HomeMy WebLinkAboutOTHER-2025-017- Eno Arts Mill Suite 27 Lease Amendment Attachment 4 JU j
ORANGE COUNTY
STATE OF NORTH CAROLINA
AMENDMENT THREE TO
LEASE AGREEMENT
THIS AMENDMENT THREE ( hereafter "Amendment") to the Lease
Agreement dated February 7 , 2020 and as amended on July 15 , 2020 , and June 1 , 2021
(collectively , as amended , the " Lease " ) is made and entered into on the day of March ,
2025 by and between Eno River Mill , LLC , a North Carolina limited liability company
( hereinafter " Landlord ") , and Orange County , a political subdivision of the State of North
Carolina corporation ( hereinafter "Tenant" ) ( hereafter the Lease and Amendments shall
be referred to as the " Lease ") .
WITNESSETH
Landlord and Tenant desire to extend the Term of the Lease for a period of five ( 5 )
years . In consideration of such extension , the mutual covenants herein contained and
other good and valuable consideration , the sufficiency of which is hereby acknowledged ,
Landlord and Tenant agree as follows :
i . TERM . Paragraph 3 of the lease entitled "Term " is amended to extend the
Term of the Lease for five years (the " Extension Term " ) . The Expiration Date as used in
the Lease shall hereafter mean March 31 , 2030 .
2 . RENT . Rent will increase annually by two and one- half percent (2 . 5 % )
during the extended term as it did during the original lease term . The rent for the extended
term is shown below :
ERM and OCAC Amendment Three to Lease
START END ANNUAL MONTHLY
4/ 1/2025 3/31/ 2026 $ 36, 657 . 63 $ 3, 054 . 80
4/ 1/2026 3/31/2027 $ 37, 574 . 07 $ 31131 . 17
4/ 1/2027 3/31/ 2028 $ 381513 . 42 $ 3 , 209 . 45
4/ 1/2028 3/31/2029 $ 39, 476 . 26 $ 3 , 289 . 69
4/ 1/2029 3/31/2030 $ 401463 . 16 $ 31371 . 93
3 . OPERATING EXPENSE PASS -THROUGH . The last sentence of exhibit D to
Lease places an annual cap of $ 5 , 000 on operating expenses payable by Tenant annually
during the initial term of the Lease . During the initial term operating expenses did not
exceed the cap . During the extended term , the cap on operating expenses will escalate
annually by 2 . 5 % . The expense cap for each year during the extended term is shown on
the schedule below :
START END EXPENSE CAP
4/ 1/2025 3/31/2026 $ 5 , 125 . 00
4/ 1/2026 3/31/ 2027 $ 51253 . 13
4/ 1/2027 3/31/2028 $ 5 , 384 . 45
4/ 1/2028 3/31/2029 $ 51519 . 06
4/ 1/2029 3/31/ 2030 $ 51657 . 04
4 . EXTENSION OPTIONS . Tenant may , by written notice delivered to
Landlord on or before the 365th day prior to the expiration of the Term , extend the Term
of this Lease for two additional period (s ) of five years (each , if more than one option exists ,
provided that such periods are consecutive ) upon the same terms and conditions as are
set forth in this Lease for the initial Term , except that Minimum Rent for each such
extended term shall increase by two and one - half percent (2 . 5 % ) over the base rent
during the preceding year and will thereafter escalate annually by two and one- half
percent (2 . 5 % ) . The cap on operating expenses will also increase by two and one- half
percent (2 . 5 % ) during the first year of any option term and annually thereafter .
5 . MISCELLANEOUS . Except as modified herein , the terms and conditions
of the Lease are hereby ratified and affirmed . The Lease as modified by this Amendment ,
represents the entire agreement between the parties and supersedes any and all prior
agreements , whether oral or written . All prior negotiations have been merged in the
Lease , as amended by this Amendment , and there are no understandings ,
representations , or agreements , oral or written , expressed or implied other than those set
forth in the Lease as modified by this Amendment .
[ Signature Page Follows]
IN WITNESS WHEREOF , Landlord and Tenant have executed this Lease in duplicate
originals , all as of the day and year first above written .
TENANT : Orange County LANDLORD : Eno River Mill , LLC
a political subdivision of the State of NC
-� (SEAL) By :
Na e : w Name : Frank R . Gailor
Title : Title : Managing Member