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HomeMy WebLinkAboutCOD-024-19Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: General Government Committee Date of Meeting: November 4, 2019 Report Number: COD-024-19 Submitted By: Marie Marano, Director of Corporate Services Reviewed By: Andrew C. Allison, CAO Resolution#: File Number: By-law Number: Report Subject: Bowmanville Tennis Club – Lease renewal Recommendations: 1.That Report COD-024-19 be received; 2.That a lease extension agreement with the Bowmanville Tennis Club for the term January 1, 2020 to December 31 2020 be approved and to authorize the Mayor and the Municipal Clerk to execute the agreement on behalf of the Municipality; 3.That the current annual rent of $1597.26 be adjusted on the expiry date of the lease agreement by the annual percentage increase in the Consumer Price Index , All Items Ontario, as published by Statistics Canada; 4.That subject to Council approving recommendation 2, the Purchasing Manager in consultation with the Director of Operations be given the authority to extend the lease agreement for up to four additional one year terms to expire on December 31, 2024; and 5.That the Board of the Bowmanville Older Adult Association and the Bowmanville Tennis Club be advised of Council’s decision. GG-509-19, C-404-19 Municipality of Clarington Page 2 Report COD-024-19 1. Background 1.1. The Bowmanville Tennis Club has been leasing the court facility at Beech Avenue since 1997. The original lease arrangement was between the Tennis Club and the Lions Club of Bowmanville. In 1998 the Municipality of Clarington acquired the facility including the lease of the Bowmanville Tennis Club. On December 31, 2007 the 20 year lease between the Bowmanville Tennis Club and the Municipality of Clarington expired and since then the Municipality has continued to renew the lease arrangements with the Bowmanville Tennis Club. 1.2. The Municipality of Clarington and the Bowmanville Tennis Club current lease agreement is for a term of five years with an option to extend for three additional one year terms. As this lease agreement is set to expire on December 31, 2019 and as provided for in the current lease agreement, staff has discussed extending the lease agreement with the Bowmanville Tennis Club. The Bowmanville Tennis Club has confirmed their interest in renewing their lease agreement with the Municipality of Clarington (Attachment 1). Included in this process and as done in previous renewals, the Purchasing Manager had a discussion with the Bowmanville Older Adult Association (BOAA) to alert them of the pending renewal and to solicit any feedback or concerns they may have with respect to the renewal. 1.3. In the attached email from the BOAA to the Purchasing Manager (Attachment 2), the BOAA raised a number of concerns with respect to the limited amount of parking available and intimated that the shortage of available space can be contributed to having to share the parking space with the Bowmanville Tennis Club and its members. In the attached letter the BOAA recommends moving the Bowmanville Tennis Club to one of Clarington’s recreational facilities. It should be noted that the issue of parking has been raised by the BOAA on a number of occasions and as noted in report COD-016-08 Council was apprised and asked to provide guidance. 1.4. The Bowmanville Tennis Club is presently paying an annual rent of $1,597.26 (excluding HST) and subject to a yearly increase based on the Consumer Price Index as published by Statistics Canada. Report Overview Renewal of lease agreement with the Bowmanville Tennis Club , for a five year overall term to expire December 31, 2024. Municipality of Clarington Page 3 Report COD-024-19 2. Comments 2.1. The existing rent being paid by the Bowmanville Tennis Club is considered fair and reasonable and it is recommended that the Municipality renew the lease arrangement with the Bowmanville Tennis Club for one year with a yearly rent adjusted based on the Consumer Price Index as published by Statistics Canada and with an option to renew the lease agreement for up to four additional one year terms. 2.2. Staff is providing this report to apprise Council of the situation and to request Council’s approval to renew the lease agreement with the Bowmanville Tennis Club . 3. Concurrence This report has been reviewed by the Director of Operations who concurs with the recommendations. 4. Conclusion It is respectfully recommended that Council grant approval for the Municipality to renew the existing lease agreement with the Bowmanville Tennis Club for one year with an option to renew the lease agreement for up to four additional one year terms. Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 ext. 2209 or dferguson@clarington.net. Attachments: Attachment 1 – Letter from the Bowmanville Tennis Club Attachment 2 - Letter from the Bowmanville Older Adult Association The following interested parties will be notified of Council's decision: The Bowmanville Tennis Club The Bowmanville Older Adult Association A 1 Bowmanville Tennis Club P.O. Box 11 Bowmanville, ON L1C 3K9 October 23, 2019 PERSONAL & CONFIDENTIAL Municipality of Clarington 40 Temperance Street Bowmanville ON, L1C 3A6 Attn: Mr. David Ferguson, Manager, Purchasing Division Re: Bowmanville Tennis Club (“BTC”) – Request for Renewal of Lease Agreement Dear David: Thank you for your letter of October 18, 2019 requesting the BTC to document it’s intent to renew the current lease agreement between the Municipality of Clarington and the Bowmanville Tennis Club which is set to expire on December 31, 2019. As you know, the current long term lease agreement covered the five years from 2012 through 2016 and has been renewed for one year terms in each of 2017, 2018 and 2019. We believe that it is now desirable to replace this annual lease renewal process with a more permanent long term lease arrangement with the Municipality. Accordingly, we would ask that you initiate the process to establish, at the very least, a similar long term lease arrangement between the Municipality of Clarington and the BTC to be first effective on January 1, 2020. We trust that this is satisfactory. Kem Majid President Bowmanville Tennis Club 21 Beech Avenue Telephone: 1-905-623-5247 Bowmanville, ON L1C 3A1 E-mail: kmajid@sympatico.ca Attachment 2