HomeMy WebLinkAboutLease Amend - CDD Space - RedmondDeschutes County Board of Commissioner;
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 11, 2008
Please see directions for completing this document on the next page.
DATE: 06/03/2008
FROM: Teresa Rozic Property & Facilities 385-1414
TITLE OF AGENDA ITEM:
Consideration of Signature by County Administrator of Document 2008-272, a Commercial Lease
Amendment between Glacier Place Property LLC and Deschutes County for Community Development
Department office in Redmond.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Since June 2006, the Deschutes County Community Development Department (CDD) has leased
approximately 2,930 square feet of office space at 657 SW Glacier Ave., Redmond, from Glacier Place
Property LLC. The Community Development Department operates its north county satellite services
from this office.
According to the terms of the lease, Deschutes County has an option to renew the lease for two terms of
two years each. Deschutes County wishes to exercise the option for the first renewal period, from
7/1/2008 through 6/30/2010.
Also according to the terms of the lease, the monthly rent will increase based on the Consumer Price
Index (CPI) for the West Coast, as of September prior to the renewal year, to determine a "CPI
Adjustment". The September 2007 CPI was 129.064, a 2.5% change. Using the CPI Adjustment
(defined in the lease), the monthly lease amount of $4,834.50 will increase to $5,305.86 as of July 1,
2008.
FISCAL IMPLICATIONS:
Annual budgeted expenditure of $63,670.32.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature by the County Administrator of Document 2008-272.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
One signed original to Teresa Rozic for Lessor.
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:
06/03/08
Contact Person:
Please complete all sections above the Official Review line.
Teresa Rozic
Department:
Contractor/Supplier/Consultant Name:
Property & Facilities
Phone #: 385-1414
Glacier Place Property LLC
Goods and/or Services: Commercial Lease Amendment
Background & History: Since June 2006, the Deschutes County Community
Development Department (CDD) has leased approximately 2,930 square feet of office
space at 657 SW Glacier Ave., Redmond, from Glacier Place Property LLC. According
to the terms of the lease, Deschutes County has an option to renew the lease for two
terms of two years each. Deschutes County wishes to exercise the option for the first
renewal period. Also according to the terms of the lease, the monthly rent will increase
based on increases in the Consumer Price Index.
Agreement Starting Date:
July 1, 2008
Annual Value or Total Payment:
Ending Date: June 30, 2010
Annual expenditure of $63,670.32
N/A ❑ Insurance Certificate Received (check box)
Insurance Expiration Date:
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)
Funding Source: (Included in current budget? ® Yes ❑ No
If No, has budget amendment been submitted? Ill Yes n No
Departmental Contact:
Teresa Rozic
Department Director Approval:
Phone #:
385-1414Title:
Signature
Property
Property Specialist
Date
Distribution of Document: One signed original to Teresa Rozic for Lessor.
6/3/2008
Official Review:
County Signature Required (check one): ❑ BOCC ❑ Department Director (if <$25K)
❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. )
Legal Review Date
Document Number
5/23/2008
REVIEWED
LEGAL COUNSEL
COMMERCIAL LEASE AMENDMENT
THIS COMMERCIAL LEASE AMENDMENT is made and entered into by and between
GLACIER PLACE PROPERTIES, LLC ("Landlord") and DESCHUTES COUNTY, a political
subdivision of the State of Oregon ("Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant entered into a Commercial Lease (DC 2006-253) with an
effective date of June 30, 2006, for property located at 657 SW Glacier Ave, Redmond, Deschutes
County, Oregon, and
WHEREAS, Landlord and Tenant wish to extend the term of the Lease;
NOW, THEREFORE, Landlord and Tenant agree that the Commercial Lease is hereby
amended to read as follows:
Section 1. Occupancy 1.1. Original Term. The term of this Lease shall be effective June 30,
2006, and continue through June 30, 2010.
In all oth=Jfl spects the Commercial Lease shall be and remain in full force and effect.
LANDL
GI
ies, LLC
Title: 1$w 4 L- LLL
Date: "'Llbr-Z 2J , Date:
TENANT:
Deschutes County
By:
Dave Kanner
County Administrator
Page 1 of 1 - LEASE AMENDMENT Document No. 2008-272
REVIEWED
LEGAL COUNSEL
COMMERCIAL LEASE AMENDMENT
THIS COMMERCIAL LEASE AMENDMENT is made and entered into by and between
GLACIER PLACE PROPERTIES, LLC ("Landlord") and DESCHUTES COUNTY, a political
subdivision of the State of Oregon ("Tenant").
WITNESSETH:
WHEREAS, Landlord and Tenant entered into a Commercial Lease (DC 2006-253) with an
effective date of June 30, 2006, for property located at 657 SW Glacier Ave, Redmond, Deschutes
County, Oregon, and
WHEREAS, Landlord and Tenant wish to extend the term of the Lease;
NOW, THEREFORE, Landlord and Tenant agree that the Commercial Lease is hereby
amended to read as follows:
Section 1. Occupancy 1.1. Original Term. The term of this Lease shall be effective June 30,
2006, and continue through June 30, 2010.
In all of - respects the Commercial Lease shall be and remain in full force and effect.
LANDL• " I: TENANT:
1
Glacier ���� -
By.
.i.�lll�►.
gri�,�
Title: di:,' r Lk>
Properties, LLC
Deschutes County
Date: \' 1 PZ t t O U
By:
Dave Kanner
County Administrator
Date:
Page 1 of 1 — LEASE AMENDMENT Document No. 2008-272
DATE
...eal
GLACIER PLACE PROPERTIES, LLC
COMMERCIAL LEASE
May 8, 2006
BETWEEN . GLACIER PLACE PROPERTY, LLC, ("Landlord")
AND
Deschutes County
1300 Wall Street
Bend, OR 97701
Landlord leases to Tenant and Tenant leases from Landlord the following described
property (the "Premises") on the terms and conditions stated below:
See Exhibit A:
Approximately 2930 square feet located on the First floor and shown in exhibit A
as offices 102 and 103 of The Glacier Place Office Building at 657 S.W. Glacier
Ave., Redmond, Oregon, together with non-exclusive use of the parking spaces
adjacent thereto.
Section 1. Occupancy
1.1 Original Term. The term of this lease shall commence June 30, 2006, and
continue through June 30, 2008, unless sooner terminated as hereinafter provided.
1.2 Possession. Tenant's right to possession and obligations under the lease shall
commence on June 30, 2006, or on such later date as the building construction is completed and
possession available to Tenant (Commencement Date). Landlord shall have no liability for
delays in delivery of possession and Tenant will not have the right to terminate this Lease
because of delay in delivery of possession. Lease payment will commence as of the date of
occupancy.
1.3 Renewal Option. If the Lease is not in default in any terms of this Lease, Tenant
shall have the option to renew this lease for two (2) successive terms of two (2) years each, as
follows:
(a) Each of the renewal terms shall commence on the day following expiration of the
preceding term.
(b) The option may be exercised by written notice to Landlord given not less than 90
days before the last day of the original or renewal term without further act of the parties.
Page 1 - COMMERCIAL LEASE
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DC..2006--253
Landlord and Tenant shall then be bound to take the steps required in connection with the
determination of rent as specified below.
(c) The terms and conditions of the lease for each renewal term shall be identical with
the original term except for rent and except that Tenant will no longer have any option to renew
this lease than has been exercised. Rent for a renewal term shall be the greater of (a) rent as
determined pursuant to Section 2.3 or (b) a reasonable rental for the ensuing term.
Section 2. Rent
2.1 Base Rent. During the original term, Tenant shall pay to Landlord as base rent,
the sum of four thousand eight hundred thirty-four dollars and fifty cents ($4,834.50) per month.
Rent shall be payable on the first day of each month in advance at such place as may be
designated by Landlord. Tenant shall pay rent for the first month on the Commencement Date of
this Lease. If the Commencement Date is after the 1st day of the month, Tenant shall pay pro -
rata the 1St month rent to the first day of the following month and thereafter rent shall be payable
on the first day of each month for the remainder term of this Lease.
2.2 Security Deposit. To secure Tenant's compliance with all terms of this lease,
Tenant will pay Landlord the sum of four thousand eight hundred thirty-four dollars and fifty
cents ($4,834.50) as a security deposit. The deposit shall be a debt from Landlord to Tenant,
refundable within 30 days after expiration of the lease term or other termination not caused by
Tenant's default. Landlord may comingle the deposit with its funds and Tenant shall not be
entitled to interest on the deposit. Landlord shall have the right to offset against the deposit any
sums owing from Tenant to Landlord and not paid when due, any damages caused by Tenant's
default, or the cost of curing any default by Tenant that is Tenant's responsibility under this
Lease. Offset against the deposit shall not be an exclusive remedy in any of the above cases, but
may be invoked by Landlord, at its option, in addition to any other remedy provided by law or
this Lease for Tenant's nonperformance. Landlord shall give notice to Tenant each time an
offset is claimed against the deposit and, unless the Lease is terminated, Tenant shall, within 10
days after such notice, deposit with Landlord a sum equal to the amount of the offset so that the
total deposit amount, net of offset, shall remain constant throughout the lease term.
2.3 Rent Increases During Initial Term. Effective on each anniversary date of the
Commencement Date (each an "Adjustment Date:), the Base Rent shall be escalated by increases
in the CPI, not to exceed 3% in any one year. The Base Rent for years after the first shall be
determined by multiplying the Base Rent for the preceding year by the CPI Adjustment (as
herein defined) for such year; however, in no event shall the Base Rent be reduced. The CPI
Adjustment for a calendar year shall be a fraction, the numerator of which shall be the average
CPI for the twelve (12) months ending with the September immediately preceding such calendar
year and the denominator of which shall be the average CPI for the twelve (12) months ending
with the September before the September immediately preceding such calendar year. The term
"CPI" as used in this Lease shall mean the Consumer Price Index for All Urban Consumers,
Portland -Salem area, published by the United States Department of Labor, Bureau of Labor
Page 2 - COMMERCIAL LEASE
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