LEASE WITH FIRST UNITED METHODIST CHURCH OF MESA.DOCX

Lease No. L-7454
C-22-15-
LEASE AGREEMENT
between
FIRST UNITED METHODIST CHURCH of MESA, ARIZONA, Inc.
and
MARICOPA COUNTY
This Lease Agreement (“Agreement”) is entered into this 30th day of July, 2014, by and
between the First United Methodist Church of Mesa, Arizona, an Arizona non-profit corporation
(“Lessor”), and Maricopa County, a political subdivision of the State of Arizona, (“Lessee” or
“County”), collectively (the “Parties”) or individually (a “Party”).
A. Lessor owns that certain property at 15 E. 1st Avenue, Mesa, Arizona, (the
“Property”).
B. Lessor and Lessee desire to partnership for Head Start services that are provided by the County’s
Human Services Department through its Early Education Division, Head Start Zero-Five
Program.
NOW THEREFORE, in consideration of the mutual promises and covenants herein
contained, and other valuable consideration, Lessor and Lessee agree as follows:
1. Leased Premises. Lessor hereby leases to County the portions of the Property
identified on Exhibit A attached hereto (the “Premises”), generally consisting of one (1)
classroom, Room A, with adjoining children’s restroom, playground area, tricycle area and
nearby boys and girls restrooms. County shall have exclusive rights to the classroom Monday
through Friday from 7:30 A.M. to 4:30 P.M. County also shall have the non-exclusive right to
use public areas within the gated confines of the Premises, and of the Property (such as
sidewalks, driveways, parking lot, restrooms and hallways) for ingress and egress, deliveries and
related purposes.
2. Term; Termination. The term of this Lease shall be for 3 (three) years (the
“Term”) commencing August 1, 2014 and expiring May 30, 2017.
2.1 Options to Renew. Lessor and County may extend the Agreement for
one (1) three-year term by written mutual consent (the “Renewal Term”). The rent during any
Renewal Term shall be defined in Section 3 of this Agreement unless the Parties otherwise agree
in writing. During any renewal Term, the terms, provisions and conditions contained within this
Agreement shall remain in full force and effect.
2.2 Option to Expand. County, at County’s option and provided funding and
resources are available, may add one classroom to the Agreement, Room B, during or prior to
each program year.

2.3 Lessor and Lessee may terminate this Agreement by giving not less than
ninety (90) days prior written notice of termination to the other Party.
2.4 This Agreement is subject to termination pursuant to A.R.S. §38-511.
3. Consideration for Lease. For the Term or any Renewal Term, County shall pay
to Lessor as rent for the lease Premises the sum of Ten Thousand Two Hundred Dollars
($10,200.00) per year (or $850 per month), (“Rent”). The first payment shall be payable in
advance on the same day of the term of this Agreement, and subsequent payments shall be
payable in advance on the same day of each subsequent year during the term of this Agreement.
The Rent shall be paid to the Lessor at 15 E. 1st Avenue, Mesa, Arizona, 85210
4. Use; Programming.
a. County shall use the leased Premises only for the purpose of providing a
comprehensive developmental preschool for children ages 0-5 (the “Program”). Head Start
classroom will be open at least five (5) days per week from 7:30 a.m. to 4:30 p.m. (the
“Preschool”). The Preschool shall operate for at least ten (10) months of each fiscal year,
commencing in August and ending in May (the “Program Year”), with an option of year round
as funding is available. County may, but is not required to, provide summer programming if
funding is available for such purpose.
b. The Preschool is expected to serve a minimum of 15 but not more than 17
eligible children, per half day, two half day sessions per day, or a minimum of 15 but not more
than 20 for one full day session depending on community needs and available resources.
c. County shall staff the Preschool with at least 2 full time staff, each of
whom shall have at least a Child Development Accreditation (CDA). One classroom aide may be
provided in Head Start classroom, as well as registered volunteers, depending on community
needs and available resources. All educational staff and all programming must meet the
combined requirements, policies and procedures mandated by the Maricopa County Human
Services Department, Maricopa County Environmental Services, Federal Head Start
Performance Standards, and Arizona State Child Day Care Licensing regulations.
d. County shall provide all appropriate classroom materials and supplies
required for its use of the leased Premises and operation of the Preschool.
e. County shall provide classroom furniture and equipment required for its
use of the leased Premises; all of such furniture and equipment shall be and remain the property
of County, including all replacements and substitutions, and may be removed by County upon
termination or expiration of this Agreement.
f. County shall provide food for classroom meal services, including
breakfast, lunch and snack, in accordance with the United States Department of

Agriculture/Child Adult Food Care Program guidelines and those of Head Start Performance
Standards and Maricopa County Environmental Services.
g. County will conduct monthly parent meetings and other family activities
throughout the year, and may use other space at the Property in accordance with the rules for
shared use referenced elsewhere in this Agreement.
h. County shall obtain and maintain in effect all licenses and permits, and
shall pay all fees, required to lawfully operate the Preschool and occupy the Premises, excluding
any permits and fees associated with the entire Property, such as gas inspections or occupancy
permits, which are the responsibility of the Lessor at Lessor’s sole expense. Lessor agrees to
provide a copy to County of any Premises permits or inspections that are required by Arizona
Child Care Licensing Regulations.
i. County shall take all actions necessary to comply with applicable auditing,
administration and compliance requirements applicable to the Preschool.
j. The leased Premises shall not be used for any purposes in violation of any
zoning or other laws or of any regulation of any governmental body having jurisdiction over the
leased Premises.
5. Scheduling of Shared Use Areas. County shall have the non-exclusive right to
use any area designated by Lessor as “Shared Areas” for meetings and other reasonable uses in
accordance with the reasonable rules and regulations adopted by the Lessor or their designee.
6. Utilities. Lessor shall provide all utilities for the Premises (excluding telephone
and internet services), including electric, gas, water, sewer, janitorial, pest control, and trash
collection. Lessor may, on an annual basis, adjust the utility fee up or down to reflect changes in
costs to Lessor for utilities. Currently the utility fee is One Hundred Dollars ($100.00) per month
which is included in the Rent.
7. Maintenance. Lessor shall maintain the Premises in good condition and repair,
and will provide general maintenance of the Premises. Lessor’s maintenance shall extend to all
interior and exterior portions of the Premises and all building systems, including heating, air
conditioning, fire suppression, water, sewer, playground, landscaping, replacements or
improvements. In appropriate circumstances, however, County may be required to reimburse
Lessor for certain costs for repairs incurred because of abuse of extraordinary wear and tear
caused by County, its guests, invitees, employees or volunteers. County shall take substantial
responsibility for general upkeep of the leased Premises required by the nature of its operations
to include immediate notification to the Lessor of the need for repairs to the facility or
replacement of equipment.
8. Alterations. The Premises have been constructed in accordance with applicable
laws without limitation the Americans with Disabilities Act. Without Lessors prior written
consent, County shall not make any alterations, additions or improvements or remodel,
redecorate or paint the leased Premises or any part thereof. Without Lessors prior written

consent, County shall not erect any signs on the exterior of the Premises. Lessor shall have the
absolute right to grant or withhold it consent; provided that Lessor agrees not to unreasonably
withhold its consent to any alterations or other improvements to the leased Premises that are
required to ensure that the leased Premises comply with applicable guidelines for early childhood
quality practices. Any such alterations and improvements shall be made by and under the
direction of Lessor, and in accordance with Lessors procurement policies, but at County’s sole
cost and expense. County and Lessor acknowledge that County’s ability to pay for any
alterations or improvements is subject to the availability of funding, and that Lessor may
condition its approval on receipt of reasonably satisfactory evidence that funding is available.
Any alterations or improvements constructed at the leased Premises shall become part of the
Property of Lessor. If, at any time during the term of this Agreement, any repairs to or additions,
changes or corrections to the Premises are required by reason of any laws, ordinances, rules or
regulations now or hereafter in force, Lessor shall make such repairs, additions, changes or
corrections at its sole cost and expense. All such alterations and improvements and any fixtures
installed by County on the leased Premises shall become the sole property of Lessor upon
expiration or termination of this Agreement.
9. Damage; Destruction. If the Property, the leased Premises, or any material part
thereof, are damaged or destroyed by fire or other casualty from any cause, so s to render the
leased Premises or the Property unfit for use and occupancy, Lessor will proceed, as
expeditiously as may be practicable, to repair the damage, unless Lessor decides not to repair or
restore the Premises, in which event and at Lessor’s sole option, Lessor may terminate this
Agreement by giving County ninety (90) days written notice. County agrees that all proceeds
from insurance policies maintained with respect to the leased Premised shall be paid to Lessor.
County shall be responsible for insuring its property and for repairing and replacing any if its
property that may be damaged or destroyed.
10. Default; Remedies. It shall be a default if either Party fails to perform any of the
terms, covenants, or conditions of this Agreement required to be performed by it, for a period of
thirty (30) days after such written notice from the other Party specifying in reasonable detail the
nature of such failure. If the default is of a nature that it cannot reasonably be cured within thirty
(30) days, then the defaulting Party shall have such longer period as may be necessary provided
the defaulting Party has commenced the cure within such thirty (30) days and diligently pursues
such cure to completion. Upon occurrence of a default, the non-defaulting Party shall have the
right, at its option, to immediately terminate this Agreement, whereupon it shall have no further
obligation of liability under this Agreement.
11. Compliance with Laws. Each Party agrees to conduct itself and its activities in
compliance with all applicable laws, rules and regulations of the United States, the State of
Arizona, the County of Maricopa and the City of Mesa.
12. Taxes. Lessor shall be responsible for payment of any real property taxes,
assessments and similar impositions levied against the Property, and all fixtures and equipment.
13. Insurance. Lessor understands and acknowledges that County is self-insured.

14. Indemnity. Lessor and County (as “Imdemnitor”) agrees to indemnify, defend
and hold harmless the other Party (as “Indemnitee”) from and against any and all claims, losses,
liability, costs or expenses (including reasonable attorney’s fees) (hereinafter collectively
referred to as “Claims”) arising out of bodily injury of any person (including death) or property
damage, but only to the extent that such claims which result in vicarious/derivative liability to
the Indemnitee are caused by the act, omission, negligence, misconduct or other fault of the
Indemnitor, its officers, officials, agents, employees or volunteers.
15. Notices. All notices which shall or may be given pursuant to this Agreement
shall be in writing and transmitted by registered or certified mail, return receipt requested
addressed as follows and shall be effective when received:
County: Maricopa County Department of Human Services
Attn: Head Start Director
2150-1 South Country Club Rd., Suite 7
Mesa, AZ 85210
With a copy to: Maricopa County Finance Department
Attn: Real Estate Manager
301 W. Jefferson Street, Suite 960
Jefferson, AZ 85003
Lessor: First United Methodist Church of Mesa, Arizona
Attn: Chairman, Board of Trustees
15 E. 1st Avenue
Mesa, Arizona 85210
With a copy to: First United Methodist Church of Mesa, Arizona
Attn: Vice Chairman, Board of Trustees
15 E. 1st Avenue
Mesa, Arizona 85210
16. Force Mejure. Except for payment of sums due, no Party shall be liable to the
other nor deemed in default under this Agreement if and to the extent that such Party’s
performance of this Agreement is prevented by reason of force majeure.
17. Cancellation. This Agreement is subject to cancellation in accordance with the
provisions of A.R.S. §38-511 and may be cancelled by County pursuant thereto without any
penalty or liability to County. This Agreement may be terminated by County at the end of any
fiscal year due to non-appropriation of finds without any penalty or liability to Lessee. County’s
fiscal year ends June 30th. Lessor and/or any of its employees, agents, officers, directors,
members, successors or assigns hereby waives any and all rights to bring any claim against
County or it employees, agents, officers, directors, members, successors or assigns from or
relating in any way to County’s termination of this Agreement.

18. Liens. County shall not permit any liens to be placed against the Property or the
leased Premises; if the Property or the leased Premises shall at any time during the term of this
Agreement become the subject to any vendor’s, mechanics, laborer’s, or materialman’s lien
based upon the furnishing of material or labor to the County, then at its sole cost and expense,
County shall cause the same to be discharged within forty-five (45) days after notice thereof,
unless the lien and the claim occasioning is the subject of pending litigation being pursued by
County in good faith.
19. Nuisance. Notwithstanding anything in this Agreement to the contrary, including
without limitation the use by County of the lease Premises, County shall not commit or permit
any nuisance or other act, whether noise, odor, smoke, sewage, chemical wastes, or otherwise
which may disturb the quiet enjoyment of any other user of the Property. County shall not
obstruct or cause to be obstructed any public or private roadways.
20. Assignment; subletting; Sale. County shall not assign this Agreement or sublet
all or any portion of the leased Premises without the prior written consent of Lessor, which
consent may be granted or withheld in Lessor’s sole and absolute discretion. Prior to agreeing to
any assignment, the Lessor is entitled to review all financial consideration received for the
assignment. Consent to the assignment can be withheld by the Lessor for any reason. Lessor
shall notify County within thirty (30) days after any sale, transfer or conveyance of the Property.
21. Right of Entry. Lessor may, during the term of this Agreement, at all reasonable
times and during usual business hours, enter the leased Premises for the purpose of inspecting the
same, for reasonable access for maintenance, repair or alterations.
22. Surrender. Upon the expiration of the term of this lease, or upon the earlier
termination of this Lease, County shall surrender peaceable possession of the leased Premises in
the same condition as the leased Premises were at the commencement of this Lease, reasonable
wear and tear and acts of God excepted.
23. Entire Agreement. This Agreement contains the entire Agreement between the
Parties hereto, and supersedes any prior oral or written agreement or understanding with respect
to the subject matter hereof.
24. Applicable Law. The laws of the State of Arizona shall govern the construction,
performance, and enforcement of this Agreement.
25. Time of Essence. Time shall be of the essence in the performance of every term,
covenant, and condition of this Agreement.
26. Amendment; Waivers. No amendment, modification, or alteration of this
Agreement and no waiver of its terms, shall be binding unless in writing, dated subsequent to the
date of this Agreement and duly executed by Lessor and County. No waiver by either Party of
any breach or any of the terms, covenants or conditions of this Agreement shall be construed or

held to be a waiver or any succeeding or preceding breach of the same for any other term,
covenant or condition herein contained.
27. No Partnership or Joint Venture. While Lessor and County shall cooperate
with one another to assure the proper operation of the Preschool, nothing in this Agreement or
otherwise in the relationship of the Parties shall render them partners or joint venturers.
28. Asbestos Compliance. Lessor shall comply with all local, county, state and
federal laws with regard to asbestos-containing materials (ACM) and presumed asbestos-
containing materials (PACM), including the Occupational Safety and Health Agency’s (OSHA)
General Industry (1910.100), the OSHA Construction (1926.1101), and the Environmental
Protection Agency’s (EPA) National Emissions Standard for hazardous Air Pollutants 40DFR
Pat 61 Subpart M. Particular attention to the notification provisions of the OSHA 1926.1101
(k(1-5)) are to be adhered.
Prior to occupancy, County requires completion of either a certified asbestos survey of
building materials located in all sections leased to the County or completion and adherence to an
operations and maintenance (O&M) program that assumes all non-sampled building materials to
be positive for asbestos and identifies a standard operating procedure (SOP) for training,
notification, maintenance, bulk sampling, disturbance and emergency procedures with regard to
all suspect building materials.
County reserves the right to conduct certified asbestos building surveys within the leased
spaces of the facility. All building surveys will be provided to and/or accessible to Lessor,
outside contractors, in-house maintenance, multi-employer worksite contactors and other
commercial tenants.
29. Attorney’s Fees and Costs. In the event Lessor or County resort to legal
proceedings to enforce any right under this Agreement or to obtain relief for any default by the
other Party, the prevailing Party in such proceeding shall be entitled to recover from the
defaulting Party the costs thereof, including reasonable attorney’s fees and costs.
30. Quiet Enjoyment. Lessor covenants that County, upon paying all rent as
provided herein and upon complying with all of its other obligations hereunder,
shall lawfully and quietly hold, occupy and enjoy the Premises during the Term or
any Renewal Term without hindrance or molestation by Lessor or by anyone
lawfully claiming by, through or under Lessor, subject, however, to the terms and
conditions of this Agreement.
31. Partial Invalidity. If any term, covenant, condition or provision of this
Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the provisions hereof shall remain in full force
and effect and shall in no way be affected, impaired or invalidated.
32. Headings. Sections and other headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

33. Cooperation. Lessor and County agree to execute and/or deliver to each other
such other instruments and documents as may be reasonably necessary to fulfill
the covenants and obligations to be performed by Lessor and/or County pursuant
to this Agreement.
34. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original but all of which together shall
constitute on and the same instrument. Faxed and copied signatures are acceptable
as original signatures.
35. Not Binding Until Signed. Submission of this instrument for examination shall
not bind Lessor in any manner, and no lease or obligation or Lessor shall arise
until this Agreement is executed and delivered by both Lessor and County.
36. Delegation of Authority. Since this Agreement will require administrative
action, including execution of documents, from time to time to carry out the spirit
and intent of the Agreement, both the Chief Financial Officer for Maricopa
County and the Real Estate Manager for Maricopa County are hereby given the
authority and charged with the responsibility for proper administration of this
Agreement, whether or not specific authority is granted in any provision of this
Agreement.
37. Notice of Sale. If the Property is sold during the Term of the Agreement, Lessor
shall be required to notify the County in writing, via certified mail, within thirty
(30) days of the transfer date.

Lease No. L-7454
C-22-15-00x-x-0
LESSOR: First United Methodist Church of LESSEE: Maricopa County, a political
Mesa, Arizona, an Arizona non-profit subdivision of the State of Arizona
corporation
____________________________________ ____________________________________
Jon Haydon, Chairman, Board of Trustees Chairman of the Board
____________________________________ ATTEST:
Date
____________________________________
Clerk of the Board Date
APPROVED AS TO FORM:
____________________________________
Deputy County Attorney Date