HomeMy WebLinkAboutAgenda 10-07-2025; 8-j - Approval of Lease Renewal Amendment for IFC HomeStart
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date:October 7, 2025
Action Agenda
Item No.8-j
SUBJECT: Approval of Lease Renewal Amendment for IFC HomeStart
DEPARTMENT: Asset Management Services
ATTACHMENT(S):
1. Lease Renewal Amendment for IFC
HomeStart
2. Resolution of Approval for the Lease
Renewal Amendment
INFORMATION CONTACT:
Connor Wilkins, Asset Management
Services Assistant Director, 919-245-
2689
Alan Dorman, Asset Management
Services Director, 919-245-2627
PURPOSE: To approve a resolution authorizing a five-year renewal of the lease agreement
between Orange County and Inter-Faith Council for Social Service (IFC) for three (3) buildings on
the Orange County Southern Human Services Campus for IFC HomeStart.
BACKGROUND: The Inter-Faith Council for Social Service (IFC) has administered transitional
housing services through HomeStart since the mid-1990s. The initiative was established to meet
the urgent need for short-term residential opportunities for homeless families, survivors of
domestic violence, and other low-income residents of Orange County.
In June 1995, the Orange County Board of Commissioners approved a long-term lease
agreement with IFC for the use of approximately three acres of County-owned property on
Homestead Road in Chapel Hill. The project was supported by $1.78 million in federal funding
from the U.S. Department of Housing and Urban Development, supplemented by local fundraising
and in-kind contributions.
The lease was structured at a nominal rate of $1.00 per year in recognition of the nonprofit’s
delivery of critical public services. Under the terms of the original lease, IFC assumed
responsibility for all site improvements, operations, and ongoing maintenance.
HomeStart has since become a cornerstone of the County’s housing support system, providing
stability and assistance to families working toward independence. Renewal of the lease will
preserve these services and extend the County’s longstanding partnership with IFC.
The only substantive revisions to the agreement pertain to updated insurance requirements as
well as an extension to the terms of the lease. These modifications align the lease with current
County standards and provide enhanced protections for both IFC and the County.
FINANCIAL IMPACT: There is no specific financial impact with this item.
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ALIGNMENT WITH STRATEGIC PLAN: This item supports:
GOAL 2: HEALTHY COMMUNITY
OBJECTIVE 3. Provide social safety net programming and the resources needed for our
most vulnerable community members (e.g., veterans, unhoused people, foster children,
older adults, etc.).
GOAL 3: HOUSING FOR ALL
OBJECTIVE 2. Address need and any policy barriers to increase access to emergency
shelter beds and other low-barrier housing including eviction diversion.
RECOMMENDATION(S): The Manager recommends that the Board:
1. Approve and authorize the Chair to sign the resolution authorizing the renewal of the lease
agreement with Inter-Faith Council for Social Service; and
2. Approve and authorize the Chair to sign the attached lease renewal amendment.
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AƩachment 1
STATE OF NORTH CAROLINA AMENDMENT TO LEASE
COUNTY OF ORANGE
The lease between ORANGE COUNTY (hereinafter sometimes referred to as “County” and
INTER-FAITH COUNCIL FOR SOCIAL SERVICE, INC. (hereinafter sometimes referred to as
“Tenant” or “IFC”) entered into on the 30th day of July, 1995, 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 2. The Lease term shall commence on December 1, 2025, and shall expire at midnight
on November 30, 2030.
Paragraph 14. Insurance and Indemnity
Lessee shall procure and maintain for the duration of the lease term insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the
Lessee’s operation and use of the leased premises. The cost of such insurance shall be borne by
the Lessee.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00
01covering CGL on an “occurrence” basis, including products and completed operations,
property damage, bodily injury and personal & advertising injury with limits no less than
$2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit
shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate
limit shall be twice the required occurrence limit.
2. Workers’ Compensation insurance as required by the State of North Carolina, with
Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per
accident for bodily injury or disease.
3. Property insurance against all risks of loss to any tenant improvements or betterments,
at full replacement cost with no coinsurance penalty provision. If the Lessee maintains broader
coverage and/or higher limits than the minimums shown above, the Lessor requires and shall be
entitled to the broader coverage and/or the higher limits maintained by the Lessee. Any available
insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be
available to the Lessor.
4. Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
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A. Additional Insured Status
Lessor, its officers, officials, employees, and volunteers are to be covered as additional insureds
on the CGL policy with respect to liability arising out the lease of the subject property including
damage caused in whole or in part by Lessee or by those working on your behalf. General
liability coverage can be provided in the form of an endorsement to the Lessee’s insurance, at
least as broad as ISO Form CG 20 11 12 19 or if not available, CG 20 43 12 19.
B. Primary Coverage
For any claims related to this contract, the Lessee’s insurance coverage shall be primary and
non-contributory and at least as broad as ISO CG 20 01 12 19 as respects the Lessor, its
officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the
Lessor, its officers, officials, employees, or volunteers shall be excess of the Lessee’s insurance
and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella
liability policies.
C. Legal Liability Coverage
The property insurance is to be endorsed to include Legal Liability Coverage (ISO Form CP 00
4004 02 or equivalent) with a limit equal to the replacement cost of the leased property.
D. Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except
with notice to the Lessor.
E. Waiver of Subrogation
Lessee hereby grants to Lessor a waiver of any right to subrogation which any insurer of said
Lessee may acquire against the Lessor by virtue of the payment of any loss under such insurance.
Lessee agrees to obtain any endorsement that may be necessary to affect this waiver of
subrogation, but this provision applies regardless of whether or not the Lessor has received a
waiver of subrogation endorsement from the insurer.
F. Self-Insured Retentions
Self-insured retentions must be declared to and approved by the Lessor. The Lessor may require
the Lessee to purchase coverage with a lower retention or provide proof of ability to pay losses
and related investigations, claim administration, and defense expenses within the retention. The
policy language shall provide, or be endorsed to provide, that the self-insured retention may be
satisfied by either the named insured or Lessor.
G. Acceptability of Insurers
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Insurance is to be placed with insurers authorized to conduct business in the state with a current
A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Lessor.
H. Verification of Coverage
Lessee shall furnish the Lessor with original certificates and amendatory endorsements or copies
of the applicable policy language effecting coverage required by this clause. All required
documents are to be received and approved by the Lessor before lease commences. However,
failure to obtain the documents prior to the lease beginning shall not waive the Lessee’s
obligation to provide them. The Lessor reserves the right to require complete, certified copies of
all required insurance policies, including endorsements required by these specifications, at any
time.
This the _______ day of ______________________, 2025.
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: ________________________________
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TENANT:
INTER-FAITH COUNCIL FOR SOCIAL SERVICE, INC.
By: _________________________________________(Seal)
Jackie Jenks, President and CEO
Attest:___________________________________________(Affix Corporate Seal)
Tom Fenn, Corporate Secretary
State of North Carolina
County Of ________________
I, _________________________________________a Notary Public for said County and
State, do hereby certify that ________________________appeared before me this date and
acknowledged that they are the ______________________________ of INTER-FAITH
COUNCIL FOR SOCIAL SERVICE, INC., and that by authority duly given and as the act of the
corporation, the foregoing instrument was signed in its name by
_____________________________ in their corporate capacity as Secretary.
Witness my hand and official seal, this the ____ day of ____________, 2025.
____________________________________________
Notary Public
My Commission Expires: ________________________________
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RES-2025-051 Attachment 2
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION LEASING PROPERTY UP TO TEN YEARS
Whereas, Orange County owns property on the Southern Human Services Campus in
Chapel Hill, North Carolina, consisting of three buildings (the “Premises”); and
Whereas, the Inter-Faith Council for Social Service, a North Carolina nonprofit corporation,
has operated transitional housing services known as HomeStart on the Premises since the
mid-1990s, providing critical support for homeless families, survivors of domestic violence,
and other low-income residents of Orange County; and
Whereas, the Board of Commissioners of Orange County initially approved a long-term
lease agreement with the Inter-Faith Council for Social Service in June 1995 for the use of
the Premises, at a nominal rate of $1.00 per year, in recognition of the valuable public
services provided; and
Whereas, HomeStart has become a cornerstone of the County’s housing support system,
offering stability and assistance to families working toward independence; and
Whereas, the proposed lease renewal maintains the existing financial arrangement and
incorporates updated insurance requirements in accordance with current County standards;
and
Whereas, North Carolina General Statute 160A-272 authorizes the lease of County-owned
properties for terms of up to ten years upon resolution of the Board of Commissioners at a
regular meeting after ten days’ public notice; and
Whereas, in consideration of the vital public services provided by the Inter-Faith Council for
Social Service, the Board of Commissioners desires to renew the lease agreement to
preserve and extend this partnership.
THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners hereby
approves and authorizes a five-year renewal of the lease agreement with the Inter-Faith
Council for Social Service for the Premises described above, ratifies the lease amendment,
and directs the execution, registration, and filing of all necessary instruments accordingly.
This the 7th Day of October, 2025.
________________________________
Jamezetta Bedford, Chair
Orange County Board of Commissioners
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