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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: March 9, 2021 Title: Muskegon Central Dispatch Lease
Agreement & Exhibits
Submitted By: Jeffrey Lewis Department: Public Safety
Brief Summary: Review and approve the attached MCD lease agreement (amended). As detailed
in the attached lease agreement, attached exhibits and lease space necessary for use and
maintenance of the newly expanded/remodeled dispatch facility.
Detailed Summary: Attached is the First Amendment to the Lease between the City and Central
Dispatch . There are two exhibits. Exhibit A is the site plan/description of the leased space. Exhibit B is the
financials.
Amount Requested: 0.00 Amount Budgeted: n/a
Fund(s) or Account(s): Fund(s) or Account(s):
Recommended Motion: Approval of the amendments to the lease agreement between the City of
Muskegon and Muskegon Central Dispatch.
Check if the following Departments need to approve the item first:
Police Dept. D
Fire Dept. IX]
IT Dept. □
For City Clerk Use Only:
Commission Action:
LEASE
This lease is effective on Oct<Jhec /I) , 2006. between the City of Muslcegon, a
Michigan municipal corporation, whose address is 993 Terrace Street, Muskegon, Michigan
49440 ("Landlord"), and Muskegon Central Dispatch, located at 860 Terrace Street,
Muskegon, Michigan, 49440 ("Tenant").
In consldel·atlon of the mntnal promises of the pal'ties set forth iu this lease nnd
other vnluable considerntlon, the l'eceipt and ndequacy of which Is acknowledged, the
parties agree ns follows:
1. Lease of Premises, Landlord leases to Tenant, and Tenant rents from Landlord,
approximately Two Thousand Three Hundred Fifty Four (2354) square feet of office space, plus
shared space, ("Premises") in the fire station being constructed by Landlord located at Western
Avenue in the City of Muskegon, Michigan ("Property"), together with all improvements located
thereon, subject to all the te1ms and conditions of this lease. The Premises is specifically
depic::ted on the site plan attached as Exhibit A.
a. Shnre(l Facllltles, Landlord and Tenant shall have shared use of those
facilities identified on Exhibit A, Which shall include the break room, lobby/office
administration, bathroom, and conference rooms.
b. Pnrlcing, Landlord shall designate fout· parking spaces at the Property for
exclusive use by Tenant.
2. Term. The inith\l tenn of this lease shall be for 25 years commencing as of July
1, 2007 ("Commencement Date"), U11less sooner tenninated according to the te1ms of this lease.
3. Prepal'ation of Premises; Landlord's Constrnctlon. Landlord shall prepare the
Premises for Tenant's occupancy. Such work shall be performed to the specifications indicated
on attached Exhibit D.
4. Possession, Tenant shall have possession of the Premises on the Commencement
Date. If possession of the Premises shall for any reason not.be delivered to Tenant on the
Commencement Date, this Lease shall continue in full force and effect, and no liability shall
arise against Landlord out of any delay other than the abatement of rent, at the daily rental rate,
until possession of the Premises is delivered to Tenant. If Tenant, at its sole option, shall take
possession of any prut of the Premises before the Commencement Date, such possession shall be
govemed by the tenns of this Lease, and Tenant shall pay Landlord rent beginning on the date of
possession.
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5. Rent; Option to Renew.
a. Rental. Tenant shall pay to Landlord an annual rental amount determined
as follows:
1) Tenant shall pay 17,6% of the debt service from the City of
Muskegon 2006 Public Improvement Bonds attributable to the Westem Avenue
Fire Station, (The City of Muskegon 2006 Public Improvement Bond is
$5,4000,000, of which $3,696,970 is attributable to the Western Avenue Fire
Station.); and
2) Tenant shall pay 17.6% pf the operation and maintenance expenses
of the Western Avenue Fire Station
Such payments shall be made in equal monthly installments, in advance, without any
setoff or deductions, on 01· before the first day of each month during the term of this
lease. The rent shall be payable at the address for Landlord listed above.
b. Option to Renew, Tenant shall have the option to renew the term of the
lease for five (5) successive periods of five (5) years each. Tenant must exercis~ its
option to renew by written notice to Landlord at least 90 days before expiration of the
then existing term.
6. Use of Premises. Tenant shall use and occupy the Premises only for those
purposes related to its emergency call center operations. The Premises may be used for any
other purpose only with the prior written consent of Landlord. Tenant shall not use the Premises,
or permit the Premises to be used, in a manner that constitutes a violation of any applicable law,
order, ordinance, or regulation or that may be dangerous. Tenant shall not commit or allow any
waste in or about the Premises nor shall Tenant cause or permit any nuisance.
7. Taxes. Landlo1'd and Tenant are exempt from paying real and personal property
taxes. If Tenant at any time during the term of this Lease becomes non-exempt, it shall promptly
pay any personal property taxes levied or assessed against Tenant's personal property; and shall,
upon request, furnish evidence of such payment to Landlord.
8. Rcpnirs and Maintenance. Landlord shall maintain in good condition and repair
and shall make any necessary capital replacements of the heating and air conditioning piant
system, the electrical wiring system, and the roof and structural walls, to the extent necessary to
preserve Tenant's intended use and enjoyment. Landlord shall be responsible for all snow
plowing and landscaping at the Property. Repairs or replacements necessitated by the negligent
acts of the Tenant shall be made at the expense of the Tenant. Tenant shall keep and maintain
the Premises in good and sanitary order and condition, and will deliver the same to Landlord at
the expiration of the Term in as good a condition as when received, except for reasonablo use
and wear thereof.
9. Alterations or lmpl'ovcments. Tenant may, at its expense, make what ·
alterations, improvements, additions, and changes to the Premises it deems necessary or
expedient in the operation of the Premises, but only with Landlord 1s consent which will not be
G:\EOSI\FIL!a$\O0IOO\IW3\LEASH_CO\D34845.D00
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unreasonably withheld. Tenant shall not, however, without Landlord's written consent, tear
down or materially demolish any improvement on the Premises, or make any material change or
alteration, if the improvement, when completed, will substantially diminish the value of the
Premises.
10. Utilities; Janitorial. Landlord shall provide gas (heat), electric, water and sewer
utilities for the entire Prope1iy during the term of the lease, and Tenant shall pay as additional
monthly rent its 17 ,6% of the utility expenses. Tenant shall be responsible for providing
janitorial for the second floor of the building and Landlord shall be responsible for providing
janitorial se1vice for the first floor of the building. Landlord shall provide garbage se1vice for
the building. Each party s.hali be responsible for its own telephone service.
11. Condition of Pr.cmlses. Except as Landlord and Tenant may othe1wise agree in
writing, Tenant's entry into possession shall constitute conclusive evidence that Tenant accepts
the Premises "as is," in its existing condition. No representation, statement or wananty, express
or implied, has been made by or on behalfof Landlord as to such condition, or as to the use that
may be made of the Premises. In no event shall Landlord be liable to Tenant for any defect in
the Premises, or for limitations on its use. No representation or warranty of habitability, express
or implied, has been made by or on behalf of Landlord to Tenant.
At the tem1ination of this lease, Tenant shall return the Premises and all equipment,
appliances and fixtures in as good a c::ondition as when Tenant took possession, ordinary wear
and tear excepted, and upon Tenant's failure to do so, Landlord may restore the Premises,
including equipment, appliances and fixtures to such condition and Tenant shall be responsible to
pay the cost of said restoration.
12. Compliance with Laws. Tenant, under penalty of forfeiture and damages, agrees
to comply promptly with all requh'ements of law and with all ordinances, regulations or·orders of
any municipal, state, federal, or other public authority affecting all or any part of the Premises
and with all requirements of the Board of Fire Underwriters or similar body and of any liability
insurance company insuring the Landlord against liability for accidents in or connected with all
or any part of the Premises, and Tenant further agrees to save Landlord hannless from any and
all penalties, fines or liabilities that may result from Tenant's failure to so comply.
13. Insurance and IndcJUnity.
a, Landlord shall procure and maintain in full force and effect fire and
extended coverage insurance with an allNrisk endorsement on the Property for its full
insurable replacement cost (excluding foundations and excavation).
b. Tenant shall, at its sole cost and expense, procure and maintain in full
force and effect during the lease tenn, comprehensive general public liability illsurance
against claims for personal injury, death, or property damage occurring on. in, or about
or
the Premises in a minimum amount of $1,000,000 in respect of personal injury death
to any one person, and of not less that $1,000,000 in respect of any one occurrence, and
of not less than $1,000,000 for property damage. Tenant shall also be responsible for
obtaining insurance for Tenant's interest and prope1ty.
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c. All insurance policies required hereunder, which may be so-called
''blanket polioies 11 > shall: (i) name Landlord and Tenant as insureds; (ii) be payable as
provided in paragraph 15; and, (iii) be purchased from companies reasonably satisfactory
to Landlord,
14. Fire or Casualty; Coudemnntion, In the event the Premises are totally
destroyed by fire, wind, or other causes beyond the control of the Landlord) or are condemned or
otherwise taken by authority oflocal, state or federal government, then in any of these events the
lease term shall cease and tenninate as of the date of such destruction, condemnation or taking.
In the event of any loss or damage by fire or other casualty for which the building or
improvements on the Premises may be insured, all amounts payable upon any policy or policies
of insurance shall be paid to Landlord except the extent the insurance covers Tenant's
improvements. If the Premises are damaged by fire, rain, wind or other such causes, so as to
render the same partially untenable or partially unfit fol' use, but are repairable within a ·
reasonable time, then this lease shall remain in full force and effect, but Tenant's rent shall be
proportionately reduced until the Premises are repaired.
15. Signs. Tenant shall only place, erect or maintain or cause to be placed, erected or
maintained on any exterior surface of the Premises) or anywhere outside of the Premises) such
signs) lettering, decorations, or advertising as are permitted by law and have been approved by
Landlord in writing, Tenant shall) at its own risk and expense) lawfully erect such matedal
Upon vacating the Premises~ Tenant agrees to remove all signs or other such items and to repair
all damage caused by such removal.
16. Risk of Loss, During the tenn of this lease, and any extension or renewal thereof,
the risk ofloss, with respect to all risks insurable under a fire and extended coverage insurance
policy meeting the requirements of the laws of the State of Michigan) together with the risk of
loss with respect to all uninsurable losses to the Premises which are subject to the control or
prevention by Tenant, shall t'est upon Tenant.
17. Assignment or Subletting. The Tenant shall not assign, mortgage, or encumber
this lease, nor sublet or pennit the Premises or any part thereof to be used by others, without the
prior written consent of the Landlord in each instance.
18. Security, Landlord shall not be liable for any ittjury to the person 01· property of
the Tenant or any other persons caused by the criminal acts of third persons upon the Premises,
19. Tenant's Default and Repossession. If the Promises shall be deserted or
vacated) or if there shall be a default in the payment ofrent or any patt thereof for more than
seven days after written notice of such default by the Landlord, or if there shall be default in the
perfonnauce of any other covenant) agreement, condition, rule or regulation herein contained or
incorporated herein by reference for more than seven days after written notice of such default by
the Landlord, this lease (if the Landlot'd so elects) shall thereupon become null and void, and the
Landlord shall have the right to reenter or repossess the Premises, either by smnma1y
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proceedings, surrender, or otherwise, and dispossess and remove therefrom the Tenant, or other
occupants thereof, and their effects, without being liable to any prosecution therefor. In such
case, the Landlord may, at its option, relet the Premises or any part thereof, as the agent of the
Tenant, and the Tenant shall pay the Landlord the difference between the rent reserved and
agreed to be paid by the Tenant for the po1iion of the te1m remaining at the time of reentry or
repossession and the amount, if any, received or to be received under such reletting for such
portion of the te1m, Tenant agrees to pay all expenses and damages incurred by Landlord as a
result of Tenant's default, including Landlord's reasonable attorney fees.
In the event that Landlord is required to commence eviction proceedings or proceedings
to otherwise enforce collection of rents or enforce and protect the rights of Landlord hereunder>
Tenant shall be responsible to pay Landlord's costs, expenses and fees, including reasonable
actual attorney fees, which shall be incurred by Landlord as a result of such proceedings, In case
any such suit is settled before judgment is entered therein, such costs> expenses and fees,
including reasonable actual attorney fees, shall nevertheless be recoverable by Landlord as part·
of said settlement.
If Tenant shall fail to perform any of its obligations hereunder, Landlord may, if it so
elects, and after five days' prior notice to Tenant, cure such default at Tenant's expense, and
Tenant agrees to reimburse Landlord (as additional rent) for all costs and expenses incurred as a
result thereof upon demand.
20. Laudlord's Default. 1n the event that Tenant is required to commence
proceedings to enforce and protect the rights of Tenant hereunder and Tenant receives a
judgment in its favor, Landlord shall be responsible to pay Tenant's costs, expenses and fees,
including reasonable actual attorney fees, which shall be incurred by Tenant as a result of such
proceedings. In case any such suit is settled before judgment is entered therein, such costs,
expenses and foes, including reasonable actual attorney fees 1 shall not be recoverable by Tenant
as part of said settlement. ·
If Landlord shall fail to perfo1m any of its obligations hel'eunder, Teno.nt may, if it so
elects, and after five days' prior notice to Landlord, cure such default at Landlord's expense, and
Landlord agrees to reimburse Tenant for all costs and expenses incuned as a result thereof upon
demand.
21. Dispute Resolution. In the event a dispute arises regarding this Lease, the parties
agree to first conduct an infonnal mediation session through a mutually agreeable third~party
mediator. If that mediation session is unsuccessful in l'esolving the dispute, the Muskegon
County Circuit Coutt shall then have exclusive personal and subject matter jurisdiction and
venue regarding this Lease.
22, Notices, All notices, approvals, consent~ and other communications required
under this lease shall be in writing and, except when receipt is required to start the running of a
period of time> shall be deemed given: (i) when delivered in person; (ii) when sent by fax (the
sender shall also send a 11 hard copy" following the fax; however, the notice shall be effective
upon the transmission of the fax); (iii) one day after depositing in the custody of a nationally-
recognized receipted overnight delivery service with delivery fees prepaid; or (iv) five days after
posting in the United States Mail first-class, registered, or certified mail, postage prepaid and
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return receipt requested. Notices shall be sent to the parties at the addresses listed above.
23. Holding Over. It is agreed that any holding over by the Tenant upon expiration
of the term of this lease or any renewal or extension hereof, shall operate as an extension of this
lease from month to month only.
24. Miscellaueous.
a. Go-veming Law. This lease is executed ln accordance with, shall be
governed by, and construed and interpreted in accordance with, the laws of tlte State of
Michigan,
b. Entire Agreement. This lease shall constitute the entire agreement, and
shall supersede any other agreements, written or ora1, and any contemporaneous or prior
negotiations and representations that may have been made or entered into, by and
between the parties with respect to the subject matter of this lease and shall not be
modified or amended except in a subsequent writing signed by the paity against whom
enforcement is sought.
c. Binding Effect. This lease shall be binding upon, and inul'e to the benefit
of, and be enforceable by, the parties and their respective legal representatives, pennitted
successors and assigns.
d. Counterparts, Tl1is lease may be executed in counterparts, and each set
of duly delivered identical counterpa1ts 1 which includes all signatories, shall be deemed
to be one original document,
e. Full Execution, This lease requires the signature of both parties, Until
fully executed, on a single copy or in counterparts, this lease is of no binding force or
effect, and, if not fully executed, this lease is void.
f, Non-Waiver. No waiver by any party of any provision of this lease shall
constitute a waiver by such party of such provision on any other occasion or a waiver by
such paity of any other provision of this lease.
g. SeverabiUty. Should any one or more of the provisions of this.lease be
detennined to be invalid, unlawful, or tmenforceable in any respect, the validity, legality,
and enforceability of the remaining provisions of this lease shall not in any way be
impaired or affected,
[signatures appear on following page]
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Landlord and Tenant have caused this lease to be executed the day and year first above
written.
LANDLORD: CITY OF MUSKEGON
Linda Potter, Acting Clerk
Date: Jo ~ ,il o -tJ 6
TENANT: .MUSl{EGON CENTRAL
DISPATCH
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Page7
Original Profection Actual Bids
Year TotaI Fire OS Ci!}'. Share (82.4%) CD Share (17.6%) Annual Cost/So. Ft Total Fire DS Citv Share (82.4%) CD Share (17.6%) Annua!Cost!Sg.Ft.
2007 $147,475.11 $121,519.49 $25,955.62 $6.51 $140,444.75 $115,726.47 $24,71828 $6.20
2008 $188,348.18 $155,198.90 $33,149.28 $8.32 $181,030.00 $149;!68.72 $31.861.28 $8.00
2009 $190,615.88 $157,067.49 $33,548.39 $8.42 $182,790.00 $150,618.96 $32,171.04 $8.07
2010 $203,028.64 $167.295.60 $35,733.04 $8.97 $195,430.00 $161,034.32 $34,395.68 $8.63
2011 $201.226.70 $165,810.80 $35,415.90 $8.89 $193,510.00 $159.452.24 $34,057.76 $8.55
2012 $199,419.96 $164,322.05 $35,097.91 $8.81 $191,590.00 $157,870.16 $33,719.84 $8.46
2013 $197,594.06 $162,817.51 $34,776.55 $8.73 $189,670.00 $156,288.08 $33,381.92 $8.38
2014 $195,748.98 $161,297.16 $34,451.82 $8.65 $187,750.00 $154,706.00 $33,044.00 $8.29
2015 $193,879.94 $159,757.07 $34,122.87 $8.56 $185,830.00 $153,123.92 $32,706.08 $8.21
2016 $191,986.96 $158,197.26 $33,789.70 $8.48 $183,910.00 $151,541.84 $32,368.16 $8.12
2017 $190,070.00 $156,617.68 $33,452.32 $8.40 $181,990.00 $149,959.76 $32,03024 $8.04
2018 $188,129.06 $155,018.35 $33,110.71 $8.31 $180,070.00 $148,377.68 $31,692.32 $7.95
2019 $336,781.18 $277,507.69 $59,273.49 $14.88 $332,150.00 $273,691.60 $58,458.40 $14.67
2020 $331.964.74 $273,538.95 $58,425.79 $14.66 $331,o?0.00 $272,801.68 $58,268.32 $14.63
2021 $337,195.44 $277,849.04 $59,346.40 $14.90 $329,710.00 $271,681.04 $58,028.96 $14.57
2022 $324,649.16 $267,510.9"! $57,138.25 $14.34 $321,070.00 $264,561.68 $56,508.32 $14.18
2023 $322,433.80 $265,685.45 $56,748.35 $1424 $315,430.00 $259.914.32 $55,515.68 $13.9$
2024 $326,727.26 $269,22326 $57,504.00 $14.43 $320,670.00 $264,232.08 $56,437.92 $14.17
2025 $320,117.80 $263,777.07 $56,340.73 $14.14 $314,350.00 $259.024.40 $55,325.60 $13.89
2026 $309,890.56 $255,349.82 $54,540.74 $13.69 $304,910.00 $251,245.84 $53,664.16 $13.47
2027 $299,616.08 $246,883.65 $52,732.43 $13.24 $295,470.00 $243,467.28 $52,002.72 $13.05
2028 $292,717.34 $241,199.09 $51,518.25 $12.93 $289,794.00 $238,790.26 $51,003.74 $'!2.80
2029 $282,198.12 $232,531.25 $49,666.87 $12.47 $279,954.00 $230,682.10 $49,271.90 $12.37
2030 $271,630.96 $223,823.91 $47,807.05 $12.00 $269,114.00 $221,749.94 $47,364.06 $11.89
2031 $260,991.92 $215.057.34 $45,934.58 $1i.53 $259,076.00 $213,478.62 $45,597.38 $11.44
2032 $250,328.92 $206.271.03 $44,057.89 $i1 .06 $249,038.00 $205,207.31 $43,830.69 S11.00
Totals 16 §§:1: Z!;i!l Z§ ~§4Qj 1;;:Z:§Q ~:l.:1§3.~Q!;! g§ .$2.filLlill ~MQS a;rn.z5 S§,2Z8.~~6.~D ;i1 Jg7~g:1: 4 § S2,82.98
Sq. Fl 22,537 22,637
Cost/Sq. Ft. $289.56 $282.98
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I
FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN CITY OF MUSKEGON
AND MUSKEGON CENTRAL DISPATCH
This Amendment ("Amendment") is made effective on January 1, 2021 ("Effective
Date") by and between the City of Muskegon, a Michigan municipal corporation, with offices
located at 933 Terrace Street, Muskegon, Michigan 49440 ("Landlord"), and Muskegon Central
Dispatch, a Michigan non-profit corporation, with offices located at 770 Terrace Street,
Muskegon, Michigan 49442 ("Tenant"). Landlord and Tenant, may each be referred to as a
"Party" or collectively as "Parties".
Background
A. Landlord and Tenant entered into a Lease effective on October 10, 2006 for a
portion of the West Western Avenue Fire Station located at 770 Te1race Street,
Muskegon, Michigan. More specifically, Tenant leased approximately Two
Thousand Three Hundred Fifty-Four (2,354) square feet of office space, plus
shared space.
B. Tenant's current rental payment is 17.6% of the debt service from the City of
Muskegon 2006 Public Improvement Bonds attributable to the Western Avenue
Fire Station (The City of Muskegon 2006 Public Improvement Bond is
$5,400,000, of which $3,696,970 is attributable to the Western Avenue Fire
Station.) plus 17.6% of the operation and maintenance expenses of the Western
Avenue Fire Station.
C. Tenant now desires to increase the amount of space in the existing West Western
Avenue Fire Station, which will increase the rental payment based upon the City
of Muskegon 2006 Public Improvement Bond.
D. Landlord has agreed to construct an addition to the West Western Avenue Fire
Station and lease the entire addition to Tenant.
E. Landlord will pay for improvements needed by Tenant to the existing West
Western Avenue Fire Station and a to be constructed building from the proceeds
of a yet to be issued City of Muskegon 2020 Capital Improvement Bond in a not
to exceed amount of$11.1 million, of which approximately $329,710 shall be
used for the West Western Avenue Fire Station improvement and addition for the
use of Tenant.
Therefore, for good and valuable consideration, and the mutual promises contained
in this Amendment, the Parties agree to amend the Lease as follows:
1. Description of Leased Premises. Paragraph 1 shall be revised to read as follows:
Lease of Premises. Landlord leases to Tenant, and Tenant rents from Landlord,
approximately 6,982 square feet of office space, of which 4,582 square feet was
leased pursuant to the original lease and an additional 2,400 square feet are added
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as pali of this First Amendment plus shared space, in the existing West Western
Avenue Fire Station ("Revised Premises"), together with all improvements
located thereon, subject to all the terms and conditions of this lease. The Premises
is specifically depicted on the site plan attached as Exhibit A.
a. Shared Facilities. Landlord and Tenant shall have shared use of
those facilities identified on Exhibit A.
b. Parking. Landlord shall designate four parking spaces at the
P:ropeliy for exclusive use by Tenant.
2. Term. Paragraph 2 shall be revised as follows:
Initial Term. The term of this First Amendment shall commence on
January 1, 2021 shall continue until December 31, 2045, unless sooner
terminated according to the terms of this lease.
Option to Renew. Tenant shall have the option to renew the term of the
lease for five (5) successive periods of five (5) years each. Tenant must
exercise its option to renew by written notice to Landlord at least 90 days
before expiration of the then existing term. The rental rate during any such
renewal shall be mutually agreed to and if no agreement is made, the lease
shall terminate after a one-year written notice provided by either paliy.
3. Rental Amount. Paragraph 5 shall be revised as follows:
Rental. Tenant shall pay to Landlord an annual rental amount from the
effective date of this Lease Amendment through December 31, 203 3 as
follows:
a. Tenant shall pay 20.24% of the debt service from the City of
Muskegon 2006 Public Improvement Bonds attributable to the
Western Avenue Fire Station. (The City of Muskegon 2006 Public
Improvement Bond is $5,400,000, of which $3,696,970 is
attributable to the Western Avenue Fire Station), as provided
shown on Exhibit B;
b. Tenant shall pay 100% of the debt service from the City of
Muskegon 2020 Capital Improvement Bond attributable to
improvements and additions of the Fire Station for the use of
Tenant, as provided on Exhibit B; and
c. Tenant shall pay for a portion of the operation and maintenance
expenses ("CAM") of the Western Avenue Fire Station, as
provided on Exhibit B.
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From January 1, 2034 through December 31, 2045, Tenant shall pay an annual
rental amount as follows:
a. Tenant shall pay an annual amount as indicated on Exhibit B; and
b. Tenant shall pay for a portion of the operation and maintenance
expenses ("CAM") of the Western Avenue Fire Station, as
provided on Exhibit B.
Such payments shall be made in equal monthly installments, in advance, without any
setoff or deductions, on or before the first day of each month during the term of this
lease. The rent shall be payable at the address for Landlord listed above.
4. Repairs and Maintenance. Paragraph 8 shall be revised as follows:
Repairs and Maintenance. Landlord shall maintain in good condition and repair
and shall make any necessary capital replacements of the electrical wiring system,
and the roof and structural walls, to the extent necessary to preserve Tenant's
intended use and enjoyment, with such cost being already included in the CAM
portion of Exhibit B. Landlord shall maintain in good condition and repair and
shall make necessary capital replacements of the boiler(s) and all common
elements, with the cost being split 80% to be paid by Landlord and 20% to be
paid by Tenant, with Landlord billing separately for such expenses. Any expense
related to the heating or air condition system, including the control vents, or any
specialty systems, i.e., in order to cool computer rooms, to cool server rooms, to
heat or cool space used exclusive by the Landlord or Tenant, shall be the
obligation of the entity using the space. Landlord shall be responsible for all
snow plowing and landscaping at the Property. Repairs or replacements
necessitated by the negligent acts of the Tenant shall be made at the expense of
the Tenant. Tenant shall keep and maintain the Premises in good and sanitary
order and condition, and will deliver the same to Landlord at the expiration of the
Term in as good a condition as when received, except for reasonable use and wear
thereof.
5. Utilities; Janitorial. Paragraph 10 shall be revised as follows:
Utilities; Janitorial. Landlord shall provide gas (heat), electric, water and sewer
utilities for the entire Property during the term of the lease, and Tenant shall pay
as additional monthly rent its 20.24% of the utility expenses. Tenant shall be
responsible for providing janitorial for the space it rents in the building and
Landlord shall be responsible for providing janitorial service for the remainder of
the building. Landlord shall provide garbage service for the building. Each party
shall be responsible for its own telephone service.
6. Condition of Premises. Paragraph 11 shall be revised as follows:
Condition of Premises. Except as Landlord and Tenant may otherwise agree in
O:ICLERK\COMMON\WORDIAGENDA ITEMS FOR NEXT MEETING12021\030921\18C_13F6554-1ST AMENMENT; FINAL; CLEAN.DOC
Page 3
writing, Tenant's entry into possession shall constitute conclusive evidence that
Tenant accepts the Premises 11 as is, 11 in its existing condition. No representation,
statement or warranty, express or implied, has been made by or on behalf of
Landlord as to such condition, or as to the use that may be made of the Premises.
In no event shall Landlord be liable to Tenant for any defect in the Premises, or
for limitations on its use. No representation or warranty of habitability, express or
implied, has been made by or on behalf of Landlord to Tenant.
At the te1mination of this lease, Tenant shall return the Premises and all
equipment, appliances and fixtures in as good a condition as when Tenant took
possession, ordinary wear and tear excepted, and upon Tenant's failure to do so,
Landlord may restore the Premises, including equipment, appliances and fixtures
to such condition and Tenant shall be responsible to pay the cost of said
restoration.
Notwithstanding any other provision, any furniture or fixtures purchased by
Tenant, especially those items purchased using "surcharge funds", shall remain
the property of Tenant and shall not become property of the Landlord, upon
termination of the Lease.
7. Fire or Casualty; Condemnation. Paragraph 14 shall be revised as follows:
Fire or Casualty; Condemnation. In the event the Premises are totally
destroyed by fire, wind, or other causes beyond the control of the Landlord, or are
condemned or otherwise taken by authority of local, state or federal government,
then in any of these events the lease term shall cease and terminate as of the date
of such destruction, condemnation or taking. In the event of any loss or damage
by fire or other casualty for which the building or improvements on the Premises
may be insured, all amounts payable upon any policy or policies of insurance
shall be paid to Landlord except the extent the insurance covers Tenant's
improvements. In the event there is a lose to property acquired by "surcharge
funds", the insurance proceeds shall be used to replace the damaged property and
provided to Tenant. If the Premises are damaged by fire, rain, wind or other such
causes, so as to render the same partially untenable or partially unfit for use, but
are repairable within a reasonable time, then this lease shall remain in full force
and effect, but Tenant's rent shall be proportionately reduced until the Premises
are repaired.
8. Risk of Loss. Paragraph 16 shall be revised as follows:
Risk of Loss. During the term of this lease, and any extension or renewal thereof,
the risk of loss, with respect to all risks insurable under a fire and extended
coverage insurance policy meeting the requirements of the laws of the State of
Michigan, together with the risk of loss with respect to all uninsurable losses to
the Premises which are subject to the control or prevention by Tenant, shall rest
upon Tenant. In the event there is a loss to property acquired by Tenant using
"surcharge funds", the prope1iy shall remain owned by Tenant.
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Page 4
9. Tenant's Default and Repossession. Paragraph 19 shall be revised as follows:
Tenant's Default and Repossession. If the Premises shall be deserted or
vacated, or if there shall be a default in the payment of rent or any part thereof for
more than seven days after written notice of such default by the Landlord, or if
there shall be default in the performance of any other covenant, agreement,
condition, mle or regulation herein contained or incorporated herein by reference
for more than seven days after written notice of such default by the Landlord, this
lease (if the Landlord so elects) shall thereupon become null and void, and the
Landlord shall have the right to reenter or repossess the Premises, either by
summary proceedings, sunender, or otherwise, and dispossess and remove
therefrom the Tenant, or other occupants thereof, and their effects, without being
liable to any prosecution therefor. In such case, the Landlord may, at its option,
re-let the Premises or any part thereof, as the agent of the Tenant, and the Tenant
shall pay the Landlord the difference between the rent reserved and agreed to be
paid by the Tenant for the portion of the term remaining at the time of reentry or
repossession and the amount, if any, received or to be received under such re-
letting for such pmiion of the term. Tenant agrees to pay all expenses and
damages incurred by Landlord as a result of Tenant's default, including
Landlord's reasonable attorney fees.
In the event that Landlord is required to commence eviction proceedings or
proceedings to otherwise enforce collection of rents or enforce and protect the
rights of Landlord hereunder, Tenant shall be responsible to pay Landlord's costs,
expenses and fees, including reasonable actual attorney fees, which shall be
incuned by Landlord as a result of such proceedings. In case any such suit is
settled before judgment is entered therein, such costs, expenses and fees,
including reasonable actual attorney fees, shall nevertheless be recoverable by
Landlord as part of said settlement.
If Tenant shall fail to perform any of its obligations hereunder, Landlord may, ifit
so elects, and after five days' prior notice to Tenant, cure such default at Tenant's
expense, and Tenant agrees to reimburse Landlord (as additional rent) for all costs
and expenses incurred as a result thereof upon demand.
In the event of a Default and Repossession, if Landlord sells any of Tenant's
property which has been acquired by Tenant using "surcharge funds", the money
shall be turned over to the County of Muskegon and deposited in to the Muskegon
County "Surcharge Fund".
10. Holding Over. Paragraph 23 shall be revised as follows:
Holding Over. It is agreed that any holding over by the Tenant upon expiration
of the term of this lease or any renewal or extension hereof, shall operate as an
extension of this lease from month to month only and Tenant shall be obligated to
pay rent at the annual rate provided for in Exhibit B for 2045 times 1.05.
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Page 5
11. No other Modification. Except as expressly modified by the terms of this First
Amendment, the Lease between the City of Muskegon and Muskegon Central
Dispatch shall remain in full force and effect. In the event of any inconsistency or
conflict between the City of Muskegon and Muskegon Central Dispatch, the
provisions of this First Amendment shall control.
LANDLORD: S ITY O~
By..,.;=-- - -,4.1'-'-----':_____--,:i,:;,~~,,,q,£..<L..:__ - - +_ __ _
Ste
Date: , . -- I - ')o;,. /
~ ~~~
Ann Marie Meisch, City Clerk
Date: 3 -/5 - JOc).J
TENANT: MUSKEGON CENTRAL
DISPATCH
O:\CLERK\COMMON\WORDIAGENDA ITEMS FOR NE XT MEETIN G\2021\03092 1\1 8C_13F6554-1 ST AMENMENT; FINAL; CLEAN.DOC
Page 6
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Here a re the numbers based on changes:
Note that the yellow is debt service, the blue is rent (no debt} and the peach is Common Area
Maintenance.
LEASE 1 LEASE 2 CAM CHARGE TOTAL
~
2021 $ 61,894.93 $ 403,633 .19 $ 15,180.00 $ 480,708.12
2022 $ 62,033 .78 $ 387,341.25 $ 15,407.70 $ 464,782 .73
2023 $ 60,080.42 $ 390,120.00 - $ 15,638.82 $ 465,839.23
2024 $ 58,623.14 $ 387,640.00 .'1 $ 15,873.40 $ 462,136.53
2025 $ 59,677 .84 $ 389,847 .75 $ 16,111.50 $ 465,637 .09
$ $
,l $ 466,546 .61
2026 58,581.44 391,612 .00 j $ 16,353.17
j
2027 $ 56,777.25 $ 387,856.50 $ 16,598.47 $ 461,232.22
2028 $ 54,973.05 $ 388,496.00
--l $ 16,847.45 $ 460,316.50
J
2029 $ 53,168.86 $ 388,473.00 $ 17,100.16 $ 458,742.02
2030 $ 51,364.67 $ 387,906.75 .. $ 17,356.66 $ 456,628.08
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2031 $ 49,560.27 I· $ - $ 17,617.01 $ 67,177.28
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2032 $ 47,130.66 ~
$ t-
""'~·i, $ 17,881.26 $ 65,011.93
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2033 .. $ 45,299.55 $ ::-"~.
-· . $ 18,149.48 $ 63,449.03
-- - - ·- ·-- ----- - -
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2034 $ 54,984.00 $ $ 18,421.73 $ 73,405.73
2035 $ 56,083.68 $ $ 18,698.05 $ 74,781.73
2036 $ 57,205.35 $ $ 18,978.52 $ 76,183 .88
2037 $ 58,349.46 $ $ 19,263.20 $ 77,612.66
2038 $ 59,516.45 $ $ 19,552.15 $ 79,068 .60
2039 $ 60,706.78 $ $ 19,845.43 $ 80,552.21
2040 $ 61,920.91 $ $ 20,143.11 $ 82,064.03
2041 $ 63,159.33 $ $ 20,445.26 $ 83,604.59
2042 $ 64,422.52 $ $ 20,751.94 $ 85,174.46
2043 $ 65,710 .97 $ $ 21,063.22 $ 86,774.19
2044 $ 67,025.19 $ $ 21,379.17 $ 88,404.35
2045 $ 68,365.69 $ $ 21,699.85 $ 90,065.55
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