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16 <br />PTA THRIFT STORE LEASE- SUMMARY OF KEY PROVISIONS <br />Prepared by Tharrington Smith, LLP <br />October 27, 2011 <br />Note: because this lease is for part of a building that has not yet been built, there are several non- <br />standard terms. This document summarizes non-standard terms and key lease provisions only. <br />Additional information and analysis available on request. <br />PREMISES. <br />a. CHCCS will lease the upstairs (second) floor of a new building to be constructed at 103 <br />Jones Ferry Road, Carrboro, NC 27510. <br />b. Exhibit A of the lease shows a preliminary floor plan. <br />c. Landlord must ensure that the building is up to code and that a certificate of occupancy <br />is issued for the building shell. <br />d. landlord must ensure that: <br />i. All utilities are connected. <br />ii. An electrical service panel will be installed providing sufficient power for <br />standard office use. <br />iii. HVAC units will be installed and connected to VOV boxes. Tenant will connect <br />VOV boxes to grills. <br />iv. Restrooms in common areas will be fully finished. <br />2. TERM. <br />a. Lease term will be 7 years, with Tenant having the option to renew for up to 2 additional <br />terms of 2 years each (maximum 11 years). This term is necessary for Landlord to <br />qualify for tax credits that enable it offer a lower rent. <br />b. Landlord must obtain a certificate of occupancy for the building "shell" at least 60 days <br />before Tenant's obligation to pay rent begins. Tenant will make upfits during that time. <br />c. So long as Landlord has first given Tenant 60 days to make upfits, the lease (and <br />Tenant's rental obligations) will commence on the earliest of these dates: <br />i. December 1, 2012. <br />ii. March 1, 2013. <br />iii. June 1, 2013. <br />iv. July 1, 2013. <br />v. August 1, 2013. <br />vi. Any other date by written agreement of the parties. <br />d. If Landlord is not able to obtain a certificate of occupancy for the building "shell" before <br />August 1, 2013, the lease will not become binding. (See "Conditions," below). <br />3. RENT. <br />a. Rent will be $17.25 per square foot of the premises, annually. <br />b. Landlord will have the option to pay monthly or annually. <br />c. Any partial months or years will be prorated. <br />d. Rent will increase by 29'o each year. <br />e. Based on current specifications, rent is estimated to be approximately $127,340 for the <br />first year. <br />4. UPFITS. <br />a. Landlord will give Tenant an allowance of up to $25 per gross square foot for Tenant's <br />upfits, based on Tenant's documented upfit costs. <br />b. Based on current specifications, this allowance could total to as much as $184,550. <br />