Loading...
HomeMy WebLinkAboutCOD-039-08 Clw:iygron REPORT CORPORATE SERVICES DEPARTMENT Report #: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Roo\u tic{I-.\:fC; (Jf/-lfq6-6g. By-law # ~ 00 'is -) LJ3 COD-039-08 File#_ Meeting: Date: July 7, 2008 Subject: RFP2008-2 - Garnet B. Rickard Recreation Complex - Lease Space Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-039-08 be received; 2. THAT the Community Care Durham proposal be accepted for the leasing of the space available at Garnet B. Rickard Recreation Complex for a five year term with the option to renew for a further 5 years pending satisfactory terms for both sides; 3. THAT the Evaluation Committee be authorized to proceed with negotiations for a lease agreement with Community Care Durham on behalf of the Municipality of Clarington to the satisfaction of the Municipality; 4. THAT the requested funds be drawn from the General Municipal Reserve Fund and paid back over the five year lease term on a payment schedule established by the Municipality's Finance Department; 5. THAT the Evaluation Committee be authorized to negotiate with Demain as the alternate proponent should negotiations with Community Care Durham fail to produce an acceptable lease agreement; 6. THAT the attached By-law marked Schedule "C", be approved authorizing the Mayor and the Clerk to execute the lease agreement which is satisfactory to the Municipal's Solicitor; and 7. THAT Staff report back to Council on the results of the negotiations with the successful candidate. Submitted by: Reviewed by: /...9 tQ~ Ie Marano, H.B.Sc., C.M.O., Director of Corporate Services Franklin Wu, 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-039-08 PAGE 2 BACKGROUND AND COMMENT 1. With the closing of Total Hockey, and as approved in report CSD-007-08, a Request for Proposal (RFP) 2008-2, Garnet B. Rickard Recreation Complex - Lease Space was issued. The intent was to determine what outside interest there was in leasing this space. The RFP was created to solicit from interested parties proposals for leasing of the approximately 5,005 square feet of space. The term requested was 5 years with the option to extend for an additional 5 year term. This RFP was publicly advertised. 2. Upon closing, the Municipality of Clarington received three submissions. Each of the three submissions received, offered and/or provided a different service or use for the lease space. Each of the submissions received could be deemed as working or fitting within the vision and objectives of the Municipality for the use of this lease space. Attached as Schedule B (Confidential), are summaries of the submissions received for consideration of leasing this property. 3. Proposed lease rates were varied, as were the leasehold improvements the proponents were proposing and the various requirements which were requested to be completed by the Municipality Clarington. All submissions were based on a ten year agreement i.e. 5 year term with an option to renew for an additional 5 year term. 4. As noted herein, staff are recommending that negotiations take place with Community Care Durham. Because the release of RFP details could prejudice the ability to negotiate with the other proponents, the details of the proposals are provided as a confidential attachment. Release of the submissions at this time will place staff at a disadvantage in the negotiation process not only with the primary proposed tenant but also with the alternate in the event initial negotiations fail. 5. The Evaluation Committee met to review and rank the proposals received. Upon completion of the evaluation, Community Care Durham and Denrain ranked equal. Community Care Durham is a non-profit organization which is a good fit into the facility, the operating hours and the services provided do not conflict with the existing hours of operation or use of the facility in general as well as being seen as a viable long term tenant. The recommendation is to try to negotiate a lease with them first. One thing that needs to be taken into consideration is that by accepting the proposal received from Community Care Durham and moving them into Garnet B. Rickard Recreation Complex the Municipality REPORT NO.: COD-039-08 PAGE 3 of Clarington will be losing annual revenue ($15,000.00) derived from their current lease at the Clarington Beech Centre. Once the space at Clarington Beech Centre has been vacated it is anticipated that the Clarington Beech Centre will want to utilize this space due to their growth during the past years. 6. Staff are recommending that the proposal from Community Care Durham be accepted and the Evaluation Committee be authorized to negotiate with Community Care Durham a lease which is satisfactory to both parties. It is further requested that the Mayor and Clerk be authorized to execute an agreement satisfactory to the Municipal Solicitor. 6.1 Should negotiations fail to produce an acceptable lease agreement staff are recommending negotiations with Denrain International as the alternate proponent for leasing this space provided they remain interested. 7 As each proposal has a direct cost impact on the Municipality, it is requested that the funding to complete the required modifications be taken from the General Municipal Reserve Fund. It should be noted that any cost incurred by the Municipality to meet the request of the successful proponent, will not be charged back to the successful proponent. Therefore it is proposed that the money used from the General Municipal Reserve Fund be paid back over a period of five years by allocating a portion of the money received in rent directly into this account to cover the repayment. 8. The results of the negotiations with proponents and the successful candidate will be provided to Council in an information report. Concurrence: Director of Community Services Director of Finance Attach ments: Attachment 1 - Schedule "A", Report CSD-007-08 2 - Schedule "B", Confidential Attachment 3 - Schedule "C", By-Law Page 1 of Schedule "A" REPORT COMMUNITY SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: March 31, 2008 Resolution #: Report #: CSD-007 -08 File#: By-law #: Subject: TOTAL HOCKEY FLOOR SPACE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CSD-007 -08 be received; and 2. THAT Council select one of the following options: Option A - that staff be directed to issue a Request for Proposal to lease the space vacated by Total Hockey, located at the Garnet B. Rickard Recreation Complex. or Option B - that staff be authorized to enter into discussions with the proponents of the preliminary proposals received as identified in 2.1 of Report CSD-007-08. or Option C - that the space vacated by Total Hockey be retained for municipal use and that staff report back detailing program enhancements, financing and timing. Submitted by: Joseph P. Caruana Director of Community Services Reviewed by: Franklin Wu Chief Administrative Officer JPC/jm CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T (905)623-3379 F (905)623-5506 Page 2 of Schedule "A" 1.0 BACKGROUND 1.1 During this year's budget deliberations, Council directed staff to close the Total Hockey operation as of March 1, 2008. Subsequently, a verbal report was provided outlining the various aspects related to the closing of Total Hockey. 1.2 The verbal report indicated that staff would address re-purposing the Total Hockey floor space and dispersal of the artifacts. 1.3 This report addresses the re-purposing of the floor space only as staff continue to source information related to the dispersal of the artifacts and will report back at an appropriate time. 2.0 FLOOR SPACE 2.1 The area of the former Total Hockey space available for re-purposing is 5,005 square feet. Staff are currently pricing the cost of dismantling the space, in preparation for future use. Since the decision to close, staff has received several unsolicited expressions of interest to lease the space. Should Council decide to lease the space, a Request for Proposal (RFP) would be issued, as is our past practice. To date, staff has received nine (9) expressions of interest from the private sector, three (3) of which requested confidentiality. Therefore, any discussions related to these proposals should be referred to a closed meeting. 2.2 Additionally, there is an internal proposal to retain the area as municipal programming space. If preferred, staff will prepare a detailed proposal outlining program enhancements, timing and finances. 3.0 COMMENTS 3.1 The purpose of this report is to advise Council of the expressions of interest and to receive direction as to how staff should proceed. 3.2 Council should be aware that during preliminary discussions some interested parties indicated that timing could influence the feasibility of their interest in the space. Schedule "C" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2008- Being a By-law to authorize an agreement between the Corporation of the Municipality of Clarington and Community Care Durham, Bowmanville, Ontario, to enter into agreement for the lease space at Garnet B. Rickard Recreation Complex, 2440 King Street West, 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, Community Care Durham, 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 ,2008. By-law read a third time and finally passed this day of ,2008. Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk CONFIDENTIAL REPORTS ✓ G PA REPORT NO. COD-039-08 Attachment Only Resolution#: By-law#: DATE OF REPORT: 2008 Attachment Only — Schedule B — RFP2008-2