INVITATION FOR PROPOSALS
BY THE STATE OF NORTH CAROLINA
The following specifications must be considered and accepted prior to presenting a proposal to lease the area offered by the State of North Carolina
Instuctions to Offerors
1. Proposal Form: Proposals must be submitted, on the proposal forms attached hereto. Additional copies of the Invitation for Proposals and proposal forms may be obtained from North Carolina Department of Administration, State Property Office website at www.ncspo.com or by calling (919) 807-4670.
2. Execution of Proposals: Each proposal must give the full address of the offeror and be signed with his usual signature. A proposal executed by an attorney or agent on behalf of the offeror shall be accompanied by an authenticated copy of his Power of Attorney or other evidence of his authority to act on behalf must be executed and attached. If the proposal is signed by the Secretary of the Corporation the certificate must be executed by, some other officer or the corporation under the corporate seal. In lieu of a certification of corporate offeror there may be attached to the proposal copies of so much of the records of the corporation as will show the official character and authority of the officer signing, duly certified by the secretary or assistant secretary under the corporate seal to be true copies.
3. Submission of Proposals: It will be the duty of each offeror to see that his proposal is delivered by the time and at the place prescribed in this invitation. Proposals received prior to the time of opening will be securely kept, until the time for opening proposals. The agent whose duty it is to open them will decide when the specified time has arrived, and no proposals received thereafter will be considered. No responsibility will attach to an agent for the premature opening of a proposal through inadvertence or one not properly addressed and marked. Proposals which are faxed or emailed will not be considered.
4. Procedure for Awarding Lease:
1) Following the opening, the State will analyze the proposals received to determine whether any of the proposals require clarification, and if so, the State will request the specific clarification data required. The State may require any offeror to furnish additional evidence of his financial condition. Failure of an offeror to submit any of the above information, within such reasonable time as may be prescribed by the State may be the basis for rejection of his proposal. Subsequently, interviews will be conducted with selected proposers. However, the State reserves the right to further negotiate any provision it deems to be in the public's interest.
2) The lease will be awarded to the offeror who is determined to be the most qualified financially and by virtue of experience, character, type of use, amount of rent offered and otherwise, while considering all relevant factors.
5. Rejection of Proposals: The State reserves the right, to waive any informalities, as its interest may require, to reject any and all proposals and to accept or reject any items of any proposals.
6. Default: In the event of failure on the part of the successful offeror or offerors to execute a lease within fourteen (14) days after the presentation to him of a draft of lease for execution, or upon the failure of the successful offeror to otherwise comply with the times of the invitation for proposals or the enclosures thereof, time being of the essence, the State may declare the offeror in default and disqualify his proposal.
7. Warranty: The property described herein will be leased subject to the provisions and conditions of this invitation for proposals; therefore, offerors are expected to examine the property and to form their own conclusions as to its suitability for the stated purposes. The State makes no guaranty or warranty, either expressed or implied, with respect to the property. The land and improvements will be leased “as is, where is, with all faults”.
8. Pre-Proposal Conference. Prepare any questions that you desire to have answered at the voluntary pre-proposal conference to be held at 2:00 on October 15, 2015 in the large State Construction Office conference room located at 301 N. Wilmington Street, Suite 450, Raleigh, NC, 27601.
9. Proposal Subject to These Terms: All proposals submitted shall be deemed to have been made with full knowledge of all the terms, conditions, and requirements contained in this invitation and enclosure thereto.
10. Mailing proposals: Each offer must be enclosed in a sealed envelope, marked and addressed as follows:
After carefully reading the specifications, submit your sealed proposal on the proposal sheet to:
If sent via first class mail: If sent via overnight or hand delivery:
State Property Office State Property Office
1321 Mail Service Center 116 W. Jones Street, Room 4055
Raleigh, North Carolina 27699-1321 Raleigh, North Carolina 27603
The outside of the sealed envelope must be clearly marked:
LEASE PROPOSAL ENCLOSED
WAKE COUNTY GROUND LEASE
CUTOFF DATE: OCTOBER 26, 2015
For your proposal to be qualified, it must reach the State Property Office no later than 4:00 p.m. on October 26, 2015. FAXED OR E-MAILED PROPOSALS ARE NOT ACCEPTABLE.
The selected proposer must be in existence and legally qualified to do business in the State of North Carolina within two weeks of notice of award.
11. LAND AND IMPROVEMENTS TO BE LEASED. The proposed area to be leased, of approximately 1.77 acres, (subject to survey), is located at 101 W. Peace Street, Raleigh, North Carolina and includes a 13,250 sf building. See Exhibit B. The property will be conveyed “as is, where is, with all faults”, subject to easements and rights of way of record.
12. LEASE TERM. The term of the lease will be forty (40) years with one (1) twenty-five (25) year renewal option. Lessee shall pay absolute net during the lease term.
13. RENTAL. Rent for leased premises shall be payable on a monthly basis.
14. SUBLESSEES AND/OR ASSIGNMENT. No sublease or assignment will be allowed without prior written approval of the State of North Carolina. The State may withhold its consent to a proposed assignment in its sole and absolute discretion.
15. RESTRICTIONS ON USE. The proposed use of the property, and any change of use, requires prior approval by the State of North Carolina, in its sole and absolute discretion.
16. OWNERSHIP OF IMPROVEMENTS; SURRENDER OF PREMISES. During the lease term, ownership of the improvements constructed by or on behalf of Lessee on the Premises shall be in Lessee. Upon the expiration of the Lease or option, ownership of the Improvements constructed by or on behalf of Lessee shall be in the State. Throughout the Term, any liens, encumbrances, mortgages, or claims of third parties including construction lenders and permanent lenders, with respect to any property which may be deemed owned by Lessee including the Improvements and any part thereof, shall be expressly subordinate and subject to the rights of the State.
17. EXPIRATION OF LEASE. At the conclusion of the lease term and/or renewal, or vacation of premises by Lessee, Lessee will promptly quit and surrender the entire Premises, without payment or compensation, which shall include the Land, as well as convey to the State in Fee Simple Absolute by Warranty Deed, free and clear of all mortgages and liens, all other property as shown in Exhibit A, and including the Improvements constructed by or on behalf of Lessee on the Premises, in good order, condition, and repair, ordinary wear and tear excepted, and in broom clean condition. Notwithstanding the foregoing, at the conclusion of the Term of the Lease or any option or extension thereof, Lessee shall, at the option of the State and at Lessee’s sole expense, remove the Improvements on the Premises constructed by Lessee (including the buildings and related improvements constructed by Lessee) and return the Premises to grade level, free of all debris.
18. LEASEHOLD DEED OF TRUST. Notwithstanding Section 15, Lessee has the right to grant a security interest to a bank or financial institution (“Permitted Lender”), by execution of a Leasehold Deed of Trust and Security Agreement (“Deed of Trust”).
The Permitted Lender or any other person succeeding to the interests of Lessee through a foreclosure will be subject to all of the terms and conditions of the lease except as otherwise expressly provided in the lease. Foreclosure for purposes of the lease shall include a conveyance in lieu of foreclosure.
19. STATE’S OPTION TO CURE LESSEE DEFAULT. If Lessee should fail to make any payment, perform any obligation, or cure any other default hereunder, the State, without obligation to do so and without thereby waiving such failure or other default, may make any such payment, perform such obligation, and/or remedy such other default for the account of Lessee (and enter the Premises for such purpose), and Lessee shall pay upon demand all reasonable costs, expenses and disbursements (including reasonable attorneys’ fees) incurred by the State in taking such remedial action.
20. PLANS AND SPECIFICATIONS. As a condition of the Lease Agreement, Lessee agrees to submit construction plans and specifications to the City of Raleigh and North Carolina Department of Administration, State Construction Office for their review and approval of all demolition and Improvements to be constructed on the Premises. All building inspections and construction permitting shall be under the jurisdiction of the City of Raleigh.
21. PERFORMANCE AND PAYMENT BONDS. No construction of Improvements shall commence unless Lessee shall have delivered to the State Construction Office for the completion of the Improvements, and all changes or alterations thereto, and for the payment in full of claims of all persons for work performed in or materials furnished for construction, by providing payment and performance surety bond(s) in form acceptable to the State Construction Office and issued by corporate surety licensed to do business in the State of North Carolina and possessing a Best Rating of A+ or higher in an amount equal to the cost of each Improvement. The foregoing requirements to be deposited with the State Construction Office and to remain in effect until the Improvements shall have been constructed and insured as provided in this document, and the entire cost of the Improvements, or any alterations thereto, shall have been paid in full, free from all liens and claims of contractors, subcontractors, mechanics, laborers and materialmen. Notwithstanding anything herein to the contrary, such performance and payment bond requirements shall be provided in amounts not less than as required of state capital improvement projects by applicable laws, rules, regulations and requirements.
22. STANDARD OF CONSTRUCTION OF INFRASTRUCTURE. Lessee, at Lessee's expense, shall cause all demolition and Improvements constructed for or on behalf of Lessee to be constructed in accordance with the construction plans and specifications and in a good and workmanlike manner in strict compliance with applicable laws and regulations, including but not limited to environmental and construction permits and such Improvements shall when complete be, and continue to be, in conformity with all applicable laws, including, but not limited to, all applicable building codes. All regulatory fees (including acreage fees, development fees, storm water fees, tap fees, and the like) solely applicable to the Premises levied by governmental authorities shall be paid by Lessee.
Lessee, shall be responsible for the installation of all roads and utilities required to serve the Premises. During the Term, the State shall provide to the Premises, from any adjacent land under the ownership or control of the State, and as may be reasonably required and following all necessary prior governmental approvals, all easements as required for the construction of utilities, provided the State shall approve the location of said easements.
Lessee shall obtain all licenses and permits, and comply with all statutes, laws and regulations for the construction of the Improvements in accordance with the permitted use thereof.
23. ALTERATIONS, ADDITIONS, IMPROVEMENTS. Lessee shall submit plans and designs for any alteration or improvements to the City of Raleigh and State Construction Office, NC Department of Administration for review and approval prior to making any improvements or alterations to the leased premises. All improvements or alterations erected or made on the Premises shall become the property of the State upon expiration or termination of the lease or must be removed by Lessee, at Lessee’s cost, within three (3) months of expiration or termination of the lease, at the State’s discretion. All improvements allowed to remain shall be given to the State in good and safe condition. All improvements erected or alterations made on the premises shall be completed, in the State’s opinion, on a timely manner.
Lessee may not make any alterations, whether exterior or interior, changes, improvements, or additions to the Premises, which alter or change the scope of the Improvements, which is not in substantial compliance with the plans and specifications submitted for review to the City of Raleigh and State Construction Office without the prior written consent of the State, and any such alteration, change, improvement or addition shall be constructed by Lessee in a manner which conforms, and shall when complete, conform with applicable law. Lessee shall promptly deliver an "as built" diagram of the Premises accurately setting forth any such alteration, change, improvement or addition to the Premises. During the Term hereof, Lessee may remove moveable furniture and equipment (not belonging to or installed by the State), provided: (a) Such removal is made prior to the termination or expiration of the Term; (b) Lessee is not then in default in the timely performance of any obligation or covenant under the lease; and (c) Lessee properly repairs all damage caused by such removal and (d) Lessee agrees that no trade fixtures or equipment shall be removed from the Premises which renders the Improvements unsuitable for its continued use. All other property at the Premises and any alteration, change, improvement or addition to the Premises and any other article attached or affixed to the Premises, shall become the property of the State and shall be surrendered with the Premises as part thereof at the termination of the lease, without payment or compensation therefore.