AGENDA #4n
MEMORANDUM
TO: Mayor and Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution Authorizing Renewal of Lease for a Portion of the Old Post Office to the Franklin Street Teen Center, Inc.
DATE: June 15, 2005
The attached resolution would authorize the Town Manager to renew the lease for a portion of the Old Post Office to the Franklin Street Teen Center, Inc. The terms would be the same as they have been since 1993, except that a 120-day termination clause has been added.
BACKGROUND
The Franklin Street Teen Center, Inc. has been leasing a part of the Old Post Office basement since April 1984. The Council has authorized renewals of the lease agreement in each subsequent year since 1984, including the most current lease which included a two-year term from September 1, 2002 to August 31, 2004. The proposed new lease would be for the period beginning on July 1, 2005, and ending on June 30, 2007, with a provision for another two-year extension. (Please see attached lease). Minor changes in the proposed lease have been made to reflect the new dates. All other provisions would remain unchanged.
As required by N. C. General Statute 160A-272, a notice of intent to execute this lease extension was published in the June 5, 2005, edition of The Chapel Hill News.
DISCUSSION
Under the most recent lease, the Franklin Street Teen Center, Inc. uses approximately 2,400 square feet in three rooms of the basement of the Franklin Street Old Post Office for the operation of Teen Center programs.
The proposed lease is substantially the same as the attached lease agreement from September 1, 2002 to August 31, 2004, and includes the following key provisions:
· The duties of the Town under the lease include provision of the designated space without rent, payment of utility costs (except for telephone and cable television), and coordination among the various tenants of the building.
· The duties of the Teen Center include payment for required modifications to existing utilities; payment for telephone and cable television services; restricting their members' access into other areas of the building; maintenance of the space in a clean and orderly fashion (including janitorial services); the cost of repairs due to damage or vandalism; compliance with applicable statutes, ordinances, codes and regulations; provision of adequate supervision; and operation of the Teen Center in a safe and sanitary manner.
Because the Teen Center provides wholesome activities for young people, we recommend renewal of this lease as an appropriate and beneficial use of Town building space.
RECOMMENDATION
That the Council adopt the attached resolution authorizing the Town Manager to renew the lease for the Franklin Street Teen Center, Inc.
ATTACHMENT
1. Renewal Lease Agreement (p. 4).
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO RENEW A LEASE FOR A PORTION OF THE OLD POST OFFICE FOR USE AS A TEEN CENTER (2005-06-15/R-11)
WHEREAS, the Council of the Town of Chapel Hill, in April, 1984, pursuant to G.S. 160A-272, authorized the Manager to enter into a lease for a portion of the Old Post Office for a Teen Center; and
WHEREAS, the Council of the Town of Chapel Hill has subsequently authorized a continuous series of lease extensions or renewals for a portion of the Old Post Office to the Franklin Street Teen Center, Inc. for use as a Teen Center; and
WHEREAS, the term of the most current lease was for two years, ending on August 31, 2004; and
WHEREAS, the Franklin Street Teen Center, Inc., has requested that the lease be renewed; and
WHEREAS, a notice of intent to execute this lease extension was published in the June 5, 2005, edition of The Chapel Hill News to satisfy the requirements of N. C. General Statute 160A-272;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager, on behalf of the Town, to enter into a renewal agreement for the lease to the Franklin Street Teen Center, Inc., of approximately 2,400 square feet in the basement of the Old Post Office, at 179 East Franklin Street, for the operation of a Teen Center, said agreement to contain language substantially the same as contained in the attached lease agreement.
This the 15th day of June, 2005.
STATE OF NORTH CAROLINA LEASE AGREEMENT
COUNTY OF ORANGE
This Lease Agreement, dated as of July 1, 2005 by and between the Town of Chapel Hill, North Carolina, a North Carolina municipal corporation, 405 Martin Luther King Jr. Blvd, Chapel Hill, North Carolina (the "Town"), and Franklin Street Teen Center, Inc. (a not-for-profit corporation organized under Chapter 55A of the North Carolina General Statutes), 179 East Franklin Street, Chapel Hill, North Carolina (the "Center").
In consideration of the mutual covenants and conditions set forth below, the Town and the Center mutually agree as follows:
1. Lease of Premises: The Town agrees as lessor to lease to the Center, and the Center agrees as lessee to lease from the Town, on the terms set forth herein, approximately 2,400 square feet in the basement of the Post Office/Court Building, 179 East Franklin Street (the "Leased Premises"). Said Leased Premises shall be leased to the Center without rent, but subject to the obligations and duties of the Center set forth herein, to undertake and to complete certain renovations or alterations to the Post Office/Court Building and to operate a program for teenagers.
2. Use of Premises: The Leased Premises are leased solely for the purpose of, and on condition that, the Leased Premises be used and employed solely for a Teen Center under the Center's sponsorship and upon the further condition that the Leased Premises be used, and the Teen Center program and non-discriminatory basis, without regard to sex, race, color, creed, handicap, or national origin.
3. Term of Lease: This lease is effective July 1, 2005, through June 30, 2007, and may be renewed annually upon the approval of the Chapel Hill Town Manager.
4. Termination of Lease: Either party may terminate the lease with or without cause by notifying the other party in writing at least one hundred twenty (120) days prior to the termination date.
5. Duties of the Center:
a. The Center shall, at its own expense, provide effective means of prohibiting access from the Leased Premises to the Post Office and Courtroom areas of the building. Such means shall ensure that during hours of operation of the Teen Center, no persons can gain access to said areas of the building.
b. The Center shall ensure that the Leased Premises are maintained and operated in a safe and sanitary manner. The Center shall also be responsible for proper safekeeping and security and repair of the Leased Premises. The Center shall be responsible for any damage or acts of vandalism or breakage beyond normal wear and tear that may occur to the facility as a result of the facility being open and used for Center programs.
c. The Center shall strictly comply with all applicable statutes, ordinances, codes and regulations respecting use and occupancy of the Leased Premises, including any provisions relating to occupancy by a certain number of persons, building code provisions for kitchens, fire regulations, provisions governing food preparation and handling (if any), and the like. The Center shall take reasonable precautions to prevent damage to the Leased Premises from fire or other causes, to prevent bodily or personal injury, and to prevent loss from theft or other causes.
d. The Center shall be responsible for all necessary staffing, programming, and operations of the Teen Center. The Center agrees to ensure appropriate and prudent supervision by responsible adults at the Leased Premises at all times when the Teen Center is open, including close supervision of the hallways and restroom areas. For the purpose of avoiding disruption of court when it is in session, and of the operations of the Post Office, use of the Teen Center space shall be limited to quiet and passive adult activities prior to 5:00 p.m., Monday through Friday. The Center agrees to obtain approval of the Town in advance of hours of operation and schedules proposed for the Teen Center.
e. The Center shall provide regular janitorial service for the Leased Premises at its own expense. Provisions for contract janitorial service shall include Workmen’s' Compensation Insurance, General Liability Insurance and Employee Bonds. The Center shall provide the Town with certificates of insurance which are acceptable to the Town. If possible, the Town should be named as an additional insured.
6. Duties of the Town:
a. The Town shall provide, at its own expense, all necessary utilities, including electricity, gas, sewer and water, but not including telephone or cable service. The Town shall provide necessary repairs to said utilities, but the Center shall, at its expense, perform any modifications necessary to adapt the current utilities for its use. The Center shall be responsible for paying for any telephone or cable service to the Leased Premises that it may choose to provide.
b. The Town shall coordinate the activities and needs of the Post Office/Court Building's tenants and shall keep all tenants apprised of the status of space in the building and its actual or projected uses.
7. Insurance Provisions:
a. Comprehensive General Liability: Coverage shall have minimum limits of $1,000,000 per occurrence, combined single limit for bodily injury liability and property damage liability. This shall include premises and operations; independent contractors; products and completed operations and contractual liability.
b. The Town is to be included as an additional insured on the comprehensive general liability policy.
c. Current, valid insurance policies, meeting the requirements herein identified, shall be maintained during the duration of the named project. Renewal certificates on an Accord form shall be sent to the Town 30 days prior to any expiration date. There shall also be a 30-day notification to the Town in the event of cancellation or modification of any stipulated insurance coverage. Certificates of insurance on an Accord form, meeting the required insurance provisions, shall be forwarded to the Town. Wording on the certificate which states that no liability shall be imposed upon the company for failure to provide such notice is not acceptable.
d. Hold Harmless Agreement: The Center agrees to defend, indemnify, and hold harmless the Town from all loss, liability, claims or expense (including reasonable attorneys' fees) arising from personal or bodily injury, including death or property damage to any person or persons caused in whole or in part by the negligence or wilful misconduct of the Center except to the extent same are caused by the negligence or misconduct of the Town.
8. Parking: The Town, by execution of this Lease, does not agree to provide any parking, either on-street or off-street, for the Center or for staff or patrons of the Center. The Center recognizes and agrees that, so far as is within its power and responsibility hereunder, the loading dock to the Post Office located in the rear of the building shall remain clear at all times to avoid disruption or delay to mail collection and delivery.
9. Sublease or Assignment: This Lease Agreement may not be assigned or transferred, nor may any of the Leased Premises be sublet, without the prior written approval of the Town Manager.
10. Alterations, Repairs: The Town reserves the right to approve any alterations, renovations, modifications or repairs to, or of, the Leased Premises, all of which shall remain in place and become the property of the Town upon expiration or termination of the Lease. The Teen Center shall obtain approval from the Town Public Works Director before making or contracting for any modifications to the building.
11. Right of Inspection: The Town reserves the right to enter the Leased Premises and inspect them, or to repair, or maintain them, at reasonable times and upon reasonable notice. Neither this paragraph, nor the Town's exercise of any right hereunder, shall be deemed any form or manner of control over the Leased Premises by the Town for any purpose whatsoever.
12. Waiver of Subrogation: The Lessor agrees to maintain fire, extended coverage, and vandalism and malicious mischief insurance on the building and on personal property of the Lessor contained therein to the extent of its full insurance value; the Lessee shall do the same with respect to its property located in or on the demised premises; Lessor and Lessee hereby mutually release and discharge each other from all claims or liabilities arising from or caused by fire or other casualty covered by the above insurance on the Leased Premises, or property in, or on, the Leased Premises.
13. Notice: Any notice or written communication related to this Lease shall be deemed effective if mailed first class or delivered to:
a. For the Town:
Town Manager
405 Martin Luther King Jr. Blvd.
Chapel Hill, NC 27514
b. For the Center:
Robert P. Humphreys, President
179 East Franklin Street
Chapel Hill, NC 27514
This the _____day of ____________, 2005.
IN WITNESS WHEREOF, the parties hereunto cause this Lease Agreement to be executed in their respective names.
TOWN OF CHAPEL HILL FRANKLIN STREET TEEN CENTER, INC.
By: __________________________ ____________________________
Town Manager President
Attest: ______________________ Seal Attest: ______________________
Town Clerk
Approved as to Form: _____________________________________________
Town Attorney
This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.
_____________________________
Finance Director
______________________________
Director of Public Works
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
I, ____________________________, a Notary Public in and for said County and State, do hereby certify that _________________________ personally appeared before me on behalf of the Inter‑Faith Council for Social Services, Inc. this day and acknowledged the due execution of the foregoing instrument.
WITNESS my hand and notarial seal this _____ day of ______________, 2005.
_____________________________
Notary Public
My Commission Expires: __________________________