01 Cover-ARCA TROSA Lease Assignment

Transcription

FORSYTH COUNTYBRIEFINGDRAFTBOARD OF COMMISSIONERSMEETING DATE:SUBJECT:NOVEMBER 12, 2020AGENDA ITEM NUMBER:12A. RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO THELEASE AGREEMENT BETWEEN FORSYTH COUNTY AND ADDICTIONRECOVERY CARE ASSOCIATION, INC., FOR LEASE OF COUNTY OWNEDPROPERTY LOCATED AT 1931 UNION CROSS ROADB. RESOLUTION AUTHORIZING CONSENT TO AN ASSIGNMENT OF LEASEAGREEMENT BETWEEN FORSYTH COUNTY AND ADDICTION RECOVERYCARE ASSOCIATION, INC., TO TRIANGLE RESIDENTIAL OPTIONS FORSUBSTANCE ABUSERS, INC., FOR LEASE OF COUNTY OWNED PROPERTYLOCATED AT 1931 UNION CROSS ROADC. RESOLUTION AUTHORIZING THE GRANT AND EXECUTION OF ANEASEMENT TO THE CITY OF WINSTON-SALEM FOR FIRE APPARATUSVEHICLES TO ACCESS A PORTION OF FORSYTH COUNTY OWNED REALPROPERTY LOCATED AT 1941 UNION CROSS ROADD. RESOLUTION APPROVING A SITE PLAN FOR DEVELOPMENT OF FORSYTHCOUNTY OWNED REAL PROPERTY LOCATED AT 1931 UNION CROSS ROADCOUNTY MANAGER’S RECOMMENDATION OR COMMENTS:SUMMARY OF Y MANAGER

RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO THE LEASEAGREEMENT BETWEENFORSYTH COUNTY AND ADDICTION RECOVERY CAREASSOCIATION, INC., FOR LEASE OF COUNTY OWNED PROPERTY LOCATED AT1931 UNION CROSS ROADWHEREAS Forsyth County owns real property and improvements located at 1931Union Cross Road, Winston-Salem, N.C., and executed a 50-year lease agreement withAddiction Recovery Care Association, Inc. (ARCA), on December 1, 2011, for ARCA’s use ofthe property;WHEREAS ARCA desires to execute an amendment to the agreement with ForsythCounty to amend the maintenance responsibilities of the Parties, and terms of the County’s rightof entry to the premises and is agreeable to the terms set forth on the attached amendment whichis incorporated herein by reference; andWHEREAS Forsyth County proposes to amend the lease agreement with ARCA asdetailed in the First Amendment to Agreement attached hereto, effective November 1, 2020;NOW, THEREFORE, BE IT RESOLVED, by the Forsyth County Board ofCommissioners that the Chairman or County Manager and the Clerk to the Board are herebyauthorized to execute,on behalf of Forsyth County, the above-described Amendment toAgreement with Addiction Recovery Care Association, Inc., subject to a pre-audit certificatethereon by the County Chief Financial Officer, if applicable, and approval as to form and legalityby the County Attorney.Adopted this 12th day of November 2020.

NORTH CAROLINA ))FORSYTH COUNTY)FIRST AMENDMENT TO AGREEMENT CE120281THE AGREEMENT, made and entered into on 1stday of December, 2011by and betweenForsyth County, North Carolina (the “County”) and Addiction Recovery Care Association,Inc.("Tenant"), is hereby amended, effective November 1, 2020 by the County and the Tenant asfollows:Sections 1,3, 8,9, & 20are hereby deleted and the following shall be added as Sections 1,3, 8,9, &20:Section 1:1. PREMISESLandlord, for and in consideration of rents, conditions, and consideration hereinaftermentioned, provided for and covenanted to be paid, kept, and performed by Tenant, lease toTenant all the buildings, facilities, and land within approximately 6.5 acres located at 1931Union Cross Road, Winston-Salem, North Carolina, as further identified in Exhibit A attachedhereto and incorporated by reference (hereinafter call “Premises”).Section 3:3. RENTALThe Tenant shall pay to the Landlord without demand, deduction or set off, an annualrental for the Premises of 1.00, payable on December 1, 2011 and on the anniversary of thisdate for the Term of this agreement. Tenant may prepay rent.Additionally, the Landlord shall invoice the Tenant each month for the maintenance costsof the preceding month, as described in Section 8 herein. The Tenant shall remit payment to theLandlord within 15 days of receipt of the invoice.Section 8:8. SERVICES BY LANDLORDLandlord shall not be responsible for maintenance, repair, and/or replacement of any partof the Premises except as stated herein:Landlord agrees to replace any non-functioning pump station mechanisms which servicethe Premises prior to the effective date of this first amendment. Additionally, Landlord andTenant shall share the cost of pump station upgrades required for Tenant to increase theirresidential capacity to 150 residents at the Premises. Landlord shall be responsible for fiftypercent (50%) of costs associated with the pump station upgrades necessitated by Tenant’sincreased residential capacity to 150 residents and Tenant shall be responsible for fifty percent(50%) of costs associated with the upgrades. Any future upgrades to the pump station required

by Tenant’s further increased resident capacity will be at the Tenant’s sole expense.Throughout the remainder of the Termthe Landlord shall perform all routine,preventative, capital, emergency maintenance services, and/or replacement on the pump stationsservicing the Premises and invoice Tenant monthly for any and all costs associated with such.Section 9:9. REPAIRS AND RESPONSIBILITIES OF TENANTTenant accepts the Premises in its present condition and as suited for the uses intended byTenant. Tenant shall, throughout the term, at its sole expense, maintain in good order and repairthe Premises. Tenant agrees to return the Premises to the Landlord at the expiration or prior tothe termination of this Lease, in as good condition and repair as when first received, reasonablewear and tear excepted. Tenant, Tenant’s employees, agents, contractors, subcontractors, orinvitees shall take no action which may void any manufacturers’ or installers’ warranty withrelation to the Premises. Tenant shall indemnify and hold Landlord harmless from any liability,claim, demand or cause of action arising on account of Tenant's breach of the provisions of thisparagraph.Notwithstanding anything herein to the contrary Tenant shall be responsible for providingall routine, preventative, capital, and emergency maintenance services, repairs, and replacementsto the Premises and relating to operation of such,including, but not limited to the following: (a)maintenance and repair of improvements, alterations, and building systems,(b) roof repair andreplacement, (c) grounds maintenance services, (d) janitorial services to the Premises, (e) solidwaste removal, and (f) light pole lease fees.Section 20:20. LANDLORD’S ENTRY OF PREMISESLandlord may enter the Premises at reasonable hours to inspect the Premises and/or forthe purpose of advertising the Premises For Rent or For Sale. Additionally, the Landlord mayenter the Premises via the access road to gain entry to the Parks and Recreation storage facility,located inside the leased boundary, at any time.Exhibit A is hereby deleted and the attached shall be incorporated as Exhibit A.

Except as herein amended, the agreement incorporated in the Lease Agreement attachedas Attachment A and incorporated herein by reference remains unchanged and in full force andeffect.[SIGNATURES ON NEXT PAGE]

IN WITNESS WHEREOF, the County and the Tenant have set their hands and seals asof the day and year first above written.FORSYTH COUNTY, NORTH CAROLINABy:J. Dudley Watts, Jr., County ManagerDate:ATTEST:Ashleigh M. Sloop, Clerk to the Board(SEAL)TENANT: ADDICTION RECOVERY CAREASSOCIATION, INC.By:Printed Name:Title:Date:

RESOLUTION AUTHORIZING CONSENT TO AN ASSIGNMENT OF LEASEAGREEMENT BETWEENFORSYTH COUNTY AND ADDICTION RECOVERY CAREASSOCIATION, INC., TO TRIANGLE RESIDENTIAL OPTIONS FOR SUBSTANCEABUSERS, INC., FOR LEASE OF COUNTY OWNED PROPERTYLOCATED AT 1931 UNION CROSS ROADWHEREAS Forsyth County owns real property and improvements located at 1931Union Cross Road, Winston-Salem, N.C., and executed a 50-year lease agreement withAddiction Recovery Care Association, Inc. (ARCA), on December 1, 2011, for ARCA’s use ofthe property;WHEREAS ARCA requests consent from Forsyth County to assign the lease agreementto Triangle Residential Options for Substance Abusers, Inc. (TROSA), beginning December 1,2020, as detailed in the Assignment of Lease Agreement attached hereto; andWHEREAS TROSA desires to accept the assignment of lease agreement for the purposeof operating a residential substance abuse program at the property;NOW, THEREFORE, BE IT RESOLVED, by the Forsyth County Board ofCommissioners that the Chairman or County Manager and the Clerk to the Board are herebyauthorized to execute, on behalf of Forsyth County, documents signifying Forsyth County’sconsent to the above-described Assignment of Lease Agreement with Addiction Recovery CareAssociation, Inc., to Triangle Residential Options for Substance Abusers, Inc., subject to a preaudit certificate thereon by the County Chief Financial Officer, if applicable, and approval as toform and legality by the County Attorney.Adopted this 12th day of November 2020.

February 3, 2020Mr. Jack D. Watts, County ManagerForsyth County201 N. Chestnut StreetWinston-Salem NC 27101Subject: Assignment of Lease- ARCADear Mr. Watts,As you know the Addiction Recovery Care Association, Inc. (ARCA) has entered into a new leaseagreement with Forsyth County for the facility located at 5755 Shattalon Drive Winston-Salem NC. OnceARCA moves to that facility, it will no longer need the facility at 1931 Union Cross Road, Winston-Salem,NC.ARCA has worked out an agreement with a collaborative partner, Triangle Residential Options for SubstanceAbusers (TROSA).We have drafted a proposed Assignment of Leasewhich includes a Landlord’sconsent(enclosed) for your review and approval by the Board of Commissioner’s pursuant to the terms of ourlease.The Assignment of Lease Agreement is contingent upon the approval of a rezoning request by TROSA for theproperty located at 1931 Union Cross Road Winston-Salem, NC.Current timeline projections are for ARCA to move into the new location by the end of 2020. TROSA maybegin upfit of the Union Cross Property before ARCA vacates. Details of TROSA’s plans are still beingdeveloped and as stated previously, pending the approval of rezoning.ARCA values it’s long standing partnership with Forsyth County. We are excited to have the opportunity toexpand our services and help even more people in the area.Please advise should you have any questions or concerns.Sincerely,Thom ElmoreExecutive Directorcc TROSA

Assignment of Lease AgreementThis Assignment of the Lease (the “Agreement”) is made on and effective onDecember 1, 2020.Between:AND:The Addiction Recovery Care Association, Inc. (ARCA) (the“Assignor”) a corporation organized and existing under the laws ofNorth Carolina, with its current office located at:1931 Union Cross RoadWinston-Salem, NC 27107Triangle Residential Options for Substance Abusers (TROSA)(the “Assignee), a corporation organized and existing under thelaws of North Carolina, with its head office located at:1820 James StDurham, NC 277071. Assignment of LeaseTo compensate for the assets owned by the Assignor including but not limited toimprovements madeade by Assignor to the Premises,Premises the Assignee agrees to pay the sumof three hundred seventy-fiveseventythousand dollars. ( 375,000). Andthethe Assignor assignsand transfers to Assignee that lease, dated December 1st, 2011andand amended November1, 2020, executed by assignor as lessee and by Forsyth County as lessor, whichamended lease is attached hereto as Exhibit B and incorporated herein by reference, thefollowing described premises:PREMISESAll of the buildings, facilities, and land located at 1931 Union Cross Road, WinstonSalem, North Carolina, as further identified in “Exhibit A” attached.attachedTogether with all his right, title and interest in and to the lease and premises, subject toall the conditions and terms contained in the lease, to have to hold fromDecember 1, 2020 until the present term of the lease expires on November 30,2061, atmidnight.2. Assignor Warranties and RepresentationAssignor covenants that he/she is the lawful and sole owner of the interest assignedhereunder; that this interest is freefree from all encumbrances; and that he has performed allduties and obligations and made all payments required under the terms and conditionsof the lease.Assignee agrees to pay all rent due after the effective date of this assignment, and toassume and perform all duties and obligations required by the terms of the amendedlease.Both parties agree the effective date of this agreement is subject to change due to thepossibility of construction or other delays.Both parties agree this Lease assignmentassignment is dependent upon the approval of rezoning ofthe property. If the property fails to become rezoned as requested by the Assignee, thisagreement becomes null and void.TROSAARCAleaseassignment10.9.2020.2020

Assignment of Lease Agreement3. Consent of LessorThe Lessor, named in the above assignment of that lease executedd on December 1st,2011andand amended November 1, 20202020wisheswishes to consent to this assignment. The lessoralso consents to the agreement by Assignee to assume after December 1, 2020, thepayment of rent and performance of all duties and obligations as set forth in theamended lease, and releases Assignor from all duties and obligations under the lease,including the payment of rent, afteafter December 1, 2020 and accept Assignee as lessee inplace of Assignor.4. Binding AgreementThe assignment shall be binding upon andand inure to the benefit of the parties, and theirsuccessors and assigns.IN WITNESS WHEREOF, the Assignor has executed this Assignment on the dayand year first above written.ASSIGNOR:: ADDICTION RECOVERYCARE ASSOCIATION, INC.ASSIGNEE:: TRIANGLE OPTIONSFOR SUBSTANCE ABUSERSAuthorized SignatureAuthorized SignaturePrint Name and TitlePrint Name and TitleDateDateForsyth County consents to this Assignment of Lease Agreement.Authorized SignaturePrint Name and TitleDateTROSAARCAleaseassignment10.9.2020.2020

Assignment of Lease AgreementExhibit ABEGINNING at an existing PK Nail in the southern right-of-wayrightway of Union Cross Road,said PK Nail being the northeast corner of FS Log Cabin, LLC Property as recorded inDeed Book 2798, Page 3776 (Lot(Lot 45D, Tax Block 5621) and the northwest corner ofForsyth County Property as recorded in Deed Book 1125, Page 1705 (Lot 310, TaxBlock 5621); thence with the southern right-of-wayrightway of Union Cross Road S. 87 07’40” E.650.26’ to an iron placed, the northwestnorthwest corner of said Lot 310 and the northwest cornerof Forsyth County Property as recorded in Deed Book 1125, Page 1705 (Lot 311, TaxBlock 5621; thence with the lines of said Lot 310 and 311 the two following courses anddistances: 1) S. 05 54’25” W. 130.00’130.00’ to an iron placed; thence 2) N. 87 38’58” W.130.90’ to an iron placed a corner of said lot 310 and Lot 311; thence on a new line andcrossing said Lot 310 N. 87 38’58” W. 1.39’ to a point; thence on a new line andcrossing said Lot 310 and Lot 311 the ten (10) following courses and distances: 1) S.02 56’05” W. 235.26’ to a point; thence 2) S. 02 56’05” W. 82.31’ to a point; thence 3)N. 86 53’30” W. 204.16’ to a point; thence 4) N. 86 18’35” W. 49.19’ to a point; thence5) on a curve to the right (hav(havinging a radius of 39.05’) a chord bearing and distance of S.36 33’56” W. 10.24’ to a point; thence 6) S. 44 55’16” W. 76.86’ to a point; thence 7) S.48 13’20” W. 132.04’ to a point; thence 8) on a curve to the right (having a radius of60.70’ a chord bearingng and distance of S. 73 42’01” W. 29.68’ to a point; thence 9) N.88 23’19” W. 17.94’ to a point; thence 10) N. 87 05’21” W. 67.12’ to a point in theeastern line of D & D Steel, LLC as recorded in Deed Book 2258, Page 447 ( Lot 128,Tax Block 5621); thencece with the western line of said Lot 310 and the eastern line ofsaid Lot 128 the two (2) following courses and distances; 1) N. 03 03’36” E. 67.82’ toan existing 5/8”iron; thence 2) N. 02 25’32” E. 244.62’ to an existing 5/8” iron, thesoutheast corner of said Lot 45D; thence with the eastern line of said Lot 45D N.04 28’19” E. 303.23’ to the place of BEGINNING and containing 6.4326 Acres more orless.The above described property being Tracts A & B as shown on an unrecorded mapprepared by Brady Surveyingying Company, PA. datedJuly 15, 2008 drawing no. 087073.TROSAARCAleaseassignment10.9.2020.2020

Assignment of Lease AgreementEXHIBIT BNovember 1, 2020 Amended Lease AgreementBegins on next pageTROSAARCAleaseassignment10.9.2020.2020

RESOLUTION AUTHORIZING THE GRANT AND EXECUTION OF AN EASEMENTTO THE CITY OF WINSTON-SALEM FOR FIRE APPARATUS VEHICLES TOACCESS A PORTION OF FORSYTH COUNTY OWNED REAL PROPERTYLOCATED AT 1941 UNION CROSS ROADWHEREAS the City of Winston-Salem requires an alternate route for fire apparatusvehicles to access the County property located at 1931 Union Cross Road to accommodateTriangle Residential Options for Substance Abusers, Inc.’s (TROSA), new development at theproperty;WHEREAS the City of Winston-Salemrequests an easement to access a portion ofForsyth County owned real property located at1941 Union Cross Road, Winston-Salem, NorthCarolinafor this alternate route for fire apparatus; andWHEREAS Forsyth County is authorized pursuant to the provisions of N.C.G.S. 153A176 and 160A-273 to grant easements under these circumstances, and County staff hasdetermined that the proposed consideration and other terms negotiated between the parties arereasonable;NOW, THEREFORE, BE IT RESOLVED, that the Forsyth County Board ofCommissioners hereby authorizes the grant of an easement to access a portion of Forsyth Countyowned real property located at 1941 Union Cross Road for an alternate route for fire apparatusvehicles to access real property and improvements located at 1931Union Cross Road forconsideration of 10.00; andBE IT FURTHER RESOLVED, by the Forsyth County Board of Commissioners thatthe Chairman or County Manager and Clerk to the Board are hereby authorized to execute, onbehalf of Forsyth County, the attached Easement document and any other necessary documentsto grant the above-described access easement to the City of Winston-Salem, subject to a preaudit certificate thereon by the County Chief Financial Officer, if applicable, and approval as toform and legality by the County Attorney.Adopted this the 12th day of November 2020.

RESOLUTION APPROVING A SITE PLAN FOR DEVELOPMENT OF FORSYTHCOUNTY OWNED REAL PROPERTY LOCATED AT 1931 UNION CROSS ROADWHEREAS Forsyth County owns real property and improvements located at 1931Union Cross Road, Winston-Salem, N.C. assigned the lease agreement from Addiction RecoveryCare Association, Inc.,to Triangle Residential Options for Substance Abusers, Inc. (TROSA),beginning December 1, 2020; andWHEREAS TROSA desires to develop the property to better suit their long-term needsin operating a residential substance abuse and addiction recovery treatment facility, as outlined inthe site plan attached hereto;NOW, THEREFORE, BE IT RESOLVED by the Forsyth County Board ofCommissioners that the Chairman or County Manager and the Clerk to the Board are herebyauthorized to execute,on behalf of Forsyth County, any necessary documents to approve theabove-described site plan, subject to a pre-audit certificate thereon by the County Chief FinancialOfficer, if applicable, and approval as to form and legality by the County Attorney.Adopted this 12th day of November 2020.

Union Cross Road, Winston-Salem, N.C., and executed a 50-year lease agreement with Addiction Recovery Care Association, Inc. (ARCA), on December 1, 2011, for ARCA's use of the property; WHEREAS. ARCA desires to execute an amendment to the agreement with Forsyth