HomeMy WebLinkAboutDoc 171 - Lease Amend - Bethlehem InnDeschutes 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 April 27, 2011
Please see directions for completing this document on the next page.
DATE: April 6, 2011
FROM: Teresa Rozic Property & Facilities 385-1414
TITLE OF AGENDA ITEM:
Consideration of Signature by the County Administrator of Document 2011-171, a Lease Amendment
between Deschutes County, Lessor, and Bethlehem Inn, Lessee.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Deschutes County leased property located at 3705 N. Hwy. 97, Bend, to the Bethlehem Inn (DC 2011-
004). The lease effective date is July 1, 2010. Oregon law (ORS 307.110) requires that property
owned by the County and leased to others shall be subject to assessment and taxation. Section 9 of the
lease obligates the lessee to pay real property taxes applicable to the leased premises during the term of
the lease. The Bethlehem Inn is a nonprofit organization and is tax exempt as to real property tax
liability on leased real property. This lease amendment adds the statutory language (ORS
307.112(1)(b) to clarify the basis for calculating the base rent which will allow Bethlehem Inn to file
for that exemption with the County Assessor.
FISCAL IMPLICATIONS:
None
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature by the county administrator.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
One original to Teresa Rozic for the lessee.
DESCHUTES COUNTY DOCUMENT SUMMARY
(NOTE: This form is required to be submitted with ALL contracts and other agreements, regardless of whether the document is to be
on a Board agenda or can be signed by the County Administrator or Department Director. If the document is to be on a Board
agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to
the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel, the
County Administrator or the Commissioners. In addition to submitting this form with your documents, please submit this form
electronically to the Board Secretary.)
Date:
04/06/2011
Please complete all sections above the Official Review line.
Department:
Contractor/Supplier/Consultant Name:
Contractor Contact:
Gwenn Wysling
Type of Document: Lease Amendment
Goods and/or Services: N/A
Property & Facilities
Bethlehem Inn
Contractor Phone #:
541-322-8768
Background & History: Deschutes County leased property located at 3705 N. Hwy.
97, Bend, to the Bethlehem Inn (DC 2011-004). The lease effective date is July 1,
2010. Section 9 of the lease obligates the lessee to pay real property taxes applicable
to the leased premises during the term of the lease. The Bethlehem Inn is a nonprofit
organization and is tax exempt as to real property tax liability on leased real property.
This lease amendment adds the statutory language (ORS 307.112(1)(b) to clarify the
basis for calculating the base rent which will allow Bethlehem Inn to file for that
exemption with the County Assessor.
Agreement Starting Date:
7/1/2010
Annual Value or Total Payment:
Ending Date:
N/A
❑ Insurance Certificate Received check box)
Insurance Expiration Date: L J
06/30/2012
N/A
Check all that apply:
❑ RFP, Solicitation or Bid Process
❑ Informal quotes (<$150K)
❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37)
N/A
Funding Source: (Included in current budget? ❑ Yes ❑ No
If No, has budget amendment been submitted? E Yes ❑ No
Is this a Grant Agreement providing revenue to the County? ❑ Yes ® No
Special conditions attached to this grant:
Deadlines for reporting to the grantor:
4/6/2011
If a new FTE will be hired with grant funds, confirm that Personnel has been notified that
it is a grant -funded position so that this will be noted in the offer letter: ❑ Yes [J No
Contact information for the person responsible for grant compliance: Name:
Phone #:
Departmental Contact and Title:
Teresa Rozic Phone #: 385-1414
Department Director Approval:
f' (o ( o I t
Signature Date
Distribution of Document:
One original to Teresa Rozic for the lessee.
Official Review:
County Signature Required (check one): ❑ BOCC 0 Department Director (if <$25K)
0 Administrator (if >$25K but <$150K; if >$150K, BOCC Order No.
Legal Review Date
Document Number
4/6/2011
REVIEWED
LEGAL COUNSEL
LEASE AMENDMENT
THIS LEASE AMENDMENT is made and entered into by and between DESCHUTES
COUNTY, a political subdivision of the State of Oregon ("Lessor") and BETHLEHEM INN, an
Oregon domestic non-profit corporation, ("Lessee").
WITNESSETH:
WHEREAS, Lessor and Lessee entered into a Lease (DC 2011-004) with a commencement
date of July 1, 2010, for property located at 3705 N. Hwy. 97, Bend, Deschutes County, Oregon,
and
WHEREAS, Lessor and Lessee wish to clarify the basis for calculating the base rent and the
effect on payment of real property taxes;
NOW, THEREFORE, Lessor and Lessee agree that the Lease is hereby amended to read
as follows:
1. Section 1.5. Base Rent. For all or any portion of a month the rent is $2,034, payable
in advance on the 5th day of each month commencing on the Commencement Date. This
amount includes the cost ($34 per month) of the County providing property insurance on the
premises, as described in Section 7.3. The rent payable by Lessee has been established to
reflect the savings below market rent resulting from the exemption from taxation.
In all other respects the Lease shall be and remain in full force and effect.
LESSOR: DATED this day of , 2011
DESCHUTES COUNTY
By:
Dave Kanner
Co,.Nnty Administrator
LESSEE: DATED this j day of
2011
BETHLEHEM INN
By:
By:
f
Gwenn Wysling
Executive,Director
Thomas A. O'Brien
President, Board of Directors
Document No. 2011-171 Page 1 of 1