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HomeMy WebLinkAboutAdmin 21-85Ut_a CORPORATION OF THE TOWN OF NEWCASTLE 40 TEMPERANCE STREET �^ BOWMANVILLE, ONTARIO L1C3A6 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING HELD APRIL IST 1985 ADMIN. 21 - 85 SUBJECT: RENEWAL OF LEASE OF OFFICE SPACE WITH MATTHEWS & HILL INSURANCE BROKERS LIMITED, ORONO ARMOURIES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That Administrator's report ADMIN. 21 - 85 be received; 2. That the Mayor and Clerk be authorized to execute the necessary documents to revise the necessary lease with Matthews & Hill Insurance Brokers Limited on the basis of a 1985 increase of 5% and a 1986 increase of an additional 5%; - 3. That the attached by-law authorizing the Mayor and Clerk to execute the necessary documents be adopted; 4. That Matthews & Hill Insurance Brokers Limited be advised. of Council's actions. BACKGROUND AND COMMENT: In March of 1983 a lease was signed with Matthews & Hill Insurance Brokers Limited for the sum of $325 per month for office space in the Orono Armouries. This amount escalated to $364 per month in 1984. Staff contacted Matthews & Hill Insurance Brokers Limited prior to the end of the current lease to see if the company was interested in renewing same. Staff is prepared to recommend the lease be renewed until the end of 1986 on the basis of annual increases of 5%. As such, it is being recommended that effective March 31st 1985 the rent be increased to $382.20 per month for the year 1985 and $401.31 per month for the year 1986. .2 ADMIN. 21 - 85 -2- It should be noted that in calculating a rental factor to the Orono Co-operative Showcase it was anticipated that the insurance office space would have a rent increase of approximately 5%. The renewal of the leases for 5% increases should ensure that the building runs on a break-even proposition and does not require monies from the general levy. For Council's information I am attaching a March 8th 1985 letter from Matthews & Hill Insurance Brokers Limited accepting the proposed new rental arrangements. All of which is respectfully submitted, David . Johnston, M.C.I.P., Chief Administrative Officer DSJ:nof att. a Ca, Matthe37�TS Matthews & Hill Insurance Brokers Limited frin 466 George h,Street On aria K Box 1180 �,. Peterborough, Ontario K9J 71-14 INSURANCE Tel: 1706) 743-4211 Telex: 06-962933 March 8, 1985 David S. Johnston, M.C.I.P., Chief Administrative Officer, Corporation of The Town of Newcastle, 40 Temperance Street, �3owmanville, Ontario LIC 3A6 Dear Mr. Johnston: Based upon our previous understanding, that if certain improvements were made we would sign a new lease with two annual 5% increases, you can now go ahead and prepare such a lease. Please send the new lease to me when it is ready. Perhaps ',you may prefer an addendum to the existing lease, rather than an en- tirely new one. This would be acceptable to us. Yours truly, Gary W. Harris, C.A., :ck Vice President Peterborough Fenelon Falls Orono Bancroft Thunder Bay Toronto