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HomeMy WebLinkAbout2008-147 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2008 -147 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 14th day of July, 2008. By-law read a third time and finally passed this 14th day of July, 2008. THIS SECOND LEASE AMENDING AGREEMENT made as of the 14~h day of July, 2008. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (hereinafter called the "Landlord") OF THE FIRST PART - and - CLARINGTON KIDS INC. (hereinafter called the "Tenant) OF THE SECOND PART WHEREAS: A. By lease dated August 6, 2002 ("Lease"), the Landlord leased the "Premises" (as defined therein) to the Tenant for a term which commenced on July 1, 2002 and ended on July 14, 2007. B. By Lease Extension and Amending Agreement dated June 22, 2007, the term provided for in the Lease was extended for fourteen (14) months commencing on July 15, 2007 and ending on September 15, 2008 ("First Amending Agreement"). C. The Lease as amended by the First Amending Agreement as hereafter referred to as the "Lease as Amended". D. The Mayor and the Municipal Clerk of the Landlord are authorized to execute this Second Lease Amending Agreement on behalf of the Lessor by By-law 2008-147 passed by the Landlord's Council at its regular meeting on July 14, 2008, NOW THEREFORE WITNESSETH THAT in consideration of the premises and the covenants hereinafter expressed and the sum of Two Dollars ($2.00) of lawful money of Canada now paid by each party to the other (the receipt whereof by each party is hereby acknowledged), the parties hereto covenant and agree to and with each other as follows: 1.1 Grant and Premises Effective September 15, 2008, Section 1.1 of the Lease as Amended is deemed to be deleted and replaced with the following: "1.1 Grant and Premises In consideration of the performance by the Tenant of its obligations under this Lease, the Landlord leases to the Tenant, and the Tenant leases from the Landlord, for the Term, the Premises comprising both (1) the interior area shown outlined in red on the floor plan contained in Schedule "B-1" attached hereto in the Building known as of the date of this Lease as the Courtice Community Complex, and (2) the exterior play area outlined in blue on the plan which also is contained in Schedule "B-1" is to show the approximate location of the interior and exterior areas which comprise the Premises. The plans contained Schedule "B-1" are not intended to be a representation as to the precise size or dimensions of the Premises or a representation as to any other aspect of the Building or the development of any portion of the Lands. The parties acknowledge that the Rentable Area of the interior space within the Building is approximately 5,556 square feet and the -2- area of the exterior play area forming part of the Premises is approximately 2,000 square feet." 1.2 Term Effective September 15, 2008, Section 1.2 of the Lease as Amended is deemed to be deleted and replaced with the following: "1.2 Term The term provided in the Lease as Amended as further amended by the Second Lease Amending Agreement hereto shall commence on September 15, 2008 and shall end on September 14, 2013 ("Term"). 2.1 Covenant to Pav Rent Effective September 15, 2008, Section 2.1 of the Lease as Amended is deemed to be deleted and replaced with the following: "2.1 Covenant to Pav Rent "(a) Rent comprises net rent and Additional Rent. (b) During each year of the Term provided in the Lease as Amended as further amended by the Second Lease Amending Agreement, one-twelfth of the monthly installments of the net rent determined as provided in section 2.2 shall be paid by the Tenant to the Landlord in advance on the 15th day of each month. The first payment shall be made by the Tenant to the Landlord on or prior to September 15, 2008. During the year of the Term commencing on September 15, 2008 and ending on September 14, 2009, each such monthly payment shall be made by certified cheque(s). During each subsequent year of the Term, the Tenant shall deliver to the Landlord on or prior to September 15`h of each subsequent year, post-dated cheques payable by the Tenant to the Landlord for the monthly installments payable in advance of net rent for the year. If any one or more payments of monthly installments during the year of the Term commencing on September 15, 2008 and ending on September 14, 2009 have not been made by the Tenant to the Landlord by certified cheque not later than the 15th day of each month of the Term commencing with the monthly installment due and payable by the Tenant to the Landlord on September 15, 2008 and such payment is subsequently accepted by the Landlord, then on each subsequent year of the Term, all payments of monthly installments of net rent and all payments of Additional Rent shall be made by the Tenant to the Landlord by certified cheque delivered to the Landlord not later than the 15th day of each month of the portion of the term that remains. (c) Rent shall be considered as accruing from day to day. Where it becomes necessary for any reason to calculate Rent for an irregular period of less than one year or less than one calendar month, an appropriate apportionment and adjustment shall be made, pro rate on a per diem (365 day year) basis. The Tenant agrees that its covenant to pay Rent is an independent covenant and that all amounts of Rent are payable without demand, counterclaim, set-off, deduction, abatement, compensation or reduction whatsoever, except as may be otherwise expressly provided in this Lease." 2.2 Net Rent Effective September 15, 2008, Section 2.2 of the Lease as Amended is deleted and replaced with the following: "2.2 Net Rent For the first year of the Term commencing on September 15, 2008 and ending on September 14, 2009, the Tenant shall pay net rent of $83,673.24 consisting of $82,173.24 interior + $1,500.00 fixed rate -exterior plus Goods and Services Tax ("GST") in equal monthly installments inclusive ($6,972.77 plus GST) as provided in section 2.1. In each subsequent year of the Term, the Tenant shall pay the Landlord equal monthly installments of net rent for each subsequent year in advance of the Term and net rent shall be determined as follows: -3- Term Net Rent (Plus csT) Month/ Installment plus csT) Sept. 15109 to $85,284.48 $7,107.04 Sept 1411 D $83,784.48 + $1,500.00 Exterior Pla Area $6,982.04 + $125.00 Exterior Pla Area Sept. 15110 to $86,951.28 $7,245.44 Sept 14111 $85,421.28 + $1,500.00 Exterior Pla Area $7,118.44 + $125.00 Exterior Pla Area Sept. 15111 to $88,618.08 $7,384.84 Sept 14/12 $87,118.08+$1,500.00 ExteriorPla Area $7,259.84+$125.00 ExteriorPla Area Sept. 15/12 to $90,340.44 $7,528.37 Sept 14/13 $88,840.44 + $1,500.00 Exterior Pla Area $7,403.37 + $125.00 Exterior Pla Area 6.1 Tenant's Insurance Effective September 15, 2008, Section 6.1(b) of the Lease as Amended is deleted and replaced with the following: "6.1(b) Commercial General Liability insurance, including sexual abuse coverage in amounts of at least $5,000,000. The Landlord shall be added to the Tenant's General Liability policy for activities relating to this Lease as an Additional Insured. During the term of this contract, evidence of this insurance, and any renewals thereof, shall be provided annually by the Tenant to the Landlord." 9.1 Default and Remedies Effective September 15, 2008, clause 9.1(i) of the Lease as Amended is deleted and replaced with the following: "9.1(i) "to terminate this Lease by not less than ten (10) days written notice given by the Landlord to the Tenant." 11.4 Notices If any notice or other document is required to be or may be given by the Landlord or by any official of the Landlord to the Tenant or by the Tenant to the Landlord under this Lease such notice shall be transmitted by telefax, mailed by first class prepaid post or delivered to: The Landlord: Municipality of Clarington 40 Temperance Street Bowmanville, Ontario L1 C 3A6 Attention: Purchasing Manager If by telecopier to: (905) 623-3330 The Tenant: Clarington Kids Inc. 2950 Courtice Road North Courtice, ON L1E 1N4 Fax. 905 432-3971 Tel. 905 432-3969 Attention: Jan Brown or such other address of which the Landlord or the Tenant has notified the other in writing. Any such notice so mailed or delivered shall be deemed good and sufficient notice under the terms of this Lease and shall be effective from the date which it is so mailed or delivered. Any notice transmitted by telefax shall be effective from the date that it is telefaxed. 12. Second Lease Amending Agreement to be Void Notwithstanding any other provisions of this Second Lease Amending Agreement, it shall be void and have no force or effect if the lease as Amended is terminated by the Landlord pursuant to any of its provisions, other than Section 1.2 thereof, on or before September 14, 2008. 13. Lease as Amended to Continue in Force Except as amended by this Second Lease Amending Agreement, the provisions of the Lease as Amended shall continue in force and effect and time is and shall continue to be of its essence. -4- 14. Time of Essence Time is of the essence of this Second Lease Amending Agreement 15. Enurement This Second Lease Amending Agreement shall enure to the benefit of and be binding on the parties hereto and their respective successors and assigns. For clarity, this section is not intended nor shall it be deemed to derogate from the provisions of the Lease as Amended in respect of any assignment to, or in respect of a successor of an assignee of either of the parties hereto. ~~; -s- IN WITNESS WHEREOF the Lessee and the Lessor have duly executed and unconditionally delivered this Lease as of the date first above written. THE MUNICIPALITY OF CLARINGTON Jim Ab~sa ,Mayo _. _ _ __ _ We have the authority to bind the Corporation. CLARINGTON KIRS INC. Per: Jan Brown Per: Randy k We have the auTid>rity to bind the Corporation. i~, ~ . THIS SECOND LEASE AMENDING AGREEMENT made as of this 14"' day of July, 2008. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (hereinafter called the "Landlord") OF THE FIRST PART -and - CLARINGTON KIDS INC. (hereinafter called the 'Tenant") OF THE SECOND PART SECOND LEASE AMENDING AGREEMENT