Ordinance 034-19RECORD OF ORDINANCES
BARRETT BROTHERS - DAYTON, OHIO Form 6220S
Ordinance No. 34-19 Passed
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO
EXECUTE A LEASE AGREEMENT WITH THE DUBLIN
CHAMBER OF COMMERCE, INCORPORATED FOR THE
PROPERTY LOCATED AT 129 SOUTH HIGH STREET
WHEREAS, the City of Dublin ("Landlord's is the owner of a certain parcel of land
commonly known as Franklin County Auditor's Tax Parcel ID #273-000043 and located
at 129 S. High Street, Dublin, Ohio 43017 (the "Parcel's containing a 3,111 square foot
building (the "Building'; and
WHEREAS, the Dublin Chamber of Commerce ("Tenant') is currently occupying
approximately 3,000 square feet of space in the Building on the Parcel (the "Premises'
pursuant to a certain lease agreement and addenda entered into by and between
Landlord and Tenant (the "Prior Lease'; and
WHEREAS, the Prior Lease period has expired and the Parties have continued the
Lease on a month-to-month basis; and
WHEREAS, the Parties hereto desire to enter into a new lease agreement for the
Premises.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
Delaware, Franklin, and Union Counties, State of Ohio, of the elected members
concurring that:
Section 1. The City Manager is hereby authorized to execute all necessary
documentation, including but not limited to, the Lease Agreement with the Dublin
Chamber of Commerce in substantially the same form as the one attached hereto as
Exhibit "A", with changes not inconsistent with this Ordinance, not substantially adverse
to the City, and which shall be approved by the City Manager and Director of Law. The
approval of changes thereto by those officials, and their character as not being
substantially adverse to the City, shall be evidenced conclusively by their execution
thereof.
Section 2. This Ordinance shall be effective on the earliest date provided by law.
ed t ' da of 2020.
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W�41Z44esid'ing Officer
ATT T:
C14A of Council
(Ac,-hng)
City of Dublin
To:
From:
Date:
Initiated By:
Re:
Summary
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017-1090
Phone: 614-410-4400 • Fax: 614-410-4490
Memo
Members of Dublin City Council
Dana L. McDaniel, City Manager
February 4, 2020
Dana L. McDaniel, City Manager
Ordinance No. 34-19 — Authorizing the City Manager to Execute a
Lease with the Dublin Chamber of Commerce
Thank you for removing Ordinance 34-19 from its tabled status and placing this Ordinance back on
the agenda for your February 10, 2020 Council meeting. As Council is aware, the lease agreement
with the Dublin Chamber of Commerce ("the Chamber') for the City -owned property at 129 S. High
Street expired in October of 2018. Since the introduction and first reading of this Ordinance in 2019,
staff and the Dublin Chamber of Commerce continued to discuss the lease terms. The attached lease
reflects the result of that discussion. Key changes are summarized as follows:
1. Facility renovation. The Chamber desires to renovate the existing facility (Lease, Exhibit A).
After further internal visioning and discussion following the initial introduction of Ordinance
34-19, the Chamber desires to renovate the existing facility in a fashion different from
previously presented. Given the Chamber's ever-changing membership and membership
needs, the Chamber has determined that a floor plan to accommodate its office operations,
meeting space, and networking space is critical to its mission. Attached are the Chamber's
proposed changes to the floor plan (Lease, Exhibit B). Exhibit C of the Lease shows the
proposed new improvements and estimated costs. The estimated costs for new improvements
versus previous improvements are as follows:
New
Improvements
City
Cost
Chamber
Cost
Previous
Improvements
City
Cost
Chamber
Cost
$0
$70,000
Office Area
$0
$40,000
Biz Bistro & Meeting
Room
$50,000
$20,000
Doors, Halls, Lighting,
Painting,Flooring
$26,000
$14,000
Community Meeting
Room w Kitchen
$50,000
$25,000
Community Meeting
Room w Kitchen
$26,000
$14,000
Public Restrooms
$80,000
$0
Public Restrooms
$80,000
New Building
Entrance
$30,000
$0
Exterior
improvements
$15,000
Interior Hallways
$60,000
$0
Downtown Gateway
Pavilion
$65,000
$0
Total
$335,000
$115,000
1$147,000
168 000
Ordinance 34-19 - Authorizing the City Manager to Execute a Five -Year Lease with the Dublin Chamber of
Commerce
February 4, 2020
Page 2
The City/staff will be responsible to hire an architect and manage the design, review,
permitting and construction/renovations of the facility. Costs for those services are reflected
in the those costs provided above.
2. Proposed Chances to the lease rate. As previously provided to Council, a 2017 appraisal
determined that comparable triple net lease rents for the property range from $13.50/SF to
$17.75/SF. Consistent with the previous lease, staff recommends discounting the lease as the
facility is used for public purposes. Specifically, other government and not-for-profit
community organizations use the meeting room and the restrooms are made available to the
public during the Chamber's operating hours and on special occasions in the historic district.
Based on the appraisal, staff is recommending a lease rate of $42,000 annually ($3,500 per
month), which is based on a rate of $14.00 per square foot. Furthermore, staff recommends
continuing to provide a discount for City use of the facility (20% discount or $2.80 per square
foot) and school and other community organization's use of the facility (10% discount or
$1.40 per square foot). This would result in total rent of $9.80 per square foot, which equates
to $29,400 annually or $2,450 per month. The Chamber agrees to this lease rate. Staff
initially recommended a 5 -year lease with additional renewals in 5 -year increments and 2%
increase per year throughout. As presented in the attached lease, the Chamber desires a 20 -
year lease. The Chamber desires an initial term of 5 years at the flat rate of $2,450/mos or
$29,400/year. The Chamber requests 3 additional 5 year terms in which there will be annual
increases of 2% per year. Again, all together this reflects a total term of 20 years in which all
extensions are at the Chamber's discretion only, not the City's. The lease obligates the City to
perform all maintenance duties on the building, including HVAC, plumbing, electrical, snow
removal, exterior building and parking lot maintenance, as well as, landscaping and
refuse/recycling services, which is consistent with the previous lease. The Chamber is
responsible for utilities.
3. Additional funding for programs/activities. In a previous discussion, Council and staff agreed
the Chamber provides a valuable service to the business community and their efforts are
integral to the City's economic development effort. Their services are also significantly aligned
to and/or supportive of the City's economic development efforts, particularly as it relates to
business retention, expansion, and work force development. Staff and the Chamber have
been discussing ways to better tie and leverage the Chamber's activities, programs, and
engagements with those of the City's economic development staff efforts. Staff recommends
a separate Memorandum of Understanding (MCU) between the City and the Chamber to
ensure the alignment of these efforts. The Chamber requested an additional $100,000/year
for five years for a total of $500,000 relative to these efforts. Staff is currently discussing and
reviewing this proposal with the Chamber. A key focus of our discussion is the extent to which
the Chamber's activities and programming, engagement opportunities, and sharing of
information with businesses and with each other can contribute to the City's economic
development effort and at what cost. Staff may bring forward an MOU for Council's
consideration later.
4. The Chamber has further requested that history regarding the lease arrangement between
the City and the Chamber be memorialized as part of the information provided to Council with
this Memo. Please find attached the following:
Ordinance 34-19 - Authorizing the City Manager to Execute a Five -Year Lease with the Dublin Chamber of
Commerce
February 4, 2020
Page 2
a. A summary of the Chamber's perspective on the lease history.
b. Documents relative to the City's perspective on the lease history.
Recommendation
Staff recommends approval of Ordinance 34-19. Assuming Council desires to approve the Ordinance,
the title of the Ordinance will need to be amended to not reference the five year term. Improvements
to 129 South High Street were not included in the 2020-2024 Capital Improvements Program. Should
Council approve the Ordinance, the funding for the renovation of the Chamber Building shall be
appropriated from the unappropriated fund balance of the Capital Improvements Tax Fund in a
future supplemental Appropriation. The Fund currently has a sufficient fund balance to support this
additional Appropriation. Should Council pass this legislation, Staff will begin the planning efforts for
these improvements with the Chamber immediately after its effective date.
LEASE AGREEMENT
This Lease Agreement ("Lease") is effective as of the day of February, 2020 (the
"Effective Date"), by and between the City of Dublin, Ohio, an Ohio municipal corporation
("Landlord") and the Dublin Chamber of Commerce, Incorporated, an Ohio non-profit
corporation ("Tenant")(Landlord and Tenant also referred to herein singularly as "Party" and
together as "Parties").
BACKGROUND INFORMATION
WHEREAS, Landlord is the owner of a certain parcel of land commonly known as
Franklin County Auditor's Tax Parcel ID #273-000043 and located at 129 S. High Street,
Dublin, Ohio 43017 (the "Parcel") containing an approximately 3,000 square foot building (a
current floor plan of which is attached hereto as Exhibit A) and which does not include any
parking lots adjacent to such building and located on the Parcel (the `Building"); and
WHEREAS, Tenant is currently occupying the Building, with exclusive use of certain
office space within the Building, pursuant to a certain lease agreement and addendums entered
into by and between Landlord and Tenant (the "Prior Lease"), and is expected to occupy the
Building, with exclusive use of the office space depicted in solid green on the attached Exhibit B
(the "Premises"); and
WHEREAS, the Prior Lease terminated in October 2019, and the Parties hereto desire to
enter into a new lease agreement for the Premises that takes into account and reflects Tenant's
significant and continuing contributions to the business community of the local economy; and
WHEREAS, Landlord obtained an appraisal on June 27, 2017 which included a market
rental rate for the Building from Brian Barnes and Company, Inc.; and
WHEREAS, the market rate appraised by the Brian Barnes and Company, Inc. was in the
range of $13.50 through $17.75 per square foot (i.e. Triple Net Lease); and
WHEREAS, Landlord will use the low end of the rental range ($14) as the basis for
computing the square footage rental charge; and
Page 1 of 17
WHEREAS, the Landlord, as in the Prior Lease, will discount the $14 per square foot fee
by 20% in recognition of the requirement to keep the restrooms in the Building open for public
use during Chamber regular business hours and of the availability of the space for Landlord use
on an as -needed basis; and
WHEREAS, the Landlord, as in the Prior Lease, will further discount the $14 per square
foot fee by 10% in recognition of the availability of the Building for school groups and other
community organizations (the total of such discounts result in a price per square foot of $9.80, to
be charged to Tenant as described in Section 4 herein).
AGREEMENT
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledge, the Parties hereto agree to the `Background Information" above
and as follows
1. PREMISES: Landlord, in consideration of the rent to be paid and the covenants to be
performed by Tenant, does hereby lease unto Tenant, and Tenant hereby leases from Landlord,
the Building. To the extent that Landlord requires access to and use of the Building , Tenant
hereby grants Landlord such access as is reasonably necessary, provided such access does not
unreasonably interfere with the business operations of Tenant and provided that the Premises
shall at all times be accessible only with keys maintained by Tenant. Tenant shall have the right
to use the exterior areas serving the Building, including the sidewalks and parking lot, in
common with Landlord, however, at all times Landlord shall be responsible for any and all
maintenance for such exterior areas.
2. TERM: Subject to the provisions of Paragraph 4 below, the initial term of this Lease (the
"Term") shall be for ten (10) years, to commence on the Effective Date and shall expire at the
end of the one hundred and twentieth (120u') full calendar month thereafter.
Tenant is granted the option to extend the Term for an additional five (5) year extension
term (the "First Extension")(years 11-15) provided that Tenant: (a) provides Landlord written
notice no less than 90 days prior to the end of the Term that Tenant is exercising its option; and
(b) at the date of such notice no event of Default has occurred and is continuing. The Annual
Page 2 of 17
Rent for the First Extension term shall increase by Two Percent (2%) each year of the First
Extension. All other terms and conditions of this Lease shall be effective during the First
Extension, with the exception of Paragraph 21.
Tenant is granted an additional option to extend the Term for an additional five (5) year
extension term (the "Second Extension")(years 16-20) on the same terms and conditions as those
applicable to the First Extension.
3. CONDITION OF BUILDING: Tenant is currently in possession of the Building and
hereby acknowledges that it is accepting the Building in its "as is, where is" condition and that
Landlord has no obligation to perform any work or make any repairs therein, except as expressly
set forth and agreed to in paragraph 21 herein.
4. BASE RENT: Tenant shall pay to Landlord as rent for its use of the Building and
exclusive occupation of the Premises commencing on the Commencement Date and continuing
during the Term ("Base Rent'):
Monthly Rent: Annual Rent:
$ 2,450 (years 1-5) $ 29,4001 (years 1-5)
$2,499 (year 6) $29,988 (year 6)
$2,548.98 (year 7) $30,588 (year 7)
$2,600 (year 8) $31,200 (year 8)
$2,652 (year 9) $31,824 (year 9)
$2,705 (year 10) $32,460 (year 10)
Until such time as the Landlord's improvements to the Building, as described in
Paragraph 21 herein, are substantially completed, the Base Rent will be discounted to an amount
equal to Tenant's monthly rent under the Prior Lease, such amount being $2,100 per month.
Upon substantial completion of Landlord's improvements, the Base Rent as contemplated by this
' Calculated as follows: $9.80 x 3,000 sq ft = $29,400.
Page 3 of 17
Paragraph will apply going forward and the Annual Rent for that year will be adjusted
accordingly.
Tenant shall pay Base Rent to Landlord on or before the first day of each month, in
advance, at: City Hall, 5200 Emerald Parkway, Dublin, Ohio 43017, Attn: Finance Director, or
such other place as Landlord may from time to time designate, without any prior demand
therefor and without any deductions or setoffs whatsoever.
If the Term shall commence on a day other than the first day of a calendar month, the
Base Rent for such first fractional month shall be such proportion of the Base Rent as the number
of days in such fractional month bears to the total number of days in such calendar month.
In the event any payment of Base Rent is not received on or before the fifth (5"') day after
it is due, Tenant shall immediately pay as additional rent, without additional demand or notice, a
late charge of fifty dollars ($50.00) in addition to the amount of Base Rent due and owing.
All costs and expenses which Tenant assumes or agrees to pay to Landlord pursuant to
this Lease shall be deemed additional rent, and in the event of nonpayment, Landlord shall have
all the rights and remedies herein provided for in case of nonpayment of Base Rent.
5. USE: The Building shall be used by Tenant only for offices and community uses and
said Building will not be used for any purpose deemed hazardous by the Landlord's insurance
provider.
Tenant shall, at its sole cost and expense, comply with all laws, orders and ordinances
respecting its use or occupancy of the Building. Tenant shall procure and maintain all licenses
and permits legally necessary for the operation of Tenant's business in the Building and allow
Landlord to inspect the same upon request.
Notwithstanding anything contained herein, at the option of Landlord, this Lease shall
terminate upon thirty (30) days advance notice from Landlord to Tenant in the event Tenant
ceases to exist or operate an entity organized primarily to promote and develop business and the
business environment in the City of Dublin or ceases to use the Building as its primary office
location.
Page 4 of 17
6. LANDLORD SERVICES FURNISHED: Landlord covenants and agrees to furnish the
following services to the extent required for comfortable occupancy and use of the Premises and
Building during reasonable and customary business hours: (a) upkeep and maintenance of the
grounds of the Building, including, the mowing grass, landscaping, snow removal and curbside
trash and recycling services, all as reasonably necessary; and (b) upkeep and maintenance of
necessary pipes, mains, conduits, wires and cables to the Building for water, gas, electricity,
sewage and telephone service, subject to Paragraph 7 below. Landlord shall be responsible to
make repairs to the following: (i) the plumbing, heating, air conditioning and similar equipment,
necessary to keep the same in operating condition; (ii) the roof, (iii) the exterior of the Building
to keep the Building in a safe, clean, and neat and attractive condition; and (iv) the interior walls,
floors and ceilings in the Building (excluding the Premises) to keep same in a safe, clean, and
neat and attractive condition.
Landlord shall not be liable directly or indirectly for any damage or inconvenience
caused by the installation, use or interruption of use of electricity, air conditioning, heating or
plumbing service occasioned by fire, accident, strikes, labor troubles, necessary maintenance,
alterations, repairs or other causes beyond Landlord's reasonable control, including but not
limited to, curtailments, shortages and emergencies regarding utility services, not caused by
Tenant, or Tenant's employees, invitees, or those acting under Tenant.
7. TENANT'S COVENANTS: Tenant covenants and agrees as follows
a. Tenant shall pay the Base Rent herein required; and
b. Tenant agrees to contract for and pay for all public utility services rendered or
furnished to the Building during the Term hereof, including, but not limited to, heat,
water, gas, electric, steam, telephone service, and sewer services, together with all taxes,
levies or other charges on such utility services when the same become due and payable.
During the Term hereof Tenant agrees to maintain heat sufficient to heat the Building so
as to avert any damage to the Building on account of cold weather; and
C. Tenant shall pay the cost of all redecorating, painting, furnishing, and purchase of
equipment necessary to facilitate Tenant's programming needs and use of the Building
Page 5 of 17
and to maintain same in an orderly and clean manner, except as otherwise provided in
Paragraph 21, below; and
d. Tenant shall manage and approve the access to and use of the Building's common
room (the area depicted in striped yellow/green on the attached Exhibit B) by public
groups and organizations; and
e. Tenant shall report in writing to Landlord any defective condition in the Premises
and Building, of which Tenant becomes aware; and
f. Notwithstanding Paragraph 6, above, Tenant shall pay for any repairs to the
Building or Premises made necessary by any acts or omissions of Tenant, its employees,
agents, patrons or invitees; and
g. Tenant shall bear the risk of loss and damage to all personal property of Tenant
located upon the Premises and Building; and
h. Tenant shall use the Premises and Building in a reasonable manner so as not to
disturb Landlord or adjacent property owners or to damage, destroy or cause waste to the
Premises and Building; and
i. Tenant shall notify Landlord in writing of any accident occurring within the
Premises and Building, of which Tenant becomes aware.
j. Tenant shall provide Landlord a semi-annual report identifying organizations that
reserved the Building during the preceding six months. Such report shall be due on dates
to be mutually agreed to by the Parties.
8. LANDLORD COVENANTS. The Landlord covenants, represents and warrants that
upon completion of the Landlord's improvements to the Building, as contemplated in Paragraph
21, the Building shall comply with all laws, orders and ordinances, including without limitation,
the Americans with Disabilities Act as amended by the Americans with Disabilities Act
Amendment Act of 2008.
Page 6 of 17
9. LANDLORD'S INSURANCE: Landlord shall at all times during the Term of this Lease
carry fire, casualty, and extended coverage insurance on the Building, including the structural
components (foundations, floors, walls, windows, structural supports, roof, HVAC, electrical
systems, and plumbing) thereof. Landlord shall be under no obligation to maintain insurance on
any improvements installed by or for the benefit of Tenant's use of the Premises. Landlord may
elect to self -insure its obligations hereunder and/or use whatever deductibles as Landlord deems
appropriate, in its sole discretion.
If the Building shall be damaged, destroyed, or rendered untenantable, in whole or in
part, by or as the result or consequence of fire or other casualty during the term hereof, Landlord
shall repair and restore the same to a good tenantable condition with reasonable dispatch. During
such period of repair, the Base Rent shall abate (i) entirely in case all of the Building is
untenantable; and (ii) proportionately if only a portion of the Building is untenantable and
Tenant is able to conduct its business from the undamaged portion of the Building. The
abatement of Base Rent shall be based upon a fraction, the numerator of which shall be the
square footage of the damaged and unusable area of the Building and the denominator shall be
the total square footage of the Buildings. Said abatement shall cease at such time as the Building
shall be restored to a tenantable condition.
In the event the Premises, because of such damage or destruction, cannot reasonably be
and/or are not actually repaired and restored to a tenantable condition within one hundred fifty
(150) days from the date of receipt of insurance proceeds for such damage or destruction, Tenant
or Landlord may, at their option, terminate this Lease within sixty (60) days following the date
on which the damage occurred or the above referenced one hundred fifty (150) day period, as
applicable, (but prior to the date on which the repair and restoration of same is substantially
underway) by giving prior written notice to the other party and thereupon Landlord and Tenant
shall be released from all future liability and obligations under this Lease.
If one-third (1/3) or more of the ground floor area of the Building is damaged or
destroyed during the last two (2) years of the original or any extended term of this Lease,
Landlord shall have the right to terminate this Lease by written notice to Tenant within sixty (60)
days following such damage or destruction.
Page 7 of 17
If Landlord is required or elects to repair and restore the Building as herein provided,
Tenant shall repair or replace its stock in trade, trade fixtures, furniture, furnishings and
equipment and other improvements including floor coverings for the Premises only and only to
the extent insurance proceeds received by Tenant apply to such repairs or replacement, and if
Tenant has closed, Tenant shall promptly reopen for business.
10. TENANT'S INSURANCE: Tenant shall carry such insurance against loss of its property,
including Tenant Improvements and Betterments (such as floor coverings, wall coverings trade
fixtures) in, on or about the Building and Premises by fire and such other risks as are covered by
so-called all risk and extended coverage property insurance or other hazards in an amount equal
to or greater than the replacement costs thereof. Such policy shall be endorsed to name the
Landlord shown as a loss payee with respect to the Tenant Improvements stated above on any
and all insurance policies. A copy of such endorsement shall be provided to the Landlord upon
written request. Landlord shall not be liable for any damage to Tenant's property in, on or about
the Building and Premises caused by fire or other insurable hazards regardless of the nature or
cause of such fire or other casualty, and regardless of whether any negligence of Landlord or
Landlord's employees or agents contributed thereto. Tenant expressly releases Landlord of and
from all liability for any such damage. Tenant insurance policy or policies shall include a waiver
of subrogation recognizing this release from liability.
Tenant agrees to procure and maintain during the Term a policy or policies of liability
insurance, including product and/or completed operations liability and contractual liability
coverage, written by an insurance company or companies insuring Tenant against any and all
losses, claims, demands or actions for injury to or death of any one or more persons and for
damage to property in any one occurrence in the Building and Premises to the limit of not less
than one million dollars ($1,000,000.00) for injury to one person, not less than two million
dollars ($2,000,000.00) for each such occurrence, and not less than one hundred thousand dollars
($100,000.00) for damage to property, or such other coverage limits as Landlord may, from time
to time, deem reasonably necessary and in accordance with customary practices with regard to
such insurable risks. Tenant shall furnish to Landlord certificates evidencing the continuous
existence of such insurance coverage, which must also name Landlord as an additional insured
Page 8 of 17
and be endorsed to be primary and non-contributory with respect to any insurance maintained by
the Landlord.
All insurance companies must be licensed to do business in Ohio. Certificates of
insurance will be provided at the time this Lease is executed. Policies of insurance are to be
endorsed to notify Landlord of any reduction, cancellation or termination of policy and provide
not less than thirty (30) days prior to cancellation or termination, except for non-payment for
which ten (10) days -notice shall be provided.
Tenant agrees to provide and keep in force at all times worker's compensation insurance
complying with the law of the State of Ohio and Employers Liability Insurance shall also be
obtained, with limits of not less than $1,000,000 per occurrence, accident or employee. Tenant
agrees to provide a certificate as evidence of proof of worker's compensation coverage.
With respect to any alterations or improvements by Tenant, Tenant shall maintain
contingent liability and builder's risk coverage naming Landlord as an additional named insured.
If Tenant hires contractors to do any improvements on the Building or Premises, each contractor
must provide a Certificate of Insurance naming the Landlord as additional insured and including
proof of worker's compensation coverage on its employees and agents to Landlord.
11. TENANT'S INDEMNITY: Tenant shall indemnify Landlord, Landlord's agents,
employees, officers or directors, against all damages, claims and liabilities arising from any
alleged accident or injury whatsoever caused to any person, firm or corporation during the Term
and to the extent incurred in connection with or arising from the use or occupancy of the
Premises, unless such claim arises from a breach or default in the performance by Landlord of
any covenant or agreement on its part to be performed under this Lease or the negligence of
Landlord. The indemnification herein provided shall include all costs, counsel fees, expenses
and liabilities incurred in connection with any such claim or any action or proceeding brought
thereon. This Paragraph shall survive the Term of the Lease.
12. WAIVER OF SUBROGATION: Landlord and Tenant, and all parties claiming under
each of them, mutually release and discharge each other from all claims and liabilities arising
from or caused by any casualty or hazard covered or required hereunder to be covered in whole
Page 9 of 17
or in part by insurance coverage required to be maintained by the terms of this Lease on the
Premises or the Building or activities conducted within the Premises or the Building, and waive
any right of subrogation which might otherwise exist in or accrue to any person on account
thereof. All policies of insurance required to be maintained by the Parties hereunder shall
contain waiver of subrogation provisions so long as the same are available.
13. ALTERATIONS: Except as outlined in paragraph 21 herein, Tenant will not make, or
permit anyone to make, any alterations in or additions to the Premises or Building; nor will it
install any equipment of any kind that will require any alterations in or additions to the water
system, plumbing system, heating system, air conditioning system, or the electrical system,
without the prior written consent of Landlord. If such consent shall be given by Landlord, all
such work shall be at Tenant's expense and at such times and in such manner as Landlord may
designate. Tenant shall not permit any mechanic's or materialmen's liens to attach to the
Premises or this leasehold interest. Tenant shall perform such alterations in accordance with all
applicable governmental laws and ordinances and in accordance with the terms of this Lease. If
any such alterations, additions or installations are made without such consent or contrary to the
time and manner designated by Landlord, Landlord may correct or remove them and Tenant
shall be liable for any and all expenses incurred by Landlord in the performance of this work.
All alterations, additions or installations made by Tenant shall, unless Landlord elects otherwise,
become the property of Landlord and shall remain upon the Premises. In the event Landlord
shall elect to terminate this Lease prior to the end of the Term, such alterations, additions or
installations by Tenant hereof may be removed by the Tenant and Tenant shall repair any
damage caused by such removal, all at Tenant's sole cost and expense.
14. RIGHT OF ENTRY: Landlord may enter the Premises at all reasonable hours during the
Term hereof, with reasonable advance notice to the Tenant.
15. ASSIGNMENT AND SUBLETTING: Tenant will not assign or encumber this Lease, or
sublet, or suffer or permit the Premises or any part thereof to be used by others, except as
otherwise provided herein. Any assignment or subletting of the Premises by Tenant shall be
considered a default hereunder.
Page 10 of 17
16. DEFAULT: In the event that (a) the Base Rent or other charges required by this Lease
are not paid within ten (10) days after the date due; (b) Tenant fails to comply with any term,
provision, condition or covenant of this Lease (other than the payment of Base Rent or other
charges), and Tenant shall not cure such default within fifteen (15) days after notice to Tenant of
such failure to comply; (c) the Premises shall be deserted or vacated; (d) any petition is filed by
or against Tenant under any section or chapter of any bankruptcy act; (e) Tenant shall become
insolvent or make a transfer in fraud of creditors; (f) Tenant shall make an assignment for the
benefit of creditors; (g) a receiver of trustee is appointed for a substantial part of the assets of
Tenant and within thirty (30) days thereafter Tenant fails to secure a discharge thereof or (h) this
leasehold interest of Tenant is levied upon under execution, then, in any such events, Landlord
shall have the option to do any of the following in addition to and not in limitation of any remedy
permitted by law or by this Lease:
a. Terminate this Lease, in which event Tenant shall immediately surrender the Premises
to Landlord, but if Tenant fails to do so, Landlord may, without further notice, enter upon the
Premises and expel or remove Tenant and Tenant's effects, by force and without court
proceedings, and without being liable to prosecution or any claim for damages therefor; and
Tenant agrees to indemnify Landlord for all loss and damage which Landlord may suffer by
reason of such Lease termination, whether through inability to relet the Premises or through
decrease in rent or otherwise.
b. Without terminating this Lease, enter upon the Premises as the agent of Tenant,
without being liable to prosecution or any claim for damages thereon, and relet the Premises as
the agent of Tenant, and receive the rent therefor and Tenant shall pay Landlord any deficiency
that may arise by reason of such reletting, together with Landlord's expenses incurred in such
reletting, on demand at any time and from time to time.
c. Refrain from terminating this Lease but terminate Tenant's right of possession until
such default is cured, either by legal action or by force and without court proceedings, and in
such case Landlord may enforce against Tenant the provisions of this Lease for the unexpired
Term hereof.
Page 11 of 17
d. Declare all Base Rent and other payments for the entire unexpired Term of this Lease
at once due and payable, and if not paid forthwith upon Lessor's demand, then to resort to legal
process for collection of all accelerated payments due under this Lease.
e. Recover, in addition to any other damages set forth in this Lease or permitted at law or
equity, all of Landlord's expenses incurred with respect to Tenant's default, including without
limitation reasonable attorney's fees, commissions, and costs of repair, renovation or alteration
of the Premises.
f Take any other actions or remedies permitted by law.
17. PERSONAL PROPERTY OF TENANT: Tenant further agrees that all personal property
of every kind or description that may at any time be in or on the Premises shall be at the Tenant's
sole risk, or at the risk of those claiming under the Tenant, and that the Landlord shall not be
liable for any damage to said property or loss suffered by the business or occupation of the
Tenant caused in any manner whatsoever.
If Tenant fails to remove all its effects from the Premises upon termination of this Lease,
Landlord may at its option remove all or part of said effects in any manner that Landlord may
choose, and store the same without liability to Tenant for loss or damage thereof, and Tenant
shall be liable to Landlord for all expenses incurred in such removal and storage of such effects.
Upon termination of this Lease wherein Tenant shall be liable in any amount to Landlord,
Landlord shall have a lien upon the personal property and effects of Tenant on said Premises,
and Landlord may at its option, without notice, sell at private sale all or part of said property and
effects for such price as Landlord may deem best and apply the proceeds of such sale upon any
amounts due under this Lease from Tenant to Landlord, including the expenses of the removal
and sale.
18. SUBORDINATION: This Lease and any changes or amendments hereto or any renewal
or extensions hereof are subject and subordinate to all underlying leases and mortgages which
may now or hereafter affect the Premises or the Building. This clause shall be self -operative and
no further instrument or subordination need be required by any mortgagee. In confirmation of
such subordination, Tenant shall, if requested by Landlord, execute promptly an instrument
Page 12 of 17
having that effect, or any similar instrument, including estoppel certificates, so requested by
Landlord.
19. HOLDING OVER: If Tenant remains in possession after expiration of the Term hereof,
without Landlord's acquiescence and written agreement of the Parties, Tenant shall be a month-
to-month tenant subject to all the terms and conditions of this Lease except as to rental. Rental
during the term of any month-to-month tenancy shall be at the rate of one and one half (1.5)
times the monthly rate in effect during the last month of the prescribed Term of this Lease.
20. SURRENDER OF PREMISES: At the termination of this Lease, Tenant shall surrender
the Premises in the same condition that existed at the commencement of the Term, reasonable
wear and tear excepted. Tenant's obligation to perform this covenant shall survive the expiration
or other termination of the Term of this Lease.
21. IMPROVEMENTS TO BUILDING: The Parties agree to remodeling the Building
during the Term as follows:
a. Tenant and Landlord shall collaborate on design documents to finalize plans that
will be used to construct the improvements as noted on Exhibits B and C, attached hereto
and incorporated by reference herein. Specifically, the costs for such improvements shall
be borne by the Party so designated on Exhibit C. The Parties shall work in good faith on
a schedule for the construction to commence within nine months of executing the Lease
Agreement and to conclude twelve (12) months thereafter.
All alterations, additions or installations made by Tenant shall, unless Landlord
elects otherwise, become the property of Landlord and shall remain upon the Premises
b. Landlord and Tenant shall each be responsible for the costs of such improvements
as outlined on Exhibit C, such estimated costs provided inclusive of anticipated
architectural fees. Any costs over and above the estimates on Exhibit C with respect to
construction of the improvements shall be independently evaluated and borne by the
Tenant, if such costs are attributed solely to the Premises, and by the Landlord, if such
costs are attributed solely to any portion of the Building and/or Parcel not included in the
Premises. In the event it is not possible to separate the overrun costs between the
Page 13 of 17
respective spaces of each Party, each Party will be responsible for a share of the cost
equal to their pro rata share of the total estimated costs on the attached Exhibit C. Any
costs over and above the estimates on Exhibit C with respect to furnishings provided by
Tenant will be borne by Tenant.
22. QUIET ENJOYMENT: Tenant, upon paying the Base Rent and observing and
performing all the terms, covenants and conditions on its part to be observed and performed, may
peaceably and quietly enjoy the Premises, subject to the terms and conditions of this Lease
23. NOTICES: Except as otherwise provided in this Lease, any written notices by Landlord
to Tenant shall be by registered or certified mail or hand delivery addressed to Tenant at the
Premises or at such other address as Tenant shall designate by written notice. Any written notice
by Tenant to Landlord shall be by registered or certified mail or hand delivery addressed to
Landlord at the address first hereinabove given for payment of Base Rent, or at such other
address as Landlord shall designate by written notice. Notice shall be deemed delivered when
the same is delivered in person or upon receipt or refusal of receipt.
24. LIABILITY OF LANDLORD: If Landlord shall fail to perform any covenant, term or
condition of this Lease upon Landlord's part to be performed and, as a consequence of such
default, Tenant shall recover a money judgment against Landlord, such judgment shall be
satisfied only out of the proceeds of sale received upon execution of such judgment and levied
thereon against the right, title and interest of Landlord in the Building, and Landlord shall not
have any personal liability hereunder.
25. APPLICABLE LAW: Tenant and Landlord agree that this Lease shall be interpreted and
construed in accordance with the laws of the State of Ohio.
26. BINDING EFFECT: All the terms, conditions and covenants of this Lease shall inure to
the benefit of and be binding upon the respective heirs, legal representatives, successors and
assigns of the Parties hereto.
27. ENTIRE AGREEMENT: This Lease contains the entire agreement of the Parties and no
representations or agreements, oral or written, not embodied herein or incorporated herein by
Page 14 of 17
reference shall be of any force or effect, and supersedes any prior lease or agreements between
the Parties with respect to the subject matter contained herein, including the Prior Lease.
28. CAPTIONS: Paragraph captions are used for convenience only and shall not limit or
amplify or otherwise constitute a part of the provisions of this Lease.
IN WITNESS WHEREOF, the Parties hereto have caused this Lease to be executed as of
the date first set forth above.
LANDLORD:
City of Dublin, Ohio, an Ohio municipal
corporation
Dana L. McDaniel, City Manager
TENANT:
The Dublin Chamber of Commerce,
Incorporated, an Ohio non-profit corporation
(Acknowledgements on the following page)
Page 15 of 17
STATE OF OHIO
COUNTY OF FRANKLIN
The foregoing instrument was acknowledged before me this day of ,
2020 by Dana L. McDaniel, City Manager for the City of Dublin, Ohio, an Ohio municipal
corporation, on behalf of the municipal corporation.
Notary Public
STATE OF OHIO
COUNTY OF FRANKLIN
The foregoing instrument was acknowledged before me this day of
2020, by , of the Dublin Chamber of Commerce,
Incorporated, and Ohio non-profit corporation on behalf of the corporation.
Approved as to form:
Jennifer D. Readler, Law Director
Notary Public
Page 16 of 17
EN00348.Public-00348 4827-4865-5283v1
Page 17 of 17
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EXHIBIT C
Estimated Leasehold Improvement Costs
SCOPE Estimated Cost
Dublin Chamber Suite $70,000
Update Existing Offices (x2) $30,000
New full lite glass doors, frames and hardware to offices.
New carpeting in offices. Base to be standard profile cove vinyl.
Add power and IT pathways for new workstations and
furniture layout.
Paint all walls and base casings.
Replace all lighting with LED. Style to match new decor.
Furnishings
Update Front Room (original historic structure)
$20,000
Add new full lite glass door and hardware.
Construct full height partition with new door, frame and hardware
for secured Storage Room. New lay -in ceiling.
New carpeting in Reception Area. Base to be standard profile cove vinyl.
Add power and IT pathways for new workstation and furniture layout
Paint all walls in Reception Area. Replace all lighting with LED.
Style to match new decor.
Furnishings $20,000
Public'BIZ BISTRO' +'Convene' Meeting Room $70,000
Remodel area for Business Gathering Space $50,000
Remove existing glass wall and door at hallway.
Add Hospitality Center to include granite top with sink,
under -cabinets, appliances, power, decorative tile wall,
pathway and power for flat screen monitor.
Replace flooring with ceramic plank tile (Bistro) and carpet (Convene)
to match new decor. Replace all existing base with profile vinyl base.
New full lite door, frame and casing.
Paint all walls, ceiling and trim to match new decor.
Rework HVAC ductwork.
Rework lighting for new layout. Fixtures to be LED.
Add Wi-Fi and charging stations.
Furnishings $20,000
III. Public Community Meeting Room with Kitchen: $75,000
Remodel Community Meeting Room $30,000
Remove the existing closet and kitchenette.
Relocate wall for new alcove in Business Bistro.
Replace/reposition existing doors with new
full lite glass doors and hardware.
Cost Allocation
Landlord /Tenant
$0/$70,000
$50,000/$20,000
$50,000/$25,000
New carpet and profile vinyl base.
Paint all walls, ceiling and trim.
Replace all lighting with LED. Style to match new decor.
Add pathway and power for pendent mounted flat screen
monitors x2.
Construct new Kitchen $25,000
Repurpose the existing Women's Toilet Room into Kitchen for
Community Room use. Island, Cabinets, granite counter tops,
tile wet wall, ceramic plank flooring, profile vinyl base, appliances,
LED lighting, painted walls, ceiling, trims. Finishes to match new decor.
Furnishings $20,000
IV. Public Toilet Rooms $80,000 $80,000/$0
Construct ADA compliant Public Toilet Rooms $80,000
Work to include adding 200 SF to the building and repurposing
the existing Men's Toilet Room to accommodate ADA compliant
men's and women's restrooms. To include vinyl plank flooring,
tile wet wall, metal toilet partitions, painted walls, ceilings.
Fixtures, finishes, lighting, doors/hardware to match new decor.
The existing housekeeping closet to remain.
V. New Building Entrance $30,000 $30,000/$0
Expand Building Useable Area and Relocate Front Entry $30,000
Repurpose Existing Entrance Porch to Interior Space
Construct new insulated concrete foundation and slab.
Remove existing patio wall.
Construct new insulated window wall with finishes to match existing.
Construct new building entrance. Work to include new concrete stoop,
covered porch roof, new full lite storefront entrance door with side light
to include ADA compliant hardware, threshold, power door operator,
push plate actuator and electronic card reader.
VI. Interior HallwaV Areas $60,000 $60,000/$0
Front Hallway $25,000
Replace flooring with ceramic plank tile to match new decor.
Replace all existing base with profile vinyl base.
New doors, frames and casings. Ceilings to be wood plank.
Paint all walls to match new decor.
Replace all lighting with LED. Style to match new decor.
Add pathway and power for flat screen monitors
Parking Lot Entrance & Hallway $35,000
Reconfigure for ADA compliant Ingress/Egress.
Install new full lite storefront entrance door to feature ADA compliant
hardware, threshold, power door operator, push plate actuators,
electronic card reader and video doorbell.
Remove hallway storage closets. Straighten wall.
Replace all flooring with ceramic plank tile to match new decor.
Replace all existing base with profile vinyl base.
Replace hallway door and mechanical closet doors with new.
Paint all walls, doors, frames and casings. Ceiling to be wood plank.
to match new decor.
Replace all lighting with LED. New outdoor lighting
Style to match new decor.
VII. Downtown Gateway Pavilion $65,000 $65,000/$0
Construct Public Outdoor Living Room $50,000
Prepare exterior landscape area for patio
Construct 18'x18' covered pavilion on 20'x20' concrete patio.
Add decorative lighting, cafe seating, Wi-Fi, charging stations,
new building signage, landscaping
Furnishings $15,000
Dublin Chamber of Commerce Building
Chamber's Historical Background
On Nov. 15, 1988 the Dublin Chamber of Commerce ("the Chamber") moved into the building located at
129 S. High St. in Historic Dublin (the "Building"). Prior to that, the Building had been constructed and
paid for by the Chamber at non -prevailing wage for $220,000. The City of Dublin (the "City") loaned the
Chamber the funds to construct the Building at a 4 percent interest rate to be paid over a 20 year
period, with a total cost to the Chamber of $320,000 including interest.
The agreement at the time was that the Chamber would pay the City on a monthly basis until the debt
was satisfied, and once satisfied, the Chamber would purchase the building from the City at a cost of
$1.00. There was no written contract in place, but the agreement was approved by the then -sitting
Dublin City Council, and documented in its meeting minutes.
In 2008, the Chamber had paid its loan to the City in full and the two organizations discussed how the
Chamber should move forward to purchase the building. At that time, the City chose not to sell the
building to the Chamber. After negotiations, the City agreed to lease the Chamber the Building for
$2,100 per month and the Chamber would continue to provide meeting space and public restrooms for
community and business organizations. As of May 2019, the Chamber has paid the City an additional
$273,000 for the use of the Building, totaling $593,000 for the construction and lease of the Building.
Additional Improvements the Chamber has made to the building over the years
The Chamber has also updated both the interior and exterior of the Building, including the Chamber's
private offices and the community space. Such updates have included new carpeting, painting the
interior, landscaping, installing public benches, etc. In addition, the Chamber has invested in high quality
conference room furniture and flat screen TVs for use by community groups in the community meeting
space. The Chamber also currently provides public Wi-Fi in the community meeting room, utilities
(heating/cooling), water, cleaning services and supplies for public restrooms, etc.
CITY OF DUBLIN_
Office of the
City Manager
5200 Emerald Parkway
Dublin, Ohio 43011.1006
Phone: 614-410.4400
Fax: 614-410.4490
Web Site: www.dublin.oh.us
April 4, 2007
Chris Stiffler, President
Dublin Chamber of Commerce
129 South High Street
Dublin, Ohio 43017
Re: 129 South High Street
Dear Mr. Stiffler:
Thank you for your letter of February 15, 2007 concerning the upcoming July 2008
expiration of the Lease Agreement between the City and the Dublin Chamber of
Commerce for the office building (the "Building") located at 129 South High Street
(the "Property").
The Finance Committee of the Dublin City Council reviewed this matter with City staff
on April 2, 2007 to understand the terms of the existing Lease Agreement. Based on
this discussion, the Finance Committee has determined that the City wishes to retain
ownership of the Property and that the City is interested in a five year extension of the
Lease with the Chamber at a lease rate to be determined after further negotiation. In
addition, the Finance Committee noted several terms and conditions of the existing
Agreement that should be clarified in the renewal document.
The Finance Committee asked City staff to research the market rate for leases in the
Dublin Historic District and to obtain information from the Chamber on the usage of
the Building by community groups and Chamber members- Once this information is
received, the Committee will schedule a meeting to discuss the appropriate lease rate
and term and will invite the Chamber to provide information concerning the Lease.
Thereafter, we will ask the City's Law Director to work with the Chamber to draft a
renewal document for consideration by the Dublin City Council and the Chamber's
Board of Directors. It is the City's intent to finalize this discussion well in advance of
the Chamber's budget process for 2008.
As we move forward with the Lease renewal, I would like to resolve two matters that
seem to be raised from time to time -
First, there appears to be an assumption, as referenced in your letter, that the City
issued bonds for the renovation of the Building in 1988. That did not occur. The City
Mr_ Chris Stiffler
Page 2
04/04/07
paid for the renovations at the time and no bonds were ever issued in connection with
this facility.
Second, at no time has the City promised to sell the Property to the Chamber or any
other party for $1.00. indeed, such an action would be unlawful. In the event the City
wished to dispose of the Property, it would be required by thio law to list the
Property for sale and to sell it to the highest bidder. At present, the City has no
intention of disposing of the Property.
The Finance Committee appreciates the fact that the Chamber brought this matter to
the City's attention at the appropriate time to consider the Lease extension. The
Committee recognized the Chamber's efforts over many years to make the Building
available to community groups and to serve the needs of our business community. We
welcome the opportunity to work with the Dublin Chamber of Commerce well into the
future for the benefit of our community.
Very truly yours,
Jane S. Brautigam
City Manager
c: Dublin City Council
Margie Amorose, Executive Director
City Manager
5200 Emerald Parkway - Dublin, OH 43017
Phone: 614-410-4400 • Fax: 614-410-4490
CITY OF DUBLIN
To: Members of Dublin City Council
From: Jane S. Brautigam, City Managek�4O�-! >
Date: March 21, 2007
Initiated By: Marsha 1. Grigsby, Deputy City Manager/Director of Finance
Re: Finance Committee Meeting — Dublin Chamber of Commerce Lease
The attached information was included in the packet for the March 5, 2007 City
Council meeting. This information is being redistributed as background
information for initial discussions related to the extension of the lease at the April
2, 2007 Finance Committee meeting. The meeting is scheduled for 6:00 p.m. in
Council Chambers.
Ci Manager
520 Emerald Parkway •Dublin, OH 43017
Phone: 614-410-4400 • Fax: 614-410-4490
CTfY OF ]DUBLIN Memo
To: Jane S. Brautigam, City Manager
From: Marsha I. Grigsby, Deputy City Manager/Director of Finance Tlkl��'
Date: February 28, 2007
Re: 129 South High Street — Dublin Chamber of Commerce Lease
As we have discussed, representatives from the Dublin Chamber of Commerce (the Chamber) have
discussed the issue of renegotiating their lease with staff several times in the past couple of years. I
met with Mike Close in the spring of 2005 and had a discussion with Margie Amorose in 2006. 1 have
attached a copy of my May 23, 2005 memo to you which provides information on my meeting with Mike
and basic information on the building and the lease.
Based on recent inquiries from the Chamber, we discussed the possibility of meeting with the Finance
Committee of City Council to review the current Chamber lease and the future renegotiations. We were
originally looking at providing information on the lease to City Council and request the topic be referred
to the Finance Committee.
As you are aware, we received the attached letter from the Chamber on February 26, 2007. The letter
tat es "the bonds on the premises will be retired in 2008, for clarification purposes, the City did not
sue debt for the building improvements. The Chamber completed the improvements on the building
and the City reimbursed the Chamber in the amount of $220,000. Also, I feel the authorizing
legislations and the Memorandum of Lease are clear that the lease payments made by the Chamber
are for rent to use the facility.
1 would recommend that we request a Finance Committee meeting to discuss this issue. For reference,
I have attached a copy of the Resolution authorizing the City Manager to execute the lease and a copy
of the lease.
J
February 15, 2007
DUBLIN
CHAMBER OF
City of Dublin �
COMMERCE
1n_
Dublin City Council Members Yi
5200 Emerald Parkway
Dublin, Ohio 43017
129 S. High Street
Dublin, Ohio 43017
Dear Dublin City Council
Phone 614-889-2001
Fax 614-889-2888
The Dublin Chamber of Commerce board of directors has met regarding the lease
www.dublinchamber.org
of the Dublin Chamber of Commerce building at 129 South High Street. You may
be aware that the Chamber and the City entered into a 20 year lease agreement
after the Chamber completed the construction of the building in 1988.
OFFICERS
President
Construction costs were approximately $235,000, of which the City loaned the
Chris Stiffier
Chamber $220,000 at the prevailing interest rate in 1988 of 4 percent. This lease
Muirfield Village Golf Club
agreement will be completed in July 2008, at which time the Chamber will have
Red Blossom Flowers & Gifts, Inc.
repaid the City $320,000.
President Elect
Anne Gleine
Ha'penny Bridge Imports of Ireland
The Dublin Chamber of Commerce requests that this lease be extended for an
Vice President
additional 20 years, with a new lease payment of $665.00 per month.
Kelly C. Leonard
National City
We also ask that in exchange for the services extended to the Dublin community
Treasurer
Roger J. File
on behalf of the City of Dublin, along with the monetary compensation over the 40
The Fahey Banking Company
years of the two leases, the extended lease would allow for the Chamber to
Past President
purchase the building in 2028, for the amount of $1.00. We understand that the
Deborah A. Roper, CPA
bonds on the premises will be retired in 2008.
Executive Director
Margery Amorose
Dublin Chamber of Commerce
Throughout the years the Chamber has offered the facility as a meeting place for
small, medium and large businesses, professional organizations, as well as Dublin
BOARD OF DIRECTORS
service groups. As any public facility, there is an enormous expense to maintaining
the property, which the Chamber has done well with both interior and the exterior
Jane S. Brautigam
City of Dublin, Ex -officio
renovations at the Chamber's expense.
Paul Buchanan
Clarion Hotel - Dublin
The Dublin Chamber will continue to provide community meeting space and
Marino Colatruglio
public restrooms for the Historic Dublin area, and will continue to be a recognized
Cardinal Health, Inc.
public announcement repository for the City of Dublin and Dublin City Schools.
Aimee D'Amore
Duke Realty Corporation
The Dublin Chamber of Commerce building is the home to our strong business
Ty lay
community. We are proud to be the largest suburban chamber of commerce in
Golf Club of Dublin
Ohio with more than 1,200 members. We believe we have offered a great deal of
Linda Fenner. PhD.. CityEx-offo
Dublin City Schools
value to the City of Dublin and will wait to hear from you regarding the procedures
y g g
Jeff Holowickr, DDS
that should be followed to establish a new lease_
Smiley Dental Group
Mike Kennedy
Last but not least_ we thank you for your time and consideration of this proposal.
Vernon Wireless
ShaneMe.vdlo
Sincereh.
Colnrrech Graphics & Printing, loco
Robe Morrro
�" C:�yz—
4etc en, Mums. Starkey b: Waid
Chris Stiffler
Tim Shaughnessc
President
Bonefish Grill
Virgil Temple
Kinetics Noise Control. Inc.
CC: Jane Brautigam
Deputy City Manager/Director of Finance
5200 Emerald Parkway - Dublin, OH 43017
Phone: 614-410-4400 - Fax: 614-410-4490
CITY OF DUBLIN
To: Jane S. Brautigam, City Manager
From: Marsha I. Grigsby, Deputy City Manager/Director of Finance
Date: May 23, 2005
Re: 129 South High Street - Dublin Chamber of Commerce Lease
Several weeks ago Mike Close called me to discuss the current building lease between the City and the Chamber
of Commerce (the Chamber). We met to discuss options the Chamber would like to pursue. Based on our
conversation, there are two options the Chamber would like the City to consider:
• Selling the property to the Chamber.
• Extending the term of the current lease at a reduced rate.
On the option of selling the property, we discussed the City's requirements of notifying the public of the City's
intent to sell the property, accepting bids and approving the sell of the property by Ordinance if it is determined
that is in the best interest of the City. We also discussed the fact that the City may want to maintain ownership of
the property because of the City's goal to revitalize the Historic District and the importance of owning property.
The second option discussed was the extension of the existing lease with the Chamber's desire to pay a lower
lease rate. The Chamber currently pays $16,000 per year or approximately $6.40 per square foot. (3,134") total
square feet x 80% t'� = 2,507 square feet leased by the Chamber. $16,000/2,507 = $6.38 per square foot). Mr.
Close stated it was the Chamber's desire to pay 50% of what they are currently paying or $667 per month.
The current lease was executed on July 5, 1988 and the term is for a period of 20 years. The lease states:
So long as the Chamber is not in default hereunder, it shall have the right, in perpetuity, to
renew this lease for an additional renewal term of five (5) years with the rent for each such
renewal term to be negotiated by the parties with substantially the same terms, covenants and
conditions as set forth herein, provided however, that the City shall have the right, if it
determines that it is in the best interest of Dublin to use the premises for municipal purposes,
to terminate this lease at the end of the initial twenty (20) year term, or of any renewal thereof,
by giving written notice to the Chamber of such termination one year or more prior to the
expiration of the initial term of this lease, or of any renewal term.
Originally, the Chamber subleased 40% of the building to the Convention and Visitors Bureau (the Bureau). The
Bureau moved from 129 South High Street in late 2000.
It is interesting that the Chamber has again raised this issue. As you are aware, we are also talking with the
Bureau about their space needs and the Dublin Arts Council has expressed concerns about the rent they pay to the
City.
I don't think the City can provide the solutions, especially financial solutions, to meet the desires of these groups
without having a negative impact on the City.
With regard to the Chamber's request, I think at this time we need to let them know that we are looking at the
Historic District overall and are not currently ready to make a decision about the long-term use of 129 South High
Street. I think we can let them know that staff would not recommend any reduction in the amount of rent they pay
to lease the building.
I Per GIS
2 Per lease, 20% of the building "subleased" to the City for the City's use on an as needed basis.
MEMORANDUM OF LEASE MICROFILM
On the dav of/I 1988 a lease acreement was
entered into between the Citv of Dublin and the Dublin Chamber
of Commerce. This memorandum of that lease is Dresented for
recording:
1. Name of Lessor in Lease: Citv of Dublin.
2. Name of Lessee therein: Dublin Chamber of Commerce.
3. Addresses set forth in the lease as addresses
of Lessor and Lessee:
Lessor: 6665 Coffman Road. Dublin. OH 43017
Lessee: P.O. Box 37, Dublin. OH 43017
4. The instrument under which the Lessor claims
an interest in the !eased oremises is recorded
per vear subject to a reduction in that figure
based upon a sub -lease to the Lessor, Citv of
Dublin.
9. Date of exniration of the initial period of the
lease is twenty vears from the date of execution
in Volume
at Page
of the Franklin
Countv Recorder's
Office.
5_44k
w
5.
Date of lease-
the dav
of 1988
6.
Description of
lease nrooertv
as set forth in iease:
See "Exhibit A"
consistina of
three pages, each of
which is made a
nart hereof.
7.
Date on which the
term of the
lease commences is
z'�
the dav
of kJ
8.
Term of lease:
Twentv thousand
dollars ($20,000.00)
per vear subject to a reduction in that figure
based upon a sub -lease to the Lessor, Citv of
Dublin.
9. Date of exniration of the initial period of the
lease is twenty vears from the date of execution
MICROFILM
as set forth in paragraph seven (7) herein and
subject to five (5) year renewals at the discretion
of the Lessor, City of Dublin.
CITY OF DUBLIN
3v: r1�dcs ,
(Name) -(Title)
THE DUBLIN CHAMBER OF COMMERCE
Bv:
(Name) (Title)
COUNTY OF FRANKLIN, SS:
The foregoing instrument was acknowledged before me this
S �
day of 1988, by
T /SANS of the City of
_ Burlin. an Ohio
municipality, on behalf of said City.
ivotary Publi
STATE OF OHIO : STEVEN W. HOFFMAN
Notary Public; State of Ohio
COUNTY OF FRANKLIN, SS : My Commission Expires May 8, 1992
Recorded In Franklin County
This foregoing instru t was acknowledged before me
this S " day of / , 1988, by
of the Dublin Chamber of Commerce, on its
behalf.
N tare Public
STEyEMW HOFIq
Notary Public State of Rio
MY CommUslon lkpiros May8, 1992
Recorded in Franklin County
-2-
This instrument was prepared by:
Stephen J. Smith
Attorney at Law
5354 Cemetery Road, P.O. Box 7
Hilliard, OH 43026
614/$76-1229
C
-3-
LEASE AGREEMENT MICROFILM
This is an agreement o e
g f lease entered into on or as of
the s day of J `'�1 1988, by the CITY OF DUBLIN,
OHIO, whose mailing address is 6665 Coffman Road, Dublin, Ohio,
43017, an Ohio municipal corporation, hereinafter referred to as
"the City", and THE DUBLIN CHAMBER OF COMMERCE, whose mailing
address is P.O. Box 37, Dublin, Ohio, 43017, hereinafter
referred to as "the Chamber".
Background
WHEREAS, the City is the owner of a parcel of land
situated in the City of Dublin, Franklin County, Ohio, described
In "Exhibit A" consisting of three (3) pages, each of which is
hereby made a part hereof, and all the improvements thereto,
hereinafter referred to as "the Premises"; and,
WHEREAS, the Chamber is an entity organized to promote
and develop business and the business environment in the City of
Dublin; and,
WHEREAS, the parties hereto wish to terminate the
existing lease agreement entered into by them on August 17,
1987, to be replaced by the instant agreement; and,
WHEREAS, it is in the interest of the City to assist the
Chamber to preserve and/or improve the premises; and,
WHEREAS, plans for the renovation and improvements to
the site have been submitted by the Chamber and previously
0 approved by the City.
Agreement
��Q�71i1�
NOW THEREFORE, the City hereby leases the premises to
the Chamber on the following terms and conditions.
1. The term of this lease shall be for a period of
twenty (20) years, commencing on the date of this lease and
terminating on the preceding day of the same month twenty (20)
years from the commencement date unless renewed as hereinafter
provided.
So long as the Chamber is not in default hereunder, it
shall have the right, in perpetuity, to renew this lease for an
additional renewal term of five (5) years with the rent for each
such renewal term to be negotiated by the parties with
substantially the same terms, covenants and conditions as set
forth herein, provided however, that the City shall have the
is right, if it determines that it is in the best interest of
[7
Dublin to use the premises for municipal purposes, to terminate
this lease at the end of the initial twenty (20) year term, or
of any renewal thereof, by giving written notice to the Chamber
of such termination one year or more prior to the expiration of
the initial term of this lease, or of any renewal term.
Notwithstanding anything contained herein, this lease
and any renewals thereof, shall immediately cease and terminate
in the event the Chamber ceases to exist or operate as an entity
organized primarily to promote and develop business and the
business environment in the City of Dublin or ceases to utilize
the Premises as its primary office.
-2-
MICROFILM
2. The parties hereby agree that the total annual net
Premises to the City for the City's use on an as needed basis as
determined by the City in consideration of a four thousand
($4,000.00) dollar rent set off inclusive of all utilities,
etc.. As such, the rental cost paid by the Chamber to the City
during the initial term of this agreement shall be sixteen
thousand ($16,000.00) dollars per year payable in monthly
Installments of thirteen hundred thirty three dollars and thirty
three cents ($1333.33). Rent is due on the first day of each
month, and if not paid by the tenth day of each month, a fifty
dollar ($50.00) late charge shall be assessed against the
Chamber in addition to the original monthly rental payment.
Further, the patties agree that the instant agreement
constitutes a triple net lease and as such the Chamber shall be
responsible for all taxes, utilities, and assessments, as well
as the maintenance and upkeep of the Premises and the
improvements thereon, in addition to the rent set forth above.
The Chamber shall promptly pay and save the City
harmless from all such taxes, utilities, assessments and other
charges, including but in no way limited to liens or penalties,
and shall furnish to the City duly certified written evidence of
any and all such payments upon the City's written request
therefore.
-3-
rent for the Premises
shall be twenty thousand
($20,000) dollars
per year. However, as
an offset to the annual
rental amount,
the Chamber agrees to
sublease twenty percent
(20%) of the
Premises to the City for the City's use on an as needed basis as
determined by the City in consideration of a four thousand
($4,000.00) dollar rent set off inclusive of all utilities,
etc.. As such, the rental cost paid by the Chamber to the City
during the initial term of this agreement shall be sixteen
thousand ($16,000.00) dollars per year payable in monthly
Installments of thirteen hundred thirty three dollars and thirty
three cents ($1333.33). Rent is due on the first day of each
month, and if not paid by the tenth day of each month, a fifty
dollar ($50.00) late charge shall be assessed against the
Chamber in addition to the original monthly rental payment.
Further, the patties agree that the instant agreement
constitutes a triple net lease and as such the Chamber shall be
responsible for all taxes, utilities, and assessments, as well
as the maintenance and upkeep of the Premises and the
improvements thereon, in addition to the rent set forth above.
The Chamber shall promptly pay and save the City
harmless from all such taxes, utilities, assessments and other
charges, including but in no way limited to liens or penalties,
and shall furnish to the City duly certified written evidence of
any and all such payments upon the City's written request
therefore.
-3-
MICROFILM
The City shall promptly submit to the Chamber bills
received by it for any charges and promptly forward to the
Chamber any notices, demands, and communications received by it
as related to the Premises.
3. The Chamber agrees that the Premises will be used
only for office and community uses and said Premises will not by
used or allowed to be used for any purpose deemed hazardous by
the City's insurance company because of fire or other risk; and
the Chamber will conform and require any of its tenants to
conform with and obey all laws, ordinances, rules and
regulations of the City of Dublin, which has jurisdiction over
said premises and the use and occupancy thereof.
4. The Chamber agrees not to assign this lease or
sublet the Premises without written consent of the City. Said
consent shall be at the absolute control and discretion of the
City. Further, the City hereby authorizes the Chamber to
sublease up to forty percent (40%) of the Premises to the Dublin
Convention and Visitors Bureau. Any such sublease shall in no
way release the Chamber from the obligations set forth herein.
5. The Chamber shall use the Premises only for such
uses as are compatible with the aforesaid purposes, and for no
other purposes. The Chamber shall not make, or allow anyone to
make use of the premises which would be in conflict with the
provisions of any applicable rules, regulations, or laws of any
governmental agency, nor shall the Premises be used in any
manner which would invalidate the insurance coverage thereon.
-4-
MICROFILM
The Chamber shall, throughout the term of this Lease and
any renewal thereof, and, except as specifically otherwise
hereinafter provided, at its sole cost and expense, take good
care of and maintain in good order the Premises and any
improvements thereto, including but not limited to all
maintenance, mowing and snow removal. Further, the Chamber
shall be responsible for care, maintenance and "repair of all
structural, plumbing, electrical, etc. elements of the
premises.
The Chamber, at its sole cost and expense, shall
promptly make all necessary repairs to the Premises and any
Improvements thereto, including all appurtenances and structures
thereon. The City shall have no obligation to repair or
maintain any improvements on the Premises or additions thereto.
is 6. The Chamber shall be solely responsible for and
P
promptly paying all utilities, including, but but not limited
to, heat, water, gas, electricity, sewer use, trash disposal or
any other utility used for and consumed on the Premises.
7. The Chamber shall,:throughout the term of this lease
and any renewals thereof, have its sole cost and expense, obtain
and maintain fire and extended coverage insurance on any and all
structures located on the Premises, and appurtenances thereto,
Including any structures or appurtenances which may hereafter be
erected, in an amount equal or greater to the replacement costs
of all structures, appurtenances and improvements on the
property. The City shall be shown as a loss payee on any and
all such insurance policies.
-5-
n
MICROFILM
Further, the Chamber shall throughout the term of this
lease and any renewals thereof, at its own cost and expense
obtain and maintain public liability insurance covering both the
City and the Chamber against liability or damage to all persons
or property while in or on the Premises, the entrance ways
thereto, and sidewalks, parking,facilities and streets abutting
thereon, with limits of not less than five hundred thousand
dollars ($500,000.00) for injury to one person, not less than
one million dollars ($1,000,000.00)for each such occurrence, and
not less than fifty thousand dollars ($50,000.00) for damage to
property, or such other coverage limits, from time to time, as
the City may deem reasonably necessary and in accord with
customary practices with regard to such insurable risks.
Each policy of insurance obtained by the Chamber
pursuant to any of the provisions hereof, shall contain an
agreement by the insurer that such policy shall not be canceled
without at least ten (10) days prior written notice to the City.
The Chamber shall cause certification of insurance required
hereunder to be provided to the City, and at the City's request,
proof of premium payments.
8. The Chamber shall, without cost or expense to the
City, indemnify and save the City and its lawful
representatives, employees and agents, harmless from all loss,
cost or expense arising by reason of its use or improvement of
the Premises, or, by reason of the acts with respect to the
Premises of any officer, trustee, employee, agent, licensee,
invitee or tenant of the Chamber.
Q-
9. The City manager and his duly authorized MICROFILM
representatives shall have the right to enter the Premises at
all reasonable times for the purpose of inspecting the condition
of the same and making such repairs, alterations, additions or
Improvements thereto as it may deem necessary or desirable
(however .the City shall have no -duty to make such repairs,
alterations, additions or improvements); provided, however, in
no event shall the City unreasonably interfere with the
Chamber's use of the Premises.
10. Except as otherwise provided,.if the Chamber
observes the terms, covenants, and conditions hereof,. it shall
occupy and enjoy the use of the Premises during the term of this
lease and any renewal thereof without any hindrance,
molestation, or ejection by the City.
11. If the Chamber fails to maintain in full force and
effect any insurance required by the terms hereof, or if the
Chamber fails to observe and perform any other provision,
covenant, or condition of this lease required under this lease
to be observed and performed by the Chamber, provided, that if
by reason of the nature thereof, the Chamber cannot commence
promptly and proceed diligently or observe and perform the same
with due diligence, as promptly as circumstances permit, or if
the Chamber abandons or vacates the Premises, or any part
thereof, or if the Chamber makes an assignment with its
creditors, or if the interest of the Chamber in the Premises is
attached, levied upon or seized by legal process, or if a
bankruptcy or insolvency proceeding is filed by or against the
Chamber, or if a court of competent jurisdiction or other
-7-
MICROFILMtaI authorit a
governmental roves Y PP Petitions seeking
reorganization, arrangement, composition, or similar relief with
respect to the Chamber, or appoints a trustee, receiver, or
liquidator of the Chamber, or of all, or substantially all, of
its property or affairs, or assumes custody or control of all,
or substantially all, of the property or affairs of the Chamber,
or if this lease is assigned in violation of the terms hereof or
Is terminated by operation of law, or if the Chamber ceases to
operate for the aforesaid purpose, then and in such event,
immediately or at any time thereafter, at the option of the
City, the City shall have the right to immediately re-enter and
take possession of the Premises and declare this lease
terminated, after which time, all obligations of both the City
and the Chamber with respect to each other and the Premises
shall immediately cease, subject however, to the City's rights
of action for breach of the financial terms of this lease. In
that event, the City may relet the premises for the highest
amount obtainable and may recover from the Chamber any
deficiency between the amount so obtained and the rent and
i
obligations set forth herein.
Lease Hold Improvement
12. The City hereby authorizes the Chamber to demolish
the building located in the rear of the property along with the
rear portion of the front building and to erect a new building
pursuant to plans previously submitted and approved by the City.
-8-
MICROFILM
13. The City hereby agrees to reimburse the Chamber as
and for the above referenced lease hold improvements in an
amount not to exceed the sum of two hundred and twenty thousand
dollars ($220,000). Said payments to be made by the City to the
Chamber upon presentation of documentation acceptable to the
City indicating the actual cost -of said improvements.
14. Except as specifically st forth herein, the Chamber
agrees to be fully responsible for all aspects of the lease hold
Improvements to the Premises and further agrees to fully
indemnify, protect and hold the City harmless for all action
related thereto.
15. In the event that a disagreement arises as to the
terms and the provisions herein, such disagreement shall be
resolved by majority vote of the Dublin City Council.
16. This instrument contains the entire agreement
between the parties, supercedes any and all prior agreements
between them, and shall not be modified or amended except by
written agreement of both parties.
17. IN WITNESS WHEREOF, the parties have caused
i
duplicate counterparts hereof to be executed and delivered on or
as of the day and year first written above.
Signed and Acknowledge in the Presence of:
CITY OF DUBLIN
By:
(Name) (Title)
m
STATE OF OHIO
COUNTY OF FRANKLIN, SS:
MICROFILM
THE DUBLIN CHAMBER OF COMMERCE
By:
(Name)
(Title)
The foregoing instrument was acknowledged before me this
S day of 1988, 1988, by
7,-s41 of the City of Dublin, an Ohio
municipality, on behalf of said City.
STATE OF OHIO
COUNTY OF FRANKLIN, SS:
L /
otary Public
STEVEN W. HOFFMAN
Notary Public, State of 0!--;6My Commission Expires May S, 1992
Recorded in Fron0in COWty
The foregoing in; ument was acknowledged before me this
S day of 1988, by
%1. , of the Dublin Chamber of Commerce, on
- s
behalf of the Chamber.
kj� /Y//,- -
Notary Pxib-lYo
-10-
STEVEN W. HOFFMAN
Notary Public, State of 03 ,lo
My Commission Expires May 8, 1992
Recordod ill Pfunmin County
E
C7
E
This Instrument was prepared by:
Stephen J. Smith
Attorney at Law
5354 Cemetery
Hilliard, OH
614/876-1229
Road, P.O. Box 7
43026
-3-
MICROFILti':
C
RECORD OF RESOLUTIONS
National Graphlee Corp., Colt.. O. 'Ik 3" I i IiCS
Resolution No... 15-88 .' Passed
A RESOLUTION{ RATIFYING THE
MANAGER'S EXECUTION OF THE
LEASE AGREEMENT AND MEMORANDUM
OF LEASE BETWEEN THE CITY OF
DUBLIN AND THE DUBLIN CHAMBER OF
P COMMERCE REGARDING CITY OWNED
!; PROPERTY LOCATED AT )29 SOUTH
!i HIGH STREET
Farm No. 6233-A
19. I
MICROF11 r1t!
ii
WHEREAS, the Dublin City Council, pursuant to Ordinance No. 98-87 has
previously authorized the Manager to enter into a Lease Agreement with
�I the Dublin Chamber of Commerce for City owned property located at 129
�I South High Street; and
WHEREAS, the City of Dublin and Dublin Chamber of Commerce have pre—
viously agreed to terminate the aforementioned Lease and have executed
a new Lease Agreement and Memorandum of Lease.
NOW, THEREFORE, BE IT RESOLVED by the Council of tale City of Dublin,
State of Ohio, 7 of the elected members concurring that:
Section 1. Council hereby ratifies the Manager's execution of the
Lease Agreement and Memorandum of Lease relating to the aforementioned
property owners by the City of Dublin, a copy of which is attached
hereto as Exhibit "A".
Passed this 1st day of August 1 088.
Mayor — Presiding Officer
Attest:
Clerk of CounciY
I hn.nRv . i t!f, ttial can°es of this Ordnance/Resolution were pay'^"
City of 0-Arn in accordance with Section 731.25 of the Ohio ltev'seh
Clerk of CouA, Dublin, Ohio
National Graphics Corp.. Cole.. O.
Ordinance No........98.-gZ...... Passed ....... ...........
AN ORDINANCE TO AUTHORIZE
THE MANAGER TO ENTER INTO
A LEASE AGREEMENT WITH THE
DUBLIN CHAMBER OF COMMERCE
......... _..19...
MICROFl(M
NOW, THEREFORE, BE,tT ORDAINED by the Council of the Village of Dublin,
State of Ohio, of the elected members concurring:
I'
j Section 1. That whereas the Village is the owner of a parcel of land
I situated in the Village of Dublin, Franklin County, Ohio, as described
in the attached Exhibit "A"; and
�! Section 2. That whereas the Chamber is an entity organized to promote
�j and develop business and the business environment in the Village of
II Dublin; and
Section 3. That whereas said parcel of land includes a block building
previously used as a bus garage and a frame house previously used as
the old municipal building; and
i
I
Section 4. That whereas said frame house may be considered a historic
site which the Village may desire to preserve and restore for the
benefit, use and enjoyment of the citizens of Dublin; and
Section 5. That the Manager of the Village of Dublin be authorized
to enter into a lease agreement with the Dublin Chamber of Commerce
for the aforementioned "premises".
!
! Section 6. That this Ordinance is hereby declared to be an emergency
measure necessary for the preservation of the public peace, health
and safety and therefore this Ordinance shall take effect and be in
1; force immediately upon its passage.
it
Passed this 17th day of Auftust 1987.
i'
�I
i!
l Mayor — Presiding Officer
I
t
t
Attest:
I
!! —tlerk of Council
!I 1! I hereb Y certify that copies of this Ordinanct/Rtwia"^n
were posted in the Viliase cl Dublin in accordance -,th
Section 731.25 of the Ohio Reuised Code. J
(! Clerk of council
i
ii
w