Item #07 Approval for Property Lease of 2 North Bluford Avenue with Oelrich Construction ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: August 1, 2017
Item # 7
Reviewed By:
Contact Name: Stephen C. Krug Department Director:
Contact Number: 6002 City Manager: �� ,
Subject: Property Lease of 2 North Bluford Avenue with Oelrich Constr ion. Commissioner
Firstner, District 3.
Background Summary:
The Commission approved the Bluford Avenue Phase II project Guaranteed Maximum Price (GMP) for
Sub-phase A of the Construction Manager At Risk contract, RFQ #1702, with Oelrich Construction, Inc.,
at the June 6, 2017 meeting. Part of the GMP included the reimbursement for project office trailers at a
cost of up to $24,000.00 for the maximum project duration. The City recently acquired the property at 2
North Bluford Avenue, which is the northwest corner of the Bluford Avenue and McKey Street
intersection. This property was previously used as a photo studio and offices, however long term
commercial use will require cost prohibitive maintenance and remodeling. While the City determines
the best long term plan for this property, the building is ideally suited for use as Oelrich Construction's
temporary construction offices and provides a savings in contract reimbursable expenses to the City.
Public Works recommends approval of this twelve (12) month lease with two (2), six (6) month
extensions.
Issue:
Request City Commission approval of the lease agreement with Oelrich Construction, Inc., for the
property at 2 North Bluford Avenue.
Recommendations:
Recommend approval of the lease agreement with Oelrich Construction, Inc., of Jonesville, Florida, for
the property at 2 North Bluford Avenue.
Attachments:
Lease Agreement executed by Oelrich Construction, Inc.
Financial Impact:
The lease will provide a savings in reimbursable project jobsite office costs to the Stormwater and
Utilities Divisions Capital Outlay budgets along with the streetscape as bonded in the general fund.
Type of Item: (please mark with an °x')
Public Hearing For Clerk's Dept Use:
Ordinance First Reading X Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
X Commission Approval
Discussion&Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. (26 N/A
Review ed by ( ) N/A
2
LEASE AGREEMENT
This Lease Agreement("Lease") dated August 1st , 2017, is entered into by and between the City of
Ocoee, Florida, a Florida municipal corporation, whose address is 150 Lakeshore Drive, Ocoee, Florida
34761 ("Landlord"), and Oelrich Construction, Inc., a Florida Corporation, whose address is 275 NW 137th
Drive, Suite A, Jonesville, Florida 32669("Tenant").
WITNESSETH:
1. DEMISE OF PREMISES
In consideration of the covenants and agreements hereinafter reserved and contained in this Lease to be
observed and performed by Tenant, Landlord does hereby demise and lease to Tenant the buildings and
land within the property located at 2 North Bluford Avenue, Avenue, Ocoee, Florida 34761 ("Premises"), to
have and to hold from the Delivery Date (as hereinafter defined) and during the term of this Lease subject to
the covenants and agreements contained in the Lease.
2. TERM
(a) Delivery Date. Unless otherwise set forth in this Lease, Tenant's right of occupancy under this
Lease shall commence on the date Landlord delivers possession of the Premises to Tenant (the "Delivery
Date"). Landlord anticipates that the Delivery Date will be on or before August 1st, 2017 (the "Anticipated
Delivery Date"). In the event the Delivery Date has not occurred prior to thirty(30)days after the Anticipated
Delivery Date,Tenant may elect to terminate this Lease.
(b) Term. The initial term of this Lease shall be for a period of twelve (12) months following the
Delivery Date. This Lease may be renewed for a period of two(2), six(6) month extensions, under the same
terms and conditions, upon mutual agreement of the parties. In order to be effective, Tenant shall provide
Landlord with written notice of its election to renew this Lease on or before three (3) months prior to the
commencement of the renewal term.
3. USE
(a) Use of Premises. Tenant covenants with Landlord that Tenant shall not use or occupy the
Premises or any part of thereof for any purpose other than for general office space, or such other office use
as permitted by the Landlord's prior written consent(the"Permitted Use").
(b) Compliance with Regulations. Tenant agrees to observe and comply with all laws, ordinances
and governmental regulations pertaining to Tenant's manner of use.
4. RENT
Rent. Tenant hereby covenants and agrees to pay to Landlord rent in the amount of zero and no/100s
Dollars ($0.00) per month (the "Rent"). The Rent includes all real estate taxes and Landlord's
insurance, all utilities with the exception of telephone and internet services which shall be obtained at the
sole cost and expense of Tenant. In addition,janitorial services are not included as part of the Rent.
5. ENJOYMENT
Tenant, upon performing all of the covenants of this Lease, may quietly hold and enjoy the Premises free
from interruption or disturbance from the Landlord or any other person or persons lawfully claiming by,
through, or under the Landlord.
6. INSTALLATION AND ALTERATIONS
(a) Tenant shall have the right to install its furniture, fixtures, and equipment ("FFE"), on the
condition that it is not in default hereunder. Tenant shall have the right to remove such FFE immediately
upon the expiration or earlier termination of this Lease, provided that Tenant repairs all damage
occasioned by the removal thereof.
(b) Repairs, alterations or additions to the Premises shall be approved in advance in writing
by the Landlord.
7. REPAIRS AND MAINTENANCE
Tenant shall maintain in good watertight order, condition, and repair, at its sole cost and expense, all
foundations, elements of structural support, and roof structure and membrane within and outside the
Premises. In addition, Tenant shall maintain in good order, condition, and repair all plumbing, lights,
electrical fixtures, utilities, canopy lights, and signage within the Premises. All repairs and replacements
required to be or made by Tenant shall be equal in quality to the original installations. Tenant agrees to
keep the Premises clean and to maintain the Premises in good order.
OR
Landlord shall maintain in good watertight order, condition, and repair, at its sole cost and expense, all
Premises. In addition, Landlord shall maintain in good order, condition, and repair all plumbing, lights,
Premises clean and to maintain the Premises in good order.
8. INDEMNIFICATION
To the extent permitted by law, Tenant covenants with Landlord to indemnify and hold harmless Landlord
from and against any and all claims, actions, damages, (but not indirect, consequential, or punitive
damages), liability and expense, including but not limited to reasonable attorneys' fees, that arise from or
in connection with the possession, use, occupation, management, repair, maintenance, or control of the
Premises, or any portion thereof. Tenant shall, at its own cost and expense, defend against any and all
actions that may be brought against Landlord or any mortgagee with respect to the foregoing. Tenant
shall pay, satisfy and discharge any and all judgments, orders, and decrees that may be recovered
against Landlord in connection with the foregoing. Notwithstanding anything herein to the contrary,
Tenant's obligation to indemnify and hold the Landlord harmless shall not apply to claims, actions,
damages, liabilities, or expenses resulting from the negligent or wrongful acts of Landlord, its agents,
contractors, employees, servants, or lessees, except to the extent resulting from the negligent or wrongful
acts of Tenant, its agents, contractors, employees, servants, or lessees. Landlord does not waive its right
to sovereign immunity under Florida law.
9. WAIVER OF LIABILITY AND INSURANCE
(a) Unless otherwise provided herein, Landlord shall not be liable for any loss of or damage
to any property of Tenant or of any others located in or on the Premises, or any injury or damage to
persons or property that occurs in or on the Premises or results from an occurrence in or on the Premises
except to the extent that any such loss, damage, or injury is the direct result of Landlord's negligence,
breach, or default under this Lease and Tenant does hereby expressly release Landlord from all liability
for any damage, loss, or injury covered in this Section.
(b) Tenant must provide a Certificate of Insurance evidencing General Liability Insurance
coverage with limits no less than $1,000,000 single occurrence and $2,000,000 aggregate for personal
injury and property damage and naming the Landlord as an additional insured.
10. ASSIGNMENT AND SUBLETTING; COLLATERAL ASSIGNMENT
Tenant shall not have the right to assign, sublet, license, or otherwise transfer any or all of its rights and
privileges under this Lease.
11. DAMAGE TO PREMISES
(a) If the Premises shall be damaged by fire, the elements, or other casualty and are rendered
untenantable in whole or in part, Landlord may, in Landlord's sole discretion, rebuild the improvements on the
Premises or terminate this Lease. All insurance proceeds following any damage or destruction shall be
disbursed to Landlord.
(b) Under no circumstances shall the Landlord be obligated to repair or replace any of the leasehold
improvements, whether installed by Landlord or Tenant, or any of Tenant's furniture, equipment, or personal
property. Tenant shall be obligated to repair or restore Tenant's leasehold improvements, Tenant's furniture,
equipment and personal property, and fixtures at its own expense.
(c) Notwithstanding anything herein to the contrary, if the work of repairing or restoring the Premises to
pre-casualty condition is not completed within thirty(30)days after the date of said casualty,Tenant shall have
the right to terminate this Lease upon written notice delivered to Landlord within fifteen (15) days after the
expiration of said 30-day period.
12. SURRENDER OF PREMISES
Tenant agrees to deliver to Landlord physical possession of the Premises upon the termination of or the
expiration of the term of this Lease in as good condition and repair as the same shall be at the Delivery
Date, ordinary wear and tear or insurable casualty loss excepted. Tenant shall, at the time of delivery of
the Premises to Landlord, deliver to Landlord all keys, computerized programs, access codes,
combinations, or other items necessary or desirable for access to Premises or for the operation of
installed equipment on the Premises. The Premises shall further be delivered clean and free of all
personal property and FFE.
13. HOLDING OVER
If Tenant shall hold possession of the Premises after the expiration or termination of this Lease, Landlord
may exercise any remedies it has under this Lease for Tenant default including a legal action against Tenant
for wrongfully holding over.
14. ACCORD AND SATISFACTION
Intentionally deleted.
15. INSPECTION AND EXHIBITION OF PREMISES
Landlord reserves the right at all reasonable times and upon reasonable notice, to enter the Premises
during the last four (4) months of the term of this Lease for the purpose of exhibiting the Premises to
prospective tenants. Landlord also reserves the right at all reasonable times and upon reasonable notice,
to inspect the Premises and every part thereof. Landlord may, however, without notice, make emergency
repairs or make such required repairs as Tenant has failed to make, according to Tenant's repair
obligations under this Lease.
16. REMEDIES UPON DEFAULT
(a) Default in Performance of Covenants. If Tenant defaults in its performance of any of the other
non-monetary covenants or conditions of this Lease, after written notice to Tenant and thirty (30) days to
cure (which period shall be extended for such additional reasonable period as may be required under the
circumstances provided that Tenant initiates such cure within such thirty (30) day period and thereafter
diligently prosecutes such cure to completion), Landlord may cure such default and any amount paid by
Landlord or expense incurred in making such a cure, together with interest at the rate of twelve percent
(12%) per annum, shall be immediately due and owing to Landlord by Tenant, or Landlord may, after
expiration of such cure period, at its option elect either to (a)continue this Lease in full force and effect
notwithstanding the occurrence of such event of default; or (b) terminate this Lease, whereupon Tenant
shall quit and surrender the Premises.
(b) Remedies after Termination. After termination of this Lease, Landlord or Landlord's agents
may immediately, or at any time thereafter, re-enter the Premises and remove all property (the "Personal
Property") therefrom (by appropriate legal proceedings), and put the same in storage at Tenant's
expense. In the event that any Personal Property has not been retrieved within thirty (30) days from the
date when Landlord removes it from the Premises, Landlord shall have the right, but not the obligation, to
dispose of the Personal Property in any manner as determined in the sole and absolute discretion of the
Landlord. In said event, Tenant assumes all responsibility for any liability resulting from the disposal of
the Personal Property. Tenant shall be responsible for all reasonable expenses incurred by Landlord in
storing all property and providing such notice. In the event that Landlord shall obtain possession of the
Premises, Tenant agrees to pay to Landlord, on demand, an amount equal to the reasonable expenses
incurred by Landlord in obtaining possession, including court costs and reasonable attorneys' fees, and
such other expenses as Landlord may reasonably incur in putting the Premises in good order and
condition.
17. NOTICES
Any notice, request, consent, approval, demand, or other communication required or permitted to be
given or served by either party to this Lease to or on the other shall be given or served and shall not be
deemed to have been duly given or served unless in writing and delivered: (a) in person; (b) by overnight
courier; or (c) by certified or registered mail, return receipt requested, to the following addresses or to
such other addresses as may be specified from time to time, in writing, delivered to the other party as
provided herein:
To Landlord: Rob Frank, City Manager
150 Lakeshore Drive
Ocoee, Florida 34761
With a copy to: Scott Cookson, City Attorney
1000 Legion Place, Suite 1700
Orlando, FL 32801
To Tenant: Oelrich Construction Inc.
275 NW 137th Drive
Suite A
Jonesville, Florida 32669
Attention: Ivan Oelrich
The date of service of any such notice or demand given by registered or certified mail shall be the date on
which such notice or demand is delivered, as evidenced by a U.S. Postal Service receipt.
18. FORCE MAJEURE
If Landlord or Tenant is delayed or prevented from performing any of their respective obligations during
the term of this Lease because of acts of God, war, riots, shortages of labor or material, or any other
causes that are reasonably beyond their control, then the period of any such delay shall be added to the
time herein provided for the performance of any such obligation and the defaulting party shall not be liable
for losses or damages caused by such delay.
19. HAZARDOUS SUBSTANCES
Landlord represents, warrants and covenants that, to the best of its actual knowledge, the Premises do
not presently contain and are free from, mold, asbestos, and any other hazardous substance. Tenant
agrees not to introduce any hazardous material in, on, or adjacent to the Premises. If Tenant stores,
uses, or disposes of any hazardous material in, on, or adjacent to the Premises and such action results in
any contamination of the Premises, the soil or surface or groundwater requiring remediation under
federal, state or local statutes, ordinances, regulations or policies, Tenant agrees to clean-up the
contamination at Tenant's cost. Tenant further agrees to indemnify, defend, and hold Landlord harmless
from and against any claims, suits, causes of action, costs, fees, including attorneys' fees and costs,
arising out of or in connection with any such clean-up work, or government enforcement proceeding in
connection therewith, and any hazardous materials currently or hereafter used, stored, or disposed of by
Tenant or its agents, employees, contractors, or invitees on or about the Premises.
20. GENERAL PROVISIONS
(a) Time is of the Essence. Time is of the essence in this Lease.
(b) Binding Effect. Landlord and Tenant agree that all the provisions of this Lease are to be
construed as covenants and agreements as though the words importing such covenants and agreements
were used in each separate Section hereof, and that all of the provisions hereof shall bind and inure to
the benefit of the parties hereto and their heirs and their successors and assigns.
(c) Waiver. No waiver of any covenant or condition nor the breach of any covenant or condition of
this Lease shall be taken to constitute a waiver of any subsequent breach of such covenant or condition,
nor justify or authorize the non-observance on any other occasion of the same or of any other covenant or
condition hereof.
(d) Severability. Any provision of this Lease that is contrary to a law that the parties cannot legally
waive or contract against is and shall be void and not binding on either party hereto; provided, however,
that the invalidity or unenforceability of any provision of this Lease shall not affect or impair any other
provision.
(e) Captions. The headings of the several Sections contained herein are for convenience and do
not define, limit or construe the contents of such Sections.
(f) Plurality and Gender. Reference to a party will be read as if all required changes in the
singular and plural and all grammatical changes rendered necessary by gender had been made. All
words in the singular will include the plural and vice-versa.
(g) Counterparts. This Lease may be executed in counterparts, each of which shall be deemed an
original, and all counterparts shall constitute one and the same instrument.
(h) Entire Agreement. This Lease contains all of the agreements between the parties hereto as to
the subject matter of this Lease, and may not be modified in any manner other than by agreement in
writing signed by all the parties hereto or their successors in interest.
(i) Governing Law. All questions concerning the validity or intention of this Lease shall be
resolved under the laws of the state of Florida and venue shall lie in Orange County, Florida.
(j) Successors in Interest. Except as otherwise provided in this Lease, all provisions of this
agreement shall be binding upon, inure to the benefit of, and be enforceable by and against the
respective heirs, personal representatives, successors, and assigns of each party to this Lease.
(k) Sovereign Immunity. Nothing contained this Lease or in any instruments executed pursuant to
the terms of this Lease shall be construed as a waiver or attempted waiver by the Landlord of its
sovereign immunity under the constitution and laws of the State of Florida; provided, however, that this
paragraph shall not be construed as an attempt to negate any partial waiver of sovereign immunity made
by the Legislature under the provisions of The Tort Claims Act, Section 768.28, Florida Statutes, or any
future statute or Act adopted by the Florida Legislature.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease on the date first written
above.
WITNESSES: LANDLORD:
CITY OF OCOEE, a Florida municipal corporation
Print Name: By:
Rusty Johnson
Mayor
Print Name:
Attest:
Melanie Sibbitt, City Clerk
[AFFIX SEAL]
Executed on: , 2017
For use and reliance only by the City of Ocoee, APPROVED BY THE OCOEE CITY
Florida. Approved as to form and legality this COMMISSION AT A MEETING HELD ON
day of 2017. , 2017 UNDER
AGENDA ITEM NO.
SHUFFIELD, LOWMAN &WILSON, P.A.
By:
City Attorney
WITNESSE,. TENANT:
Oelrich Construction, INC
111111r
By:
int Name: I,,". Cl=t12fP6►2 Name: Ivan Oelrich
Title: President