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066-07BOARD OF SUPERVISORS RESOLUTION APPROVING AMENDED DEED OF LEASE BETWEEN THE COUNTY OF FREDERICK, VIRGINIA, AND THE COMMONWEALTH OF VIRGINIA, DEPARTMENT OF MILITARY AFFAIRS Whereas, the Board of Supervisors of the County of Frederick, Virginia, conducted a Regular Meeting on May 23, 2007; and Whereas, the Board of Supervisors considered a Deed of Lease between the County of Frederick, Vu-ginia, and the Commonwealth of Virginia Department of Military Affairs for a site for a new National Guard Armory. Now, Therefore, Be It Resolved., that the Board of Supervisors of the County of Frederick, Virginia, unanimously approved the Deed of Lease between the County of Frederick, Virginia, and the Commonwealth of Virginia Department of Military Affan-s for a site for a new National Guard Armory to be located in Frederick County, Virginia. Be It Further Resolved, that the Board authorizes the County Administrator to execute said Deed of Lease on behalf of the County. Approved this 23rd day of May, 2007. VOTE: Richard C. Shickle Bill M. Ewing Charles S. DeHaven, Jr Gary W. Dove Aye Gene E. Fisher Awe Aye Philip A. Lemieux A_S e Aye Barbara E. Van Osten Aye Ave ~, i ~~ ~ John Rini , Jr., ~ ~ Frederic County Board of Supervisors Resolution No.: 066-07 COUNTY of FREDERICK John R. Riley, Jr. County Administrator 540/665-5666 Fax 540/667-0370 E-mail: jri ley @ co,frederick. va.us 1 TO: Board of Supervisors FROM: John R. Riley, Jr., County Administrator SUBJECT: Revised Deed of Lease for the Armory Site DATE: May 17, 2007 Attached please find a black lined version as well as a clean version of the revised Deed of Lease between the County of Frederick, Virginia, and the Commonwealth of Virginia, Department of Military Affairs for the new armory site. The proposed changes were requested by the Governor's Office. Changes from the previous version approved by the Board and the proposed include the following: Early Termination The County may terminate this lease if the Department of Military Affairs' non-military use of the armory is incompatible with nearby residential, office, or other permitted uses within the zoning district. If the County chooses to terminate the lease for incompatible non-military use by the DMA, the County must purchase the Armory at the appraised value or, if greater, the amount owed to the Federal Government as construction costs. In the event the County is unable or unwilling to pay the purchase price for the armory, then the lease continues for the remainder of its teen. At the end of the lease, the County will become the owner of the Armory. Utility Easements The County will bring utilities to within 300' of connection for the DMA. The DMA will pay the customary tap fees for the Armory. (Per the proffer agreement, the County is 107 North Kent Street Winchester, Virbinia 22601-5000 named as the party to extend utilities to the site; however, the actual extension of utilities to the site remains the responsibility of Miller and Smith [the developer].) Condemnation In the event of condemnation, the DMA will receive that portion of the award for the armory building, the present value of the lease, and its furnishings. The County will receive the balance of the award. If there are no issues or concerns, staff is requesting the Board to approve the revised lease and authorize the County Administrator to execute same on behalf of the County. Once this has been completed the document will be returned to the Attorney General's Office for the remaining signatures. Should you have any questions or concerns, please do not hesitate to contact me. JRR/j et Attachment ,~., LEASE NO. 123-L0080 DEED OF LEASE FREDERICK COUNTY ARMORY SITE This Deed of Lease is made this _ day of \~,~, 2007, by and between the COUNTY '. Deleted: reb~,ary ', OF FREDERICK, VIRGINIA, a political subdivision of the Commonwealth of Virginia, referred to hereinafter as the "County", Lessor, and the COMMONWEALTH OF VIRGINIA, DEPARTMENT OF MILITARY AFFAIRS, referred to hereinafter as "DMA", Lessee. WITNESSETH: WHEREAS, the County has acquired, by Deed of Gift dated the 24`h of January, 2007 and recorded the ton of February, 2007 in the Clerk's Office of the Circuit Court of the County of Frederick, Virginia as Instrument No. 070001977, fee simple title to that certain parcel of ]and lying and being situate in Shawnee Magisterial District, Frederick County, Virginia, located southwest of Millwood Pike (U. S. Route 50/17), containing 10.1321 acres, more or less (the "County Property"), being more particularly described as "New Parcel 82" upon that certain plat titled "Boundary Line Adjustment Governors Hill Between Parcel 82 & Parcel 83", Shawnee Magisterial District, Frederick County, Virginia dated May 3, 2006, revised January 17, 2007, by Patton Harris Rust & Associates, pc, which plat is attached to and made a part of that certain Deed of Boundary Line Adjustment dated January 24, 2007 and duly recorded in the aforesaid Clerk's Office as Instrument No. 070001976, together with that certain temporary ingress/egress, access, and utilities easement (the "Easement"), designated as "Variable Width Temporary 1/E, Access & Utilities Esmt." more particularly described on the aforementioned plat by Patton Harris Rust & Associates, pc, for purposes of temporary ingress/egress, access, and the installation, construction, reconstruction, maintenance and removal of utilities to serve the County,Property, which easement shall become null and void at such time as the construction of a road for public street purposes is complete and accepted for maintenance by the Virginia Department of Transportation, but which shall otherwise be deemed perpetual and appurtenant and shall run with the title to the adjacent lands (New Parcel 83) for the benefit of the County Property; and WHEREAS, DMA desires to build a new Armory on the County Property (the "Armory Building"); and, WHEREAS, the County has agreed to lease the County Property to DMA in a long term Lease (the "Lease") for consideration to be more particularly identified herein; and WHEREAS, the appropriate federal and state budgetary appropriations have been made to allow the construction of the Armory Building on the site herein identified. ,i Deleted: - NOW, THEREFORE, in consideration of the covenants and mutual obligations entered ,' Deieced:- ~~ into herein,'the County hereby leases unto DMA, and DMA leases from the County, the County Property, together with the right of ingress and egress thereto, upon the following terms and conditions: 1. TERM. The term of this Lease shall be for ninety-nine (99) years and shall begin on ~i:r. 1, 2007, and end on the ninety-ninth annual anniversary of the commencement date, ' Ue~eted: Mann-_ unless sooner terminated by agreement of the parties. 2. CONSIDERATION. DMA has paid to the County the sum of One Dollar ($1.00) at the time of execution of this Lease by DMA as rent for the entire term of the Lease. 3. USE. The Armory Building may be used and occupied by DMA, an agency of the Commonwealth of Virginia, or its successor agency for housing and training the Virginia militia, primarily units of the National Guard; for use by federal military forces under the terms of the Commonwealth's contract with the United States of America; for the storage of military property belonging to the Commonwealth and the United States; and for other such purposes and uses as the Commonwealth may hereafter have. DMA may construct the Armory Building and such other facilities and improvements on the County Property as it may deem appropriate. All such buildings and facilities shall be and remain the property of DMA during the term of the Lease and shall, conditioned upon payment of any funds as set forth below, become the property of the County at the termination of the Lease. -DMA agrees that, subject to receiving the necessary appropriations, it will use the Armory Building in accordance with this Lease and maintain the Armory Building in a clean and reasonably safe manner in order to prevent the building from becoming an eyesore or nuisance.__In the eceni chat the_cc>ntinucd use of the \rnun '_uil_line for niihi,i_r~~~~~ca is no lun~~rt a~~pm~-n~i ite nr Cca,ible,_the Couuw agrees h;A the li~lle~~.cim, non ntJitarP u5cs of Ih~ nnJx~rl.~ shrtll he hermitteii during tlic term of thin 4. EARLY TERMINATION. (a) The parties recognize that the property adjacent to and within close proximity to the Armory Building will have residential, office and other permitted uses. Certain non-military uses authorized under Section 3, above, may, in the County's opinion, be incompatible with the character of development adjacent to and within close proximity to the Armory Building. Consequently, DMA agrees that, should it or its successors seek to use the Armory Building for anon-military purpose authorized under this Lease for longer than one (1) year, it will notify the County at least six (6) months prior to the date that it intends to cease using the Armory Building for military purposes. If the County determines that the proposed use is incompatible with the development adjacent to and in close proximity to the Armory Building, it shall have the righf to terminate this Lease and purchase the Armory Building and any ancillary structures from the Commonwealth as follows: hie i_nwuc?~gr~e> k>_,nu-cltane the .-4nnory Building, ~~~tthnl one hundred ei~=hiti~ (ingl de vs ul the termination of the L.case, for the f iir n~arkct value of the Annory Buildin ~ ,i~, ~stabli;hed b~ the a~cxage of rao bc~nti(id~ ,~~~irai5als, one to be obtained by I)MA .vui one he the C~ount~~. I fthe difference bet~~~ecn il~c two tnnriisal i ~>reaiter than i petered. - - --- - - In°;:. t,~~n the i~~u aPTtrai,cr, >h,;Il cho~i~:e a third anh~~n~,cr, and the an~ra~~t~ of tne_ ihi~d ~ Deleted:. _ I -~- taprai~ r :.hall 7~ Inc +~air ruailtel ~Iluc of thc_ pt ul?eny.~~ro~`ided. Larrccer. that tfle I.~ir nr.irl.a ~ tlue shah not be less than the lower cf the fast t~~'o ahDraiserc nor hi<_rher than ~hc_ hill ci of th tir~i trio ~t~ra~~~ils. Each ~~ar",' chap )~t~tol th~_~gsC of its pun uh;~;~rt ll ainci_ it neress,n`,~. half the ci>l of the Child ahw<tisal. Nottalthstandin~~ the. i ,i~,~nirr~. eixxild anv fund.; be o~~ned to Ih~ Icderal co.~ernment tinder the terms oi' ~ti'li'ittu~ C_on;trucuon Cu>~>crative `\_~recment t`AR\Cr'") ^~o Arr93LQ U~_33O(7O (the ~ i ~r;noi~- Buildin<=, n eoL of_wlnch ras been hru~-iaod to the Counte. `~,AICL A"i for 1 ie ~ ~ ~' ilu~n utc ~~nula~- ree; to '~ Iy f3\q;a no! ~l Ji tErm the. amount vt~ nwcd t.o the I,'ileral =:~t~ernment a ~ ~~~ date 11f the. tennimltion of tl-is [,.easa. I he C~o~n~r. ~i~rccs that if (hi, Lease is termnuttcd br the COt.e~t~' becaue of a - -- nqt~-r,lh~~tr~' as an heruu,fbo~c n~~~~'ided. Ihen the Count' shall n+~t u,e the C;ouniv ~'i~meii, ic~r ~uul nna-militsr; tcc until alici ^,artl Ali ?1O(i. In ,u7v event ofa ~-iulaGon .>f thi- ~~~r~~ ision b4~ the_Couittv. the Cet,nu~ hill rw to DR-1A Un addition to the amount i~.iid_i u ' .ant tel the hre~~dut'_ h: i ~ ~-inhl the fair lnail;et rent i -ia~gunted to hitties~it ~~il~ic~i ~ti~ihe Crxuity i'rr~p~ntc fPOn~ Iha dales c~[ tennin~uon of the Lease until April 3O_ I.'h t ;i _ 1~ Ll I Lear ~'t'lu ~(1 ^ 11141' '71IOI' (O t~l" Lnd 01 ilC iirlll ~~~ b' bCr~LlSC: (1 I Ot lh I}llilli~ U !I1@ ~ 11 L'I illcl f16 nC~_II :15 .~lllhlV` tU apPrOhl-I Pltl. ~ifl lL'It~ I innd8 ~!)r- i_)I~ trih_nci,c autholi ~.-the runtinued o~_aitiun ~rfthc Armnr~ 13uikiin«, or t?i o'f the laiiure~ ref lh~ I Jcral ernernnuul 1u apl?rciniatc sull~icicl~t liuxl~ liir, ui orhu'l~t-i_~ authorize. the ;t,ntin.ied tn?e iiitu~ rf the Arnx~n tinil~;hn or (3) [)~~1-~ a l':,tit eeasc ht c~isa, anal its 1n ~s'lf and ;_ul~~~~I'IiV Jls nCll_Ititi14n C(I trl anOl'Tll l' l'C-IhV' O~ 1he t_.OnllnOnbl'ea~L~l OI \'uui ii t lhcn,_in_,io1 such evi,nL the hmtisiuns of suhsecfion (aj aboi~e ~silh re:p~ect [o the ~;m uuit to be n;tid to U~~U1 for ;he Cimvnom~~~elitlt.of Vu=inia if I7MA shall not c,,t1 h~ Coe Ccuuyv. tnxl the manner i??_~~'hiclt such imu~.mt shall tie determioctf. ;hall aii~ i~. in ;inv , i_li ~~~;ni tif~7;'t Mill uu~lcator to vice a, niuait rn_~iic~ 1, t.rctisun,lbiv .,ulLicipaled ~u~sibic~ _of the event t l~erin~ Chu tarminatir~,n of Ihis Loa,ee and. Ih_' !.-m;il,Il~U~I slat C. buI ~altll t' 117 PIF'C St1C~1 nOllCl shAli T1 Ot JIiC;CT tYle tertmTlatlOn- (c) DMA agrees to pursue the necessary appropriations for the continued operation and maintenance of the Armory Building, without guaranteeing in any way the success of those efforts. (d) If the County is unwilling or unable to pay any sums specified above, then this Lease shall continue in full force and effect. (e) As referenced in Section 3 above, at the expiration of this Lease the County shall become the owner of the Armory Building and any ancillary structures. 5. UTILITIES. County agrees to coordinate with DMA's construction personnel to bring to the County Property water, sewer, electrical and other available public utilities, sufficient for all currently proposed and reasonably anticipated uses, when required by construction or other activities. County owned utilities adequate to serve the Armory Building shall be brought to the property line of the County Property at DMA's expense, provided the ',, Deleted: (i) Should any funds be ~~~. owned [o the fedeml government under ii li the terms of Military Construction I, Cooperative Agreement ("ARNG") No. I i W 92LQ-OS-2-2000 (the "MCCA") for the ', Armory Building, a copy of which has '~.. ~~~ been provided to the Crunty, then the I II County agrees to pay DMA; within one i hundred eighty (180) days of termination I ~I of the Lease, any sums owed as i, ,compensation for the Artnnty Building or I, ' ancillary stmcNres [ransferted to the ' ~'~ County. The County agrees to reimburse DMA, in the same proportion as specified ~, under the MCCA, for smte Eunds used in the constmction of the Armory Building.9 Deleted: (ii) Should no funds be 'i '. owed under the MCCA, [hen the County '. agrees to purchase [he Armory Building ~ within one hundred eighty Q80) days of the termination of the Lease, for the fair market value of the Armory Building as ~ established by the average of two ~'i bonafide appraisals, one to be obtained by '~. DMA and one 6y [he Cnunty. If the ~I difference between the two appraisals is I greater than ID%, then the two appraisers ~~~ shall choose a third appraiser, and the ~ li average of the lhnx appraisals shall be ~'. the fair market value of the property. ~ Hach party shall pay for the cost of its i ' own appraisal and, ifnecessary, half the ; cost of the third appraisal. ¶ ~ ¶ ~ (b) if this Lease should terminate prior i '~ to the end of the term solely because of i the failure of [he Virginia General I Assembly to appropriate sufficient funds '~I it for, or otherwise authorize, the continued ~, operation of the Armory Building, and '.. ', should any funds for the Armory Building , 'I be owed to the federal government under I. the terms of the MCCA, a copy of which ' ~, has been provided tin the County, [hen the ~. County agrees [o pay DMA, within one ~ '~ hundred eighty (180) days of termination : of the Lease, any sums owed as compensation for the building or i ' buildings tmnsEerred to the County. ¶ I Deleted: - ' Deleted. , ~3~ length of service necessary to connect each utility to the existing utility is not greater than 300 linear feel. DMA's responsibilities and obligations under this Lease are contingent upon all ', Deleted: . necessary utilities being available to the site in a timely fashion so that occupancy may be achieved without delay following construction of the Armory Building. DMA agrees to pay the usual and customary tap or connection fees for connection to County owned public utilities in order to serve the Armory Building. 6. APPLICABLE LAWS AND ORDINANCES. To the extent that County ordinances do not conflict with state or federal law, DMA agrees, in constructing the Armory Building and landscaping the grounds, to be guided by the ordinances of the County which would otherwise be applicable to this project, and to comply with applicable state and federal laws, as well as to consult with the County on the site plan to be developed for this project. Both the County and DMA acknowledge that DMA is not subject to County ordinances, but that DMA voluntarily agrees to work cooperatively with the County to develop an armory project that is consistent with the County's Comprehensive Plan and ordinances for the area. 7. CONDEMNATION. (a) The County shall give immediate notice to DMA of any discussions, offers, negotiations or proceedings, with any party, regarding condemnation or taking of any portion of the County Property. (b) In the event that any portion of the County Property is taken by eminent domain, or sold to the holder of such power pursuant to a threatened taking such that, in the sole opinion of DMA, the County Property is no longer suitable for the purposes for which it is leased, then this Lease shall terminate effective as of the date of the taking. The date of taking will be the earlier of: (i) the date on which title vests in the condemning entity (the date of deed recordation or the date of filing a Certificate of Take or Certificate of Deposit by the condemning entity) or (ii) the date on which the condemning entity takes possession. (c) In the event of a taking, ,DMA shall receive- 1.1 I any portion of such award attributable to the Armory Building, any such other structures as may have been erected by DMA on the site, DMA's furniture, equipment and fixtures, and moving expenses and allowances an~l_(~i anv norrion pi ~~uch ^~~~~:~r~1, u~~l to exceed the ~~alut i~i'tLc larul at:~ dClual~'InCd Ill !hl. .l n'Sl1d i~I (>C.~Sn._~o t~.lh~n}I ~)~C 10 t~i {-: (lldyl, 111 ~_Bl1IC Oj~ the reJllt11111n 11 (eI~!l'1 ~i rhi- 1 ease m DP/L4 fiir the Corm°tnrtwe<<lut i~~f V'irl*inia in LLe event DM.4 no (onaer .~ iSc ._lhe Cinmtc ~lmll rccci~e the remainu~r' rx:rticut ~~f the ,award amlb,ndhl~ to 'the .aloe o. the land. STATUS OF THE PARTIES. (a) County and DMA understand and acknowledge that the Department of i, Deleted: the County shall receive any '. '~. and all portions ofthe award related to ', ~, the land leased herein, but I Deleted: . j Deleted: - 1 '~, Deleted: - -~ ._~ Military Affairs is an agency and Department of the Commonwealth of Virginia and that ,,,-' the County is a political subdivision of the Commonwealth. The parties also agree that, ~-- with respect to tort liability for acts or occurrences on or about the County Property, including product liability, the Commonwealth, DMA and the County are either: (i) constitutionally immune (or partially immune) from suit, judgment or liability; (ii) insured; or Deleted: Notwithstanding any other '~. provision of this Leau,ifDMAshall (iii) covered by a financial plan of risk management that is in the nature cease to exist, ^na is n^t replaces by a of self-insurance, all as determined by applicable laws, government policies and successor entity with similar powers and ', pnrpoaes,or;apnwersanaaatn^rityare praCtICCS. '~, limited so as to not permit the continued use of the County Property for the ~ '. purpose and use for which same is leased, 'I (b) County and DMA each acknowledge that the other has not agreed to I tnen this Lease ana an responaibihry nr provide any indemnification or hold harmless agreements running to the other party. obligations of DMA undtt this Lease anau terminate. m soeh event, DMA wal I Each party agrees to maintain sufficient liability insurance, including self-insurance, In endeavor to give as much notice as is I such amounts and with such coverage as to protect its interests and insure reasonable reasonably possible ofthe event ~. 'trigge,;ngthete,,,tinahonafthisLea:e ', financial responsibility in the event of liability for injury, loss or damage at the County aaa(he an,icipatea termination aate,bw ~ ~ Property. No provision, covenant or agreement contained in this Lease shall be deemed, , '~~ failure to give such nonce shall nut affect ! the term;natinn.~ in any manner, to be a waiver of the sovereign immunity of any party from tort or other ' ~ I , I (e) Notwithstanding any other provision hablhty. of this Lease, if the powers, authority, or ~~ funding of DMA shall be limited or ii in its :ole ana as a reanh DMA ' `°rtaded c This Lease shall be overned b and construed accordin to, the laws of ( ) g y, g ' , t; discretion, determines that the continued the Commonwealth of Virginia, and any legal action hereunder shall be instituted only in ~ use of the County Property for the I the Circuit Court of Frederick Coun Vir inia unless otherwise rovided b law. ty, g ~ P Y i ParPose nr nae ror wnien [ney wtte leases is no longer permitted, nuthotized, ~, advisable, warranted orjustiied, [hen this (d) $ecause neither DMA nor the County can expend funds unless Lease and all responsibility ur obligations of DMA under this Lease rosy be !-~, appropriated through proper legislative channels, both parties agree that the failure of ' tenninatea ny DMn at any time `~ either party to comply with any term of this Lease because fundin is not authorized shall g thereafter, at its sole option, by giving I three (3) months written notice thereof to not be considered a default under this Leaser ~ the cnanty.¶ (~ Because DMA cannot expend stale 9. NOTICES. funds unless appropriated by [he Virginia General Assembly, or federal funds '. unless appropriated by Congress, if eny (a) All notices to DMA required or permitted under this Lease shall be given ', session of [he Virginia General Assembty elthel: I or the United States Congress fails to i ~ appropriate funds for the contimrance of I I I ~. this Lease, this Lease and all obligations i (i) by mailing the notice by certified U.S. mail, postage prepaid, nereanaeranauaatnnratieauyterminate I ',. upon depletion of the then currently I return receipbrequested, addressed to: i appropr;mea ^r an^eateas,^aa.~ ~,~ Construction and Facilities Management Officer I (g) ----_--- ' ~ ~ Attn: VAFM, Bullding 316 . Deleted: provided, however, that the : otherwise defaulting party is seeking such FOrt P1Ckett appropriations in good faith and that the ~ " Blackstone, Virginia23R24-6316 party is not irtepambly ~ "non-defaulting hannedthereby '~. Deleted: j ~ OR ~ Deleted: - ~ ~5~ Military Affairs is an agency and Department of the Commonwealth of Virginia and that the County is a political subdivision of the Commonwealth. The parties also agree that, with respect to tort liability for acts or occurrences on or about the County Property, including product liability, the Commonwealth, DMA and the County are either: (i) constitutionally immune (or partially immune) from suit, judgment or liability; (II) InSllred; OI Deleted: Notwithstanding any other ' provision of this Lease, if DMA shall (iii) covered by a financial plan of risk management that is in the nature cease m exiat, and is tt« rcplaeea by a 'i d of self-insurance, all as determined by applicable laws, government policies and successor entity with similar powers an I p°rpoae5,oriupowesanaaatnoriryare ~ praCtlCCS. i limited so as to not permit the continued ', ~'. use of the County Property for the '' purpose and use for which same is leased, ~ (b) County and DMA each acknowledge that the other has not agreed to then [his Lease and ell responsbility or ' provide any indemnification or hold harmless agreements running to the other party. obligations of DMA under this Lease ~~, anan terminate. In snch evrnt, DMA wiu ' Each party agrees to maintain sufficient liability insurance, including self-insurance, in endeavor to give as much notice as is '' such amounts and with such coverage as to protect its interests and insure reasonable reasonably possible of the event ttiggering the termination of this Leaae ' financial responsibility in the event of liability for injury, loss or damage at the County , ' anatneanti~iparedtem,inert°naate,bnt ~ Property. No provision, covenant or agreement contained in this Lease shall be deemed, ' failure to give such notice shall nol affect ii ;the tennination.¶ i in any manner, to be a waiver of the sovereign immunity of any party from tort or other ! tl ' hablhty. ~ (e) Nmwithstanding any other provision . of this Lease, i(Ihe powers, authority, nr '~, funding of DMA shalt be limited or ~, (c) This Lease shall be governed by and construed according to the laws of r ~ I ~nrfaaea, ¢na as a resort DMA, in its aole '~ discretion, determines that the wntinued the Commonwealth of Virginia, and any legal action hereunder shall be instituted only in ase °nne chanty Property snr the the Circuit Court of Frederick County Virginia, unless otherwise provided by law. e parpose m ase f°r wni¢n in~y were leasea I rs no longer permitted, authoriud, advisable, warranted orjustified, then this d rr~~ecause neither DMA nor the Count' can ex end funds llnleSS ( ) Y `' P Lease and all responsibility or obligations ', ofDMA under this Lease may be appropriated through proper legislative channels, both parties agree that the failure of ' terminates by DMA at any time -- either art to corn 1 with an term of this Lease because fundin is not authorized shall p y p Y y g ' thCeBtt"~ °t i`a s°le °p'i°°' by gi"i"g three (3) months written notice thereof to not be considered a defAult under this Leas. I the c°nnty.¶ ' ¶ f) Because DMA cannot expend state '. 9. ly~TICFi.S, ', funds unless ¢ppropriated by the Virginia '~, General Assembly, or federal funds '~. unless ¢ppropriated by Congress, if any (a) All notices to DMA required or permitted under this Lease shall be given I session of [he V;rginia crneml Aaaemmy Clther: j or the United States Congress fails tm ~ ' appropriate funds for the continuance of (i) by mailing the notice by certified U.S. mail, postage prepaid, This Lease, this Lease and all obligations ~ nerennaer anau antomaticauy ferm;nate '~ d l i f h h tl return receipt requested, addressed to: ,. upon ep et on o [ e t rn curren y I appropriated or a0oc¢ted funds.¶ i¶ Construction and Facilities Management Officer Attn: VAFM, Building 316 Fort Pickett Blackstone, Virginia 23824-6316 OR ', Deleted: provided, however, that [he '~, otherwise defaulting party is seeking such '~ appropriations in good faith and that the "non-de(auI[ing" party is not irreparably harmed thereby i Deleted: ____._._. __-__~. ~ Deleted: - ~I r5.- (ii) by service upon DMA in any manner authorized under the laws of the Commonwealth of Virginia for the service of legal process either: (b) All notices to County required or permitted under this Lease shall be given (i) by mailing such notice by certified U.S. mail, postage prepaid, return receipt requested, to County at the following address: County Administrator County of Frederick 107 North Kent Street Winchester, Virginia 22601 OR (ii) by service upon the County in any manner authorized under the laws of the Commonwealth of Virginia for the service of legal process. (c) If, under the terms of this Lease, a notice is sent or given by certified U.5. mail, postage prepaid, return receipt requested, such notice shall be deemed to have been given as of the date of mailing such notice. Each party to this Lease may notify the other party of a new address at which to mail notices, which notice shall be given in the manner provided above, and unless and until such notice of new address is given, notices to a party hereto shall be sufficient if mailed to such party's address as specified in Section 9(a)(i) or Section 9(b)(i), as appropriate. 10. BINDING EFFECT; AMENDMENTS. The covenants, agreements, and rights contained in this Lease shall bind and inure to the respective successors and assigns of the County and DMA. This Lease constitutes the entire agreement between the County and DMA regarding the County Property and the Armory Building. Neither party, nor any agent of either party, has any authority to alter, amend or modify any of the terms of this Lease, unless the amendment is in writing and executed by ali parties to this Lease. It is understood and agreed that this Lease shall not be binding upon DMA unless and until DMA obtains the recommendation of the Virginia Department of General Services and the approval of the Governor of Virginia or his designee, as required by §2.2-1149 of the Code of Virginia (1950), as amended. 11. PRESUMPTIONS. No presumption shall be created in favor of or against any of the parties to this Lease with respect to the interpretation of any term or provision of this Lease due to the fact that this Lease, or any part hereof, was prepared by or on behalf of one of the parties hereto; and, no provision in this Lease, including any attachments or amendments j oe~etea: , _ hereto, shall be construed against DMA because the Lease, or any part hereof, was prepared neieted directly by the DMA or by the Office of the Attorney General on behalf of DMA, ,Deleted: - ~~ 12. ASSIGNMENT. DMA may assign this Lease, or sublet the County Property, for purposes otherwise permitted herein or by statute, subject to the County's rights as set forth in Section 4 hereof. 13. NO WAIVER OF RIGHTS IMPLIED. The parties acknowledge that each retains all rights, privileges and remedies to which it might otherwise be entitled unless specifically waived or modified herein. WITNESS the signatures of (i) the County Administrator, attested to by the Deputy County Clerk and the seal of the County of Frederick, Virginia, pursuant to resolution of the Board of Supervisors of the County of Frederick, adopted on the 31~` day of January, 2007, authorizing the execution of this agreement, a copy of which resolution is attached hereto and incorporated herein, and (ii) the Adjutant General of Virginia on behalf of the Commonwealth of Virginia, Department of Military Affairs. COUNTY OF FREDERICK, VIRGINIA By: Name: John R. Riley, Jr., Title: County Administrator ATTEST: Jay E. Tibbs, Deputy Clerk COMMONWEALTH OF VIRGINIA, DEPARTMENT OF MILITARY AFFAIRS By: Name Title: Robert B. Newman, Jr., Maj Gen (VA), Va ANG The Adjutant General of Virginia !~ Deleted: ¶ ', '~, (SIGNATURES ON FOLLOWING PAGEm ~ '¶ -Page Break l Deleted: ¶ Deleted: - Deleted: - ~' ~7~ i COMMONWEALTH OF VIRGINIA, CITY/COUNTY OF I, the undersigned, a Notary Public in and for the Commonwealth of Virginia, County of Frederick, do hereby certify that John R. Riley, Jr., County Administrator of the County of Frederick, Virginia, whose name is signed to the foregoing Deed of Lease, has acknowledged the same before me as his free act and deed, on behalf of the County. Given under my hand this day of , 2007. My commission expires Notary Public COMMONWEALTH OF VIRGINIA, CITY/COUNTY OF , I, the undersigned, a Notary Public in and for the Commonwealth of Virginia, City/County of do hereby certify that Robert B. Newman, Jr., The Adjutant Genera] of the Commonwealth of Virginia, Department of Military Affairs, whose name is signed to the foregoing Deed of Lease, has acknowledged the same before me as his free act and deed, on behalf of the Department.. Given under my hand this T day of , 2007. _ My commission expires Notary Public '. Deleted: - ~ Deleted: • ~ ~~ APPROVED AS TO FORM OFFICE OF THE ATTORNEY GENERAL By: Assistant Attorney General RECOMMENDED FOR APPROVAL: DEPARTMENT OF GENERAL SERVICES and is Division of Engineering and Buildings By: Richard F. Sliwoski, Director Date Pursuant to §2.2-1149 of the Code of Virginia (1950), as amended, and by the authority delegated to me under Executive Order Number (88) O1, dated December 21, 2001, I hereby approve the foregoing Lease Agreement between the Department of Military Affairs and the County of Frederick, Virginia, on behalf of the Governor of Virginia. Secretary of Administration Date I Deleted: - j Deleted: -~~ ~9,~ f '~ ~~' LEASE NO. 123-L0080 DEED OF LEASE FREDERICK COUNTY ARMORY SITE This Deed of Lease is made this day of May, 2007, by and between the COUNTY OF FREDERICK, VIRGINIA, a political subdivision of the Commonwealth of Virginia, referred to hereinafter as the "County", Lessor, and the COMMONWEALTH OF VIRGINIA, DEPARTMENT OF MILITARY AFFAIRS, referred to hereinafter as "DMA", Lessee. WITNESSETH: WHEREAS,. the County has acquired, by Deed of Gift dated the 24~h of January, 2007 and recorded the 2"d of February, 2007 in the Clerk's Office of the Circuit Court of the County of Frederick, Virginia as Instrument No. 070001977, fee simple-title to that certain parcel of land lying and being situate in Shawnee Magisterial District, Frederick County, Virginia, located southwest of Millwood Pike (U. S. Route 50/17), containing 10.1321 acres, more or less (the. "County Property"), being more particularly described as "New Parce182" upon that certain plat titled "Boundary Line Adjustment Governors Hill Between Parcel 82 & Parcel 83", Shawnee Magisterial District, Frederick County, Virginia dated May 3, 2006, revised January 17, 2007, by Patton Hams Rust & Associates, pc, which plat is attached to and made a part of that certain Deed of Boundary Line Adjustment dated January 24, 2007 and duly recorded in the aforesaid Clerk's Office as Instrument No. 070001976, together with that certain temporary ingress/egress, access, and utilities easement (the "Easement"), designated as "Variable Width Temporary I/E, Access & Utilities Esmt." more particularly described on the aforementioned plat by Patton Harris Rust & Associates, pc, for purposes of temporary ingress/egress, access, and the installation, construction, reconstruction, maintenance and removal of utilities to serve the County Property, which easement shall become null and void at such time as the construction of a road for public street purposes is complete and accepted for maintenance by the Virginia Department of Transportation, but which shall otherwise be deemed perpetual and appurtenant and shall run with the title to the adjacent lands (New Parcel 83) for the benefit of the County Property; and WHEREAS, DMA desires to build a new Armory on the County Property (the new Armory and all related improvements constructed on the County Property hereinafter referred to as the "Armory Building"); and, WHEREAS, the County has agreed to lease the County Property to DMA in a long term Lease (the "Lease") for consideration to be more particularly identified herein; and WHEREAS, the appropriate federal and state budgetary appropriations have been made to allow the construction of the Armory Building on the site herein identified. NOW, THEREFORE, in consideration of the covenants and mutual obligations entered into herein, the County hereby leases unto DMA, and DMA leases from the County, the County Property, together with the right of ingress and egress thereto, upon the following terms and conditions: I . TERM. The term of this Lease shall be for ninety-nine (99) years and shall begin on May 1, 2007, and end on the ninety-ninth annual anniversary of the commencement date, unless sooner terminated by agreement of the parties. 2. CONSIDERATION. DMA has paid to the County the sum of One Dollar ($1.00) at the time of execution of this Lease by DMA as rent for the entire term of the Lease. 3. USE. The Armory Building may be used and occupied by DMA, an agency of the Commonwealth of Virginia, or its successor agency for housing and training the Virginia militia, primarily units of the National Guard; for use by federal military forces under the terms of the Commonwealth's contract with the United States of America; for the storage of military property belonging to the Commonwealth and the United States; and for other such purposes and uses as the Commonwealth may hereafter have. DMA may construct the Armory Building and such other facilities and improvements on the County Property as it may deem appropriate. All such buildings and facilities shall be and remain the property of DMA during the term of the Lease and shall, conditioned upon payment of any funds as set forth below, become the property of the County at the termination of the Lease. DMA agrees that, subject to receiving the necessary appropriations, it will use the Armory Building in accordance with this Lease and maintain the Armory Building in a clean and reasonably safe manner in order to prevent the building from becoming an eyesore or nuisance. In the event that the continued use of the Armory Building for military purposes is no longer appropriate or feasible, the County agrees that the following non-military uses of the property shall be permitted during the term of this Lease: (i} government/business office use and (ii) community recreation center. 4. EARLY TERMINATION. (a) The parties recognize that the property adjacent to and within close proximity to the Armory Building will have residential, office and other permitted uses. Certain non-military uses authorized under Section 3, above, may, in the County's opinion, be incompatible with the character of development adjacent to and within close proximity to the Armory Building. Consequently, DMA agrees that, should it or its successors seek to use the Armory Building for anon-military purpose authorized under this Lease for longer than one (1) year, it will notify the County at least six (6) months prior to the date that it intends to cease using the Armory Building for military purposes. If the County determines that the proposed use is incompatible with the development adjacent to and in close proximity to the Armory Building, it shall have the right to terminate this Lease and purchase the Armory Building and any ancillary structures from the Commonwealth as follows: the County agrees to purchase the Armory Building within one hundred eighty (180) days of the termination of the Lease, for the fair market value of the Armory Building as established by the average of two bonafide appraisals, one to be obtained by DMA and one by the County. If the difference between the two appraisals is greater than 10%, then the two appraisers shall choose a third appraiser, and the appraisal of the third appraiser shall be the fair market value of the property, provided, however, that the fair market value shall not be less than the lower of the first two appraisals nor higher than the higher of the first two appraisals. Each party shall pay for the cost of its own appraisal and, if necessary, half the cost of the third appraisal. Notwithstanding the foregoing, should any funds be owed to the federal government under the terms of Military Construction Cooperative Agreement ("ARNG") No. W92LQ- OS-2-2000 (the "MCCA") for the Armory Building, a copy of which has been provided to the County, then the County agrees to pay DMA not less than the amount so owed to the federal government as of the date of the termination of this Lease or the appraised value, whichever is greater. The County agrees that if this Lease is terminated by the County because of anon-military use as hereinabove provided, then the County shall not use the County Property for such non-military use until after April 30, 2106. In any event of a violation of this provision by the County, the County shall pay to DMA (in addition to the amount paid pursuant to the preceding paragraph) the fair market rent (discounted to present value) of the County Property from the date of termination of the Lease until Apri130, 2106. (b) If this Lease should terminate prior to the end of the term solely because: (1) of the failure of the Virginia General Assembly to appropriate sufficient funds for, or otherwise authorize, the continued operation of the Armory Building, or (2) of the failure of the federal government to appropriate sufficient funds for, or otherwise authorize, the continued operation of the Armory Building, or (3) DMA shall cease to exist, and its powers and authority are not assigned to another agency of the Commonwealth of Virginia, then, in any such event, the provisions of the first paragraph of subsection (a) above with respect to the amount to be paid to DMA (or the Commonwealth of Virginia if DMA shall not exist) by the County, and the manner in which such amount shall be determined, shall apply. In any such event, DMA will endeavor to give as much notice as is reasonably possible of the event triggering the termination of this Lease and the anticipated termination date, but failure to give such notice shall not affect the termination. (c) DMA agrees to pursue the necessary appropriations for the continued operation and maintenance of the Armory Building, without guaranteeing in any way the success of those efforts. (d) If the County is unwilling or unable to pay any sums specified above, then this Lease shall continue in full force and effect. (e) As referenced in Section 3 above, at the expiration of this Lease the County shall become the owner of the Armory Building and any ancillary structures. 5. UTILITIES. County agrees to coordinate with DMA's construction personnel to bring to the County Property water, sewer, electrical and other available public utilities, sufficient for all currently proposed and reasonably anticipated uses, when required by construction or other activities. County owned utilities adequate to serve the Armory Building shall be brought to the property line of the County Property at DMA's expense, provided the length. of service necessary to connect each utility to the existing utility is not greater than 3001ineaz feet. DMA's responsibilities and obligations under this Lease are contingent upon all necessary utilities being available to the site in a timely fashion so that occupancy may be achieved without delay following construction of the Armory Building. DMA agrees to pay the usual and customary tap or connection fees for connection to County owned public utilities in order to serve the Armory Building. 6. APPLICABLE LAWS AND ORDINANCES. To the extent that County ordinances do not conflict with state or federal law, DMA agrees, in constructing the Armory Building and landscaping the grounds, to be guided by the ordinances of the County which would otherwise be applicable to this project, and to comply with applicable state and federal laws, as well as to consult with the County on the site plan to be developed for this project. Both the County and DMA acknowledge that DMA is not subject to County ordinances, but that DMA voluntarily agrees to work cooperatively with the County to develop an armory project that is consistent with the County's Comprehensive Plan and ordinances for the area. 7. CONDEMNATION. (a) The County shall give immediate notice to DMA of any discussions, offers, negotiations or proceedings, with any party, regazding condemnation or taking of any portion of the County Property. (b) In the event that any portion of the County Property is taken by eminent domain, or sold to the holder of such power pursuant to a threatened taking such that, in the sole opinion of DMA, the County Property is no longer suitable for the purposes for which it is leased, then this Lease shall terminate effective as of the date of the taking. The date of taking will be the earlier of: (i) the date on which title vests in the condemning entity (the date of deed recordation or the date of filing a Certificate of Take or Certificate of Deposit by the condemning entity) or (ii) the date on which the condemning entity takes possession. (c) In the event of a taking, DMA shall receive: (1) any portion of such award attributable to the Armory Building, any such other structures as may have been erected by DMA on the site, DMA's furniture, equipment and fixtures, and moving expenses and allowances; and (2) any portion of such award, not to "" exceed the value of the land as determined in the award process, attributable to the present value of the remaining term of this Lease to DMA (or the Commonwealth of Virginia in the event DMA no longer exists). The County shall receive the remaining portion of the award attributable to the value of the land. 8. STATUS OF THE PARTIES. (a) County and DMA understand and acknowledge that the Department of Military Affairs is an agency and Department of the Commonwealth of Virginia and that the County is a political subdivision of the Commonwealth. The parties also agree that, with respect to tort liability for acts or occurrences on or about the County Property, including product liability, the Commonwealth, DMA and the County are either: (i) constitutionally immune (or partially immune) from suit, judgment or liability; (ii) insured; or (iii) covered by a financial plan of risk management that is in the nature of self-insurance, all as determined by applicable laws, government policies and practices. (b) County and DMA each acknowledge that the other has not agreed to provide any indemnification or hold harmless agreements running to the other party. Each party agrees to maintain sufficient liability insurance, including self- insurance, in such amounts and with such coverage as to protect its interests and insure reasonable financial responsibility in the event of liability for injury, loss or damage at the County Property. No provision, covenant or agreement contained in this Lease shall be deemed, in any manner, to be a waiver of the sovereign immunity of any party from tort or other liability. (c) This Lease shall be governed by, and construed according to, the laws of the Commonwealth of Virginia, and any legal action hereunder shall be instituted only in the Circuit Court of Frederick County, Virginia, unless otherwise provided by law. (d) Because neither DMA nor the County can expend funds unless appropriated through proper legislative channels, both parties agree that the failure of either party to comply with any term of this Lease because funding is not authorized shall not be considered a default under this Lease. 9. NOTICES. _ (a) All notices to DMA required or permitted under this Lease shall be given either: (i) by mailing the notice by certified U.S. mail, postage prepaid, return receipt requested, addressed to: Construction and Facilities Management Officer Attn: VAFM, Building 316 Fort Pickett Blackstone, Virginia 23824-6316 OR (ii) by service upon DMA in any manner authorized under the laws of the Commonwealth of Virginia for the service of legal process (b) All notices to County required or permitted under this Lease shall be given either: (i) by mailing such notice by certified U.S. mail, postage prepaid, return receipt requested, to County at the following address: County Administrator County of Frederick 107 North Kent Street Winchester, Virginia 22601 OR (ii) by service upon the County in any manner authorized under the laws of the Commonwealth of Virginia for the service of legal process. (c) If, under the terms of this Lease, a notice is sent or given by certified U.S. mail, postage prepaid, return receipt requested, such notice shall be deemed to have been given as of the date of mailing such notice. Each party to this Lease may notify the other party of a new address at which to mail notices, which notice shall be given in the manner provided above, and unless and until such notice of new address is given, notices to a party hereto shall be sufficient if mailed to such party's address as specified in Section 9(a)(i) or Section 9(b)(i), as appropriate. 10. BINDING EFFECT; AMENDMENTS. The covenants, agreements, and rights contained in this Lease shall bind and inure to the respective successors and assigns of the County and DMA. This Lease constitutes the entire agreement between the County and DMA regarding the County Property and the Armory Building. Neither party, nor any agent of either party, has any authority to alter, amend or modify any of the terms of this Lease, unless the amendment is in writing and executed by all parties to this Lease. It is understood and agreed that this Lease shall not be binding upon DMA unless and until DMA obtains the recommendation of the Virginia Department of General Services and the approval of the Governor of Virginia or his designee, as required by §2.2-1149 of the Code of Virginia (1950), as amended. 11. PRESUMPTIONS. No presumption shall be created in favor of or against any of the parties to this Lease with respect to the interpretation of any term or provision of this Lease due to the fact that this Lease, or any part hereof, was prepared by or on behalf of one of the parties hereto; and, no provision in this Lease, including any attachments or amendments hereto, shall be construed against DMA because the Lease, or any part hereof, was prepared directly by the DMA or by the Office of the Attorney General on behalf of DMA. 12. ASSIGNMENT. DMA may assign this Lease, or sublet the County Properly, for purposes otherwise permitted herein or by statute, subject to the County's rights as set. forth in Section 4 hereof. 13. NO WAIVER OF RIGHTS IMPLIED. The parties acknowledge that each retains all rights, privileges and remedies to which it might otherwise be entitled unless specifically waived or modified herein. WITNESS the signatures of (i) the County Administrator, attested to by the Deputy County Clerk and the seal of the County of Frederick, Virginia, pursuant to resolution of the Board of Supervisors of the County of Frederick, adopted on the _ day of , 2007, authorizing the execution of this agreement, a copy of which resolution is attached hereto and incorporated herein, and (ii) the Adjutant General of Virginia on behalf of the Commonwealth of Virginia, Department of Military Affairs. COMMONWEALTH OF VIRGINIA, DEPARTMENT OF MILITARY AFFAIRS By: Name: Robert B. Newman, Jr., Maj Gen (VA), Va ANG Title: The Adjutant General of Virginia COMMONWEALTH OF VIRGINIA, CITY/COUNTY OF I, the undersigned, a Notary Public in and for the Commonwealth of Virginia, City/County of , do hereby certify that Robert B. Newman, Jr., The Adjutant General of the Commonwealth of Virginia, Department of Military Affairs, whose name is signed to the foregoing Deed of Lease, has acknowledged the same before me as his free act and deed, on behalf of the Department. Given under my hand this day of _ , 2007. My commission expires Notary Public COUNTY OF FREDERICK, VIRGINIA By: Name: John R. Riley, Jr., Title: County Administrator ATTEST: Jay E. Tibbs, Deputy Clerk COMMONWEALTH OF VIRGINIA, CITY/COUNTY OF I, the undersigned, a Notary Public in and for the Commonwealth of Virginia, County of Frederick, do hereby certify that John R. Riley, Jr., County Administrator of the County of Frederick, Virginia, whose name is signed to the foregoing Deed of Lease, has acknowledged the same before me as his free act and deed, on behalf of the County. Given under my hand this day of , 2007. My commission expires Notary Public APPROVED AS TO FORM OFFICE OF THE ATTORNEY GENERAL By: Assistant Attorney General RECOMMENDED FOR APPROVAL: DEPARTMENT OF GENERAL SERVICES and is Division of Engineering and Buildings By: Richard F. Sliwoski, Director Date Pursuant to §2.2-1149 of the Code of Virginia (1950), as amended, and by the authority delegated to me under Executive Order Number (88) O1, dated December 21, 200], I hereby approve the foregoing Lease Agreement between the Department of Military Affairs and the County of Frederick, Virginia, on behalf of the Governor of Virginia. Secretary of Administration Date