Approved Agreements and Contracts Muskegon Central Dispatch Lease Agreement & Exhibits 03-09-21

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WATCH                                                           .... J         \    ~GO
                        Agenda Item Review Form
                           Muskegon City Commission

Commission Meeting Date: March 9, 2021                      Title: Muskegon Central Dispatch Lease
                                                            Agreement & Exhibits

Submitted By: Jeffrey Lewis                                  Department: Public Safety

Brief Summary: Review and approve the attached MCD lease agreement (amended). As detailed
in the attached lease agreement, attached exhibits and lease space necessary for use and
maintenance of the newly expanded/remodeled dispatch facility.

Detailed Summary: Attached is the First Amendment to the Lease between the City and Central
Dispatch . There are two exhibits. Exhibit A is the site plan/description of the leased space. Exhibit B is the

Amount Requested: 0.00                                     Amount Budgeted: n/a

Fund(s) or Account(s):                                     Fund(s) or Account(s):

Recommended Motion: Approval of the amendments to the lease agreement between the City of
Muskegon and Muskegon Central Dispatch.

Check if the following Departments need to approve the item first:
Police Dept.     D
Fire Dept. IX]
IT Dept. □

For City Clerk Use Only:
Commission Action:

       This lease is effective on Oct shall: (i) name Landlord and Tenant as insureds; (ii) be payable as
         provided in paragraph 15; and, (iii) be purchased from companies reasonably satisfactory
         to Landlord,

        14.     Fire or Casualty; Coudemnntion, In the event the Premises are totally
destroyed by fire, wind, or other causes beyond the control of the Landlord) or are condemned or
otherwise taken by authority oflocal, state or federal government, then in any of these events the
lease term shall cease and tenninate as of the date of such destruction, condemnation or taking.
In the event of any loss or damage by fire or other casualty for which the building or
improvements on the Premises may be insured, all amounts payable upon any policy or policies
of insurance shall be paid to Landlord except the extent the insurance covers Tenant's
improvements. If the Premises are damaged by fire, rain, wind or other such causes, so as to
render the same partially untenable or partially unfit fol' use, but are repairable within a    ·
reasonable time, then this lease shall remain in full force and effect, but Tenant's rent shall be
proportionately reduced until the Premises are repaired.
        15.      Signs. Tenant shall only place, erect or maintain or cause to be placed, erected or
maintained on any exterior surface of the Premises) or anywhere outside of the Premises) such
signs) lettering, decorations, or advertising as are permitted by law and have been approved by
Landlord in writing, Tenant shall) at its own risk and expense) lawfully erect such matedal
Upon vacating the Premises~ Tenant agrees to remove all signs or other such items and to repair
all damage caused by such removal.

        16.     Risk of Loss, During the tenn of this lease, and any extension or renewal thereof,
the risk ofloss, with respect to all risks insurable under a fire and extended coverage insurance
policy meeting the requirements of the laws of the State of Michigan) together with the risk of
loss with respect to all uninsurable losses to the Premises which are subject to the control or
prevention by Tenant, shall t'est upon Tenant.

         17.     Assignment or Subletting. The Tenant shall not assign, mortgage, or encumber
this lease, nor sublet or pennit the Premises or any part thereof to be used by others, without the
prior written consent of the Landlord in each instance.

       18.     Security, Landlord shall not be liable for any ittjury to the person 01· property of
the Tenant or any other persons caused by the criminal acts of third persons upon the Premises,

       19.       Tenant's Default and Repossession. If the Promises shall be deserted or
vacated) or if there shall be a default in the payment ofrent or any patt thereof for more than
seven days after written notice of such default by the Landlord, or if there shall be default in the
perfonnauce of any other covenant) agreement, condition, rule or regulation herein contained or
incorporated herein by reference for more than seven days after written notice of such default by
the Landlord, this lease (if the Landlot'd so elects) shall thereupon become null and void, and the
Landlord shall have the right to reenter or repossess the Premises, either by smnma1y

proceedings, surrender, or otherwise, and dispossess and remove therefrom the Tenant, or other
occupants thereof, and their effects, without being liable to any prosecution therefor. In such
case, the Landlord may, at its option, relet the Premises or any part thereof, as the agent of the
Tenant, and the Tenant shall pay the Landlord the difference between the rent reserved and
agreed to be paid by the Tenant for the po1iion of the te1m remaining at the time of reentry or
repossession and the amount, if any, received or to be received under such reletting for such
portion of the te1m, Tenant agrees to pay all expenses and damages incurred by Landlord as a
result of Tenant's default, including Landlord's reasonable attorney fees.

        In the event that Landlord is required to commence eviction proceedings or proceedings
to otherwise enforce collection of rents or enforce and protect the rights of Landlord hereunder>
Tenant shall be responsible to pay Landlord's costs, expenses and fees, including reasonable
actual attorney fees, which shall be incurred by Landlord as a result of such proceedings, In case
any such suit is settled before judgment is entered therein, such costs> expenses and fees,
including reasonable actual attorney fees, shall nevertheless be recoverable by Landlord as part·
of said settlement.

        If Tenant shall fail to perform any of its obligations hereunder, Landlord may, if it so
elects, and after five days' prior notice to Tenant, cure such default at Tenant's expense, and
Tenant agrees to reimburse Landlord (as additional rent) for all costs and expenses incurred as a
result thereof upon demand.
         20.     Laudlord's Default. 1n the event that Tenant is required to commence
proceedings to enforce and protect the rights of Tenant hereunder and Tenant receives a
judgment in its favor, Landlord shall be responsible to pay Tenant's costs, expenses and fees,
including reasonable actual attorney fees, which shall be incurred by Tenant as a result of such
proceedings. In case any such suit is settled before judgment is entered therein, such costs,
expenses and foes, including reasonable actual attorney fees 1 shall not be recoverable by Tenant
 as part of said settlement.                                ·

        If Landlord shall fail to perfo1m any of its obligations hel'eunder, Teno.nt may, if it so
elects, and after five days' prior notice to Landlord, cure such default at Landlord's expense, and
Landlord agrees to reimburse Tenant for all costs and expenses incuned as a result thereof upon
        21.      Dispute Resolution. In the event a dispute arises regarding this Lease, the parties
agree to first conduct an infonnal mediation session through a mutually agreeable third~party
mediator. If that mediation session is unsuccessful in l'esolving the dispute, the Muskegon
County Circuit Coutt shall then have exclusive personal and subject matter jurisdiction and
venue regarding this Lease.

       22,      Notices, All notices, approvals, consent~ and other communications required
under this lease shall be in writing and, except when receipt is required to start the running of a
period of time> shall be deemed given: (i) when delivered in person; (ii) when sent by fax (the
sender shall also send a 11 hard copy" following the fax; however, the notice shall be effective
upon the transmission of the fax); (iii) one day after depositing in the custody of a nationally-
recognized receipted overnight delivery service with delivery fees prepaid; or (iv) five days after
posting in the United States Mail first-class, registered, or certified mail, postage prepaid and
return receipt requested. Notices shall be sent to the parties at the addresses listed above.

        23.     Holding Over. It is agreed that any holding over by the Tenant upon expiration
of the term of this lease or any renewal or extension hereof, shall operate as an extension of this
lease from month to month only.

           24.        Miscellaueous.
                  a.     Go-veming Law. This lease is executed ln accordance with, shall be
           governed by, and construed and interpreted in accordance with, the laws of tlte State of
                   b.     Entire Agreement. This lease shall constitute the entire agreement, and
           shall supersede any other agreements, written or ora1, and any contemporaneous or prior
           negotiations and representations that may have been made or entered into, by and
           between the parties with respect to the subject matter of this lease and shall not be
           modified or amended except in a subsequent writing signed by the paity against whom
           enforcement is sought.
                   c.     Binding Effect. This lease shall be binding upon, and inul'e to the benefit
           of, and be enforceable by, the parties and their respective legal representatives, pennitted
           successors and assigns.
                   d.     Counterparts, Tl1is lease may be executed in counterparts, and each set
           of duly delivered identical counterpa1ts 1 which includes all signatories, shall be deemed
           to be one original document,
                     e.      Full Execution, This lease requires the signature of both parties, Until
            fully executed, on a single copy or in counterparts, this lease is of no binding force or
            effect, and, if not fully executed, this lease is void.
                    f,     Non-Waiver. No waiver by any party of any provision of this lease shall
            constitute a waiver by such party of such provision on any other occasion or a waiver by
            such paity of any other provision of this lease.
                   g.      SeverabiUty. Should any one or more of the provisions of be
            detennined to be invalid, unlawful, or tmenforceable in any respect, the validity, legality,
            and enforceability of the remaining provisions of this lease shall not in any way be
            impaired or affected,

                                                [signatures appear on following page]

           Landlord and Tenant have caused this lease to be executed the day and year first above

                                                   LANDLORD: CITY OF MUSKEGON

                                                   Linda Potter, Acting Clerk
                                                   Date: Jo ~ ,il o -tJ 6

                                                   TENANT: .MUSl{EGON CENTRAL

                                                Original Profection                                                                 Actual Bids
    Year        TotaI Fire OS       Ci!}'. Share (82.4%)   CD Share (17.6%)   Annual Cost/So. Ft    Total Fire DS   Citv Share (82.4%)   CD Share (17.6%)   Annua!Cost!Sg.Ft.
   2007         $147,475.11           $121,519.49            $25,955.62             $6.51           $140,444.75       $115,726.47          $24,71828             $6.20
   2008         $188,348.18           $155,198.90            $33,149.28             $8.32           $181,030.00       $149;!68.72         $31.861.28             $8.00
   2009         $190,615.88           $157,067.49            $33,548.39             $8.42           $182,790.00       $150,618.96         $32,171.04             $8.07
   2010         $203,028.64           $167.295.60            $35,733.04             $8.97           $195,430.00       $161,034.32         $34,395.68             $8.63
   2011         $201.226.70           $165,810.80           $35,415.90              $8.89           $193,510.00       $159.452.24         $34,057.76             $8.55
   2012         $199,419.96           $164,322.05            $35,097.91             $8.81           $191,590.00       $157,870.16         $33,719.84             $8.46
   2013         $197,594.06           $162,817.51           $34,776.55              $8.73           $189,670.00       $156,288.08         $33,381.92             $8.38
   2014         $195,748.98           $161,297.16            $34,451.82             $8.65           $187,750.00       $154,706.00         $33,044.00             $8.29
   2015         $193,879.94           $159,757.07            $34,122.87             $8.56           $185,830.00       $153,123.92         $32,706.08             $8.21
   2016         $191,986.96           $158,197.26            $33,789.70             $8.48           $183,910.00       $151,541.84         $32,368.16             $8.12
   2017         $190,070.00           $156,617.68            $33,452.32             $8.40           $181,990.00       $149,959.76         $32,03024               $8.04
   2018         $188,129.06           $155,018.35           $33,110.71              $8.31           $180,070.00       $148,377.68         $31,692.32              $7.95
   2019         $336,781.18           $277,507.69           $59,273.49             $14.88           $332,150.00       $273,691.60         $58,458.40             $14.67
   2020         $331.964.74           $273,538.95           $58,425.79             $14.66           $331,o?0.00       $272,801.68         $58,268.32             $14.63
   2021         $337,195.44           $277,849.04           $59,346.40             $14.90           $329,710.00       $271,681.04         $58,028.96             $14.57
   2022         $324,649.16           $267,510.9"!          $57,138.25             $14.34           $321,070.00       $264,561.68         $56,508.32             $14.18
   2023         $322,433.80           $265,685.45           $56,748.35             $1424            $315,430.00       $259.914.32         $55,515.68             $13.9$
   2024         $326,727.26           $269,22326            $57,504.00             $14.43           $320,670.00       $264,232.08         $56,437.92             $14.17
   2025         $320,117.80           $263,777.07           $56,340.73             $14.14           $314,350.00       $259.024.40         $55,325.60             $13.89
   2026         $309,890.56           $255,349.82           $54,540.74             $13.69           $304,910.00       $251,245.84         $53,664.16             $13.47
   2027         $299,616.08           $246,883.65           $52,732.43             $13.24           $295,470.00       $243,467.28         $52,002.72             $13.05
   2028         $292,717.34           $241,199.09           $51,518.25             $12.93           $289,794.00       $238,790.26         $51,003.74             $'!2.80
   2029         $282,198.12           $232,531.25           $49,666.87             $12.47           $279,954.00       $230,682.10         $49,271.90            $12.37
   2030         $271,630.96           $223,823.91           $47,807.05             $12.00           $269,114.00       $221,749.94         $47,364.06             $11.89
   2031         $260,991.92           $215.057.34           $45,934.58             $1i.53           $259,076.00       $213,478.62         $45,597.38            $11.44
   2032         $250,328.92           $206.271.03           $44,057.89             $i1 .06          $249,038.00       $205,207.31         $43,830.69            S11.00
  Totals       16 §§:1: Z!;i!l Z§    ~§4Qj   1;;:Z:§Q     ~:l.:1§3.~Q!;! g§       .$2.filLlill     ~MQS a;rn.z5      S§,2Z8.~~6.~D       ;i1 Jg7~g:1: 4 §       S2,82.98

  Sq. Fl            22,537                                                                            22,637

Cost/Sq. Ft.      $289.56                                                                            $282.98
-- ·····- - --       -    - -

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       This Amendment ("Amendment") is made effective on January 1, 2021 ("Effective
Date") by and between the City of Muskegon, a Michigan municipal corporation, with offices
located at 933 Terrace Street, Muskegon, Michigan 49440 ("Landlord"), and Muskegon Central
Dispatch, a Michigan non-profit corporation, with offices located at 770 Terrace Street,
Muskegon, Michigan 49442 ("Tenant"). Landlord and Tenant, may each be referred to as a
"Party" or collectively as "Parties".


         A.         Landlord and Tenant entered into a Lease effective on October 10, 2006 for a
                    portion of the West Western Avenue Fire Station located at 770 Te1race Street,
                    Muskegon, Michigan. More specifically, Tenant leased approximately Two
                    Thousand Three Hundred Fifty-Four (2,354) square feet of office space, plus
                    shared space.

         B.         Tenant's current rental payment is 17.6% of the debt service from the City of
                    Muskegon 2006 Public Improvement Bonds attributable to the Western Avenue
                    Fire Station (The City of Muskegon 2006 Public Improvement Bond is
                    $5,400,000, of which $3,696,970 is attributable to the Western Avenue Fire
                    Station.) plus 17.6% of the operation and maintenance expenses of the Western
                    Avenue Fire Station.

          C.        Tenant now desires to increase the amount of space in the existing West Western
                    Avenue Fire Station, which will increase the rental payment based upon the City
                    of Muskegon 2006 Public Improvement Bond.

          D.        Landlord has agreed to construct an addition to the West Western Avenue Fire
                    Station and lease the entire addition to Tenant.

          E.        Landlord will pay for improvements needed by Tenant to the existing West
                    Western Avenue Fire Station and a to be constructed building from the proceeds
                    of a yet to be issued City of Muskegon 2020 Capital Improvement Bond in a not
                    to exceed amount of$11.1 million, of which approximately $329,710 shall be
                    used for the West Western Avenue Fire Station improvement and addition for the
                    use of Tenant.

        Therefore, for good and valuable consideration, and the mutual promises contained
in this Amendment, the Parties agree to amend the Lease as follows:

          1.        Description of Leased Premises. Paragraph 1 shall be revised to read as follows:

                    Lease of Premises. Landlord leases to Tenant, and Tenant rents from Landlord,
                    approximately 6,982 square feet of office space, of which 4,582 square feet was
                    leased pursuant to the original lease and an additional 2,400 square feet are added


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