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HomeMy WebLinkAboutCOD-050-08 Cl!Jl-!lJgron REPORT CORPORATE SERVICES DEPARTMENT Date: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE -it- July 7, 2008 Pes,okdlon fjPA - Lf-St.J--O't; Meeting: Report #: COD-050-08 File#_ By-law # ;{ 008- , 41 Subject: CLARINGTON KIDS INC. COURTICE COMMUNITY COMPLEX LEASE SPACE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-050-08 be received; 2. THAT the Manager of Purchasing be authorized to proceed with the formal negotiations of a new lease agreement with Clarington Kids Inc., for the lease of space in the Courtice Community Complex for the term of September 15, 2008 to September 14, 2013; 3. THAT the Mayor and Clerk be authorized to execute the lease agreement in a form satisfactory to the Municipal Solicitor; and 4. THAT the attached By-law marked Schedule "A" authorizing the Mayor and Clerk to execute the proposed Lease Agreement with the Clarington Kids Inc. be forwarded to Council for approv . Submitted by: Reviewed b'~ t eo..e...9 <; C-.sl. ~nklin Wu, Chief Administrative Officer Marano, H.B.Sc., C.M.O. Director of Corporate Services MMI\JBlkm 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-050-08 PAGE 2 1. BACKGROUND AND COMMENT 1.2 The existing lease for Clarington Kids Inc. for space located at the Courtice Community Complex, Courtice, Ontario expires September 14,2008. 1.3 On May 29, 2008 the Clarington Kids Inc. notified the Municipality that they wish to renew the lease for a five year term. Discussions with the owner, Clarington Kids Inc. have covered terms, conditions and formula for calculating the starting lease rate and providing for inflationary increases during the term of the agreement. For information, the current lease rate is $14.54 per square foot, plus GST. Included in the discussion was the reduction in the amount of space required for the Day Care. In this instance the Baby-sitting room will revert to the Complex for its own use thereby reducing the square footage used by Clarington Kids from 5803 to 5556 square feet. 2. CONCLUSION 2.1 In order to proceed a new agreement will be required to cover the lease rates, the terms and the duration. Although the lease rate not has been agreed to, a formula has been agreed upon for the rate adjustment, (current rate per square foot plus CPI Ontario for the month of July). Under the circumstances, it is also recommended that the agreement be reviewed by the Municipality's solicitor. Once a final lease has been prepared and approved by all parties including the Municipality's Solicitor, the agreement will be provided for execution by the Mayor and Clerk. 2.2 When considering the request for a lease extension the tenants past performance has been taken into account and comments are provided in the attached confidential memorandum. 3. INPUT FROM OTHER SOURCES 3.1 This report has been reviewed for recommendation by the Purchasing Manager with the appropriate departments and circulated as follows for: Concurrence: Director of Community Services Attachments: Attachment 1 - Schedule "A", By-law 2 - Schedule "B", Confidential Memorandum Schedule "A" 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 Clarington Kids Inc., Courtice, Ontario, to enter into agreement for the lease space at Courtice Community Complex, 2950 Courtice Road North, Courtice, 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, Clarington Kids Inc., Courtice, 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