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HomeMy WebLinkAboutAdmin-10-96s t Meeting: REPORT #3 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # i—f_D Date: MAY 279 1996 Report #: - ADMTN-10=%Ie #: Subject: ST. JOHN AMBULANCE Res. # By -Law # Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report No. ADMIN -10-96 be received; 2. THAT the lease agreement with St. John Ambulance in the amount of $522.50 per month for a period of one year plus a renewable option of an additional year be approved; and 3. THAT the attached by-law marked Schedule A authorizing the Mayor and Clerk to execute a Lease agreement with the St. John Ambulance for the rental of the former administration offices of the Fire Department in the premises located at 132 Church Street, Bowmanville be executed. 1.0 BACKGROUND: 1.1 As directed by Council at the meeting of May 13, 1996, staff have received the request of the St. John Ambulance Brigade as it relates to the unoccupied main floor area of the former fire hall. 1.2 The Municipality currently leases other space in the building to the Ministry of Government Services for the Court Rooms, Holding Cells and west side administration area (Probation Offices). These leases were renewed by Council in 1993 for a term of five years. At this time there is no interest to issue notice to terminate any of these leases. 1.3 The former fire hall space has been vacated since Fall 1994 and was to be part of an overall renovation plan for an Older Adults Centre. Earlier this year, Council accepted a proposal in principle to partner with a private developer to construct a stand alone Older Adults Centre. 1.4 As a result, two areas were defined as available for occupancy. The main floor area which previously housed the offices of the Fire Chief, Captain and Dispatch area and the apparatus bay. The main floor area represents 660 square feet. St. John Ambulance, after inspecting the site are quite interested in this area for small meetings and training which can be accessed through the north west entrance. ../2 RECYCLED PAPIER PAPER RECYCLE THIS IS PRINTED ON RECYCLED PAPER REPORT ADMIN -10-96 - 2 - MAY 279 1996 1.5 The proposed fee is based on the current probation lease which was set at $12.00/square foot incorporating a base operating rate and a base rental rate. 1.6 Since the St. John Ambulance Branch will be responsible for their own custodial maintenance, the rate being proposed is $ 9.50 per square foot per year. 1.7 The proposed lease is effective June 1, 1996 and expiring May , . 31 1997 A provision is also provided for an additional year with an inflationary cost escalation clause. 1.8 The proposed lease also contains a provision that both the lessor and the lessee shall have the right to cancel the agreement by giving the other party three months written notice of cancellation. Staff feel that the proposed rate is reasonable and recommend that the lease proposal be accepted. 1.9. The apparatus bay and adjacent areas have been offered to the Youth Committee as directed by Council. Staff have met on two occasions with the Youth Committees and are awaiting a formal response from the Youth which is expected shortly. As staff are not aware of proposed program activities of the Youth, it will be important for both groups to liaise and co-operate fully. 1.10 If the Youth Committee are not interested in this area, staff will be directed to advertise and meet with any potential tenants and report back to Council as soon as possible. 1.11 The Treasury Department have reviewed and prepared the terms and conditions of the lease consistent with Municipal practices. Respectfully submitted, �R �f a Fred I o A- , Property Manager kairi'e' Marano, Treasurer FH:sa Attachment Reviewed by, W. H. Stockwell, Chief Administrative Officer r a x THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 96- 104 Being a By-law to authorize the execution of a Leasing Agreement between the Corporation of the Municipality of Clarington and St. John Ambulance in respect of a lease for premises situated at 132 Church Street (Upper Level), Bowmanville 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 with the Corporation Seal, a Leasing Agreement with St. John Ambulance and said Corporation. 2. THAT this agreement attached hereto as Schedule "A" form part of this By-law. • By-law read a first and second time this 27 day of May, 1996. By-law read a third time and finally passed this 2 7 day of May, 1996. Mayor Clerk THIS LEASE dated as of the 1st day of June, 1996, in pursuance of the Short Forms of Leases Act. BETWEEN: The Corporation of the Municipality of Clarington (hereinafter called the "Landlord") - and - St. John Ambulance (hereinafter called the "Tenant") WHEREAS the Landlord has agreed to lease to the Tenant and the Tenant has agreed to lease from the Landlord the area containing a s f g approximately 660 square feet located in the upper level of the building known as the Fire and Court Building, 132 Church Street, "Premises"). Municipality of Clarington, Regional Municipality of Durham the Premises ). NOW THEREFORE THIS LEASE WITNESSES that in consideration of the rents covenants and agreements hereinafter reserved and contained on the part of the Landlord and the Tenant, the Landlord leases to the Tenant, and the Tenant leases from the Landlord, the Premises on the following terms and conditions: 1. Term (a) The Tenant shall have and hold as tenant for a term of one(1)year "Term"). yr commencin g June 1, 1996 and ending May 31, 1997 (hereinafter called the (b) If the Tenant shall not be in default under this Lease, the Tenant shall have the right to extend the Term for a further period of one(1)Ex g year (the "Extension Term"). Such right shall be exercisable by written notice from the Tenant to the Landlord given no later than 180 days before the expiration of the initial Term. The Extension Term shall be on the same terms and conditions as contained herein save and except Tcrm that there shall be no further right of extension of the Term of Extensionp . 2. Use The Tenant shall continuously occupy the Premises throughout the Term, subject to and in accordance with the provisions of this Lease, solei for uses permitted other use or purpose. Y p tt d by law and for no The Tenant shall not commit or suffer or permit to be committed(i)an waste or damn edisfiguration or in'u to the P g ' • y. injury remises or the improvements, installations, fixtures and equipment thereon and (ii) any nuisance in, at or on the Premises. The Tenant shall not do or permit anything to be done that results in the cancellation or threatened cancellation or the reduction of coverage under or threatened reduction of coverage under any insurance policy on the Premises or any part of it. -2- 3. Basic Rent During the Term, the Tenant shall pay to the Landlord annual minimum rent("Basic Rent"in an amount e ual to i Five Hundre ) q () d and Fifty Dollars ($550.00) per month subject to increase as provided herein for the balance of the Term. Basic Rent shall be payable in monthly instalments, each payable on the first da of each month, provided that should the Term commence or terminate on a date Y other than the first day of a month, the Tenant shall pay to the Landlord for that month a pro rataortion of said monthly payment. p Basic Rent shall be considered as accruing from day to day and where it becomes necessary for any reason to calculate rent for an irregular period of less than oneea y r or less than one calendar month, an appropriate apportionment and adjustment shall be made. On the 1st day of June of each year of the Term or Extension Term, as the case may be after the commencement thereof the Basic Rent shall increase to an amount e Y Rent for the previous month. b a fraction .which has equal the Basic Y s as its numerator the Consumer Price Index (Ontario) (The "C.P.I.") for the preceding April and as its denominator the C.P.I. f April twelve (12) months prior. The Landlord shall advise the Tenant in writingor than the 1st of March of each year as to the amount of no later such increase in Basic Rent. 4. Net Lease The Tenant acknowledges, covenants and agrees that, except as herein expressly se ' is intended that this Lease and the rentals herein provided p Y tout, it net and carefree to the Landlord, p to be paid shall be completely All amounts required to be paid by the Tenant hereunderL h t whether o the Landlord parties shall be additional r ( or third rent and all additional rent shall be payable and recoverable a Basic Rent, but in the manner herein provided, and the Landlord shall have s against the Tenant for default in an such payment as in all rights Y p ym the case of arrears of Basic Rent. 5. Repairs and Maintenance The Tenant hereby accepts the Premises on an "as is" basis. The Tenant, expense, shall maintain and keep the Premises and eve t, at its own order and condition and rom tl rY part thereof, in good working p pymake all needed maintenance, repairs and replacements as would a prudent owner of similar premises (reasonable wear and tear and da fire, lightning and tempest and structural defects onlyto mage by Premises clean and in such condition excepted). d)• The Tenant shall keep the as a prudent owner would do. If structural repairs or replacements to the roof, foundation or load bearing walls or the heatingequipment erm, then the. Landlord of the Premises are required during the T to effect such re airs or re lace shall be -obligated, at its expense, p p ments. The Tenant covenants with the Landlord to leave the Premises in as good repair as the Premises were at the commencement of the Term. 6. Alterations (a) If the Tenant, during the Terms of this Lease or an renewal of it d any alterations or additions to the Premises y � esires to make , including but not limited to: erecting partitions, attaching equipment, and installing necessaryfurnishings oradditional equipment of the Tenant's business the Tena g Tenant may do so at his own expense, at any time and from time to time, if the following conditions are met: -3- (i) before undertaking any alteration or addition the Tenant shall submit to the Landlord a plan showing the proposed alterations or additions and the Tenant shall not proceed to make any alteration or addition unless the Landlord has approved the plan, and the Landlord shall not unreasonably, or arbitrarily withhold its approval and items included in the plan which are regarded by the Tenant as Trade Fixtures" shall be designated as sun on the plan; and any and all alterations or additions to the Premises made by the Tenant must comply with all applicable building code standards and by-laws of the municipality in which the Premises are located. (b) The Tenant shall be responsible for and pay the cost of any alterations, additions installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Premises. (c) No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant or any other person on the Tenant's behalf, on any part of the inside or outside of the building in which the Premises are located unless the sign, advertisement or notice has been approved in every respect by the Landlord. (d) All alterations and additions to the Premises made by or on behalf of the Tenant other than the Tenant's Trade Fixtures, shall immediately become the property of the Landlord without compensation to the Tenant. p y (e) The Tenant agrees, at his own expense and by whatever means may be necessary, immediately to obtain the release or discharge of an en Y be g y cumbrance that may be registered against the Landlord's property in connection with any additions or alterations to the Premises made by the Tenant or in connection with an other activity of the Tenant. y 7. Insurance and Indemnification (a) The Tenant covenants to keep the Landlord indemnified against all claims an person, whether i g rns and demands whatsoever b Y Y p n respect of damage to person or property, arising out of or occasioned by the maintenance, use, or occupancyof the Premises or the subletting or assignment of same or an y part thereof. And the Tenant further covenants to indemnify the Landlord with respect to an encumbrance on or damage to the Premises occasioned b p Y y or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees contractors, customers, invitees or licensees and the Tenant agrees t ' g that the foregoing indemnity shall survive the termination of this Lease notwithstandingprovisions of this Lease to the contrary. any (b) The Tenant .shall carry: (i) insurance in his own name to provide coverage with respect to the risk of business interruption to an extend sufficient to allow the Tenant to meet his ongoing obligations to the Landlord and to protect the Tenant against loss of revenues: insurance in his own name insuring against the risk of damage to the Tenant's property within the Premises caused b fire or other g Y perils and the policy shall provide for coverage on a replacement cost basis to protect the Tenant's stock -in -trade, equipment, Trade Fixtures, decorations and improvement; and public liability and property damage insurance in the amount g unt of Two Million Dollars ($2,000,000.00) in which policy the Landlord shall be a named insured and the policy shall include a cross -liability endorsement; -4 - and the Tenant shall provide the Landlord with a copy of the policy certified by the insurer. 8. Damage and Destruction If the Premises are destroyed or damaged by fire, lightning, tempest or other casualty, then and in every such event if, in the opinion of the Landlord's architect, the damage or destruction of such Building renders the whole or any substantial part of the said Building unfit for occupancy or impossible or unsafe for use and occupancy or impossible for the Tenant to continue to carry on its business, either the Landlord or the Tenant may at its option, terminate this Lease by giving to the other notice in writing of such termination, in which event, this Lease and the Term shall cease and be at an end as of the date of such destruction or damage, and the rent and all other payments for which the Tenant is liable under the terms of this Lease shall be apportioned and paid in full to the date of such destruction or damage; 9. Quiet EnjoyMe_nt The Landlord covenants with the Tenant for quiet enjoyment. 10. Government Requirements The Tenant shall, at its sole cost and expense, during the Term: (a) observe and comply with all applicable governmental laws and regulations including, legislative enactments without limitation, federal and provincial le B g g Building and other governmental or municipal regulations which relate to the Premises or the partitioning, equipment, operation and use thereof and to the making of any repairs, replacements, alterations, additions, changes, substitutions or improvements of or to the Premises. The Tenant shall comply with all police, fire and sanitary regulations imposed by any federal, provincial or municipal authorities, or made by insurance underwriters and shall observe all governmental and municipal regulations and other requirements governing the conduct of any business conducted in the Premises; (b) obtain all necessary permits, licenses and approvals relating to the use and occupancy of the Premises and the conduct of business therein; and (c) carry out all modifications, alterations or changes to the Premises and the Tenant's conduct of business in or use of the Premises which are required by any such authorities. The Tenant shall indemnify and hold the Landlord harmless against any penaltyor fine imposed for any violation of any law, by-law or regulation b the Tenant g y or those for whom the Tenant is in law responsible. 11. Default The following events ("Events of Default") shall be deemed a default (a "default") under this Lease: (a) If the Tenant fails to pay any instalment of Basic Rent promptly when due or additional rent hereunder ("Additional Rent") no later than five (5) days following the respective due date; -S - (b) If the Tenant fails to observe or perform any other term, covenant, condition or obligation under this Lease that is capable of remedy other than a default in the payment of Basic Rent or Additional Rent, and such default remains unremedied after thirty (30) days following written notice from the Landlord to the Tenant specifying such default and requiring the Tenant to remedy the default; (c) If the Tenant fails to observe and perform any other term, covenant, conditions or obligation under this Lease that is not capable of remedy other than a default in the payment of Basic Rent or Additional Rent and the Tenant receives written notice from the Landlord specifying such default; (d) If the Tenant makes an assignment for the benefit of its creditors generally, or if the Tenant is declared bankrupt or insolvent, or if a petition in y p bankruptcy is filed against the Tenant, or if the Tenant files an assignment in bankruptcy or takes or attempts to take the advantage of any legislation for relief of bankrupt or insolvent debtors, or if a receiver or a receiver and manager is appointed for all ora portion of the Tenant's property, or if any steps are taken or any action or proceedings are instituted by the Tenant or by any other party including, without limitation, any court or governmental body of competent jurisdiction for the dissolution, winding -up or liquidation of the Tenant or its assets, unless such proceeding be set aside, discharged or abandoned within fourteen (14) days. For the purposes of this Subsection, Tenant' shall mean the Tenant and any person carrying on business in or occupying the whole or any part of the Premises; (e) If, the Tenant makes or attempts to make any bulk sale of any of its assets situated in the Premises In contravention of the provisions of this Lease, or if any Tenant sells, disposes, removes or attempts to remove from the Premises a part of its trade fixtures, furniture, improvements, chattels or goods other than in the normal course of business so that there would in the event of such sale, disposal or removal be sufficient trade fixtures, furniture, improvements, chattels or goods of the Tenant on the Premises subject to distress to satisfy all rent due or accruing hereunder for a period of at least twelve (12) months; or (f) If the Premises becomes and remains vacant for a period of five (5) consecutive days Upon an Event of Default, the full amount of Basic Rent and Additional Rent then owing and the current month's Basic Rent and Additional Rent together with the three (3)months instalments of Basic Rent and Additionalg next ensuing Rent shall immediately become due and payable unless the Landlord gives written notice to the Tenant to the contrary. 12. Right of Re -Entry Upon an Event of Default and at the opinion of the Landlord, the Landlord, in addition to any other remedy or right it may have, and without notice or any form of legalp rocess, may forthwith re-enter upon and take possession of the Premises without there y this Lease and remove and sell the Tenant's by terminating goods, chattels, equipment and trade fixtures therefrom, any rule of law or equity to the contrary notwithstanding. The Landlord may seize and sell such goods, chattels, equipment and trade fixtures of the Tenant e Premises and may apply the proceeds thereof to all as are in the Y pp Y p rent and other payments to which the Landlord is then entitled under this Lease. Any such sale may be effected in the discretion of the Landlord by public auction or otherwise, and either in bulk or by individual item or in its sole discretion partly by one means and party by another, all as the Landlord' may decide. If any of the Tenant's property is disposed of as provided in this Section ten 10 days prior notice to the Tenant of disposition ' ) p shall be deemed to be commercially reasonable. -6- 13. Right of Termination In addition to all rights and remedies of the Landlord available to it by an provision of this Y Lease or given by law to the Landlord, the Tenant agrees that upon an Event of Default the Landlord shall have the right to terminate this Lease upon notice in writing to the Tenant. Upon such notice, this Lease shall terminate immediately without the necessity of any legal proceeding whatsoever. The Tenant shall thereupon within three (3) days quit and surrender the Premises to the Landlord, or if not yet in possession, the Tenant shall no longer have any right to possession of the Premises, and the Landlord, its agents and servants, shall have the right to enter the Premises and dispossess the Tenant and remove any persons or property therefrom without the necessity of legal proceeding whatsoever and without being liable to the Tenant therefor in damages, or otherwise. Either party shall have the right to cancel this Lease at any time during the term by giving the other party no less than three (3) month prior written notice of termination. 14. Right to Re -let etc. If the Landlord re-enters pursuant to the provisions of either this Lease or any applicable law, the Landlord, without limiting its right to recover damages, may either terminate this Lease under this section or it may from time to time without terminating the Tenant's obligations under this Lease, make any alterations and repairs considered necessary b the Landlord to facilitate a reletting, and relet the Premises or an art thereof y Y p as agent of the Tenant for such term or terms and at such rental or rentals and upon such other terms and conditions as the Landlord in its reasonable discretion considers advisable. Upon each reletting, all rent and other moneys received by the Landlord from the relettingwill be applied (i) to the payment of indebtedness other than rent due here under from the Tenant to the Landlord (ii) to the payment of costs and expenses of the reletting including brokerage fees, legal fees and costs of the alterations and repairs and (iii) to t . p ( ) he payment of rent due and unpaid hereunder. The residue, if any, will be held by the Landlord and applied in payment of future rent as it becomes due and payable. If the rent received from the reletting during a month is less than the rent to be paid during that month b the Tenant, the Tenant shall pay the deficiency to the Landlord. The deficiency shall y s gall be calculated by the Landlord and paid monthly in advance on or before the first da of eve ry month by the Tenant. No re-entry by the Landlord shall be construedy as an election on its part to terminate this Lease unless a written notice of that intention is given to the Tenant. Despite a reletting without termination, the Landlord may elect at an time to terminate this Lease for a previous breach. Y 15. Damages If the Landlord shall terminate this Lease as provided herein, the Tenant shalla to the Landlord on demand, rent hereunder up to the time -of re-entry urination, whichever or ter p Y shall be the later. 16. Separate Remedies The Landlord may from time to time resort to any or all of the rights and remedies available to it upon an Event of Default, either b provision g y any p n of this Lease or by statute or the general law, all of which rights and remedies are intended to be cumulative and not alternative and may be exercised generally or in combination. 17. Waiver (a) Notwithstanding anything contained in any statute now or hereafter in force limiting or abrogating the right of distress, none of theoods, chattels or trade fiat e g fixtures of the Tenant on the Premises at any time during the Term shall be exempt from levy by distress for rent in arrears, and if any claim is made for such exemption by the Tenant or if a distress is made by the Landlord of if any action is brought to test the right of the Landlord to levy upon any such goods as are so exempted, this Lease may be pleaded as an estoppel against the Tenant, the Tenant hereby waiving each and every benefit that could or might have accrued to the Tenant under and by virtue of any such statute by for this Lease. (b) Failure of the Landlord to insist upon the performance of any covenant or condition of this Lease or to exercise any right or option contained in this Lease shall not be construed as a waiver or relinquishment of any such covenant, conditions, right or option or of any subsequent breach of the same. No variation or waiver of any covenant or condition of this Lease shall be valid unless in writing and signed by duly authorized persons on behalf of the Landlord. 18. Covenants Every obligation of the Landlord or the Tenant expressed in this Lease, even though not expressed as a covenant, shall be'a covenant for all purposes. The Tenn g that it shall have no right to an benefit of division p p Tenant acknowledges g Y sion or discussion. 19. Time of Essence Time shall be of the essence in all respects hereunder. 20. Enforceability If any term, covenant or condition of this Lease or the application thereof to an person or circumstance is to any extent held or rendered invalid unenforceable y remainder of this Lease or thea application � ceable or illegal, the pp ation of such term, covenant or conditions to persons or circumstances other than those with respect to which it is held invalid, unenforceable or illegal is not affected thereby and continues to be applicable and enforceable to the fullest extent permitted by law. 21. Notices Any notice that one party hereto may -desire -or be required to give to the other art hereto shall for all purposes be deemed to have been sufficient) and ro erl party personally or forwarded by registered mail and addressed p p Y ,given, if delivered g essed in the case of the Landlord to: 40 Temperance Street, Bowmanville, Ontario, L1 C 3A6 and in the case of the Tenant to the Premises and shall be presumed to have been receive on the date of delivery, if delivered personally, or if forty d p Y� forwarded by registered mail on the third business day following such mailing. Any notice shall be in writing' except as expressly esslyotherwise provided herein, and shall be given only by delivery as aforesaid in the event ofpost interruption. 22. Parking Spaces The Lessor shall provide two (2) parking spaces for the exclusive use of the Tenant. 23. Enurement This Lease and everything herein contained shall enure to the benefit of and be binding upon the parties hereto their successors and permitted assigns respectively. IN WITNESS WHEREOF the parties have duly executed and unconditionally delivered this Lease as of the date first above written. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON By And: Diane Hamre, Mayor Patti L. Barrie, Clerk ST. JOHN AMBULANCE By And: