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Home My WebLink AboutCSD-008-17Clarftwn Community Services Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: September 25, 2017 Report Number: CSD -008-17 Resolution: File Number: By-law Number: Report Subject: Community Care Durham - Request for Additional Lease Space at Garnet B. Rickard Recreation Comolex Recommendations: That Report CSD -008-17 be received; 2. That Council approve the request from Community Care Durham to expand their leased space at the Garnet B. Rickard Recreation Complex; 3. That the funds in the amount of $55,400.00 needed to front end the cost of the renovations to expand the leased space be drawn from the General Municipal Reserve Fund; 4. That the Mayor and Clerk be authorized to sign a lease amending agreement substantially in the form attached to this report (Attachment 3) to extend the current term and provide for the recovery of the actual renovation costs; and 5. THAT Community Care Durham be advised of Council's decision. Municipality of Clarington Resort CSD -008-17 Report Overview Paae 2 Community Care Durham is requesting that the Municipality consider minor renovations to the former customer service area, to be incorporated into this leased space and further requested an extension to their lease. 1. Background The Community Services Department has received correspondence from Community Care Durham (CCD) indicating an interest in expanding the square footage of the space they currently lease at the Garnet B. Rickard Recreation Complex. The recently completed renovations at the facility included the relocation of the front customer service desk from the eastern end of the lobby to the expanded west entrance to the facility, leaving this space adjacent to CCD available. In March of 2009, Council approved the negotiation of a lease agreement between the Municipality and Community Care Durham for approximately 4,600 square feet of available space at the complex, to accommodate the relocation of their Clarington operation from the Clarington Beech Centre. 2. Existing Lease Following the renovation of this space, CCD occupied the area and the lease took effect April 1, 2010 for a ten-year term and includes an option for renewal of an additional ten years. The terms include a square footage based rent, and additional rent for the provision of heat, hydro and water. During the first five years of the lease term, additional rent totalling $48,500.00 was also charged to assist the Municipality with the cost of the original leasehold improvements. 3. Proposal The request for the additional space would accommodate additional office and storage for the Adult Day Program. CCD is requesting the Municipality fund and manage the necessary renovations under the terms of the original agreement. This would require the initial lease term to be extended to March 31, 2024 to accommodate a six-year repayment of all renovation costs. Following the expiry of the extended initial lease term, the option to renew the lease for an additional ten years will remain intact. Municipality of Clarington Resort CSD -008-17 4. Financial Considerations Paae 3 The preliminary costs for the necessary renovations have been estimated at $55,400.00. The Municipality would seek competitive bids for this renovation through our procurement process and would consult with CCD prior to the award of the project. The necessary funds to complete the renovations for the expanded lease are recommended to be drawn from the General Municipal Reserve Fund. 5. Concurrence This report has been reviewed by Nancy Taylor, Director of Finance who concurs with the recommendations. 6. Conclusion Since the start of the lease the relationship between the Municipality and CCD has been very positive and they are excellent tenants. Staff are supporting the recommendations in this report and see this as an opportunity to work with a valued community partner to enhance the services they provide to their clients and our residents. 7. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Municipality of Clarington Resort CSD -008-17 Submitted by: Joseph P. Caruana, Director of Community Services Paae 4 Reviewed by: Andrew C. Allison, B. Comm, LL.B CAO Staff Contact: George Acorn, Manager of Facilities, 905 623-3379 ext. 2503 or gacorn@clarington.net Attachment 1: Letter dated March 30, 2017 from Community Care Durham requesting the additional available space at Garnet B. Rickard Recreation Complex. Attachment 2: Correspondence dated May 24, 2017 confirming interest in proceeding with the additional space and requesting a six-year renovation cost repayment be added into an amended lease. Attachment 3: Amending Lease Agreement The following is a list of the interested parties to be notified of Council's decision: Sally Barrie, Director Home Support Services, Community Care Durham Jennifer Rusaw, Director COPE Mental Health & Spec. Geriatrics COPE Mental Health Program Group Support Specialized Geriatrics Education Home Support Program Meals on Wheels Transportation/ . Accessible Van Friendly Visiting Foot Care Clinics Luncheon Out Telephone Reassurance Home Maintenance Home Help Respite Program Adult Day Programs In -Home Respite Long -Term Emergency Avoidance Program Assisted Living Services Supportive Housing Home at Last Program Client Settlement from Hospital to Home Offices: Ajax -Pickering Brock Clarington Oshawa Scugog Uxbridge Whitby Charitable Reg.# 11888 9955 RR0001 Supported by Ontario Central East Local Health Intorgration notvQ k r 1 A United Way Member Agency C) March 30, 2017 Community Care Durham • Oshawa & Whitby - Supporting People, Strenvthenino, C:ornmuait APR 4 2017 Mr. Joe Caruana, Director Community Services 'MUNICIPALITY OFCLARINGTON Municipality of Clarington 40 Temperance St. Bowmanville, ON LIC 3A9 Dear Mr. uana; UH - 20 Sunray Street, Units #5 & #6 Whitby, ON L 1 N 8Y3 COPE Mental Health Program Home Support Program Adult Day Program Tel: 905-668-6223 - Fax: 905-668-7190 Respite Program Tel: 1-888-255-6680 • Fax: 905.839-5513 www.communitycaredurham.on.ca This is a follow-up from a discussion with George Acorn and Ken Ferguson regarding specific space at G.B. Rickard Complex -upcoming vacated space within the building that is presently 'Customer Service' area outside of Pad B. Community Care Durham would like to request rental use of this space for the purpose of adjoining office space within our Adult Day Program. Presently, we are limited in private office space within the actual Day Program area for program planning, client interviewing and office administration. In February, we met on site with George and Ken and looked at the space measuring approximately 275-300 sq. feet of usable space. This would accommodate two offices and a storage area.. The area would be enclosed with a wall running in line with the present bulk head (which contains wiring and lighting) with access to the area through the inside of the Day Program. We know that our area is already rated as a separate area for Fire Code and hopefully the wall would be constructed within the existing rated area. Community Care Durham initially came to rent space within in G.B. Rickard in March of 2010, contracting with the municipality with a 10 yr. lease for approximately 5,000 sq. ft. and without lease hold payments, the rent is close to $6,525 a month. As you are aware, our tenancy within this space has been a most successful partnership and we value the proximity of this space for clients and the community. We understand that with renovations taking place at Rickard, there is an anticipated move in September 2017 into space on the west side of the building that will accommodate a new customer service desk and entrance area. Considering that the said area isn't a significant amount of space, amalgamating it with our existing rental space could be beneficial. Your consideration of this request would be most appreciated and if you wish to have more discussion, we would be pleased to meet and provide any further information. Yours truly, Sallv Barrie" Jennifer Rusaw Director, Home Support Services Director, COPE Mental Health & Spec. Geriatrics Volunteering end he yoyr a Acorn, George From: Sally Barrie <sbarrie@communitycaredurham.on.ca> Sent: May -2417 11:06 AM To: Acorn, George Subject: Rin: 117026-GBRRC-CCD Office Space --Budget Package Good morning George; I was able to bring this information to our Director's team and we would like to proceed with planning for the renovation of space at G.B. Rickard Recreation Centre. Thank you for the scope of work outline and the budget costing for the interior office renovations adjoining our Adult Day Program. This space will accommodate a private office for the Program Coordinator and a student work station. We are anticipating that the present cupboards in the municipal customer service area will be. reused in the said space. Please confirm as we discussed that the present lease (yp in 2020) would be extended to 2023 with the option of an additional 7-10 years and the repayment (based on actual costs) for the renovations would spread out over the next 6 years. Are we still looking at the May 29th date for the report presentation. Thanks again and please let me know if you need anything further. Sally Barrie Director, Home Support Community Care Durham 20 Sunray Street, Unit #5 Whitby, Ontario L1N 8Y3 Email: sbarrie@communitycaredurham,on.ca Tel: 905-668-6291 (direct line) or 905-668-6223 ext. 229 www.communityca redurham.on.ca Supporting People, Strengthening Community Please consider the environment before printing this email. Please note: This e-mail message (and any attachments) is intended only for the use of the individual or organization to which It is addressed and may contain Information that is privileged, confidential, and exempt from disclosure under applicable law. If the reader of this message is not the intended reciplent, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. 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LEASE AMENDING AGREEMENT This Lease Amending Agreement is made as of April 1, 2018 :I aSUVA a*05 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (the "Landlord") - and - COMMUNITY CARE DURHAM (the "Tenant") WHEREAS by a lease dated the 1 st day of April, 2010 (the "Original Lease"), the Tenant leased a portion of the Garnet B. Rickard Recreation Complex comprising approximately 4,619 square feet (the "Premises") for a term of ten (10) years ending on the 31s' day of March, 2020; AND WHEREAS the Landlord and the Tenant wish to amend the Original Lease to provide for the lease of additional space and an extension to the term. NOW THEREFORE the Landlord and the Tenant agree that the Original Lease shall be amended as follows: Grant and Premises 1. The word "Revised" shall be inserted before the words "Schedule "A"" where they appear in section 1.1. 2. The last sentence in section 1.1 shall be deleted and the following substituted therefor: The rentable area of the interior space of the Building is approximately 4,850 square feet. Term 3. Section 1.2 shall be deleted and the following substituted therefor: The Term of this lease shall commence on April 1, 2010 and shall terminate on March 31, 2024 unless the Term is extend or renewed in accordance with the provisions of Section 1.3 of this Lease." -2 - Net Rent 4. Subsection 2.2(4) shall be deleted and the following substituted therefor: (4) The Tenant shall pay to the Landlord as Additional Rent the amount of $19,400.00 per annum, payable in equal monthly installments of $1,616.67 or $4.00 per square foot, commencing on April 1, 2018 to assist the Municipality with the cost of the utility expenses to include water, electricity and gas, for the balance of the Term. Renovations 5. The following subsections shall be added to section 2.2: (5) The Landlord shall complete all work required to renovate the Premises in accordance with the floor plan attached to this Lease and titled Revised Schedule "A". The total cost of such work is estimated to be $55,400.00. The Tenant shall be required to repay the actual cost of the renovations over the last 6 years of the Term (April 1, 2018 — March 31, 2024) in equal monthly instalments of $769.44 payable at the same time as the Rent is payable. The Landlord shall provide evidence of the actual amount of the renovations to the Tenant. (6) If this Lease is terminated for any reason prior to March 31, 2024, the balance of any remaining renovations costs not repaid to the Landlord shall immediately become due and payable. Schedule "A" 6. Schedule "A" shall be replaced with the Revised Schedule "A" attached to this Lease Amending Agreement. Original Lease 7. All other covenants, provisos and stipulations contained in the Original Lease shall remain in full force and effect and the Landlord and Tenant hereby mutually agree that they will perform and observe the several covenants, provisos and stipulations in the Original Lease as fully as if such covenants, provisos and stipulations have been repeated herein in full with such modifications only as are necessary to make them applicable to this Lease Amending Agreement. Binding Agreement 8. This renewal lease shall be binding upon and enure to the benefit of the Landlord, the Tenant and their respective heirs, executors, administrators, successors and assigns. -3 - IN WITNESS WHEREOF the Landlord and the Tenant have executed this Lease Amending Agreement. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON PER: 10110 Mayor Adrian Foster Anne Greentree, Clerk COMMUNITY CARE DURHAM 10110