HomeMy WebLinkAboutCOD-038-08
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REPORT
Meeting:
CORPORATE SERVICES DEPARTMENT
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
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Date:
June 16, 2008
Report #: COD-038-08
File#_
By-law #t}odS-/ jg'
Subject:
Ontario Realty Corporation, Lease Extension -132 Church Street,
(Court room)
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-038-08 be received;
2. THAT the lease extension from the Ontario Realty Corporation for the Lease space at
132 Church Street, Bowmanville, in the amount of $5,400.00 per year for the term of
June 1, 2008 to May 31, 2009 be approved; and
3. THAT the attached By-law marked Schedule "A" authorizing the Mayor and the Clerk to
execute the proposed Lease agreement marked Schedule "B" with the Ontario Realty
Corporation be forwarded to Council for approval.
Submitted by:
ne Marano, H.B.Sc., C.M.O.,
Director of Corporate Services
Reviewed by:
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Chief Administrative Officer
MMIJDBlkm
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169
REPORT NO.: COD-038-08
PAGE 2
BACKGROUND AND COMMENT
During the period of June 1, 2006 to May 31, 2008 the Municipality had an agreement with the
Ontario Realty Corporation for the use of the court room located at 132 Church Street,
Bowmanville. The agreement provided for the use of the court room for sixty (60) days each
year and the lease rate was based on a per diem rate of $175.00.
The Ontario Realty Corporation has proposed a lease extension for the court room area for a
one (1) year period from June 1, 2008 to May 31,2009 based on usage of thirty (30) days per
year with a nominal increase in the per diem rate to $180.00. The annual fee of $5,400.00 will
be paid in advance in equal monthly instalments of $450.00. There is also provision in the
agreement to use the court room for additional days if needed, at the per diem rate; however,
this option has not been utilized in recent years. The extension agreement continues to make
provision for a change in the number of days required or the cancellation of the agreement on
ninety (90) days notice (see Section 3). A copy of the proposed agreement is attached as
Schedule "B".
This report has been reviewed for recommendation by the Purchasing Manager, with the
appropriate departments and circulated as follows for:
Concurrence: Director of Operations
Information: Director of Finance.
Attachments:
Attachment 1 - Schedule "A", By-law
Attachment 2 - Schedule "B" Lease Agreement
Schedule "A"
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW 2008-
Being a By-law to authorize a contract between the
Corporation of the Municipality of Clarington and Ontario
Realty Corporation, Toronto, Ontario, to enter into agreement
for the lease space at 132 Church Street, Bowmanville, ON.
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, Ontario Realty Corporation, Toronto, 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
,2008.
By-law read a third time and finally passed this
day of
,2008.
Jim Abernethy, Mayor
Patti L. Barrie, Municipal Clerk
SCHEDULE "B"
L01739
PER DIEM LICENSE EXTENSION AND AMENDING AGREEMENT
THIS AGREEMENT made in quadruplicate as of the 16th day of April, 2008.
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
Herein called the "Licensor"
OF THE FlRSTPART
AND:
ONTARIO REALTY CORPORATION, ACTING
AS AGENT ON BEHALF OF HER MAJESTY
THE QUEEN IN RIGHT OF ONTARIO
AS REPRESENTED BY THE MINISTER OF
PUBLIC INFRASTRUCTURE RENEWAL
Herein called the "Licensee"
OF THE SECOND PART
WHEREAS by a Per Diem License Agreement dated June I, 2005, (the "Original License''),
the Licensor did license unto Her Majesty the Queen In Right of Ontario As Represented by
the Chair of the Management Board of Cabinet (the ''Chair'') for a tenn of One (I) year
commencing on June 1,2005 and ending on May 31, 2006 (the "Tenn"), the premises more
particularly described as approximately Four Thousand, One Hundred and Twenty-Seven
(4,127) square feet on the second floor (the "Licensed Premises''), in the building municipally
known as 132 Church Street (the "Building"), in the Town ofBowmanville, in the Province of
Ontario (the "Lands''), as more particularly described in Schedule "A" attached thereto;
AND WHEREAS by Order in Council No. 1487/2005 dated September 21,2005, all of the
powers and duties of the Chair relating to real property leased by the Government of Ontario
pursuant to the Min;.,trv of Government Services Act, R.S.O. 1990, c.M.25, as amended, were
transferred and assigned to the Minister of Public Infrastructure Renewal;
AND WHEREAS the Licensor and the Licensee agreed to extend the Tenn by way of a
License Extension and Amending Agreement dated July 28, 2006 (the "First Extension
Agreement"), for One (I) further tenn of Two (2) years commencing on June 1,2006 and
ending on May 31, 2008 (the "First Extension Tenn''), in addition to other tenns and
conditions as set out therein;
AND WHEREAS the Original License, the First Extension Agreement and this License
Extension and Amending Agreement (the "Agreement'') are hereinafter collectively referred to
as the "License", except as specifically set out herein;
AND WHEREAS the parties have agreed to (i) reduce the Licensee's use of the Licensed
Premises from Sixty (60) days per year to Thirty (30) days per year; and (ii) extend and amend
the License on the following terms and conditions:
SCHEDULE "Bit
-2-
NOW THEREFORE TffiS AGREEMENT WITNESSES THAT in consideration of the
sum of Two Dollars (S2.OO) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. The parties hereto confirm that the foregoing recitals are true in substance and in fact.
Extension of License
2. The Term of the License is hereby extended for a further term of One (I) year
commencing on Iune 1, 2008 and ending on May 31,2009 (the "Second Extension
Term"), at an annual license fee of Five Thousand, Four Hundred Dollars (S5,400.00)
(the "License Fee''), payable in advance in equal monthly installments of Four
Hundred and Fifty Dollars (S450.00) on the first day of each month during the Second
Extension Term, based upon use of the Licensed Premises for Thirty(30) days per year
at a rate of One Hundred and Eighty Dollars (S 1 80.00) per day.
Any additional days of use will be paid for by the Licensee at the abovementioned
daily rate upon receipt of an invoice from the Licensor for such additional use, such
invoice to be issued once a year at the end of the calendar year in which such charges
were incurred.
Any additional days are to be invoiced to the following:
Ministry of the Attorney General
720 Bay Street
5th Floor
Toronto, ON M5G 2KI
Attention: Manager, Leasing Services
The Licensee hereby continues to certifY that the Licensed Premises is licensed for use
of the Crown in Right of Ontario and is therefore not subject to the Goods and Services
Tax.
3. The Licensee shall continue to have the right to cancel this Agreement or alter the
oumber of days per annum for. which use of the Licensed Premises is designated
hereunder at any time during the Second Extension Term, by giving the Licensor not
less than Ninety (90) days' prior written notice of cancellation or change, as the case
may be.
Amendments to License
4. The extension contemplated pursuant to this Agreement is subject to all the covenants
and agreements contained in the License, as amended, renewed and extended from
time to time, save and except Section 6.13 of the Original License (Notices) is hereby
amended to provide the following addresses for notice:
Licensee:
Ontario Realty Corporation
I Dundas Street West
Suite 2000
Toronto, ON M5G 2L5
Attention: Vi....President,
Leasing and Lease Administration
Tel: 416-327-3937 Fax: 416-327-3376
And an additional
copy to:
SNC Lavalin ProFac Inc.
Suite 900, 304 The East Mall
Toronto, ON M9B 6E2
SCHEDULE "B"
- 3.
Attention: Director of Lease Administration
Tel: 416-207-4700 Fax: 416-207-3208
Any notice required shall he given in writing and delivered personally or by
facsimile or mailed hyeither registered or signature mail and postage prepaid. The
time of giving of notice hy either registered or signature mail shall he conclusively
deemed to he the third Business Day after the day of such mailing. Such notice, if
personally delivered or if delivered by facsimile, shall he conclusively deemed to
have been given and reeeived at the time of such delivery.
5. The Licensor and the Licensee hereby mutually covenant and agree that during the
Second Extension Term they shall each perform and observe all of the covenants,
provisos and obligations on their respective parts to he performed pursuant to the terms
of the License, as extended and amended hereby.
6. The Licensor and any of its successors, permitted assigns, directors, officers,
employees, agents, servants, and representatives shall not engage in any activity where
such activity creates a conflict of interest, actual or potential, in the sole opinion of the
Licensee, with the License or the exercise of any of the rights or obligations of the
Licensor hereunder. The Licensor shall disclose to the Licensee in writing and without
delay any actual or potential situation that may he reasonably interpreted as either a
conflict of interest or a potential conflict of interest.
For clarification, a "conflict of interest" means, in relation to the performance of its
contractual obligations pursuant to the License, the Licensor's other commitments,
relationships or financial interests (i) could or could he seen to exercise an improper
influence over the objective, unbiased and impartial exercise of its independent
judgement; or (il) could or could be seen to comprontise, impair or be incompatible
with the effective performance of its contractual obligations pursuant to the License.
7. Except as otherwise specifically provided in this Agreement, all words and expressions
used in the License shall apply to and he read as applicable to the provisions of this
Agreement.
8. The provisions of this Agreement shall be interpreted and governed by the laws of the
Province of Ontario.
9. The Licensor acknowledges and agrees that the commercial and financial information
in this Agreement is subject to the Freedom oflnformotion and Protection ofPrivacv
4ft, R.S.O. 1990, c.FJI, as amended.
10. This Agreement shall he binding upon and enure to the benefit of the administrators,
successors and/or assigns of the respective parties hereto.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
SCHEDULE "B"
-4-
11. This Agreement shan not be binding upon the Licensee until it has been executed by or
on behalf of the Licensee.
IN WITNESS WHEREOF the parties hereto have executed this Agreement.
THE CORPORATION OF THE MUNICIPALITY OF
CLARINGTON
Per:
Name:
Title:
Per:
Name:
Title:
Authorized Signing Officer(s)
ONTARIO REALTY CORPORATION, ACTING
AS AGENT ON BEHALF OF HER MAJESTY
THE QUEEN IN RIGHT OF ONTARIO AS
REPRESENTED BY THE MINISTER OF
PUBLIC INFRASTRUCTURE RENEWAL
Per:
John Contestabile
Vice-President, Transactions
Authorized Signing Officer