 1, 2024, and ending on June 30, 2027. A review of the ongoing maintenance expenses was undertaken, including the costs associated with the long-term capital needs of the property. Based on this review, it was determined that an annual rate of $6,240 would be sufficient to cover both the annual maintenance and capital expenditures required for the long-term upkeep of the property. FINANCIAL IMPACT: The total rent due to the County per year would increase to $6,420, an increase of$3,660 per year over the current annual amount. The additional revenue should offset the current operational expenses associated with supporting the property and its long-term capital needs. 2 SOCIAL JUSTICE IMPACT: There are no Orange County Social Justice Goal impacts associated with this item. ENVIRONMENTAL IMPACT: There are no Orange County Environmental Responsibility Goal impacts associated with this item. RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution approving the renewal lease amendment with The Alliance for Historic Hillsborough, Inc. for the Dickson House, and authorize the Chair to sign the lease upon final review of the County Attorney. 3 Attachment 1 STATE OF NORTH CAROLINA AMENDMENT TO LEASE COUNTY OF ORANGE The lease between Orange County (hereinafter sometimes referred to as "County" and The Alliance for Historic Hillsborough, Inc. (hereinafter sometimes referred to as "Tenant") entered into on the day of , 20 , is hereby amended as follows, and all other provisions remain in effect unless expressly mentioned herein. In the event of a conflict between the original lease and this amendment the terms of this amendment shall be controlling. Paragraph 3. (a)The new Lease term shall commence on April 1, 2024, and shall expire at midnight on June 30, 2024. Thereafter with the mutual consent of the parties,the lease shall be extended in three year increments commencing on July 1, 2024, and ending at midnight on June 30, 2027. Paragraph 3. (c)The amount of rent shall increase to a sum of$520 per month,the first such increase shall be paid for the month commencing on April 1, 2024. This the day of 2024. IN TESTIMONY WHEREOF,the parties have hereunto set their hands and seals the day and year first above written. COUNTY: By: [Seal] Jamezetta Bedford, Chair Attest: [Seal] Laura Jensen, Clerk to the Board State of North Carolina County Of I, a Notary Public for said County and State, do hereby certify that Laura Jensen, 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 Jamezetta Bedford, Chair of the Orange County Board of Commissioners, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal,this the day of , 20_ Notary Public My Commission Expires: 4 TENANT: ALLIANCE FOR HISTORIC HILLSBOROUGH, INC. By: (Seal) AMANDA BOYD, EXECUTIVE DIRECTOR State of North Carolina County Of I, a Notary Public for said County and State, do hereby certify that AMANDA BOYD appeared before me this date and acknowledged that they are the EXECUTIVE DIRECTOR of ALLIANCE FOR HISTORIC HILLSBOROUGH, INC., and that by authority duly given and as the act of the corporation,the foregoing instrument was signed in its name by AMANDA BOYD in their corporate capacity as EXECUTIVE DIRECTOR. Witness my hand and official seal,this the day of , 2024. Notary Public My Commission Expires: 5 STATE OF NORTH CAROLINA COUNTY OF ORANGE LEASE THIS LEASE "Lemne^, made and entered into as of the 4th day of December, 2017' by and between (]n]Mge County, hereinafter referred to as "County," and Alliance for Historic Hillsborough, |no.. hereinafter referred ioae "7-eOant;" � � WITNESSETH: � � THAT FOR and inconsideration ofthe mutual covenants and conditions hereinafter | | set forth �� ��i� �� dohe�� agm� ��|��� ' '— -' � | 1. Premises. County does hereby lease and let unto Tenant and Tenant does hereby accept aa Tenant those certain premises designated as the Dickson House Complex, 150 E. King Street, Hillsborough, (]n3Oge County, North Carolina ("Lease Pranoimee.^ "Premises," or"Leased Premises"), situated on that parcel having PIN 9874163117 and as more particularly shown on EXHIBIT appended hereto. 2. Acceptance of Premises. The Tenant represents that the Leased Pnamniaao, the sidewalks and structures adjoining the same, any subsurface conditions thereof, and the present uses and non-uses thereof have been examined by the Tenant. The Tenant accepts the same iDthe condition inwhich they now are without representation or warranty, express or i[Dp|ied, in fact or by |axV, by the [|0UOty, the nature, condition or usability th8r8of, or the uses to which the Leased Premises may be put. Provided. County shall be responsible for ensuring that the heating/air-conditioning system is in gond operating condition; the exterior w@||S and roof. the lighting oyetwnn (excluding such additions as may be required for Tenant's business operation) and the exterior grounds are in good repair on the date of commencement of the Lease term. County represents and warrants toTenant 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 bui|ding, inopnovenmente, and pensona|ty, and the rent hereunder shall in no case be withheld or diminished because any defect in such proporty, any change in the condition theneof, any damage occurring thereto or the existence with respect thereof ofany violations of the |avvG or regulations of any governmental muthority, except as hereinafter provided. In addition, Tenant acknowledges that the Lease Premises is @ smoke free building and grounds and tobacco use inside ofthe building oronthe grounds ieprohibited. 3. Term and Rental. /a\ This Lease shall commence oMJanuary 1. 2018' and shall continue for mterm of thirty-six /36\ rnuntho, ending on December 31, 3020. both dates indusiwe, unless sooner terminated as herein provided. Upon mutual written agreement, this Lease may berenewed for up[uone twelve (12} month term. Any renewal may befor the entire Leased Premises, Any such renewal mhoU be subject to a mutually agreed upon increase in rent. (b) Tenant shall deliver to County a deposit in the amount of Two Hundred Sixty Dollars ($280.00). which is the equivalent tothe rent for one (1) month. Deposit shall be held GG a security deposit against claims for damages. This money may bedeposited for the exclusive use of Orange County and will be returned to Tenant at the end of the Lease within 30 days provided there has been npdamage tothe Leased Premises. Page of 12 6 (c) 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 sum Two Hundred Sixty Dollars ($260.00) per month ($9,360.00) for the 36 month lease term, on or before the fifth day of each month of the term. (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 past due payment fee of Fifty Dollars ($50.00). This additional rent shall be due immediately without demand therefore 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 Premises 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 the rent in effect during the last month of the term immediately preceding. 5. Insurance. The County shall keep in force insurance to provide for property damage to the building for replacement cost purposes. 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 Premises insured, at its sole cost and expense, against claims for personal injury or property damage under a policy of 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. 6. 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 because of any 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 coordinate with the Town of Hillsborough to provide and maintain the main building identification signage currently located adjacent to E. King Street. The Tenant reserves the right to install special signage it deems appropriate to properly direct the public to the services offered at the Leased Premises. Any special Tenant sign will be at the sole cost of the tenant but in the same styling, provided, however, that the County shall not unreasonably withhold approval of such signs as Tenant may desire. Signage must also be approved by the Town of Hillsborough. Upon the termination of this Lease the Tenant shall remove all special signs and repair any damage to the Leased Premises caused by the erection, maintenance, or removal of such special signs. Page 2 of 12 7 8. Repairs. The County shall be responsible for repairs and maintenance of the roof and outside VV@UG and other eXteOl8| structural Ol8Dlbe[s, including the foundation of the Leased Premises, The County shall be responsible for maintenance of the e|ectricg/, p|urnbing, and the heating plant/air-conditioning ayateDlG in such condition as existed at the commencement of this Lease. which County warrants to be in good working condition as of the dote of this Lease. The County shall be responsible for the removal of snow (in a timely manner) from the walkways. In addition. County shall mow the grams on the Leased Premises. The Tenant shall not cause or permit any waste, damage orinjury tothe [eased Premises. The TenRnt, at its sole axpensa, oho|| keep the Leased Premises clean and in good condition (reasonable wear and tear excepted), and ahm|| make all repairs, replacements and ranevva|n, i whether ordinary or extraordinary, seen or unseen, including all structural ropmire, necessary to maintain the interiors of the Leased Premises. All repairs, replacements and renewals shall be at least equal in quality of materials and workmanship to that originally existing in the Leased Premises. Such repair and maintenance the Tenant shall be responsible for include wall and ceilings (including the painting thereof); OO@iDteDGDc8 of floors, and the C|88DiOg of all buildings. The County shall in no event be required to make any repair, alteration orimprovement tothe interior of the Leased Premnigea, excepting obligations which are the responsibility of the County as noted above or which are made necessary because of fire and other unavoidable casualties covered by the County' fire and extended coverage insurance, and excepting reasonable wear and tear. The Tenant ohm|| be responsible for grounds core except for mowing and snow/ice removal on walkways. The Tenant shall promptly notify Orange County Asset Management Services for notice of any needed repairs. The Tenant shall repair and maintain those things that are the responsibility of the County if repair and maintenance is necessary because of the fault, aot. or negligence of the Tenmnt, its agents, sutten@Ota, emp|uyees, or business invitees. Any equipment replaced bythe Tenant shall belong tnthe Tenant, save equipment replaced in connection with Tenant's obligation to maintain the Leased Premises inthe same condition as exists at the commencement of this Lemee, and all proceeds from the disposition thereof may be retained by the Tenant. The Tenant oho|| indemnify the County against all noote. expenses, liabilities, losses, damages, Guita, fineo, pena|tieo, claims and demands including reasonable attorney fees, because ofTenant's failure to comply with the foregoing. S. Improvements. No substantial a|ter@tion, addidon, or improvement to the Leased Premises shall be made by the Tenant without the written consent of the Cmunty, which consent ahe|| not be unreasonably withheld, conditioned, or delayed. Any m|teratioM, addition, or improvement made by the Tenant after such consent shall have been given and any fixtures permanently installed as part thereof, sho||, at the County's ocdiun, 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 o|euee shall not preclude Tenant from decorating the interior of the Leased Premises from time totime inTenant'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 because of work, |obor, services, or materials supplied or claimed to have been eupp|igd, whether prior or after the commencement of the term heramf, to the Tenant or anyone holding the Leased Pnemioao, through or under the Tenant |fany such mechanic's lien shall at any time be filed against the Leased Premises, the Tenant aha||. within 30 days after notice of the filing the[eof, cause such lien to be discharged of record by payment, depoait, bond, order of m court of competent jurisdiotion, or otherwise. If the Tenant ahm|| fail to cause such lien to be discharged within such 30 day period, theO, in addition to any other right or remedy of the County. the County may, but ahm|| not be obligated Page of 12 8 to, discharge such lien either by paying the amount claimed to be due or by p[DCuhDg the discharge of such lien by deposit or by bonding p[nceediOgG, and in any such event the County ahmU be endt|ed, if the County so e|eota, to compel the prosecution of an action for the foreclosure of such mechanic's lien by the |ieDVF and to pay the amount of the judgment for and in favor Of the lienor, with interest, costs and all other a||oVVaDCeS. Any 3[DOuDt paid by the County for any such purposes, eho|| be repaid by the Tenant to the County on demand, with interest thereon at the nate of 6% per annum from the date of payment, 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 vvGy as constituting the consent or request of the Coonty, express or innp|ied, by inference or otherwise, to any contractor, subcontractor, laborer ornnmterio|nmonfor 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 ofthe Leased Premises. 11. . Tenant hereby expressly covenants j and agrees that the Tenant gho|| 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 o port shall not be disturbed. Tenant shall be responsible for and pay for the installation of any special podding for other noise suppression devices that may be required for control of the level of sound emanating from the demised premises. 12. Tenant's Obligation to Comply with Applicable Laws and Compliance 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 Premises, the fixtures, and equipment therein, and the sidewalks and curbs adjoining the Leased Premises. 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 Premises. 13. Utilities. Tenant shall be responsible for gmo, e|ectrioity, to|ephoDe, peat control and vxate[, used, neDdered, or supplied upon the Leased Premises. The County shall be responsible for trash and recycling costs. 14. Condition of Premises. The Tenant ahm||, during the term of this Lease and any nanexva| or extension heraof, at its sole expense. cause the Leased Premises to be Kept clean and inamanner satisfactory fothe County. 15. Surrender in Same Good Order and Condition. The Tenant shall vacate the Leased Premises inthe good order and repair iOwhich such property now is, ordinary wear and tear excepted, and shall remove all its property therefrom sothat the County can repossess the Leased Premises no later than Noon on the day Up0O which this Lease endm, whether upon notice or by holdover orotherwise. The County shall have the same rights to enforce this covenant by ejectment and for damages or otherwise as for the breach of any other condition or covenant of this Lease. Tenant may at any time prior to or upon the termination of this Lease orany renewal mrextension thereof remove from the Leased Premises all materials, equipment, and property ofevery other sort or nature installed by the Tenant thereon, provided that such property is removed without substantial injury to the Leased Premises. No injury shall be Page 4Of12 9 considered substantial if it is promptly corrected by restoration to the condition prior to the installation of such property, if so requested by the County. Any such property not removed shall become the property of the County. 16. Prohibition Against Unlawful or Extra-Hazardous Use and Enforcement Against Subtenants. The Tenant may use and occupy the Leased Premises for general office uses, educational programs, and special events and for no other purpose without the prior written consent of County. Tenant shall not use or occupy nor permit the Leased Premises or any part thereof to be used or occupied for any unlawful business, use or purpose, nor for any business, use, or purpose deemed extra-hazardous, nor for any purpose or in any manner which is in violation of any present or future governmental laws or regulations. The Tenant shall promptly, after the discovery of any such unlawful or extra-hazardous use, take all necessary steps, legal and equitable, to compel the discontinuance of such use and to oust and remove any subtenants, occupants, or other persons guilty of such unlawful or extra-hazardous use. The Tenant shall indemnify the County against all costs, expenses, liabilities, losses, damages, injunctions, suits, fines, penalties, claims, and demands, including reasonable counsel fees, arising out of any violation of or default in these covenants. 17. County's Right to Cause Expiration or Termination upon Listed Defaults (a) The occurrence of any of the following shall constitute an event of default: 1. Delinquency in the punctual payment of any rent or additional rent payable under this Lease when such rent shall become payable. Should such rent payment not be made when due then upon the expiration of five days after the due date, such rent payment shall be delinquent. 2. Delinquency by the Tenant in the performance of or compliance with any of the conditions contained in this Lease other than those referred to in the foregoing subparagraph 1, for a period of 30 days after written notice thereof from the County to the Tenant. In the event, Tenant is incapable of curing the default within such thirty (30) day period, the County may in its discretion extend the time for as long as the County deems necessary to cure such default. Provided, however, the Tenant shall promptly and diligently commence action to cure such default and provide County with evidence of Tenant's intent to cure the default. Any additional period beyond thirty (30) days granted to Tenant to cure any default shall not be extended to jeopardize the interest of the County in this Lease or to subject the County to any civil or criminal liabilities. 3. Filing by the Tenant in any court pursuant to any statute, either of the United States or any state, of a petition in bankruptcy or insolvency or for reorganization, or for the appointment of a receiver or trustee of all or a portion of the Tenant's property, or an assignment by the Tenant for the benefit of creditors. 4. Filing against the Tenant in any court pursuant to any statute, either of the United States or of any state, of a petition in bankruptcy or insolvency, or for reorganization, or for appointment of a receiver or trustee of all or a portion of the Tenant's property, if within 180 days after the commencement of any such proceeding against the Tenant such petition shall not have been dismissed. (b) Upon the expiration or termination of this Lease, the Tenant shall peacefully surrender the Leased Premises to the County, and the County, upon or at any time after such expiration or termination, County may, without further notice, reenter the Leased Premises and Page 5 of 12 10 repossess it by force, summary proceedings, ejectment, or otherwise, and may dispossess the Tenant and remove the Tenant and all other persons and property from the Leased Premises and the right to receive all rental income therefrom. (c) At any time after such expiration, the County may relet the Leased Premises or any part thereof, in the name of the County or otherwise, for such term (which may be greater or less than the period which would otherwise have constituted the balance of the term of this Lease) and on such conditions (which may include concessions or free rent) as the County, in its uncontrolled discretion, may determine, and may collect and receive the rent thereof. (d) No such expiration or termination of this Lease shall relieve the Tenant of its liability or obligations under this Lease, and such liability and obligations shall survive any such expiration or termination. In the event of any such expiration or termination, whether or not the Leased Premises or any part thereof shall have been relet, the Tenant shall pay to the County the rent and additional rent required to be paid by the Tenant up to the time of such expiration, and thereafter the Tenant, until the end of what would have been the term of this Lease in the absence of such expiration, shall be liable to the County for, and shall pay to the County, as and for liquidated and agreed current damages for the Tenant's default: 1. The equivalent of the amount of the rent and additional rent which would be payable under this Lease by the Tenant if this Lease were still in effect, less 2. The greater of: (a) The fair rental value of the Leased Premises for the remaining term of the Lease, after deducting all the County's reasonable expenses in connection with such reletting, including, without limitation, all repossession costs, brokerage Commissions, legal expenses, reasonable attorney's fees, alteration costs, and expenses of preparation for such reletting. (b) The net proceeds of any reletting effected pursuant to the provisions of paragraph d. of this article, after deducting the County's reasonable expenses in connection with such reletting, including, without limitation, all repossession costs, brokerage commissions, legal expenses, reasonable attorney's fees, alteration costs, and expenses of preparation for such reletting. (e) The Tenant shall pay such current damages (herein called "deficiency") to the County monthly on the days on which the rent and additional rent would have been payable under this Lease if this Lease were still in effect, and the County shall be entitled to recover from the Tenant each monthly deficiency as such deficiency shall arise. At any time after any such expiration, whether the County shall have collected any monthly deficiency, the County shall be entitled to recover from the Tenant, and the Tenant shall pay to the County, on demand, as and for liquidated and agreed final damages for the Tenant's default, an amount equal to the difference between the rent and additional rent reserved hereunder for the expired portion of the Lease of the Leased Premises for the same period. In the computation of such damages the difference between any installment of rent becoming due hereunder after the date of termination and the fair and reasonable rental value of the Leased Premises for the period for which such installment was payable shall be discontinued to the date of termination at the rate of four percent per annum. Page 6 of 12 11 (f) The terms "enter", "reenter", "entry", or "reentry" as used in this Lease are not restricted to their technical meaning. 18. Lien on Tenant's Improvements and Personal Property. The County shall have first lien paramount to all others on every right and interest of the Tenant in and to this Lease, and on any building or improvement on or hereafter placed on the Leased Premises, and on any furnishings, equipment, fixtures, or other personal property of any kind belonging to the Tenant, or the equity of the Tenant therein, on the Leased Premises. Such lien is granted for the purpose of covenanted to be paid by the Tenant, and for the purpose of securing the performance of all the Tenant's obligations under this Lease. Such liens shall be in addition to all rights of the County given under statutes of this state, which are now or shall hereinafter be in effect. The provisions of this paragraph shall not be applicable to liens existing at the commencement of this Lease. Provided, that County may, at his option, agree to subordinate this lien to liens arising about purchased of equipment or leasehold improvement financing by Tenant, which agreement County covenants not to unreasonably withhold. 19. County's Right to Receiver upon Tenant's Default. In addition to any other security for the performance of this Lease, the Tenant hereby assigns to the County all the rents and profits which might otherwise accrue to the Tenant from the use, enjoyment, and operation of the Leased Premises, such assignment to become effective, however, only after default by the Tenant in the performance of its obligations under this Lease. If the County, upon default of the Tenant, elects to file a suit in equity to enforce the Lease and protect the County's right hereunder, the County may upon notice to the Tenant, as ancillary to such suit, apply to any court having jurisdiction for the appointment of a receiver of the Leased Premises, the improvements and buildings located thereon, the personal property located therein, and thereupon the court may forthwith appoint a receiver with the usual powers and duties of receivers in like cases. Such appointment shall be made by such court as a matter of strict right to the County and without consideration of the adequacy of the value of the Tenant's interest in the Lease, or of the value of the property, or the commission of waste thereon, or the deterioration thereof. Nothing herein shall prevent the enforcement of the County's lien for rent in any court or by proceeding authorized to the laws of this state, or the institution by the County of a separate proceeding in equity for the appointment of a receiver as an ancillary remedy to protect the rights and interest of the County. Any and all remedies or proceedings are considered cumulative and not exclusive. 20. Waiver of County's Rights Only by Written Instrument. No failure by the County to insist upon the strict performance of any item or condition of this Lease or to exercise any right or remedy available on a breach thereof, and no acceptance of full or partial rent during the continuance of any such breach shall constitute a waiver of any claim, breach, or of any such term or condition. No term or condition of this Lease required to be performed by the Tenant, and no breach thereof, shall be waived, altered or modified, except by a written instrument executed by the County. No waiver of any breach shall affect or alter any term or condition in this Lease, and each such term or condition shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. 21. Performance of Tenant's Obligations - Unpaid Insurance Premiums (a) If the Tenant shall at any time fail to pay any amount in accordance with the provisions of this Lease, or shall fail to take out, keep in force, or shall fail to perform any of its other obligations under this Lease, then the County may after notice and opportunity to cure in accordance with the provisions of Section 17(a)2, or without notice if any emergency exists, and Page 7 of 12 12 without releasing the Tenant from any obligation of the Tenant contained in this Lease, may (but shall be under no obligation to) pay any amount payable by the Tenant hereunder, and perform any other act required to be performed by the Tenant hereunder. The County may enter upon the Leased Premises for such purposes and take any action necessary therefore. (b) All sums so paid by the County and all costs and expenses incurred by the County in connection with the performance of any such act, together with interest thereon at the rate of 6% per annum from the respective dates of each such payment and such costs and expenses, shall constitute additional rent payable by the Tenant under this Lease and shall be paid by the Tenant to the County on demand. (c) Notwithstanding anything in this Lease to the contrary, the County shall not be limited in any damages which the County may claim against the Tenant by reason of the Tenant's failure to provide and keep insurance in force to the amount of the insurance premiums not paid or incurred by the Tenant. The County shall also be entitled to recover as damages for such breach the uninsured amount of any loss, together with damages, costs, and expenses of any suit offered or incurred by reason of damage to the Leased Premises occurring during any period when the Tenant shall have failed to provide and keep such insurance in force. 22. Taxes. The County shall pay and be responsible for: any and all the ad valorem real property taxes and assessments with respect to the Premises. Tenant shall pay and be responsible for: any and all taxes and assessments on the equipment, inventory, or other business assets. 23. Right of Entry. The County or its agent shall within twenty-four (24) hours notice have the right to enter the Leased Premises at reasonable times during normal County business hours in order to examine it or to show it to prospective purchasers or lessees. The County shall be allowed to take all material into and upon the Leased Premises that may be required therefore without the same constituting an eviction of the Tenant in whole or in part. During the last month prior to the expiration of the term of this lease, the County may place upon the Leased Premises the usual notices "To Let" or "For Sale", which notices the Tenant shall permit to remain thereon without molestation. If during the last month of the term the Tenant shall have removed all or substantially all of the Tenant's property therefrom, the County may, with the Tenant's permission, immediately enter and later, renovate and redecorate, the Leased Premises without elimination of abatement of rent and without liability to the Tenant for any compensation, and such acts shall have no effect upon this Lease. If the Tenant or its employees shall not be personally present to permit entry at any time when an entry therein shall be immediately necessary, as herein provided, the County may enter the premises by such means as may be appropriate, including forcible entry, without rendering the County or such agents liable therefore (if during such entry the County or his agents shall accord reasonable care to the Tenant's property), and without in any manner affecting the obligations and covenants of this Lease. The County's right of reentry shall not be deemed to impose upon the County any obligation, responsibility or liability for the care, supervision or repair of the Leased Premises other than as herein provided. In the event that it becomes necessary for County to replace or repair any major component or any structural or other system in the Leased Premises, the County shall have full and unrestricted access to the building and the Leased Premises. The County reserves the right temporarily to interrupt, curtail, stop or suspend air-conditioning and heating service, and all other utility or other services, because of accident or emergency or for repairs, alterations, additions, or improvements, or because of the County's inability to obtain, or difficulty or delay in obtaining, labor or materials necessary therefore or compliance with governmental restrictions in connection therewith, or because of Page 8 of 12 13 any other cause beyond the County's reasonable control, provided that, except in cases of emergency, the County will use its best efforts to limit such stoppage to after-business hours, will notify the Tenant in advance, if possible, of any such stoppage, and, if ascertainable, its estimated duration, and will proceed diligently with the work necessary to resume such service as promptly as possible and in a manner and at times as will not materially interfere with or impair the Tenant's use of the Leased Premises. No diminution or abatement of fixed rent or other compensation shall be claimed by the Tenant, nor shall this Lease or any of the obligations of the Tenant hereunder be affected or reduced by reason of such interruption, stoppage, or curtailment, nor shall the same give rise to a claim in the Tenant's favor that such failure constitutes total or partial eviction from the Leased Premises, provided that if the Leased Premises shall be unreasonably untenantable for a continuous period of more than four business days by reason of any such stoppage, the fixed rent payable by the Tenant shall abate until the Tenant shall be again able to use the Leased Premises. 24. Destruction by Fire or Other Casualty. In the event the premises or any substantial portion thereof are destroyed by fire or other casualty during the term of this Lease, it is understood and agreed that County shall have no obligation to rebuild and, at the election of County or Tenant, the Lease may be terminated. 25. Condemnation. If the whole of the Leased Premises, or such portion thereof as will make the Leased Premises unsuitable for the purposes herein leased, is condemned for any public use or purpose by any legally constituted authority, then in either of such events this Lease shall cease from the time when possession is taken by such public authority and rental shall be accounted for between the County and the Tenant as of the date of the surrender of possession. Such termination shall be without prejudice to the rights of either the County or the Tenant to recover compensation from the condemning authority for any loss or damage caused by such condemnation. Neither the County nor the Tenant shall have any rights in or to any award made to the other by the condemning authority. 26. Assignment of Lease. The Tenant shall not assign, mortgage, or encumber this Lease, nor sublet or permit the Leased Premises or any part thereof to be used by others, without the prior written consent of the County in each instance. Tenant may request an assignment authority from County. Such authority may only be granted in a written instrument approved by County. If this Lease is assigned, or if the Leased Premises or any part thereof, is sublet, or occupied by anybody other than the Tenant, the County may, after an event of default, as hereinabove defined, by the Tenant, collect rent for the assignee, subtenant, or occupant and apply the net amount collected to the rent herein reserved. No such assignment, subletting, occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of this assignee, subtenant, or occupant as tenant, or a release or amendment of covenants in this Lease. The consent by the County to an assignment or subletting shall not be construed to relieve the Tenant from obtaining the consent in writing of the County to any further assignment or subletting. 27. Assignment of Interest in Rents. The County shall have the right, without selling its fee interest in the Leased Premises or assigning its interest in this Lease, to assign from time to time the whole of the net rent at any time payable hereunder to persons, firms, corporations, trusts or other entities designated by the County in a written notice to the Tenant, and in any such case the Tenant shall pay the net rent, subject to the terms of this Lease, to the County's designee at the address mentioned in any such notice for the period covered by such assignment. Page 9 of 12 14 28, Exoneration from Liability. The County shall not beliable and Tenant shall indemnify and defend County for any p8nSoO@| injury to the TaD@O1 or to its officers, agents and ernp|oyeea, or to any other occupant of or third party on any part of the Leased Premises, regardless of how such injury Or damage may be cauaad, whether from action of the elements or acts of negligence of the occupants of adjacent propertiea, or any other persons; provided that nothing contained herein shall relieve the County of the consequences of its own negligence. 28, Reimbursement of Expenses. The Tenant ah8|| defend and indemnify the County against all legal costs and ohargee, including reasonable attorney fees lawfully and reasonably incurred, in obtaining possession of the Leased Pnsnniaee after default of the Tenant � or after the Tenant's default in surrendering possession upon the expiration or earlier termination of the term of the Lease or enforcing any covenant of the Tenant herein contained. � The Tenant further covenants that in case the County shall be made party to any litigation onmnnnennad against the Tenent, due to act or omission on the part of the Tenant a|one, then the Tenant shall pay all expenses, nomta' and reasonable attorney's fees incurred by or imposed on the County in connection with such |iiigoUon, and such expenses, costs, and attorney's fees shall be additional rent due on the |@ot day after services of notice of such payment or poymentn, together with interest at m nate of 096 per annurn from the date of payment, and shall be collected as any other rent specifically reserved herein. Provided that this claim ehm|| not be applicable where the County shall be made m party by reason of any independent liability of the County caused by some act or omission on the part of the County or resulting from any act nromission onthe part of both Tenant and County. 30. Smoke Free Facility. Tenant acknowledges that County buildings are smoke- free. Tenant shall ensure that e0p|0yees, customers or invitees of the Tenant abide by the County's ordinances and Board of Health Rules which prohibit smoking. 31. Weapons Prohibited. Tenant acknowledges that by |axv weapons are prohibited in County facilities. Tenant will ensure that employees, cuetomnrs, or invitees of the Tenant abide by the County's ordinance that prohibits weapons in the facility. 32. Notice by Registered or Certified Mail. Any notice under this Lease must be in writing and must be sent by registered or certified mail to the |met address of the party to whom the notice iotVbegiven, as designated by such party in writing. The County hereby designates its address as: Orange County Attn: Director VfAsset Management 131West Margaret Lane; Suite 3O1 P{JBox 8181 Hillsborough, NC 27278 819-245-2658 The Tenant hereby designates its address as: Alliance for Historic Hillsborough Attn : Executive Director 150 East King Street Hillsborough, NC 27278 019-732-7741 Page 10 of 12 15 33. Grammatical Usage. In construing this Lease feminine or neuter pronouns shall be substituted for those masculine in form and vice versa, and plural terms shall be substituted for singular and singular for plural in any place in which the context so requires. 34. Hillsborough Agreement. Tenant utilizes the Premises for the purposes of carrying out its obligations to the Town of Hillsborough pursuant to its agreement with the Town to manage the visitors center and tourism related marketing and communications. Should Tenant's agreement with the Town of Hillsborough expire or be terminated this Lease shall terminate and the Tenant shall immediately surrender the Premises as provided herein. 35. Memorandum of Lease. County and Tenant shall execute a Memorandum of Lease for recordation. Such Memorandum of Lease shall comply with Article 8 of Chapter 47 of the North Carolina General Statutes. 36. Entire Agreement. This Lease contains the entire agreement between the parties, and any executory agreement hereafter made shall be ineffective to change, modify, or discharge it in whole or in part, unless such executory agreement is in writing and signed by the party against whom enforcement of the change, modification or discharge is sought. [Signature Page to Follow] Page 11 of 12 16 IN TESTIMONY WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. t� P COUNT A TEST: BY: �`t Mark Doro ' , Cha' Donna S. Bak Clerk to the Boa TENANT: WITNESS: w ' I Sarah DeGennaro Alliance for Historic Hillsborough, Inc. STATE OF NORTH CAROLINA ORANGE COUNTY I, � �.�..r , e. o�.. �<° a Notary Public for said County and State, do hereby certify that Donna S. Baker 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 Mark Dorosin, sealed with its official seal, and attested by herself as its Clerk. Witness my hand and official seal, this the day of201% Notary Public My Commission expires: 7, . 111 OFFICIAL SEAL STATE OF NORTH CAROLINA Notary Public,North Carolina UNTY COUNTY OF ORANGE ORANGE HUNT • • DAVID Hu�r My co"miusion Expires _ Ott a Notary Public, do hereby certifytl�that ° rv,,iJ , personally appeared before me this day and acknowledged the due execution of the foregoing Lease Agreement. WITNESS my hand and official seal this the 20\' day of _ 2010. Notary Public My commission expire� k% °'p # + 411 1- _ nay�onim. rxpires Page 12 of 12 17 DICKSON FIOUSE COMPLEX 90 EAST KING STREETHILLSBOROUGH Owner^ kflp; Owned /0- Year guilt" 1790 YearAdded, 1 x 92 r9, � Property rorty Tot�,A(Est.Acres).0.83 Gross Square p.'"oo ge(Est.): 2,713 .f Building Notes: 'P r, ,iU)��!/II,Yjirr�ryrir l/,� 1/ I611Vi� Historic borne relocated to current location by County. Includes historic office building and restroorn building constructed at Fling Strut location for visitors, Siding and other exterior repairs,exterior repainting and application of preservative to cedar shake root completed in 2008, Historic residence leased to Alliance for Historic Hillsborough. B Property linforrnt) w Aerial View o7 Property and BuIlding Address- 150 ddress 150 FAST KING s GREET ., � rm r y° iaa,iyaW w 6rFil_I_SF3C)Rf7tlGH, 27273 ihd: 9£314 G6.3117 Zoning District: OFFICE INSTITUTIONAL 8rwsuro-wd Value: $231,800.00 Hillsborough Historic District: Yews p7icG4 rd rro rSE-HI TORIC Fra"rV�W�r7 9 r QST KING STREET 47906(27 f3 qf#, Alliance for Historic Hillsborough / /i/ r�C4rC �L� � 4.Y9Cn r� T �b�f�FFr4� ry iii r� ri r t6 A�xT Bfir�b"� T ���' �ir r/rri 1!I�f / Mrd h1C716 -RESTROOM SW a� T Kuru � r l iif'it i` 1� r% '/ C:-27 18 ACOR®� 02/1144/!22016018 CERTIFICATE OF LIABILITY INSURANCE DATE( ) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Gretchen LaNier NAME: Colonial Insurance Agency Hillsborough PHONE (919)732-2191 FAX (919)732-2192 A/C No Ext): A/C No): 103 Millstone Dr.Suite A E-MAIL retchen enc ADDRESS: g colonial-a .com @ g y PO Box 490 INSURER(S)AFFORDING COVERAGE NAIC# HILLSBOROUGH NC 27278 INSURERA: Auto-Owners 18988 INSURED INSURERB: Alliance For Historic Hillsborough INSURERC: 150 E King St INSURER D: INSURER E: Hillsborough NC 27278-2685 INSURERF: COVERAGES CERTIFICATE NUMBER: CL1821402631 REVISION NUMBER: THIS IS TO CERTIFY THAT TME POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSD WVD POLICYNUMBER MM/DD/YYYY MM/DD/YYYY LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE �OCCUR DAMAG S(Ea occurrence) 50,000 PREMISES Ea ocairrence) $ MED EXP(Any one person) $ 5,000 A 35097265 11/03/2017 11/03/2018 PERSONAL B ADV INJURY $ 1,000,000 GEN'LAGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $ 2,000,000 X POLICY D PRO ❑ LOC PRODUCTS-COMP/OPAGG $ 2,000,000 JECT OTHER Premises/Operations $. AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ Ea accident ANYAUTO BODILY INJURY(Per person) $ OWNED SCHEDULED BODILY INJURY(Per accident) $ AUTOS ONLY AUTOS HIRED NON-ONMED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY Per accident $ UMBRELLA LIAR OCCUR EACH OCCURRENCE $ EXCESS LIAB HCLAIMS-MADE AGGREGATE $ DED I I RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY YX STATUTE I ER A ANY PROPRIETOR/PARTNER/EXECUTIVE ❑ N/A 35097281 11/03/2017 11/03/2018 E.L.EACHACCIDENT $ 100,000 OFFICERIMEMBER EXCLUDED? (Mandatory in NH) E.L_DISEASE-EA EMPLOYEE $ 100,000 If yes,describe under 500,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES(ACORD 101,Additional Remarks Schedule,maybe attached if more space is required) Certificate Holder is listed as Additional Insured, CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,NOTICE WILL BE DELIVERED IN Orange County ACCORDANCE WITH THE POLICY PROVISIONS. PO Box 8181 AUTHORIZED REPRESENTATIVE Hillsborough NC 27278 ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD 19 RES-2024-016 Attachment 3 ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS RESOLUTION AUTHORIZING THE LEASE OF DICKSON HOUSE TO THE ALLIANCE FOR HISTORIC HILLSBOROUGH Whereas,Orange County owns the Dickson House, located at 150 East King Street in Hillsborough, a 0.79 acre property that includes the Historic Alexander Dickson House as well as two outbuildings; and Whereas, North Carolina General Statute 160-272 authorizes the lease of County properties for up to 10 years upon resolution of the Board of County Commissioner at a regular meeting after thirty days' public notice; and Whereas,The Alliance for Historic Hillsborough, Inc. has leased the Dickson House property from the County since 1999 for the purpose of safeguarding the cultural heritage inherent in the structure, promoting community engagement and education through visitor services, and sharing the building's rich history; and Whereas, The Alliance for Historic Hillsborough desires to lease the Dickson House for a period of three months and three years, beginning on April 1, 2024, and ending June 30, 2027; and Whereas, The Alliance for Historic Hillsborough will pay the County an annual rent of $6,420, which will help to offset the County's cost of annual and long-term maintenance needs of the property; NOW THEREFORE, BE IT RESOLVED, that the Board of County Commissioners hereby approves the lease of the County property described above to the Alliance for Historic Hillsborough, Inc. for a term of three years and three months, commencing on April 1, 2024, approves the signing of the lease, and directs the execution, registration, and filing of all necessary instruments accordingly. Adopted this day, the 191h of March, 2024. Jamezetta Bedford, Chair Orange County Board of Commissioners