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HomeMy WebLinkAbout2019-077 OCDC Lease Amendmentr LEASE AMENDMENT Recitals 1. Ashland Public Schools and the Oregon Child Development Coalition are parties to a Lease dated December 19, 2014, for property located at 265 North Main Street,Ashland OR. 2. On June 19, 2018,Ashland Public Schools transferred all their rights and responsibilities under this agreement to the City of Ashland. 3. The City of Ashland(City) and the Oregon Child Development Coalition(OCDC) agree to amend the Lease as follows: Agreement This amendment changes the current shared occupancy to full occupancy of the facility by OCDC. This includes all of the original school building,approximately 29,652 square feet, along with what is known as the Music Building Addition, approximately 2,080 square feet for a total of 31,732 square feet. 1. TERM, POSSESSION AND OPTION TO RENEW This section is replaced with the following language: The City and OCDC hereby agree to exercise the option to renew for two additional years, the new term of the lease is January 1, 2019, through December 31, 2021. The parties acknowledge that there is an error in these dates in the original agreement. Two additional 3-year extensions of this agreement will be available if agreed to by both parties in writing. OCDC will notify the City of its desire to exercise an extension at least 180 days prior to the expiration of this or any extension term. The City will respond to the request within 10 business days or receiving the required notice from OCDC. 2. CONSIDERATION The first paragraph and rent schedule of this section are replaced with the following language. The last paragraph remains. As the sole tenant of the facility OCDC will be responsible for all utilities, including gas, electricity,water and sewer,and will pay for these utilities directly to the provider. The rent schedule below reflects a 1% increase each year over the base rent of$12,500 per month from the original Lease. Lease Amendment: City of Ashland to OCDC Page I 1 January 1, 2019 through December 31, 2019 $ 13,010 :Per Month January 1, 2020 through December 31, 2020 $ 13,140 ,Per Month January 1, 2021 through December 31, 2021 j $ 13,272 ,Per Month The rent will continue to increase by 1%for each year of any extension term of this agreement. 3. USE OF PROPERTY The first 5 lines of Section 4 will be replaced with the following language: OCDC will use the property for its stated mission of improving the lives of children and families by providing early childhood education, care and advocacy with unique and supportive services to enhance family growth and community success. The balance of the section remains in place. 4. MAINTENANCEAND REPAIRS The following language will be added to Section 11: The parties acknowledge that this building has asbestos containing materials and the potential for lead-based paint. These materials are safe when maintained, encapsulated or abated under state and federal rules. City will be responsible for any maintenance, encapsulation or abatement required due to age,wear and tear or work allowed or required under this agreement. 5. ALTERATIONS AND IMPROVEMENTS Section 14 Alterations and Improvements is deleted in its entirety and replaced with: OCDC will have the right to make the improvements to the facility shown on EXHIBIT`A' without further approval from the City. OCDC will be responsible for the cost and management of this work,including design,permits and construction. OCDC will not make any other alterations or improvements to the building without prior written consent of the City. 6. RIGHT OF ASSIGNMENT "Except as described in Section 24 Subletting" will be added to the first sentence of Section 23. 7. SUBLETTING Section 24 to be deleted and replaced with: OCDC will have the right to sublet portions of the building to partners or groups that help OCDC in its mission of improving the lives of children and families by providing early childhood education, care and advocacy with unique and supportive services to Lease Amendment: City of Ashland to OCDC Page I 2 enhance family growth and community success. OCDC will continue to be responsible for all its responsibilities under this agreement for any sublet space. 8. MASTER LEASE Unless specifically modified or deleted in this Amendment,the terms and conditions of the Lease dated December 19, 2014,will remain in full force and effect. 9. AUTHORITY TO EXECUTE The individuals executing this Amendment on behalf of the parties expressly warrant their authority to do so and that all necessary board resolutions have been obtained. In WITNESS WHEREOF,the parties hereto have executed this agreement on the day and year noted below. CITY: OCDC: City of Ashland Oregon Child Development Coalition A not-for-profit Corporation Marlt-Wetclr' l6„,6(0(, Donalda Dodson • ' • 've-ervices Executive Director CG-!� ( itn. p ,n- z1 1iq -fig/( Date Date g}t Lease Amendment: City of Ashland to OCDC Page f 3 LEASE AMENDMENT Recitals 1. Ashland Public Schools and the Oregon Child Development Coalition are parties to a Lease dated December 19, 2014,for property located at 265 North Main Street,Ashland OR. 2. On June 19,2018,Ashland Public Schools transferred all their rights and responsibilities under this agreement to the City of Ashland. 3. The City of Ashland(City) and the Oregon Child Development Coalition(OCDC) agree to amend the Lease as follows: Agreement This amendment changes the current shared occupancy to full occupancy of the facility by OCDC. This includes all of the original school building,approximately 29,652 square feet, along with what is known as the Music Building Addition,approximately 2,080 square feet for a total of 31,732 square feet. 1. TERM, POSSESSION AND OPTION TO RENEW This section is replaced with the following language: The City and OCDC hereby agree to exercise the option to renew for two additional years,the new term of the lease is January 1, 2019,through December 31, 2021. The parties acknowledge that there is an error in these dates in the original agreement. Two additional 3-year extensions of this agreement will be available if agreed to by both parties in writing. OCDC will notify the City of its desire to exercise an extension at least 180 days prior to the expiration of this or any extension term. The City will respond to the request within 10 business days or receiving the required notice from OCDC. 2. CONSIDERATION The first paragraph and rent schedule of this section are replaced with the following language. The last paragraph remains. As the sole tenant of the facility OCDC will be responsible for all utilities,including gas, electricity,water and sewer,and will pay for these utilities directly to the provider. The rent schedule below reflects a 1% increase each year over the base rent of$12,500 per month from the original Lease. Lease Amendment: City of Ashland to OCDC Page I 1 January 1,2019 through December 31,2019 $ 13,010 ;Per Month January 1,2020 through December 31, 2020 $ 13,140 Per Month January 1,2021 through December 31,2021 j $ 13,272 Per Month The rent will continue to increase by 1%for each year of any extension term of this agreement. 3. USE OF PROPERTY The first 5 lines of Section 4 will be replaced with the following language: OCDC will use the property for its stated mission of improving the lives of children and families by providing early childhood education,care and advocacy with unique and supportive services to enhance family growth and community success. The balance of the section remains in place. 4. MAINTENANCE AND REPAIRS The following language will be added to Section 11: The parties acknowledge that this building has asbestos containing materials and the potential for lead-based paint. These materials are safe when maintained,encapsulated or abated under state and federal rules. City will be responsible for any maintenance, encapsulation or abatement required due to age,wear and tear or work allowed or required under this agreement. 5. ALTERATIONS AND IMPROVEMENTS Section 14 Alterations and Improvements is deleted in its entirety and replaced with: OCDC will have the right to make the improvements to the facility shown on EXHIBIT'A' without further approval from the City. OCDC will be responsible for the cost and management of this work,including design,permits and construction. OCDC will not make any other alterations or improvements to the building without prior written consent of the City. 6. RIGHT OF ASSIGNMENT "Except as described in Section 24 Subletting"will be added to the first sentence of Section 23. 7. SUBLETTING Section 24 to be deleted and replaced with: OCDC will have the right to sublet portions of the building to partners or groups that help OCDC in its mission of improving the lives of children and families by providing early childhood education,care and advocacy with unique and supportive services to Lease Amendment: City of Ashland to OCDC Page l 2 enhance family growth and community success. OCDC will continue to be responsible for all its responsibilities under this agreement for any sublet space. 8. MASTER LEASE Unless specifically modified or deleted in this Amendment,the terms and conditions of the Lease dated December 19, 2014,will remain in full force and effect. 9. AUTHORITY TO EXECUTE The individuals executing this Amendment on behalf of the parties expressly warrant their authority to do so and that all necessary board resolutions have been obtained. In WITNESS WHEREOF,the parties hereto have executed this agreement on the day and year noted below. CITY: OCDC: City of Ashland Oregon Child Development Coalition A not-for-profit Corporation Marl.Welch— VALI 0,71,,J0L Donalda Dodson • fn• & a - ' . 'ye-Services Executive Director C:41 &Sin;41 4-Ton.- Date Date {pf Lease Amendment: City of Ashland to OCDC Page 3