STATE OF NORTH CAROLINA LEASE AGREEMENT

COUNTY OF ORANGE

This Lease Agreement, made and entered into the 1^st day of February, 2000 by and between the Town of Chapel Hill, a North Carolina Municipal Corporation, 306 North Columbia Street, Chapel Hill, North Carolina, hereinafter referred to as "Town" and the Inter‑Faith Council for Social Service, Incorporated, 207 Wilson Street, Chapel Hill, North Carolina, hereinafter referred to as "IFC".

In consideration of the mutual covenants and conditions set forth below, the Town and Inter‑Faith Council agree as follows:

1. Lease of Premises: The Town agrees to lease the Old Police Building (A.K.A. Old Town Hall) (hereinafter referred to as "Leased Premises") at 100 West Rosemary Street, Chapel Hill, North Carolina to the IFC to house a Human Services Center providing shelter and nutritional services to the homeless and disadvantaged.

2. Rent: The Town agrees to rent the Leased Premises to the IFC at no charge.

3. Term of Lease: The term of this lease shall be for two years, commencing on February 1, 2000, and ending on January 31, 2002, renewable for a subsequent two‑year term upon Town Manager approval. The IFC shall give the Town Manager notice in writing of its desire to enter into a subsequent two‑year lease at least 120 days before expiration of the term.

4. Parking: The IFC may, as a right and incident of this lease, use the parking spaces marked off in the upper parking lot of the Old Police Building. All spaces in the lower lot shall be reserved for use by the Town.

5. Duties of the IFC:

a. The IFC shall pay for all telephone and cable television services in the Leased Premises.

b. The IFC shall provide all routine janitorial services for the Leased Premises at its own expense. Provisions for contract janitorial service shall include workers' compensation insurance, general liability insurance and employee bonds.

c. The IFC shall ensure that the Leased Premises are maintained and operated in a safe and sanitary manner. The IFC shall also be responsible for proper safekeeping and security of the Leased Premises.

d. The IFC shall comply with all applicable statutes, and provisions relating to occupancy by a certain number of persons, building code provisions for kitchens, fire regulations, and provisions governing food preparation and handling. The IFC shall take reasonable precautions to prevent damage to the Leased Premises from fire and other causes, and to prevent bodily and personal injury.

e. The IFC shall be responsible for all necessary staffing, programming, and operations of the shelter for the homeless; and, the IFC shall be responsible for all necessary staffing, programming, operations and maintenance of the community kitchen and its associated equipment.

f. The IFC shall provide all equipment necessary for program operations.

g. The IFC shall submit all plans for building alterations or renovation, both interior and exterior, to the Town for prior approval, whether the renovations or alterations will be financed through the Town, the IFC or funds raised from other sources. This review does not relieve the IFC from the necessity of obtaining approval for the renovations or alterations from the North Carolina Department of Cultural Resources.

6. Duties of the Town:

a. The Town shall pay for all utilities for the Leased Premises except as provided in paragraph 5a.

b. The Town will provide routine and extraordinary maintenance and repair of the Leased Premises, exclusive of the kitchen and its associated equipment, parking lot of the Old Police Building, the exterior of the Old Police Building, and the heating, plumbing and electrical systems; the Town will not provide janitorial service for the Leased Premises.

c. The Town will assist with and review, and must approve all alteration or renovation plans for the building, both interior and exterior. The Town will not unreasonably withhold approval of alterations or renovations proposed by IFC.

d. When the Town has applied for and received local, State or federal grant funds to be used in conjunction with the Human Services Center, the Town will administer bidding and contracting procedures for alterations, renovations, and improvements in accord with applicable statutes and grant procedures.

7. Insurance: The IFC shall provide and maintain at its expense liability insurance, naming the Town as an additional insured, covering its activities at the Leased Premises in limits approved by the Town Manager, and any other insurance required by law or the Town, such as for Workers' Compensation. Copies of such insurance policies shall be provided to the Town Manager's office. Said insurance shall provide that the Town shall be given at least 30 days prior written notice before the policy may be altered, amended or canceled or terminated or allowed to lapse.

8. Waiver of Subrogation: The Town agrees to maintain fire, extended coverage, and vandalism and malicious mischief insurance on the Leased Premises and on personal property of the Town contained therein to the extent of its full insurable value; the IFC shall do the same with respect to its property located in or on the Leased Premises. The Town and IFC 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.

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 shall approve any alterations, renovations, or repairs to the Leased Premises.

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.

12. Cancellation: The Lease Agreement may be canceled upon 120 days prior written notice by either the Town or IFC.

13. Personal Injury or Property Damage: The IFC shall indemnify and hold harmless and defend the Town and its agents and employees from any claim, cost, expense, liability, action, or judgment including attorney's fees arising out of or related to any personal injury, death, or property damage with respect to the use of the Leased Premises and operation of the Human Services Center.

14. Notice: Any notice or written communication related to this Lease shall be deemed effective if mailed or delivered to:

a. For the Town:

Town Manager

306 N. Columbia Street

Chapel Hill, NC 27516

b. For the IFC:

President, Inter‑Faith Council Board of Directors

207 Wilson Street, Chapel Hill, NC 27514

This the _____ day of ____________, 2000.

IN WITNESS WHEREOF, the parties hereunto cause this Lease Agreement to be executed in their respective names.

TOWN OF CHAPEL HILL THE INTER‑FAITH COUNCIL FOR

SOCIAL SERVICES, INC.

By: __________________________ ____________________________

Town Manager President

Attest: ______________________ Attest:_____________________

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 ______________, 2000.

_____________________________

Notary Public

My Commission Expires: __________________________