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Agenda Packet March 6 2017PERSON COUNTY BOARD OF COUNTY COMMISSIONERS MEETING AGENDA 304 South Morgan Street, Room 215 Roxboro, NC 27573-5245 336-597-1720 Fax 336-599-1609 March 6, 2017 7:00pm CALL TO ORDER………………………………………………. Chairman Kendrick INVOCATION PLEDGE OF ALLEGIANCE DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA INFORMAL COMMENTS The Person County Board of Commissioners established a 10 minute segment which is open for informal comments and/or questions from citizens of this county on issues, other than those issues for which a public hearing has been scheduled. The time will be divided equally among those wishing to comment. It is requested that any person who wishes to address the Board, register with the Clerk to the Board prior to the meeting. ITEM #1 DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA A. Approval of Minutes of February 21, 2017, and B. Budget Amendment 15 1 UNFINISHED BUSINESS: ITEM #2 Action to grant or deny request to add a new roadway name to E-911 database ………………………………………………... Sallie Vaughn NEW BUSINESS: ITEM #3 Lease and Operating Agreement for the New Person County Senior Center ……………………………………………... Heidi York CHAIRMAN’S REPORT MANAGER’S REPORT COMMISSIONER REPORTS/COMMENTS Note: All Items on the Agenda are for Discussion and Action as deemed appropriate by the Board. 2 February 21, 2017 1 PERSON COUNTY BOARD OF COMMISSIONERS FEBRUARY 21, 2017 MEMBERS PRESENT OTHERS PRESENT Tracey L. Kendrick Heidi York, County Manager Gordon Powell C. Ronald Aycock, County Attorney Jimmy B. Clayton Brenda B. Reaves, Clerk to the Board Kyle W. Puryear B. Ray Jeffers The Board of Commissioners for the County of Person, North Carolina, met in regular session on Tuesday, February, 2017 at 9:00am in the Commissioners’ meeting room in the Person County Office Building. Chairman Kendrick called the meeting to order. Vice Chairman Powell gave an invocation and Commissioner Puryear led the group in the Pledge of Allegiance. DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA: A motion was made by Commissioner Puryear and carried 5-0 to approve the agenda. PUBLIC HEARING: REQUEST TO ADD NEW ROADWAY NAME, LICK CREEK LN, TO THE DATABASE OF ROADWAY NAMES USED FOR E-911 DISPATCHING: A motion was made by Commissioner Puryear and carried 5-0 to open the duly advertised public hearing for a request to add a new roadway name, Lick Creek Ln, to the database of roadway names used for E-911 dispatching. GIS Manager, Sallie Vaughn presented a request by the Person County Address Coordinator to add Lick Creek Ln to the database of roadway names used for E-911 dispatching. The private roadway, proposed for a new name, is accessible off Gray Rd which begins in Orange County, and terminates in Person County. Due to impending changes in E-911 dispatching software, Ms. Vaughn stated by adding a new roadway along the private driveway and re-addressing the two private residences would reduce ambiguity caused when 911 calls are dispatched and first responders are routed to a road outside Person County as well as for the addressing to be in compliance with the County’s Addressing Ordinance and to protect public health, safety and general welfare. Ms. Vaughn noted the property owners have been kept informed of these impending changes via certified mail. 3 February 21, 2017 2 There were no individuals appearing before the Board to speak in favor of the request to add a new roadway name, Lick Creek Ln, to the database of roadway names used for E-911 dispatching. Speaking in opposition to a request to add a new roadway name, Lick Creek Ln, to the database of roadway names used for E-911 dispatching was the following individuals: Mr. John M. Tezai of 5214 Gray Rd, Timberlake stated issue with the impending change noting an extreme hardship and inconvenience for he and his wife, as well as, his neighbor, Ms. Theresa Brewer, the second resident on the property. Mr. Tezai stated he and Ms. Brewer reside on the old Gray Farm in Timberlake. Mr. Tezai noted the primary entrance to the farm is off of Al Gray Rd., which is in Person County which is where Ms. Brewer’s home and an old vacant farmhouse is located. Mr. Tezai said his parcel containing seven acres has 4.5 acres in Orange County and 2.5 in Person County. With septic issues, Mr. Tezai stated he was prohibited to build on the Orange County side of his parcel. His house is on Gray Rd in Person County. Because it was a jurisdictional issue, Mr. Tezai explained he contacted Orange County when he built his house so the system would be ready noting all his services are from Hillsborough (Orange County), except for public safety. Mr. Tezai noted for a 911 call from his residence, it will be received in Orange County, to which a note was created to notify Person County, whose system has a note with directions to his home. Ms. Tezai recognized that Person County has the right and authority to name or rename a road or street in its jurisdiction. Mr. Tezai noted the jurisdictional issue is that Gray Rd is in Orange County and about 100 yards of his driveway is in Orange County, whereby Person County is trying to name a road that will be in Orange County, outside the Person County jurisdiction, which would need to be vetted with the Orange County system to not upset the Orange County 911 database as well as similar roads already existing. Mr. Tezai said that Ms. Vaughn indicated that the new software upgrade will no longer allow for manually entering notes to give directions to his home. Mr. Tezai asked why the software system couldn’t be manipulated to continue to recognize his current address for a least disruptive method. Ms. Theresa M. Brewer of 327 Al Gray Rd, Timberlake stated the hardship that will be caused related to all their contacts that she and the Tezais currently have that will be impacted with both residences having a new address imposed. Chairman Kendrick asked Ms. Vaughn why Gray Rd would not work for 911 dispatching to which she replied the issue would be duplication in both Person and Orange Counties. Ms. Vaughn stated she has spoken with the address coordinators in Orange County and they have approved the proposed roadway name as well as two of the three names that the property owners have suggested. Ms. Vaughn noted that both the road name and the number for the addresses are proposed to change. She added that with the proposed change, the new system will pick up their calls to 911 so that they are routed to Person County and not Orange County. 4 February 21, 2017 3 Ms. Vaughn addressed the software system where currently there is a note in the system that directs services to the Tezai property. Ms. Vaughn said the conversion of that note to the new software system was going live April 1st was not going to happen. Ms. Vaughn said she did not know if a new note would be possible, and who would be responsible to enter such, into the new software due to not being able to confirm with the software vendor. Ms. Susan Tezai added that it was her understanding that the ability to add notes to the software system was an option that was decided not to be purchased. Ms. Vaughn confirmed. Sheriff Jones, when asked by Commissioner Jeffers, stated there was a longer delay in emergency response time that could be corrected, if changed. Commissioner Jeffers asked if the Tezai address was integrated into the Person County system and 911 dispatched to Gray Rd, and should that be the only Gray Rd in Person County, why wouldn’t that not work. Ms. Vaughn stated the responders would know to go to that one specific address, but anything along that road range or if they used a cell phone, there will be a problem. She advocated that lesser individuals would be impacted by renaming the roadway as proposed. A motion was made by Commissioner Puryear and carried 5-0 to close the public hearing for a request to add a new roadway name, Lick Creek Ln, to the database of roadway names used for E-911 dispatching. CONSIDERATION TO GRANT OR DENY REQUEST TO ADD NEW ROADWAY NAME OF LICK CREEK LN: GIS Manager, Sallie Vaughn stated the individuals that live along this road made suggestions for the roadway name preferences should a new roadway name be chosen in lieu of their current address. Those include: Brewer Ln, Cedar Ridge Ln and Gray Farm Ln. Ms. Vaughn said all the new roadway names have been approved by Orange County with Person County’s 911 preference for Brewer Ln or Gray Farm Ln. Commissioner Jeffers stated disbelief that the County is paying for a software system that the vendor contact is unreachable. Commissioner Jeffers stated preference to get the questions answered that should have been answered before being presented to the Board. He offered that the Board consider delaying action to allow time to reach the vendor about adding a note to the new system and the cost of the conversion to transfer any notes in the current system to the new system. A motion was made by Commissioner Jeffers and carried 5-0 to delay action on the request to add a new roadway name, Lick Creek Ln, to the database of roadway names used for E-911 dispatching until the Board’s March 6, 2017 meeting at 7:00pm. 5 February 21, 2017 4 INFORMAL COMMENTS: The following individual appeared before the Board to make informal comments: Sheriff Dewey Jones of 1780 Clay Long Rd., Timberlake advocated for the additional new position for a sworn officer that was needed to handle the new technology with body-worn cameras and in-car cameras for use as evidence for court proceedings. DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA: A motion was made by Commissioner Puryear and carried 5-0 to approve the Consent Agenda with the following items: A. Approval of Minutes of January 12, 2017, B. Approval of Minutes of January 23, 2017, C. Approval of Minutes of February 6, 2017, D. Budget Amendment 14, E. Tax Adjustments for the month of February 2017 a. Tax Releases b. NC Vehicle Tax System pending refunds BROADBAND UPDATE: Assistant County Manager, Sybil Tate recalled that on August 25, 2016, Person County released a Request for Proposals (RFP) asking vendors to submit proposals to provide broadband service to unserved areas of the county, economic corridors, and install fiber to government facilities. Since the broadband project was last discussed, Ms. Tate stated one of the broadband vendors has rescinded their proposal. The vendor stated that they have other projects that they are focused on and are considering two other broadband RFPs; however they may be interested in working with Person County at a later date. In addition, the General Assembly has expressed interest in addressing issues surrounding rural broadband, so staff has provided an option that moves the wireless installation forward, but delays some of the fiber build out. Ms. Tate noted that at the budget retreat, the Board did not have consensus for a funding mechanism for the fiber project. As a result, staff has provided a cheaper annual option. This option will result in more long-term costs, but the initial annual costs are less. Below are the options that were presented by the broadband consultant, Mr. Joe Freddoso via Skype teleconference with the Board: 6 February 21, 2017 5 OPTION #1- Move forward with wireless and county fiber construction only. Re-issue fiber RFP in FY2020. FY17 FY18 FY19 FY20 FY21 TOTAL  $100,000 $1,950,000 $1,800,000 ? ? $3,850,000  OPTION #2 – Open access network with county-owned fiber with a long-term (20-30 years) lease to vendor to serve all unserved areas. Estimated maintenance annually at $35,000 with incentives to each unserved household. OPTION #3 – Open access network with privately-owned county fiber to which the county would lease at a projected cost annually at $20,000. The estimated annual maintenance costs $20,000.  Annual payment of $380,000 per year beyond the 4 year contract Mr. Freddoso confirmed that Option 1 presented provided the lease cost to the county, but would allow for expansion at a later time. A motion was made by Commissioner Puryear and carried 5-0 to pursue Option 1 as presented to move forward with wireless and county fiber construction only at this time. REMEDIATE METHANE GAS AT CLOSED COUNTY LANDFILL: General Services Director, Ray Foushee informed the Board that several years ago the NC Dept. of Environmental and Natural Resources (NCDENR) required that the County implement a means of removing methane gas at the County’s closed landfill which was migrating to the western property boundary. In response, the County installed a passive gas vent system. Though the required monthly monitoring over the last couple years, NCDENR has determined that the passive vent system was insufficient in removing the necessary amount of methane gas, as the monitoring levels at the property boundary was still too high, and further corrective action was necessary. Mr. Foushee told the group that corrective action was required by NCDENR. FY18 FY19 FY20 FY21 TOTAL   $1,953,300    $2,719,800     $1,022,000  $915,712    $6,610,812   FY18 FY19 FY20 FY21 TOTAL   $646,700    $1,284,200     $1,369,200  $781,600    $4,081,700  7 February 21, 2017 6 Mr. Foushee stated that the County’s landfill engineers, Smith & Gardner, have recommended that the most cost effective approach would be to modify the current system to be an active landfill gas system, through the use of two passive solar flares. Mr. Foushee noted the approximate cost, including installation, was $24,750 to which Smith & Gardner would handle the installation. Mr. Foushee noted the annual gas monitoring would be $10,800, which reflects a slight increase over the current monitoring fee that is already in the landfill budget. Mr. Foushee sought approval from the Board to have Smith & Gardner modify the County’s current gas remediation system at cost of $24,750, and to be funded using contingency funds. Chairman Kendrick inquired about the possibility of converting methane into electricity to which Mr. Foushee stated he had not researched that option as he sought the most cost effective approach. Commissioner Clayton added that there may not be enough of the methane gas being produced for conversion to electricity, but the amount surpassed the threshold allowable by NCDENR. A motion was made by Commissioner Jeffers and carried 5-0 to approve Smith & Gardner to remediate the County’s Methane Gas System at the County’s Closed Landfill at a cost of $24,750 and to fund the costs from the Contingency Fund. RE-APPOINTMENTS TO PERSON COUNTY BOARD OF EQUALIZATION AND REVIEW: Tax Administrator Russell Jones requested Board consideration and action to appoint members to the Special Board of Equalization and Review and to select a chair. At the 2017 Budget Retreat, the Commissioners discussed the upcoming need to appoint members to the Person County Board of Equalization and Review to which the Board asked Mr. Jones to contact the previous members about their availability to continue to serve in this capacity. The following members responded back to Mr. Jones that they were willing to serve: Margaret Bradsher, former Chair Curtis Bradsher Sam Kennington David Newell, Sr. Faye Boyd 8 February 21, 2017 7 Mr. Jones noted the County’s Special Board, which was established by resolution on January 7, 2013, functions as the Board of Equalization and Review to hear appeals from taxpayers regarding tax values for property taxes. The adopted Resolution provided for the membership, qualifications, terms of office, and the filling of vacancies on this board. This Special Board consists of five members with a term of four years. Commissioner Puryear stated his interest in continuing to serve as an active member on the Board of Equalization and Review. Commissioner Jeffers stated his willingness to continue to serve as an alternate member of the Board of Equalization and Review. A motion was made by Commissioner Puryear and carried 5-0 to reappoint former commissioners, Ms. Margaret Bradsher, Mr. Curtis Bradsher, Mr. Sam Kennington, Mr. David Newell, Sr. and Commissioner Kyle Puryear to serve as the active members, and to reappoint Faye Boyd and Commissioner Jeffers as alternates to the Person County Special Board of Equalization and Review and to select Ms. Margaret Bradsher as the Chair. BOARD AND COMMITTEE APPOINTMENTS: Brenda Reaves, Clerk to the Board presented citizen applications for consideration for appointment received for current vacancies on county boards and committees and asked for Board nomination for appointment as deemed appropriate. Board of Adjustment Unspecified Term; 1 position for an alternate 1) James A. Thomasson requested appointment A motion was made by Commissioner Puryear and carried 5-0 to appoint James A. Thomasson to the Board Adjustment to serve as the alternate for an unspecified term. Person Area Transportation System Board 3-Year Term: 1 position available for a representative of private industry No applications received 1 position available for a representative of economic development No applications received 2 positions available for citizens-at-large 1) Jason Torian requested appointment A motion was made by Commissioner Jeffers and carried 5-0 to appoint Jason Torian to the Person Area Transportation System Board for a 3-year term. 9 February 21, 2017 8 CONSIDERATION TO CHANGE THE BOARD OF COMMISSIONERS JULY 17, 2017 MEETING TO A NEW DATE AT 9:00AM: Commissioner Clayton requested Board consideration to change the Board’s July 17, 2017 regular scheduled meeting to be changed to a new date mutually agreeable to the Board at 9:00am. A motion was made by Commissioner Clayton and carried 5-0 to change the Board of Commissioners’ July regular scheduled meeting to now be held on July 10, 2017. CHAIRMAN’S REPORT: Chairman Kendrick reported statistics associated with accessibility to broadband would increase businesses by 5% or 6,000 and increase 6,541 jobs. MANAGER’S REPORT: County Manager, Heidi York stated that both Chairman Kendrick and Commissioner Puryear had interest in holding an informal FY2017-2018 budget comments prior to the Manager’s Recommended Budget would be presented on May 15, 2017. She asked the Board if they desired to hold an additional public hearing prior to May 15, 2017 noting the scheduled Budget Public Hearing was scheduled for the meeting following the recommended budget on June 5, 2017. It was the consensus of the Board to not hold an additional public hearing and to schedule the budget work sessions after the June 5, 2017 budget public hearing. Ms. York asked for direction on the educational budgets; if joint meetings with both the Board of Education and Piedmont Community College (PCC) Board of Trustees was the desire of the board or if subcommittee with the Chairs and Vice Chairs were favored, or if the Manager should receive the budget request for the recommended budget. It was the consensus of the Board of Commissioners to have a presentation from each Person County Schools and PCC at one of the scheduled work sessions. COMMISSIONER REPORT/COMMENTS: Commissioner Jeffers reported he had been asked to serve on a Strategic Planning Committee for Timberlake Volunteer Fire Department. Commissioner Clayton reported that former Health Department retiree, Nannie Wilson Hatcher, has passed away. Commissioner Clayton introduced Mr. Ric Bruton with Cardinal Innovations Healthcare, present in the audience. Commissioner Puryear had no report. 10 February 21, 2017 9 Vice Chairman Powell announced that the Board of Commissioners has been invited to a local town hall meeting scheduled to be held on April 4, 2017 at 10:00am in the City Hall Council Chambers noting both Representative Larry Yarborough and Senator Mike Woodard would be present. CLOSED SESSION #1 A motion was made by Commissioner Puryear and carried 5-0 to enter Closed Session per General Statute 143-318.11(a) (3) at 10:11am to consult with an attorney with the following individuals permitted to attend: County Manager, Heidi York, Clerk to the Board, Brenda Reaves, County Attorney, Ron Aycock, and Assistant County Manager, Sybil Tate. Chairman Kendrick called the Closed Session to order at 10:13am. A motion was made by Vice Chairman Powell and carried 5-0 to return to open session at 10:32am. Chairman Kendrick announced that from the Closed Session, the Board has decided to move forward with scheduling the public hearing associated with the franchise for the operation of the County’s landfill. A motion was made by Commissioner Puryear and carried 5-0 to call for a public hearing regarding application for Solid Waste Disposal Franchise Ordinance to be held on April 3, 2017 at 7:00pm in the County Office Building Auditorium. A motion was made by Commissioner Jeffers and carried 5-0 to change the location of the Board’s April 3, 2017 meeting to be convened in the County Office Building Auditorium. Chairman Kendrick announced that he, Vice Chairman Powell and Commissioner Jeffers would be meeting with Ms. Natalie Brozy, Director of Roxboro Community School for a tour immediately following the meeting. 11 February 21, 2017 10 ADJOURNMENT: A motion was made by Commissioner Jeffers and carried 5-0 to adjourn the meeting at 10:34am. _____________________________ ______________________________ Brenda B. Reaves Tracey L. Kendrick Clerk to the Board Chairman (Draft Board minutes are subject to Board approval). 12 3/6/2017 Dept./Acct No.Department Name Amount Incr / (Decr) EXPENDITURES General Fund General Government 280 Public Safety 5,161 Culture & Recreation 5,388 REVENUES General Fund Charges for Services 1,053 Other Revenues 9,776 Explanation: BUDGET AMENDMENT Excess Elections Filing Fees ($280); receipt of United Way grant for Sheriff's GREAT Program ($5,161); receipt of cheerleading competition registration fees ($1,053); receipt of property damage claim for Museum of History ($3,925); donation to Library ($410). BA‐15 13 AGENDA ABSTRACT Meeting Date: March 6, 2017 Agenda Title: Request to add a new roadway name to E-911 database Summary Information: This is a follow up on a discussion from the February 21st Board of County Commissioners meeting concerning potentially adding a new roadway name. Requested information is being provided (see below). Background Information: Two private residences are located on a private driveway which is accessible off Gray Rd in Orange County. Addresses for these homes are out of compliance with the Person County Address Ordinance which may jeopardize public health, safety, and general welfare. Future development along the driveway will necessitate the addition of this roadway. New Information: On February 21st, the board asked for the following information:  Cost estimate for conversion package: $80-$100k o However, this conversion package does not cover address notes  New address notes can be entered Address Coordinators in Orange County have been involved in this process. Residents along the proposed roadway have indicated that they would prefer one of the following names be used if the addition of the roadway is approved. Options 1 and 3 are preferred by the Address Coordinator: 1. Brewer Lane 2. Cedar Ridge Lane 3. Gray Farm Lane Possible Actions: 1. Motion to add a roadway, allowing the property owners to choose a name, and readdress 2 homes (recommended) 2. Reject the motion and allow homeowners to retain out of compliance addresses Submitted By: Sallie Vaughn, GIS Manager 14 AGENDA ABSTRACT Meeting Date: March 6, 2017 Agenda Title: Lease and Operating Agreement for the New Person County Senior Center Summary of Information: County staff drafted a simple lease and operating agreement for the future senior center, back in January. The intention of the agreement is to formalize the responsibilities of the County; the Region K Community Assistance Corporation (nonprofit of the Kerr Tar Council of Governments); the Person County Senior Center; and the City of Roxboro for our partnership in the operations of the Person County Senior Center. All parties have reviewed this document and will be seeking approval through their governing boards. The Council of Government staff provided a new version of a lease and operating agreement on Tuesday afternoon. County staff has not yet had the opportunity to reconcile these two versions. Both documents are presented as information for the Board of Commissioners with a revised and recommended version to be sent out prior to Monday’s Board meeting. Recommended Action: Review the draft agreements and provide direction to staff. Submitted By: Heidi York, County Manager 15 LEASE & OPERATING AGREEMENT For the Person County Senior Center between Person County Government, Region K Community Assistance Corporation, Person County Senior Center, and the City of Roxboro Person County Senior Center operating under the Region K Community Assistance Corporation, hereinafter to referred to as the “Tenant,” the city of Roxboro, hereinafter referred to as “City” and Person County, hereinafter referred to as the “County,” enter into this lease to formalize an agreement for the use of the property located at 87 Semora Road, Roxboro. This entire property is owned by the County. The use of this building is granted to the Tenant for use as a Senior Center with a shared fitness facility for both seniors and county employees. This agreement as set out below, begins March _____, 2017 for a term of twenty years. Either party may terminate this agreement prior to March ____, 2037 with a written 90 day notice delivered to the County Manager or the President of Region K Community Assistance Corporation as appropriate. I. The County agrees: A. To allow the Tenant to occupy the aforementioned buildings for the purpose of serving the senior community. B. To maintain the exterior of all the buildings. C. To maintain the structural integrity of the buildings including roof repairs/replacement. D. To be responsible for all exterior glass damage/breakage. E. To maintain property and liability insurance on the property. F. To be responsible for replacement or repairs of the heating and cooling system. G. That the fitness facility will be shared use between the members of the Senior Center and full-time County Employees and county elected officials who have signed a liability waiver and paid an annual fitness facility use fee. H. To install a card-access system to the fitness facility to limit the use to the above described participants. II. Region K Community Assistance Corporation and the Person County Senior Center agrees: A. That any planned up-fits/renovations must be approved by Person County’s General Services Director. Any permanent fixtures or renovations that are made shall become the property of the County at the time of dissolution of this agreement. B. To maintain the interior of the properties including cleaning, maintenance, and minor electrical and plumbing repairs. 16 C. To install and maintain all telephone, computer, internet, and security systems needed by the Senior Center. D. To handle all utility needs included but not limited to electrical, water, sewer, etc. E. To provide $2 million in general liability coverage and add the County to their policy as additional insured. F. To maintain property damage insurance on the contents of the building except the property listed in Appendix A. G. That joint use of the facility with the County after the normal operating hours of the senior center is permissible through separate agreements. III. The City of Roxboro agrees: A. To maintain the parking lot and sidewalks at 87 Semora Road B. To provide for snow removal at this property C. To maintain the landscaping including shrubbery and grass at this property (mowing, leaf collection, pruning, mulching). IV. Attest: IN WITNESS WHEREOF, the parties have hereunto set their hand and affixed their seals the day and year first written above. Chair of the Person County Board of Commissioners President of the Region K Community Assistance Corporation ___________________________________ Mayor of the City of Roxboro 17 Appendix A      Senior Center Inventory    1)Fitness Center  o Equipment  o ‐  Cardio   3 elliptical   1 step mill   1 stair climber   1 rower   7 treadmills   4 bikes  o Machines   Ab & adductor   Leg Curl   Leg extension   Bicep Curl   Vertical Press   Single Leg Curl   Pec Deck   Dorsiflex or   Standing Calf   Glute Raise   Triceps Extension    Triceps Pushdown   Ab Machine   Assisted Pull‐up   Decline Sit –up  o Free‐weights   All – Dumbbells  5 lb. – 120 lb.    Seated Row   Lateral Pulldown   Hammer Row   Leg Press   Smith Machine   Incline Press   Seated Calf   Cable Crossover   Preacher Curl with EZ curl bar  18 Appendix A     Hack Squat   Squat Rack   2 Flat benches   2 Olympic benches   1 Olympic Incline   1 Olympic Decline   1 Upright Bench   1 Military Press   1 Hammer Press   1 Power Rack  o Office/kitchen  o Desk/chair  o Refrigerator‐freezer  o 2 bar stools    o Storage  o Washer – Hotpoint  o Dryer – Hotpoint    2)Photography studio  o Storage  o Cabinet  o  Table  3)Salon space  o Bookcase on front wall  o Coat Rack  4)Office Suite  o Kitchen   o Table  o 4 chairs  o Small GE Refrigerator  o Conference Room  o Table  o 6 chairs  o RCA TV mounted on wall  o Glass top, 4 foot wall table  19 Appendix A    o Storage Room  o Wall Cabinet  o Shelves  o Women’s Restroom w/baby changing table  o 1st Office  o Desk  o Chair  o 2 straight back chairs  o 2nd Office  o 2 desks – 1 with a hutch on top of one  o 3rd Office  o Desk   o Chair  o 2 straight back chairs  o 4th Office  o Desk  o Chair   o 2 Straight back chairs  o 5th Office  o 1 Office chair  o 6 Straight back chairs  o 2 Stools    5)Church  o Kitchen  o GE Refrigerator/Freezer  o Microwave  o Multi‐purpose room  o 12 Stackable straight chairs  o 2 Wall mounted TV screens  o 2 Ceiling mounted speakers  o 81 Cushioned straight chairs           20 STATE OF NORTH CAROLINA LEASE AGREEMENT COUNTY OF PERSON THIS LEASE AGREEMENT (“Lease”), made and entered into effective as of the date last signed by the parties below (the “Effective Date”), by and between PERSON COUNTY, a body politic and corporate of the State of North Carolina, with an address of 304 S. Morgan Street, Roxboro, NC 27573 hereinafter called “Landlord”, and REGION K COMMUNITY ASSISTANCE CORPORATION, a North Carolina non-profit corporation, with an address of P.O. Box 709, Henderson, NC27536 (mail); 1724 Graham Avenue, Henderson, NC 27536, hereinafter called “Tenant”: -WITNESSETH- 1. PREMISES: Landlord does hereby lease to Tenant and Tenant rents from Landlord, the following described premises (herein referred to as "Premises" or "Leased Premises") consisting of that certain property described in Exhibit “A” with a street address of 87 Semora Road, located in the City of Roxboro, State of North Carolina. 2. USE: The Leased Premises are to be used as a senior center and related uses. Tenant agrees to allow that certain portion of the Leased Premises depicted on Exhibit “B” to be used as a shared fitness facility for use by members of the senior center and for use by full-time Person County employees and Person County elected officials who have signed a liability waiver and paid an annual fitness facility use fee and in accordance with the terms further set out herein (“Person County Permittees”). 3. LEASE TERM/ TERMINATION: (a) This Lease shall begin on the Effective Date hereof and shall remain in effect for a period of twenty (20) years, plus the balance of any partial month, if any, for the month during which the Premises are delivered to Tenant. (b) The occurrence of any of the following events shall terminate this Lease: (i) The expiration of the term of this Lease as set out above in this Section 3; (ii) The written agreement of the parties to terminate this Lease; (iii) The determination by Tenant’s Board of Directors that Tenant has not received or does not have adequate funds to operate a Senior Center provided, however, Tenant shall give at least sixty (60) days’ prior notice of termination; (iv) The determination by Tenant that it will no longer operate the Senior Center provided, however, Tenant shall give at least one hundred eighty (180) days’ prior notice of termination; or (v) An uncured material breach of this Lease by either party and the election of the non-breaching party to terminate this Lease. Commented [JW1]: E-Verify; Iran Divestiture Commented [GTK2]: Need some description as to location of fitness facility Commented [JW3]: Are they sure they do not want the possibility of less than full-time employees using it? Bailiffs, etc. 21 4. RENT: Tenant agrees to pay to Landlord on or before the Effective Date the sum of one dollar ($1.00) as Rent for the entire Lease Term. 5. 6. GROUND MAINTENANCE SERVICES TO BE PROVIDED BY CITY OF ROXBORO. The parties hereto agree and acknowledge that the ground maintenance services for the Leased Premises will provided by the City of Roxboro in accordance with the terms and conditions set out in the interlocal agreement attached hereto as Exhibit “C”. 7. NO JOINT VENTURE: It is hereby agreed that nothing contained in this Lease shall be deemed or construed as creating a partnership or joint venture between Landlord and Tenant, or between Landlord and any other party, or cause either party to be responsible in any way for the debts or obligations of the other party. 8. LANDLORD’S REPRESENTATION OF GOOD TITLE AND CONDITION OF THE LEASED PREMISES. As a material inducement to Tenant to enter into this Lease, the Landlord makes the following representations, warranties and covenants to Tenant: (a) Landlord is the sole owner of and has good and marketable fee simple title to Premises, including all improvements situated thereon, free and clear of all liens, encumbrances, rights or claims of other parties, limitations or restrictions on use, or other matters except for (i) easements for the installation and maintenance of public utilities serving the Leased Premises and such other easements that do not adversely affect, impede or hinder the use, occupancy and enjoyment of the Leased Premises by Tenant for use as a senior center (the “Primary Intended Use” and (iii) any Deed of Trust and/or Security Agreement securing mortgage loans on the Leased Premises. (b) Landlord has all easements and rights necessary to allow Tenant to use the Leased Premises for its Primary Intended Use and that the zoning of the Premises is such that the Tenant can use the Premises for its Primary Intended Use. The Leased Premises comply in all material respects with all applicable laws, rules, ordinances, and permit requirements governing the use of the Leased Premises for its Primary Intended Use. There are no encroachments upon the Premises and no encroachments of any leased improvements onto adjacent property. None of the leased improvements violates set-back, building or side lines, nor do they encroach on any easements located on the Leased Premises. All utilities serving the facility are adequate to operate the facility for its Primary Intended Use. The Leased Premises has direct access, ingress and egress to and from a publicly dedicated street, road or highway and there is located on the Premises an adequate number of parking spaces to operate the facility for Its Primary Intended Use. Commented [JW4]: Is there one? Commented [JW5]: Would like a copy of their title policy for our records. 22 (c) Landlord is the sole owner of and has good title to Landlord’s Personal Property, free and clear of all liens, encumbrances, rights or claims of other parties, except any security interests evidenced by financing statements in favor of Landlord’s lender(s). (d) Landlord has the right to lease the Leased Premises without the consent or joinder of any other person, party or entity, except for the mortgagee who has consented to this Lease as evidenced by a subordination and non-disturbance agreement executed by simultaneously herewith. (e) Landlord has complied with, and to the best knowledge of Landlord, all prior owners, operators and occupants of the Leased Premises have complied with, all applicable federal, state or local laws, regulations or ordinances relating to environmental conditions, hazardous or toxic substances, materials or waste, medical waste and industrial hygiene (“Hazardous Materials Laws”). Except as duly licensed or authorized by appropriate governmental authorities or otherwise in accordance with such Hazardous Materials Laws, Landlord has not caused or permitted the use, generation, treatment, handling, release, emission, manufacture, discharge, storage or removal of any substance, material, waste or pollutant defined or classified as toxic or hazardous under any Hazardous Materials Laws (“Hazardous Materials”) on, at, over, in, from or upon the Leased Premises, nor to the best knowledge of Landlord has the Leased Premises ever been used for any of the foregoing. To the best knowledge of Landlord, there are no polychlorinated biphenyls or friable asbestos or any substance containing asbestos in condition or amount deemed hazardous by any Hazardous Materials Laws present at the Leased Premises. Landlord has not received or been issued any notice, demand, request for information, citation, summons, or complaint regarding an alleged failure to comply with any Hazardous Materials Laws. To the best of Landlord’s knowledge, the Leased Premises is not subject to any existing, pending or threatened investigation or inquiry by any governmental authority for failure to comply with any Hazardous Materials Laws. There are no underground storage tanks on the Leased Premises, and, to the best knowledge of Landlord, the Leased Premises is free of dangerous levels of naturally emitted radon. To the best knowledge of Landlord, no portion of the Leased Premises has ever been used as a landfill, garbage or refuse dump site or waste disposal facility. 9. UTILITIES, SEWER & STORM WATER: Tenant shall promptly pay all charges when due for water and sewerage, trash removal, gas, electricity, storm water fees and other utility charges and utility taxes in connection with the use of the Premises. In the event that any of the above utilities or services is part of a common system, Tenant agrees to reimburse Landlord based upon reasonable Landlord estimates or sub-meters, if sub-meters are applicable. If Landlord estimates are used, Tenant shall have the right to know the Landlord’s method of estimating Tenant’s usage. Tenant shall also be responsible for installing and maintaining all telephone, computer, internet and security systems its needs to operate the Leased Premises for its Primary Intended Use except the card access system for access to the fitness facility. 10. TENANT INDEMNIFICATION AND TENANT INSURANCE: Tenant agrees that it will 23 hold harmless Landlord from any and all injury or damage to person or property caused by the negligence of Tenant, Tenant’s employees, agents, invitees, or licensees in, on or about the Premises including, without limitation, all costs, expense, claims or lawsuits arising in connection therewith. Tenant shall keep in force at own expense so long as the Lease remains in effect public liability insurance with respect to the Leased Premises with minimum limits of One Million Dollars ($2,000,000.00) on account of bodily injuries to or death of one person, and Two Million Dollars ($4,000,000.00) on account of bodily injuries to or death of more than one person as the result of any one accident or disaster; and property damage insurance with minimum limits of Five Hundred Thousand Dollars ($500,000.00) in companies and in a form acceptable to Landlord for the benefit of Landlord and its lender, if any. Tenant shall name Landlord as Additional Insured under such policy or policies and Landlord shall be notified at least ten (10) days prior to any reduction or cancellation of coverage. Tenant shall insure its personal property on the Premises in such amount and in such manner as Tenant in its sole discretion may determine. 11. LANDLORD INDEMNIFICATION AND INSURANCE: Landlord agrees that it will hold harmless Tenant from any and all injury or damage to person or property caused by the negligence of Landlord, Landlord’s employees, agents, invitees, or licensees in, on or about the Premises including, without limitation, all costs, expense, claims or lawsuits arising in connection therewith. Landlord shall keep in effect during the term of this Lease commercial general liability insurance protecting the Landlord and any contractor or subcontractor working of on behalf of Landlord from claims of bodily injury or property damage which arise from operation of this Lease. The amounts of such insurance shall not be less than $2,000,000 bodily injury each occurrence/$4,000,000 aggregate and $1,000,000 property damage each occurrence/$2,000,000 aggregate. The Landlord covenants that it has liability insurance and property and casualty insurance on the subject property and shall continue to keep the Property insured in an amount sufficient to replace all improvements located on the Premises shown on Exhibit “A”. Landlord shall provide Tenant with a certificate of insurance evidencing such coverage prior to the commencement of this lease. Landlord further agrees it will protect, defend, and hold the Tenant harmless from any and all claims for liability for any injuries occurring, arising, or resulting from use of the fitness facility located on the Premises by County Person County Permittees. 12. POSSESSION: Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to Landlord on the last day of the term of this Lease, unless otherwise agreed by both parties in writing. At the expiration of the term, Tenant shall remove its property and effects and peaceably yield up the Premises to Landlord in as good a condition as when delivered to Tenant, ordinary wear and tear excepted. 24 13. REMODELING OR STRUCTURAL IMPROVEMENTS. Tenant shall conduct any construction, upfits or remodeling at Tenant's expense that may be required to use the Premises as specified above. Tenant may also construct such fixtures on the Premises (at Tenant's expense) that appropriately facilitate its use for such purposes. Such construction and upfits shall be undertaken and such fixtures may be erected only with the prior written consent of Person County’s General Services Director which consent shall not be unreasonably withheld. At the end of the lease term, any permanent improvements made and any permanent fixtures installed by Tenant shall become the property of Landlord. Tenant shall restore the Premises to substantially the same condition of the Premises at the commencement of this Lease. 14. ESTOPPEL CERTIFICATE: Tenant shall, from time to time and within twenty (20) days after request therefore by the Landlord, execute, acknowledge and deliver to the Landlord or its agent a written Estoppel Certificate in recordable form. The Estoppel Certificate shall certify to the Landlord, its Mortgagee or other party designated by the Landlord, as of the date of such Estoppel Certificate that (a) the Tenant is in possession of Leased Premises; (b) the commencement and termination dates of the Lease; (c) that this Lease is unmodified and in full force and effect, or if there have been modifications, that the same are in full force and effect as modified and setting forth such modifications; (d) that there are no existing set-offs or defenses against the enforcement of any rights or remedies of the Landlord, or any duty or obligation of the Tenant, hereunder, or, if such exist, specifying the same in detail; and (e) that the Tenant has no knowledge of any event having occurred that will authorize the termination of this Lease by the Tenant, or that the Tenant has no knowledge of any uncured defaults on the part of the Landlord under this Lease, or if the Tenant has such knowledge, specifying the same in detail. In the event that the Tenant does not execute and deliver such Estoppel Certificate, as required herein, then this Section, for purposes of this Lease, shall be and shall constitute an Irrevocable Power of Attorney, appointing and designating the Landlord, its successors and assignees, as the Tenant's attorney-in-fact to execute and deliver such Estoppel Certificates as herein provided. 15. SUBORDINATION AND ATTORNMENT: Tenant agrees that this Lease is subordinate to any mortgage or lien resulting from financing or refinancing, now or hereafter placed upon the land on which the Leased Premises have been built or upon any building hereafter placed upon the land, of which the Leased Premises are a part. Tenant will, further, attorn to and acknowledge the foreclosure purchaser or purchasers as the Landlord hereunder provided the Mortgagee agrees not to disturb Tenant's possession hereunder so long as Tenant is in compliance with this Lease. This shall be self-operative and no further instrument of subordination shall be required by any mortgagee. However, Tenant shall, upon the request of any party in interest, promptly execute such instrument or certificate to carry out the intent thereof. 16. QUIET ENJOYMENT: Landlord hereby covenants that Tenant upon fully complying with and promptly performing all the terms, covenants and conditions of this Lease, on its part to be performed, shall have and quietly enjoy the Premises for the Lease Term set forth herein. 17. LANDLORD MAINTENANCE AND REPAIRS: Landlord shall, at Landlord’s own cost and expense, keep and maintain the Premises and appurtenances thereto (including replacements as necessary) and every part thereof, in good order and repair except portions of the Premises to be repaired by Tenant as set out below. Without limiting the foregoing, Landlord agrees to 25 maintain, repair, and replace the structural components of the Premises as required to keep and maintain the Premises in a tenantable condition,to keep the heating, cooling and ventilation system (“HVAC System”), water, sewer, electrical and sprinkler systems within or serving the Premises in good order and repair in accordance with all applicable laws, to maintain the exterior of all buildings situated on the Leased Premises, and to maintain, repair and replace all exterior glass. Tenant shall as soon as reasonably possible report in writing to Landlord any defective conditions known to Tenant which Landlord is required to repair. Landlord shall have a reasonable time after receipt of notice from Tenant to commence and complete repairs required of the Landlord hereunder. 18. TENANT MAINTENANCE: Tenant shall, at Tenant’s own cost and expense, maintain the interior of the Premises through routine cleaning, maintenance, and minor electrical and plumbing repairs. Notwithstanding the language contained in the preceding sentence, the Tenant’s responsibility thereunder will not exceed $250.00 per incident of maintenance or repair. 19. USE OF FITNESS CENTER; USE BY LANDLORD AFTER HOURS; ADDITIONAL LANDLORD OBLIGATIONS: The parties agree that the fitness facility located on the Leased Premises will be subject to shared use between the patrons of the Senior Center and Person County Permittees who have signed a liability waiver acceptable to Tenant and paid an annual fitness facility use fee to Person County. Person County shall be responsible for having Person County Permittees sign the waiver and pay the annual fitness facility use fee and for issuing an access card to all Person County Permittees. Tenant may rely on the access card as proof of the right of any Person County Permittee to use the fitness facility and shall have no right to make any further inquiry. Landlord shall install a card-access system to the fitness facility to limit the use to the above described participants. In addition, Tenant agrees to allow Landlord access to public areas of the Leased Premises for governmental purposes after the normal operating hours of the Senior Center by separate written agreement. 20. ADDITIONAL TENANT COVENANTS (a) Tenant has the right to install fixtures in the Leased Premises, provided that such installation does not damage the construction of the building nor interfere with the structural components of the building of which the Leased Premises are a part. Such installations shall be at the sole risk and at the expense of the Tenant. Any hood ventilation system that penetrates the roof must include a grease collector box under the roof ventilator. All fixtures installed by Tenant shall remain the property of Tenant, and if the Tenant is not in default of the Lease, its terms and covenants herein, the same fixtures may be removed by Tenant at the expense of the Tenant at the end of the Lease Term except as set out herein below. All improvements permanently attached to the Premises shall become the property of Landlord at the termination of the Lease. The foregoing notwithstanding, provided the fixtures installed by Tenant are those reasonably associated with the operation of a Senior Center, Tenant may elect to leave such fixtures in the Leased Premises upon termination of this Lease. 26 (b) Tenant hereby agrees to comply with all Federal, State and Municipal laws, ordinances and regulations as they relate to Tenant's business and/or to the Premises in which the Tenant's business is located, and the use, storage and disposal of hazardous substances. (c) Tenant shall store all trash, rubbish and garbage in fully closed containers and Tenant shall pay all costs incidental to the removal thereof Tenant shall not burn or otherwise dispose of any trash, waste, rubbish or garbage in and or about the Leased Premises. Tenant shall reimburse any expenses incurred by Landlord related to the removal of same. (d) Tenant shall not make any use of the Premises, which would make voidable or void any policy of fire or extended coverage insurance covering the building or cause the building to become uninsurable. Tenant covenants that, without prior written consent of the Landlord, Tenant will not do anything which will increase the rate of fire insurance premium on the building. If by reason of any use by Tenant of the Premises or the keeping by Tenant of any flammable substances in the Premises, the hazardous insurance premiums or policies maintained by landlord shall be increased over normal rates for retail stores, the amount of the increase in the Landlord insurance premium shall be paid to Landlord by Tenant from time to time on demand. Tenant hereby covenants that it shall cease and desist any activity so affecting the insurability of the Building upon written demand of the Landlord. (f) Tenant shall notify Landlord in writing of all accidents or security-related incidents, i.e. crimes against person(s) and property, which occur in or about the Premises. 21. LANDLORD INSPECTION AND ACCESS: Landlord or its agent, employees and/or contractors shall have the right to enter the Premises at any reasonable time to examine the same; to show the Premises to prospective purchasers, lenders, or prospective Tenants of the Premises; and to perform environmental testing, if deemed necessary, make repairs, alterations, improvements or additions as Landlord may deem necessary or desirable. If Tenant is not personally present to permit entry and an entry is necessary, Landlord or its agent may, in the case of emergency, or if the Premises are unsecured and temporarily unoccupied, forcibly enter or secure the same, or take such other steps to address the emergency that Landlord deems appropriate, without rendering Landlord liable therefore. Otherwise, all such work and installation shall be done, so far as practical, so as not to unreasonably interfere with Tenant's use of the Premises., and shall never render Landlord liable in any manner to Tenant or any other person. 22. WAIVER OF SUBROGATION: The policies of insurance required to be maintained hereunder by either party shall include a waiver by the insurer of all right of subrogation against Landlord or Tenant in connection with any loss or damage thereby insured against. Neither party, nor his or its agents, employees, customers, patrons or invitees, shall be liable to the other for loss or damage caused by any risk covered by such insurance, provided such policies shall be obtainable and provided the damaged party shall receive a full and complete payment from the insurer for all damages sustained by such party. If such policies shall not be obtainable or shall be obtainable only at a premium over that chargeable without such waiver, the party seeking such policy shall notify the other thereof, and the latter shall have 10 days thereafter either (a) to procure such insurance in companies reasonably satisfactory to the other party or (b) agree to pay 27 such additional premium. If neither (a) nor (b) is done, this Section shall have no effect during such time as such policies shall not be obtainable or the party in whose favor a waiver of subrogation is desired shall refuse to pay the additional premium. If such policies shall at any time be unobtainable, but shall become subsequently obtainable, neither party shall be subsequently liable for a failure to obtain such insurance until a reasonable time after notification thereof by the other party that such insurance is obtainable. If the release of either Landlord or Tenant, as set forth herein, shall contravene any law with respect to exculpatory agreements, the liability of the party in question shall be deemed not released but shall be secondary to the other’s insurer. 23. INDEMNITY AGAINST LIENS: Tenant agrees that it will, at all times during the Term of this Lease, take any and all steps necessary to prevent the filing of mechanics liens against the Leased Premises. Tenant further agrees to indemnify and save the Landlord harmless from and against any and all liabilities incurred by Tenant or claimed or charged against the Leased Premises. Tenant shall promptly pay or otherwise discharge, any and all such claims, expenses and liens, including the mechanic's material men's and other laborer's liens asserted or claimed against the Premises or any part thereof. In no event shall Landlord or any of the Landlord's property be liable for or chargeable with any expense or lien for work, labor or materials used for and in the Premises; or for any improvements thereof or changes made upon the order of Tenant, or to discharge the obligations of the Tenant. 24. FIRE AND/OR DESTRUCTION: If the Leased Premises shall be damaged by fire or other casualty during the Term hereof, Landlord agrees that it will restore the structural components and items, as defined herein, with reasonable dispatch to substantially the same condition that they were in so far as the proceeds from Landlord's insurance permit and, further provided that, Landlord's mortgagee does not require insurance proceeds to be paid to it. Once Landlord restoration work is complete, and since time is of the essence, Tenant's rent payment shall re- commence on the thirtieth (30th) day after Landlord delivers premises to Tenant. The Tenant shall be responsible, at its sole cost and expense, to repair or replace any and all of the Tenant's fixtures, equipment and leasehold improvements, which were damaged or destroyed by the same insured cause. The rent payable hereunder shall be equitably and proportionately abated according to loss of use to Tenant, during the period of time intervening between the date of such fire and/or destruction and the date that the Leased Premises are restored. If a fire or other casualty renders the Leased Premises untenable in whole and either party reasonably anticipates that it will take more than sixty days to restore the Leased Premises to a tenable condition, then either party may terminate this Lease as of the date of such casualty upon written notice. If this Lease is so terminated, then the rent payable hereunder shall be abated as of the date of same destruction and Tenant shall remove all its property from the Leased Premises within thirty (30) days after the receipt of written notice of termination. 25. FORCE MAJEURE: In the event that either party hereto shall be delayed or hindered in, or prevented from, the performance of any act required hereunder by reason of strikes, lock-outs, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots, insurrection, war or other reason of a like nature, not the fault of the party 28 delayed in performing the work or doing acts required under the terms of this Lease, then performance of such acts shall be excused for the period of the delay; and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay; provided, however, that the provisions of this Lease Section shall not operate to release Tenant from this Lease nor to excuse Tenant, nor shall Tenant in any event be excused from prompt payment of Base Rent, Additional Rent, Additional Rent adjustments and all other charges due Landlord by Tenant. 26. EMINENT DOMAIN: If all the Premises are condemned or taken by the power of eminent domain exercised by any governmental or quasi-governmental authority, this Lease shall terminate as of the date that the Tenant is required to vacate the Premises. more than 10% of the Premises shall be taken (either interior, common area, or parking area), Tenant may elect to terminate this Lease as of the date of such taking or condemnation and shall have thirty (30) days to remove all its property from the Leased Premises. Further, Landlord shall, as expeditiously as possible, repair the remaining portion of the Leased Premises to the extent necessary to render the same suitable for which the Premises were leased. Tenant hereby waives any right that it may have to any condemnation award or sum paid under threat of condemnation as a result of a complete or partial taking of the Leased Premises. 27. TENANT DEFAULT: The occurrence of any one of the following acts constitutes a default by the Tenant and a breach of this Lease and its covenants by the Tenant, if such default, breach or non-performance is continued and not cured within ten (10) days after written notice from Landlord, or Landlord’s attorney: (a) The vacating or abandonment of the Premises by Tenant, (b) The failure by Tenant to make any rental payment that may be required under the terms hereof, (c) The failure of Tenant to maintain with Landlord a valid Certificate of Insurance in accordance with the insurance provisions of the Lease, (d) The failure by Tenant to perform any covenants herein or the breach by Tenant of any Lease covenants herein, and the further failure by Tenant to cure such covenant breach or non-performance, or to commence to cure and diligently pursue the cure of the covenant breach or non-performance which cannot be fully remedied within ten (10) days, or (e) Petition by Tenant for bankruptcy, insolvency, or general assignment for the benefit of its creditors, or receiver appointment for Tenant for the substantial part of its assets and properties and such receiver is not removed within ten (10) days after its appointment. If the Tenant shall commit any of the acts of default described in this Section, or in the performance of any covenant contained in this Lease, and if such act is repeated once within the next twelve months then, notwithstanding that such acts of default shall have been cured within the period after notice as herein provided, any further similar act of default within such twelve month period shall be deemed a Tenant Default which cannot be cured, notwithstanding provisions for cure provided in this Lease. Upon such default, the Landlord may proceed with five (5) days’ notice, with no opportunity for cure, to exercise its remedies upon default. 28. LANDLORD’S RIGHT TO CURE TENANT DEFAULT: In the event Tenant shall fail to perform any obligation specified in this Lease and such default continues uncured for thirty (30) days after notice thereof to Tenant, Landlord may, but shall not be required to, cure such default on behalf of and at the expense of Tenant, and do all necessary work and make all necessary payments in connection therewith, and Tenant shall on demand pay Landlord forthwith the amount so paid by Landlord in curing such default. 29 29. LANDLORD REMEDIES: In the event of Tenant Default, including Tenant's abandonment or vacating the Premises, Landlord shall have the right, in addition to all other rights and remedies provided by the law, to terminate this Lease, and/or to re-enter and take possession of the Premises, peaceably or by force, and/or to change the locks thereto and to remove any property and merchandise therein, without liability to Tenant for damage arising therefrom and without obligation to Tenant to store any merchandise and property. 30. CUMULATIVE RIGHTS. The rights of the parties under this Lease are cumulative, and shall not be construed as exclusive unless otherwise required by law. 31. ATTORNEY FEES: In the event that either party to this agreement shall deem it necessary to hire an attorney to enforce any provision of this agreement, the party not prevailing in such enforcement action shall pay the reasonable attorney’s fees of the prevailing party. 32. HOLDOVER AND SUCCESSIVE TENANT: If Tenant shall be in possession of the Premises after the established termination date of the Lease, and in the absence of any written agreement extending the term hereof, the tenancy of this Lease shall become one from month-to-month, to be terminated by either Tenant or Landlord on thirty (30) days written notice. 33. TERMINATION AND SURRENDER: Upon the expiration or termination of this Lease, Tenant shall surrender the Premises to Landlord in as good as condition as they were found upon the Tenant taking possession of the Premises; except for ordinary wear and tear, reduction of the Premises by condemnation or damage by fire, destruction or other casualties or causes beyond Tenant's control. Tenant shall deliver to Landlord all keys to the Premises and remove all its personal property and make such necessary repairs or reimbursement described. 34. TENANT WAIVERS: The failure of Landlord to insist, in any one or more instances, to strict performance by Tenant as to any Lease covenants shall not be construed as a waiver by Landlord or relinquishment, in the future, of such covenants, but the same shall continue and remain in full force and effect. The receipt by Landlord of rent with knowledge of a covenant breach hereof shall not be deemed a waiver of the same covenant breach, and no waiver by Landlord of any provision hereof shall be deemed to have been agreed upon unless expressed in writing and signed by the parties hereto. 35. SUCCESSORS AND ASSIGNS: All the terms, covenants and agreements of this Lease shall extend to and be binding upon the Landlord and be binding upon the Tenant and its respective heirs, administrators, executors, successors, assignees, subtenants, sub-Tenants, concessionaires, marital communities, if any, and their respective assigns; and/or upon any person or persons coming into ownership or possession of any interest in the Premises by operation of law or otherwise. 36. NOTICES: Any notice herein provided for to be given to Landlord shall be deemed to be given if and when hand delivered to Landlord or three days after the date when posted by Overnight Delivery Service or United States registered or certified mail, postage prepaid, addressed to the Landlord, at 304 S. Morgan St., Roxboro, NC 27573. Notices required hereunder may be given 30 by either Landlord or an attorney acting on behalf of Landlord and by Tenant of an attorney acting on behalf of Tenant. Any notice herein provided for to be given to Tenant shall be deemed to be given if and when hand delivered to the County Manager or three days after posted by Overnight Delivery Service or United States registered or certified mail, postage prepaid, addressed to the Tenant as follows: Attn: Diane Cox, Executive Director P.O. Box 709, Henderson, NC27536 (mail); 1724 Graham Avenue, Henderson, NC 27536 with a copy to James C. Wrenn, Jr., General Counsel, Hopper, Hicks, and Wrenn, PLLC, P.O. Box 247 (mail), 111 Gilliam Street (delivery), Oxford, NC 27565. Either party may, at any time, change its address for the purposes of notice hereof by sending a written notice to the other party stating the change and setting forth the new address. 37. ENTIRE AGREEMENT: This Lease contains the entire agreement of the parties hereto. Any and all oral or written agreements, understandings, representations and warranties, promises and statements of the parties hereto or from their respective officers and directors or from their partners, agents or brokers with respect to the subject matter of this Lease, and any matter not covered and mentioned in this Lease, shall be inferior and be merged in and by this Original Lease. No such prior oral or written agreement, understanding, representation or warranty, promise or statement shall be effective or binding for any reason or purpose, unless specifically set forth in this original Lease. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. 38. CHOICE OF LAW; JURISDICTION; VENUE. This Lease shall be governed by and construed in accordance with the laws of the State of North Carolina. Venue for any civil litigation and the place of any mediation between the parties hereto or arising out of or in any way relating to or resulting from this Lease shall be in the appropriate division of the Court of General Justice sitting in Person County, North Carolina. The parties hereto consent to the jurisdiction thereof (and of the appropriate appellate courts) and waive any right that they have or may have to venue in any other jurisdiction or to participate in a mediation or in any other location. 39. RECORDATION OF LEASE. Within ten (10) business days after this Lease has been signed and acknowledged by both Landlord and Tenant, the parties hereto shall cause a copy of this Lease or memorandum of this Lease to be recorded in the Office of the Person County Register of Deeds. 40. SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Lease is invalid or unenforceable, but that by limiting such provision, it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited 41. BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the benefit of both parties and their respective legal representatives, successors and assigns. IN WITNESS WHEREOF this Lease has been duly executed by the parties hereto, as of the 31 date first above written. [SIGNATURE PAGE FOLLOWS] 32 LANDLORD: PERSON COUNTY Attest: _________________________________ By: ______________________________________ Heidi York, County Manager Brenda Reaves, Clerk Date: ___________________ TENANT: REGION K COMMUNITY ASSISTANCE CORPORATION By: _________________________________(SEAL) Diane Cox, Executive Director Date: ___________________ PRE-AUDIT CERTIFICATION This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act. ___________________________________ Amy Wehrenberg Finance Director, Person County 33 EXHIBIT “A” That certain tract or parcel land lying and being within the corporate limits of the City of Roxboro, Roxboro Township, Person County, North Carolina and being more specifically that parcel designated as Tract C containing 1.72 acres, more or less, as shown and depicted on that plat of survey entitled “BRIGHT LEAF SUPPLY COMPANY, INC.,” surveyed by Neal C. Hamlett L-2465 in January 1992, said plat being specifically incorporated herein for a more accurate metes and bounds description and is of record in Plat Cabinet 7, Hanger 38-6, Person County Registry. Tax Parcel PIN: 0906-17-02-2006 Tax Parcel Record Number: 19149 Tax Parcel Address: 87 Semora Rd., Roxboro, NC 34 EXHIBIT “B” [Map] 35 EXHIBIT “C” 36