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HomeMy WebLinkAboutCOD-023-03 Cl!1l-!lJglon REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: June 16, 2003 File# bY C;PA-307-03 By-law # p C05- /10 Report #: COD-023-03 Subject: Lions Club Offer to Lease, Clarington Beech Centre Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-023-03 be received; 2. THAT the offer from the Lions Club for the lease of space in the Clarington Beech Centre in the amount of $6.50 I square foot for the term of October 1, 2003 to June 30, 2004 be approved. 3. THAT upon expiry, the lease be extended for a 2nd year pending satisfactory negotiation of a market based lease rate; 4. THAT the attached By-law marked Schedule "A" authorizing the Mayor and the Clerk to execute the lease agreement with the Lions Club be forwarded to Council for approval. Submitted by, rie Marano, H.B.Sc., C.M.O. Director of Corporate Services Reviewed by: 0 ~ ~ Franklin Wu, Chief Administrative Officer MMILABlkm 1206 REPORT NO.: COD-023-03 PAGE 2 BACKGROUND AND COMMENT Subsequent to Report COD-007-03, and Council's resolution # GPA-147-03 rejecting the initial offer from the Lions Club for rental of space at the Clarington Beech Centre for the operation of the Bowmanville Nursery School, staff have met with the various parties involved in an attempt to negotiate a satisfactory agreement. A market analysis has also now been completed for the space currently leased by the Lions, which indicates that a rental rate of $6.50 per square foot would be reasonable. This is based on the functional utility of the space and the high vacancy rate for second floor commercial units. A revised offer in the amount of $6.50 I square foot has now been received from the Lions Club to lease the space for the period of October 1, 2003 to June 30, 2004, They have also indicated a second year option subject to satisfactory negotiation. The rate will be based on current market rates. Rental fees for the Lions Club meetings will be paid directly to Clarington Older Adult Centre and are not included in this lease agreement as was the case in the previous lease. The Finance Department has reviewed the proposed agreement for compliance with assessment related issues. Based on the existing market rate, it is respectfully recommended that the proposed lease be accepted. For the information of Council, the Clarington Older Adults Association have been advised of the proposed agreement and have advised they will not require the space throughout the term. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T(905)623-3379 F (905)623-4169 1207 Schedule "An THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2003- Being a By-law to authorize the execution of an offer to Lease Agreement between the Corporation of the Municipality of Clarington and the Lions Club, in respect of a lease for the Clarington Beech Centre, situated at 26 Beech Street, Bowmanville, Ontario. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, a contract between, Lions Club of Bowmanville, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of ,2003. By-law read a third time and finally passed this day of ,2003. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 1208