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HomeMy WebLinkAboutCOD-047-10~11C~COII REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: July 5th, 2010 Resolution#: ~~-~7'70 By-law#: a?O/0-/bl Report: COD-047-10 File#: Subject: LEASE AGREEMENT -DURHAM CENTRAL AGRICULTURAL SOCIETY ORONO FAIR GROUNDS RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: THAT Report COD-047-10 be received; 2. THAT the Municipality lease Part of Lots 27 and 28, Concession 5, designated as Parts 1 and 3 on Plan 10R-318 to the Durham Central Agricultural Society for the period ending August 31, 2012, unless renewed in accordance with the terms; 3. THAT Council endorse the option of tying the term of subject lease to the long term lease between the Durham Central Agricultural Society; and 4. THAT the By-law marked as Schedule "A", attached to Report COD-047-10, authorizing the Mayor and Clerk to execute the lease agreement satisfactory to the Municipal Solicitor, be approved. Submitted by: arie Marano, .B.Sc., C.M.O., Director of Corporate Services MM/JB/km Reviewed by: ~/ ' ""' "` Franklin Wu, Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 ~::` ~ REPORT NO.: COD-047-10 PAGE 2 1.0 BACKGROUND AND COMMENT 1.1 In 1977 the Town of Newcastle (now the Municipality of Clarington) and the Durham Central Agricultural Society (DCAS) negotiated and established a lease for a section of the Orono Fair Grounds for the purpose of constructing an arena. The term of the lease was established at 25 years with the Town having the right to extend the term by 10 years on the same terms and conditions but there is further right of renewal. The current term will expire August 31, 2012. 1.2 At the time, the Municipality owned a piece of property (former works yard) adjacent to the Orono Fair Grounds. Arrangements were made to divide the property and convey a portion of the land to the Durham Central Agricultural Society for use as part of fair grounds. The Municipality retained a portion of the property described as Part of Lots 27 and 28, Concession 5 designated as Parts 1 and 3 on Plan 10R-318. This section of land was retained for a future Orono Fire Hall. 1.3 The Durham Central Agricultural Society has approached the Municipality with a request to lease this property to augment the Orono Fair Grounds. 2.0 ANALYSIS 2.1 The subject land has been left unused for several years since the decision was made in the early 80s to locate the Orono Fire Hall on Main Street, Orono. 2.2 Under the circumstances, it is reasonable to proceed with a leasing arrangement, at least to the end of the current term during which time the Municipality can consider the disposition of the subject lands beyond 2012. 3.0 FINANCIAL 3.1 Barring a decision to sell the land there is little financial impact to the Municipality by entering into a lease in the short term. REPORT NO.: COD-047-10 PAGE 3 4.0 CONCLUSION 4.1 The Municipality currently has unused land adjacent to the Orono Fair Grounds and the Durham Central Agricultural Society has expressed an interest in leasing the land. 4.2 It is recommended that the Municipality enter into a short term lease with a term to coincide with the anniversary date of the existing lease with the DCAS. The lease will be prepared and approved by the Municipal Solicitor. 4.3 Based on the foregoing, Council can decide to continue to renew the lease in conjunction with the Fair Grounds Arena lease or consider the options with respect to the land in time for the expiry of the lease in 2012. 5.0 INPUT FROM OTHER SOURCES 5.1 The report has been reviewed for recommendation by the Purchasing Manager, with the appropriate departments and circulated as follows for: Concurrence: Director of Operations Director of Finance Municipal Solicitor Attachments: Schedule "A", By-law Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2010- Being a By-law to authorize the execution by the Mayor and Clerk of an Agreement between the Corporation of the Municipality of Clarington and the Durham Central Agricultural Society for the use of designated lands. 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, an agreement with Durham Central Agricultural Society to implement the recommendations contained in Report COD-047-10; 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 , 2010. By-law read a third time and finally passed this day of , 2010. Jim Abernethy, Mayor Patti L. Barrie, Municipal Clerk