HomeMy WebLinkAboutDoc 207 - Sheriff - Sisters Substation LeaseDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of May 29, 2013
DATE: May 13,2013
FROM: Darryl Nakahira, DCSO Legal Phone: 541-617-3369
TITLE OF AGENDA ITEM:
Consideration of Board signature of Document No. 2013-207, the Sheriff's Office Sisters Substation
Real Property Lease Renewal.
PUBLIC HEARING ON THIS DATE? No.
BACKGROUND AND POLICY IMPLICATIONS:
This is a three-year renewal of the lease on real property located at 703 N. Larch St, Suite 703C,
Sisters, OR. The Sheriff's Office uses the property for its Sisters substation.
FISCAL IMPLICATIONS:
The Sheriffs Office will pay the Lessor rent in the amount of$2,365.81 per month for the duration of
the lease. Lessor has agreed to charge the same rate as during the previous three years. The rent reflects
the savings on real property taxes accruing by way of real property tax exemptions obtained by Lessee,
pursuant to ORS 307.112.
RECOMMENDATION & ACTION REQUESTED:
Approve and sign the Sheriff's Office Sisters Substation Real Property lease.
ATTENDANCE: Capt. Erik Utter; Darryl Nakahira, SO Legal Counsel
DISTRIBUTION OF DOCUMENTS:
Call or email Pat Davis, Sheriff's Office Legal Assistant, when one original is ready to be picked up.
DESCHUTES COUNTY DOCUMENT SUMMARY
Date: May 13,2013 Department: Sheriff s Office
Type of Document: Document 2013-207 is a real property lease between Jon Addison,
Lessor, and Deschutes County, Lessee.
Goods and/or Sen-ices: Document 2010-321 is a renewal of the lease of real property located
at 703 N. Larch St, Suite 703C, Sisters, OR. The Sheriffs Office leases the space for its Sisters
substation. This is a 2500 square foot office space in the west end of the office building, with
dedicated front, side and rear entrances and with a separate, dedicated parking lot.
Background & History: This is a three year renewal of the lease. The Lessor has agreed to
charge the same rent as during the previous lease, with no increase during the next three years.
The Sheriff s Office has been leasing this office space for eleven years.
Agreement Starting Date: June 30, 2013 Ending Date: June 30, 2016
Annual Value or Total Payment: Lessee shall pay Lessor as basic rent the sum of$2,365.81
per month ($28,389.72 per year).
Check all that apply:
D RFP, Solicitation or Bid Process
D Informal quotes «$150K)
[8] Exempt from RFP, Solicitation or Bid Process (specify -see DCC §2.37)
Funding Source: (Included in current budget? [8] Yes D No
If No, has budget amendment been submitted? DYes No
Is this a Grant Agreement providing revenue to the County? DYes [8] No
Departmental Contact and Title: Capt. Erik Utter Phone#: 541-617-3369
Sherifrs Approval: ~ Msi ~re l Date
Distribution of Document: Call or email Pat Davis when one original is ready to be picked
up ..
Official Review:
COW1ty Signature Required (check one): !Sl BOCC D Department Director (if <$25K)
o Administrator (if >$25K but <$150K; if>$150K, BOCC Order No . )-----'
Legal Review ~~
Document Number 2013-307
REVIEWED S-I 1!3
SHERIFFS OFFICE SISTERS SUBSTATION
REAL PROPERTY LEASE
DOCUMENT #2013-207
THIS LEASE, made and entered into by and between JON R. ADDISON, TRUSTEE,
Lessor, and DESCHUTES COUNTY, a political subdivision of the State of Oregon, herein called
"Lessee,"
WHEREAS, the Lessor owns real property known as 703 North Larch Street, Suite 703C located on
the SW comer of Barclay Drive and Larch Street, Sisters, Oregon 97759, hereinafter called the
"leased real property" and generally described as follows:
Approximately 2,500 square feet of office space of the west end of the office
building, with dedicated front, side and rear entrances and with a separate, dedicated
parking lot.
WHEREAS, the Lessee desires to lease the described real property for office purposes;
NOW, THEREFORE, in consideration of the mutual covenants and agreements listed below,
the Lessor and the Lessee agree as follows:
1. TERM AND RENEWAL. The term of this Lease shall begin as of June 30, 2013 and
continue through June 30, 2016, a period of three (3) years.
/20 bfrYS
2. TERMINATION. This Lease may be terminated by either party upon ninety
written notice to each other.
3. POSSESSION. Lessee's right to possession and obligations under the Lease shall continue ~
uninterrupted, except as otherwise provided herein. £s!r!>{ 13
4. CONDITION OF PROPERTY. Lessor covenants and represents that it has full right, power,
and authority to enter into this Lease for the term herein granted and that the leased real
property may be used by the Lessee during the entire term for the purposes herein set forth.
Lessor further covenants that the leased real property meets all current local, state and federal
codes, ordinances, regulations and laws relating to the occupancy and use of said real
property.
5. RENT. Lessee shall pay to Lessor as basic rent the sum of$2365.81 per month and shall be
prorated for any partial month of occupancy. Said rent amount reflects the savings on real
PAGE J OF 9 -REAL PROPERTY LEASE
DC 20 3·207
property taxes accruing by way of real property tax exemptions obtained by Lessee, pursuant
to ORS 307.112.
Rent shall be payable on the first day of each montli without notice or demand to Jon R.
Addison, PO Box 2111, Sisters, Oregon 97759 or at such other place as may be designated in
writing by Lessor. The basic rent payable on said real property reflects a standard market
rental rate within the City of Sisters, Oregon real estate market, with consideration given to
tax savings which offsets the basic rental rate. Said reductions are based on a real property
tax exemption and shall continue through the full term of this Lease, including all renewal
periods.
6. TAXES. Lessor shall be responsible for all real property taxes and assessments on the real
property.
7. SECURITY DEPOSIT. No security deposit shall be required as a condition of this Lease.
8. ADDITIONAL RENT. As additional rent, Lessee shall pay the following amounts:
a. All charges for heat, light, power, garbage disposal if unusual in content or
quantity, otherwise these utilities are paid by the Lessor. Other services or utilities
used by Lessee on the real property shall be paid by Lessee in a prompt and timely
manner.
b. All amounts which Lessee is required to reimburse Lessor for expenses incurred by
Lessor in discharging Lessee's obligations, pursuant to this Lease.
c. All other amounts, which the Lessee is required to pay by any other provisions of this
Lease.
9. PERMITTED USE. The real property shall be used for office space and office related
functions, consistent with applicable ordinances of the City of Sisters, and for no other
purpose. If this use is prohibited by law or governmental regulations, this Lease shall
terminate and any prepaid rent shall be prorated and refunded to Lessee.
10. RESTRICTIONS ON USE. In connection with the use of the real property, Lessee shall:
a. Obtain Lessor's written approval in advance of any placement of signs, development
plans, layout plans, construction, reconstruction, or alteration of improvements; or
revision of layout or construction plans for the real property.
b. Occupy the improvements, structures and real property in a manner consistent with t reasonable standards of orderliness, neatness, sanitation, and safety acceptable to Lessor, I and shall not allow solid wastes to accumulate on the real property. i
PAGE 2 OF 9 -REAL PROPERTY LEASE
}
c. Confonn to all applicable laws and regulations of any public authority affecting the real
property and the use ofsaid real property, and correct at Lessee's own expense any failure
ofcompliance created exclusively through the fault of Lessee and not related to or caused
by a defect, deficiency or condition of said real property which predated the execution of
this Lease.
d. Refrain from any use which would be reasonably offensive to the Lessor, other tenants,
or owners or users ofadjoining real property, or which would tend to create a nuisance or
damage the reputation of the real property, including but not limited to, creating
excessive dust or noise on the real property or maintaining a fire on the real property.
Nothing herein shall be construed to prohibit nonnal office related or other activities
necessary to utilize the property for any pennitted use.
e. Refrain from making any unlawful or offensive use of said property.
f. Exercise diligence in protecting from damage the real property and property of Lessor
covered by and used in connection with this Lease.
g. Refrain from the disposal, spilling or discharging of any oil, gasoline, diesel fuel,
chemicals, wood waste products, or other pollutants on the leased real property. In the
event of such spills, Lessee shall undertake any and all necessary actions to contain and
remove such pollution from the leased real property.
11. LESSOR'S OBLIGATIONS. The following shall be the responsibility of the Lessor's:
a. Maintain fire and general casualty insurance coverage for all structures on the leased real
property.
b. Arrange for and deliver to the real property water, sewage, electrical and other utility
services reasonably necessary for utilization of the real property for the purposes
specified in clause 8.
c. Repair and maintain the building and real property in a safe, functional and attractive
condition. This includes routine maintenance, including, but not limited to,
plumbing and thermostats.
d. Maintain existing landscaping and parking lot, including snow removal, in a neat, orderly
and attractive condition.
12. LESSEE'S OBLI GA TI ONS. The following shall be the responsibility of the Lessee:
a. Any repairs necessitated by the negligence ofLessee, his agents, employees and invitees.
PAGE 3 OF 9 REAL PROPERTY LEASE
b. Pay the cost of all utility services utilized on the real property except for hookup,
connection, reconnection, or repair charges.
c. Pay Lessor for any damage resulting from negligence or from the violation ofthe terms
of this Lease.
13. INSPECTION OF REAL PROPERTY. Lessor shall have the right to inspect the real
property in the Lessee's presence at any reasonable time or times and in a non-disruptive
manner after giving reasonable notice.
14. ENVIRONMENTAL POLLUTION. The provisions ofthis section supplement other Lease
provisions that might be applied concerning Lessor and Lessee's obligations, responsibilities
and liabilities for environmental pollution, present and future, and for compliance with the
laws, regulations or orders ofany governmental agency concerning environmental pollution,
present and future, on the real property. To the extent that the provisions of this section
conflict with any such other provisions, the provisions of this section shall control.
Where terms of this section use terms that are found in applicable state and federal
environmental pollution laws, those terms shall have the same meaning as they have in those
state and federal laws.
Lessor covenants that the real property does not now contain any amounts of hazardous,
toxic, radioactive or other substances for which a property owner or operator may be made
liable under state or federal environmental pollution or health and safety laws. Accordingly,
Lessor agrees that as between the Lessor and Lessee, Lessor will assume responsibility and
liability as set forth below in the removal and indemnification provision for any release or
discharge of hazardous, toxic, radioactive or other dangerous substances regulated under
state or federal pollution control laws which occurred prior to Lessee's possession of the
leased real property.
Except as undertaken in the ordinary course of conducting its business, Lessee agrees that
during the term of this Lease, Lessee will not generate, store, process or dispose ofor release
or discharge into the environment hazardous, toxic, radioactive or other dangerous
substances on or about the leased real property in any amount, nor will Lessee allow such
prohibited activities to take place on the leased property during the Lease term.
Lessee agrees to report, contain and remove in conformance with applicable state and federal
law any releases of hazardous, toxic, radioactive or other substances regulated under state or
federal pollution control laws that are found to have been introduced to the leased real
property by Lessee during the term of this Lease or any releases of such materials found off
the real property that originated from the real property during the Lease term and to be
responsible for the cost of removal of such substances.
PAGE 4 OF 9 -REAL PROPERTY LEASE
Lessor agrees to indemnifY, defend and hold the County, its officers, agents and employees
harmless from and against any claims, demands, causes of action or suits for damages,
reimbursement or any other cost ofcompliance, including, but not limited to, remedial action
costs, removal costs, natural resources damages, penalties, punitive damages, interest costs,
attorney fees and damages of any kind to third parties, arising from the discharge, release or
threatened release on or in the leased real property of any hazardous, toxic or radioactive
substances occurring prior to the term of this Lease.
15. P ARTIAL TAKING. Ifa portion ofthe leased real property is condemned and the paragraph
entitled "Total Taking" does not apply, the Lease shall continue on the following terms:
a. Lessor shall be entitled to all of the proceeds of condemnation and Lessee shall have no
claim against Lessor as a result ofthe condemnation. However, Lessee shall be entitled
to any and all relocation costs.
b. Lessor shall proceed as soon as reasonably possible to make such repairs and alterations
to the real property as reasonably practicable to return the real property to its condition
existing at the time ofthe condemnation. The Lessor may, but shall not be required to,
perform alterations prior to the actual taking after the portion to be taken has been finally
determined. Rent shall be abated to the extent the real property is untenable during the
period of alteration and repair.
c. After the date on which title vests in the condemning authority or an earlier date on
which alterations or repairs are commenced by Lessor to restore the balance of the
property in anticipation of taking, the rent shall be reduced commensurately with the
reduction in value of the leased real property as an economic unit on account of the
partial taking. Ifthe parties are unable to agree upon the amount ofthe reduction ofrent,
the amount shall be determined by arbitration.
d. If a portion of the Lessor's real property not included in the leased real property is taken
and severance damages are awarded on account ofthe leased real property, or an award is
made for detriment to the leased real property as a result of change of grade of adjacent
streets or other activity by a public body not involving a physical taking ofany portion of
the land, this shall be regarded as a partial condemnation of which subparagraphs (A) and
(C) of "Partial Taking" above apply, and the rent shall be reduced to the extent of
diminution of value ofthe real property as though a portion had been physically taken.
16. TOTAL TAKING. If a condemning authority takes all of the leased real property or a
portion sufficient to render the real property reasonably unsuitable for the use, which the
Lessee was then making ofthe real property, the Lease shall terminate as ofthe date the title
vests in the condemning authority. Termination as described herein shall not impair Lessees
right to relocation assistance benefits.
PAGE 5 OF 9· REAL PROPERTY LEASE I
1
17. SALE IN LIEU OF CONDEMNATION -DEDICATION TO THE PUBLIC. Sale of all or
part of the leased real property to a purchaser with the power of eminent domain in the face
of a threat or probability ofthe exercise of the power shall be treated for the purpose ofthis
Paragraph as a taking by condemnation. Dedication to the public, sale, or transfer ofall or a
portion of the real property of Lessor to a municipal corporation, the State of Oregon or
United States of America, shall be treated as a total or partial taking, as applicable.
18. LIENS.
a. Except with respect to activities for which the Lessor is responsible, the Lessee shall pay
as due all claims for work done on and for services rendered or material furnished to the
leased real property and shall keep the real property free from any liens related to
Lessee's occupation ofthe leased real property. If Lessee fails to pay any such claims or
to discharge any lien, Lessor may do so and collect the cost as additional rent. Any
amount so added shall bear interest at the rate of nine per cent (9%) per annum from the
date expended by Lessor and shall be payable on demand. Such action by Lessor shall
not constitute a waiver of any right or remedy, which Lessor may have on account of
Lessee's default.
b. Lessee may withhold payment of any claim in connection with a good faith dispute over
the obligation to pay, so long as Lessor's property interests are not jeopardized. Ifa lien
is filed as a result ofnonpayment , Lessee shall, within thirty (30) days after knowledge of
the filing, secure the discharge of the lien or deposit with Lessor cash or a sufficient
corporate surety bond or other surety satisfactory to Lessor in an amount sufficient to
discharge the lien plus any costs, attorney fees and other charges that could accrue as a
result of a foreclosure or sale under a lien.
19. LIABILITY INSURANCE. The liability of Lessee as a self-insured political subdivision of
the State of Oregon is governed by the provisions of Oregon Revised Statutes. Lessee shall
not be obligated to provide additional or supplementary liability insurance coverage.
20. ASSIGNMENT AND SUBLEASE. The Lessee may sublease the use of the real property
covered under this Lease and the operation of concessions and facilities authorized in
accordance with the terms and provisions of this Lease subject to the written consent ofthe
Lessor, which shall not be unreasonably withheld.
21. DEF AUL T. The following shall be events of default:
a. Failure of Lessee to pay any rent or other charge within ten (10) days after it is due.
b. Failure of either Lessor or Lessee to comply with any term or condition or fulfill any
obligation of the Lease within thirty (30) days after written notice by the other party
specifying the nature ofthe default with reasonable particularity. Ifthe default is in such a
nature that it cannot be completely remedied within the thirty (30) day period, this pro-
PAGE 6 OF 9 -REAL PROPERTY LEASE
vision shall be complied with if the defaulting party begins correction of the default
within the thirty (30) day period and thereafter proceeds with reasonable diligence and in
good faith to effect the remedy as soon as practicable.
22. REMEDIES ON DEF AUL T.
a. In the event of default, the Lease may be terminated at the option of the party not in
default by notice in writing to the defaulting party. The notice may be given at any time
after the grace period for default given under the paragraph entitled "Default." If the
property is abandoned by Lessee in connection with a default, termination shall be
automatic and without notice.
b. The foregoing remedies shall be in addition to, and shall not exclude, any other remedy
available to either party under applicable law.
23. PERSONAL PROPERTY.
a. All personal property placed upon the leased real property during the term by Lessee
shall remain the property of Lessee except as otherwise provided herein.
b. Upon abandonment, termination, revocation, or cancellation of this Lease, the Lessee
shall remove, within a reasonable time, all personal property. If Lessee fails to remove
all or part of such personal property within thirty (30) days, then they shall become the
property of Lessor.
24. SURRENDER OF LEASED REAL PROPERTY. Upon abandonment, termination,
revocation or cancellation ofthis Lease, the Lessee shall surrender the real property to Lessor
in the same condition as the real property was on the date of possession. With Lessor's
approval, Lessee may leave site improvements authorized by any land use permit. Lessee's
obligation to observe and perform this covenant shall survive the expiration or the
termination of the Lease.
25. NOTICES. Any notice by Lessee to Lessor or Lessor to Lessee must be served by certified
or registered mail, postage prepaid, addressed to the other at the address given below or at
such other address as either may designate by written notice.
LESSOR: LESSEE:
Jon R. Addison, Trustee Larry Blanton, Sheriff
PO Box 2111 63333 W. Highway 20
Sisters OR 97759 Bend, Oregon 97701
PAGE 7 OF 9 -REAL PROPERTY LEASE
26. NON-WAIVER. Waiver by either party of strict performance of any provision of this Lease
shall not be a waiver ofor prejudice the party's right to require strict performance ofthe same
provision in the future or of any other provision.
27 . PARTNERSHIP. Lessee is not by virtue ofthis Lease a partner or joint venturer with Lessor
in connection with activities carried on under this Lease, and shall have no obligation with
respect to Lessor's debts or any other liabilities of each and every nature.
28. AGENCY. It is agreed by and between the parties, that neither party is carrying out a func
tion on behalf of the other party, and neither party has the right of direction or control of the
other parties' business under this Lease nor shall either party exercise any control over the
activities of the other party.
29. LAND USE PERMIT. This Lease does not constitute a land use permit, nor does acceptance
ofthis Lease by Lessee constitute approval of any legislative or quasi-judicial action required
as a condition precedent to use of the land for the intended purpose.
30. LESSOR'S RIGHT TO CURE DEFAULTS. If the Lessee fails to perform any obligations
under this Lease, the Lessor shall have the option to do so after thirty (30) days written notice
to the Lessee. All of the Lessor's expenditures to correct the default shall be reimbursed by
the Lessee on demand with interest at the rate of nine per cent (9%) per annum from the date
of expenditures by the Lessor. This provision shall not be construed as placing any
obligation upon Lessor to perform obligations assigned to Lessee herein.
31. NON-APPROPRIA TION. In the event sufficient funds shall not be appropriated for the
payment of rent required to be paid under this Lease, and if Lessee has not funds legally
available for rent from other sources, then Lessee may terminate this Lease. If this Lease is
to be terminated by reason of non-appropriation of funds, Lessee shall give Lessor 90 days
advance written notice of the date oftermination. Any termination hereunder shall coincide
with the beginning of the Lessee's fiscal year.
32. ARBITRATION REQUIRED AND ATTORNEYS' FEES: Any dispute or claim that arises
out ofor that relates to this agreement, or to the interpretation, breach, or default thereof, or
to the existence, scope or validity of this agreement or the arbitration agreement, shall be
resolved by arbitration in accordance with the then arbitration rules of and by filing a claim
with Arbitration Service ofPortland, Inc., and judgment upon the award rendered pursuant to
such arbitration may be entered in any court having jurisdiction thereof. In the event suit or
action is brought, or an arbitration proceeding is initiated, to enforce or interpret any of the
provisions of this agreement, or that arise out of or relate to this agreement, each party shall
be responsible for its own attorney's fees, expenses, costs and disbursements for said action,
suit, proceeding or appeal.
33. TIME IS OF THE ESSENCE. Time is of the essence of each and every provision of this
1
1
I Lease.
PAGE 8 OF 9 -REAL PROPERTY LEASE
1
I
('
34 . SEVERABILITY. The parties agree that ifany term or provision of this Lease is declared by
a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the
remaining terms and provisions shall not be affected, and the rights and obligations of the
parties shall be construed and enforced as if the Lease did not contain the particular term or
provision held to be invalid.
35. AUTHORITY. The signatories to this agreement covenant that they possess the legal
authority to bind their respective principals to the terms, provisions and obligations contained
within this agreement.
LESSOR: DATED this
LESSEE: DATED this ___day of__________, 2013
BOARD OF COUNTY COMMISSIONERS FOR
DESCHUTES COUNTY, OREGON
ALAN UNGER, Chair
ATTEST: TAMMY BANEY, Vice Chair
Recording Secretary ANTHONY DEBONE, Commissioner
PAGE 9 OF 9 -REAL PROPERTY LEASE
