HomeMy WebLinkAboutDoc 321 - SO Sisters Substation Lease1`vTES e
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Deschutes 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 June 9, 2010
DATE: June 1, 2010
FROM: Sue Brewster
DCSO Legal Phone # 385-1714
TITLE OF AGENDA ITEM:
Consideration of Board signature of Sheriff's Office Sisters Substation Real Property Lease, Document
2010-321
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 North Larch Street, Suite
703C, Sisters, OR, location of the Sheriffs Office Sisters Substation. The Sheriff's Office has been
leasing this office space for several years.
FISCAL IMPLICATIONS:
Lessee shall pay to Lessor as basic rent the sum of $2365.81 per month for the duration of the lease.
Lessor has agreed to no increase in rent during the term of the lease. Rent shall be prorated for any
partial month of occupancy. Said rent reflects the savings on real property taxes accruing by way o1
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. Tim Edwards; Sue Brewster, SO Legal Counsel
DISTRIBUTION OF DOCUMENTS:
Return one original to Sue Brewster for distribution to the Lessor.
DESCHUTES COUNTY DOCUMENT SUMMARY
Date: June 1, 2010 Department: Sheriffs Office
Type of Document: Document 2010-321 is a real property lease between JON R.
ADDISON, TRUSTEE, Lessor, and DESCHUTES COUNTY, a political subdivision of the
State of Oregon, Lessee.
Goods and/or Services: Document 2010-321 is a renewal of the lease of real property located at
703 North Larch Street, Suite 703C, Sisters, OR, location of the Sheriffs Office 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 with no increase in rent during the term of
the lease. The Sheriffs Office has been leasing this office space for eight years.
Agreement Starting Date: June 30, 2010 Ending Date: June 30, 2013
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:
RFP, Solicitation or Bid Process
❑ Informal quotes (<$150K)
® Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37)
Funding Source: (Included in current budget? X Yes ❑ No
If No, has budget amendment been submitted? ❑ Yes ❑ No
Is this a Grant Agreement providing revenue to the County? H Yes M No
6/1/2010
Departmental Contact and Title: Capt. Tim Edwards Phone #: 388-6656
Sheriff's Approval:
Distribution of Document:
6_� /c7
Date
Return one original to Sue Brewster for distribution.
Official Review:
County Signature Required (check one): ® BOCC ❑ Department Director (if <$25K)
❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No.
Legal Review
Document Number
2010-321
6/1/2010
SHERIFFS OFFICE SISTERS SUBSTATION
REAL PROPERTY LEASE
DOCUMENT #2010-321
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,"
WITNESSETH:
WHEREAS, the Lessor owns real property known as 703 North Larch Street, Suite 703C
located on the S/W corner 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 herein
contained, and for other good and valuable consideration, the Lessor and the Lessee agree as
follows:
1. TERM AND RENEWAL. The term of this Lease shall commence as of June 30, 2010
and continue through June 30, 2013, a period of three (3) years.
2 . TERMINATION. This Lease may be terminated by either party upon ninety (90) days
written notice to each other.
3. POSSESSION. Lessees right to possession and obligations under the Lease shall
continue uninterrupted, except as otherwise provided herein.
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
PAGE 1 OF 9 - REAL PROPERTY LEASE — Addison
savings on real 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 month 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
reasonable standards of orderliness, neatness, sanitation, and safety acceptable to
Lessor, and shall not allow solid wastes to accumulate on the real property.
PAGE 2 OF 9 - REAL PROPERTY LEASE — Addison
c. Conform to all applicable laws and regulations of any public authority affecting the
real property and the use of said real property, and correct at Lessee's own expense
any failure of compliance 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 of adjoining 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 normal office related or other
activities necessary to utilize the property for any permitted use.
e. Refrain from making any unlawful or offensive use of said property or to suffer or
permit any waste or strip thereof.
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 fixing all routine maintenance, including, but not limited
to, leaking plumbing fixtures and resetting thermostats.
d. Maintain existing landscaping and parking lot, including snow removal, in a neat,
orderly and attractive condition.
12 . LESSEE'S OBLIGATIONS. The following shall be the responsibility of the Lessee:
a. Any repairs necessitated by the negligence of Lessee, his agents, employees and
invitees.
PAGE 3 OF 9 - REAL PROPERTY LEASE — Addison
b. Pay the cost of all utility services utilized on the real property except for hookup,
connection, re -connection or repair charges.
c. Pay Lessor for any damage resulting from negligence or from the violation of the
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 of this 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 of any 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 covenants
that during the term of this Lease, Lessee will not generate, store, process or dispose of or
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 covenants 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 — Addison
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 of compliance, 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.
The obligations, responsibilities and liabilities of this section are continuing obligations,
responsibilities and liabilities and shall not be extinguished by the termination of this
Lease.
15. PARTIAL TAKING. If a portion of the 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 of the condemnation. However, Lessee shall be
entitled to any and all relocation proceeds.
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 of the 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. If the parties are unable to agree upon the amount of the reduction of
rent, 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 of the 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 of any 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 of the real property as though a
portion had been physically taken.
PAGE 5 OF 9 - REAL PROPERTY LEASE — Addison
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 of the real property, the Lease shall terminate as of the date the
title vests in the condemning authority. Termination as described herein shall not impair
Lessees right to relocation assistance benefits.
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 of the exercise of the power shall be treated for the purpose
of this Paragraph as a taking by condemnation. Dedication to the public, sale, or transfer
of all 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 of the 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.
If a lien is filed as a result of nonpayment, 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 of
the Lessor, which shall not be unreasonably withheld.
PAGE 6 OF 9 - REAL PROPERTY LEASE — Addison
21. DEFAULT. 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 of the default with reasonable particularity. If the default is in
such a nature that it cannot be completely remedied within the thirty (30) day period,
this provision 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 DEFAULT.
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. SLTRRENDER OF LEASED REAL PROPERTY. Upon abandonment, termination,
revocation or cancellation of this 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.
PAGE 7 OF 9 - REAL PROPERTY LEASE — Addison
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
PO Box 2111
Sisters OR 97759
Larry Blanton, Sheriff
63333 W. Highway 20
Bend, Oregon 97701
26. NON -WAIVER. Waiver by either party of strict performance of any provision of this
Lease shall not be a waiver of or prejudice the party's right to require strict performance
of the same provision in the future or of any other provision.
27. PARTNERSHIP. Lessee is not by virtue of this 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
function 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 of this 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 -APPROPRIATION. 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 of termination. Any termination hereunder shall
coincide with the beginning of the Lessee's fiscal year.
PAGE 8 OF 9 - REAL PROPERTY LEASE — Addison
32. LITIGATION FEES AND EXPENSES. In the event an action, suit or proceeding,
including appeal there from, is brought for failure to observe any of the terms of this
Lease, each party shall be responsible for their 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
Lease.
34. SEVERABILITY. The parties agree that if any 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 / / day of % , 2010
R. ADDISON, Tru ee
LESSEE: DATED this day of , 2010
ATTEST:
Recording Secretary
PAGE 9 OF 9 - REAL PROPERTY LEASE — Addison
BOARD OF COUNTY COMMISSIONERS FOR
DESCHUTES COUNTY, OREGON
DENNIS R. LUKE, Chair
ALAN UNGER, Vice Chair
TAMMY BANEY, Commissioner