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HomeMy WebLinkAboutCOD-051-10CORPORATE REPORT SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: December 13, 2010 Resolution#: 6'O!~-S/6-/0 By-law#: Report: COD-051-10 File: Subject: KENDAL COMMUNITY CENTRE LEASE AND SUBLEASE RENEWAL DATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-051-10 be received; 2. THAT the lease agreement with the Kendal Community Association (Schedule A) for the term of January 1, 2011 to December 31, 2015 be approved; 3. THAT the 2010 sub-leases for The Kendal Lions Club (Schedule B) and the Kendal Postal Outlet (Schedule C) be approved; 4. THAT the extension of the subleases for a five year term be approved; and THAT the Mayor and the Clerk be authorized to execute the necessary agreements. Submitted by: ~' Reviewed by: v `r~~~~)'~'`^-~~(.. Marie Marano, H.B.Sc., C.M.O., Franklin Wu, Director of Corporate Services Chief Administrative Officer MMWDBVcm REPORT NO.: COD-051-10 PAGE 2 BACKGROUND AND COMMENT 1.1 The Municipality has had a lease agreement with the Kendal Community Centre since 2000 for an annual fee of $2.00. During that time, the Municipality of Clarington Emergency & Fire Services Department was responsible for 50% of the utility charges for the term of the agreement ending December 2006. This arrangement was based on the original intent of the agreement which anticipated the Emergency & Fire Services Department using a portion of the space for training purposes which has not occurred. 1.2 In 2007 a new 2 year lease was prepared with the Emergency and Fire Services Department responsible for 25% of the utility costs with an additional 25% being funded from general municipal funds. 1.3 In 2009 a new two year lease was prepared with the Municipality again responsible for 50% of the utilities for one year only. In 2010 the cost sharing was reduced to 25% payable by the Emergency and Fire Services Department to coincide with the completion of the new kitchen facilities. During the 2010 lease year the Emergency and Fire Services determined that it no longer requires the storage space originally provided at the Kendal Centre. 1.4 In 2006 provision was made in the lease to allow the Kendal Community Association to sublet portions of the hall. At the time this provision was made to allow for the introduction of a postal outlet to service the area. In 2010 the operation of this outlet changed hands thereby requiring a new sub-lease and the Kendal Board sub-let a classroom to the Kendal Lions Club. In order to have the subleases run for the term of the master lease the two sub-leases were drafted to cover 2010 only on the understanding that new leases would be prepared for 2011 to coincide with the term of the new master lease. REPORT NO.: COD-051-10 PAGE 3 2.0 ANALYSIS 2.1 The existing 2 year agreement with the Kendal Community Association expires on December 31, 2010. Staff has had discussions with the chair of the Kendal Community Association regarding the terms for renewal of the agreement. With the new kitchen now fully functional and the Emergency & Fire Services Department no longer requiring the storage space, it has been proposed that 100% of the Kendal Centre utility charges be covered by the Kendal Community Association. It is also proposed that the term of the lease be set at five years instead of the two year terms used in the past. As there are no utility cost fluctuations or rentals issues the longer term agreement with an option for renewal will provide continuity and enable the Kendal Association to establish sublease terms tied to the term of the head lease. A longer term lease will also reduce administration and reporting by 60%. The Kendal Community Association has agreed to these terms. 2.2 A condition of the lease agreement makes provision for the subletting of space by the Kendal Association provided it meets with the intended use of the facility and the sublet is approved by the Municipality. Currently there are two subleases in place at Kendal; the Kendal Lions Club and a Canada Post Outlet. It is proposed that the subleases for Lions Club and the Canada Post Outlet be renewed on the same five year term as the Kendal Community Association Lease. 2.3 It is therefore recommended that the proposed lease agreement with Kendal Community Association and the subleases with The Lions Club and the Operator of the Canada Post Outlet be approved. REPORT NO.: COD-051-10 3.0 FINANCIAL PAGE 4 3.1 The financial implications of this lease and subleases are not significant. The lease payment for the Kendal Lease is the required $2.00 per year and the estimated cost reduction to the municipality by transferring 100% of the utility payment to the Association amounts to approximately $3,500.00 per year. The revenue from the subleases goes directly to the Kendal Community Association and is used to offset the operating cost of the facility. 4.0 CONCLUSION 4.1 Moving forward with an extended term for both the lease and the two subleases will result in continuity and reduce the administration costs associated with managing and renewing the lease and subleases. 5.0 INPUT FROM OTHER SOURCES 5.1 This report has been reviewed by the Purchasing Manager, with the appropriate department and circulated as follows: Concurrence: Director of Operations Director of Fire and Emergency Services Director of Finance/Treasurer Attachments: Schedule A -Kendal Community Association Lease (Draft) Schedule B -Kendal Lions Club Sublease Schedule C -Kendal Postal Outlet Sublease ATTACHMENT # ~ 't0 REPORT # ~' ~~ AGREEMENT THIS AGREEMENT made the day of 2010. BETWEEN: MUNICIPALITY OF CLARINGTON (hereinafter called the "Landlord') AND: The Kendal Community Centre (hereinafter called the "Tenant") WHEREAS the Landlord has agreed to lease to the Tenant and the Tenant has agreed to lease from the Landlord the building known as the Kendal Community Centre, 6742 Regional Road 18 (Newtonville Road), Kendal, in the Municipality of Clarington, Regional Municipality of Durham (the "Premises"). NOW THEREFORE THIS LEASE WITNESSES that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Landlord and the Tenant, the Landlord leases to the Tenant, and the Tenant leases from the Landlord, the Premises on the following terms and conditions: 1. The tenant shall have and hold as tenant for a term of five years commencing January 1, 2011 and ending December 31, 2015; and 2. The tenant shall occupy the premises throughout the term for the use as a community centre and for no other reason; and 3. The tenant shall not commit or suffer or permit to be committed any waste or damage, disfiguration or injury to the premises or the improvements, installations, fixtures, and equipment thereon and any nuisance in, at or on the premises; and 4. The tenant shall not do or permit anything to be done that results in the cancellation or threatened cancellation or the reduction of coverage under or threatened reduction of coverage under any insurance policy on the premises or any part of it; 5: The premises is defined for the sake of this agreement as the gymnasium, stage, three classrooms, corridor, an office, kitchen and four washrooms; and 6. The base rent will be $2.D0 per year payable to the Municipality of Clarington on or before January 1~ of each year; and 7. The tenant at all times throughout the term shall maintain the premises in a satisfactory condition as determined by the landlord acting reasonably. The tenant shall keep the premises in clean condition, obtain at its expense, janitorial service and daily operation expenses (utilities). The tenant will be responsible for winter snow removal; and 8. The tenant shall maintain and keep the premises and every part thereof in good working order and promptly make all needed maintenance, repairs, and replacements, as would a prudent. owner. Page 1 of 3 .~~~ f1.4NC5ETlf1 \Kf.',0 LO_P_SE~I~~T_,.JiFF'i i I_E\~~-rN '1'JK~,'~i .',.._.. 1 ..~... "`T. AGREEMENT 9. If structural repairs or replacements to the roof, foundation or load bearing walls, building envelope and / or the heating equipment are needed, then the landlord shall be obligated at their expense to affect such repairs or replacements. 10.If the tenant during the Term of this lease or any renewal of the lease, desires to make any alterations or additions to the Premises, including but not limited to erecting partitions, attaching equipment and installing necessary furnishings or additional equipment of the tenant's business, the tenant may do so at his own expense, at any time and from the time the following conditions are met; a) before undertaking any alteration or addition, the Tenant shall submit to the landlord a plan showing the proposed alterations or additions and the Tenant shall not proceed to make any alteration or addition unless the landlord has approved the Plan. The Landlord shall not unreasonably or arbitrarily withhold approval. 11. The Tenant shall be responsible for and pay the cost of any alterations, additions or installations, or improvements; and 12. No sign, advertisement or notice shall 6e inscribed, painted or affixed by the Tenant or any other person on the Tenant's behalf on any part inside or outside unless approved by the landlord; and 13.A11 alterations and additions made by or on behalf of the tenant shall immediately become property of the landlord without compensation to the Tenant; and 14.The tenant agrees to observe and comply with all applicable governmental laws and regulations including fire, police, health etc. 15.The tenant shall not permR or allow any person to smoke tobacco products anywhere in the building; and 16. The tenant will be responsible for the utilities charges during the term of the agreement; and 17. The tenant shall promptly notify the Landlord of any accident, defect, damage or deficiency in or on any part of the premises which comes to the attention of the tenant; and 18. The Landlord will provide the Tenant with full access to all parts of the building during the term of this Agreement; and 19.If the Tenant is not in default of this Agreement, the Tenant shall have the right to extend the Term of this Agreement for a further period of five years subject to the approval of the Muriicipality of Clarington. Such right shall be exercisable by written notice from the Tenant to the Landlord given no later than 180 days before the expiration of the initial term; and 20. The Landlord covenants with the Tenant for quiet enjoyment; and 21. Both parties shall have the right to cancel this Agreement at any time during the Term by giving the other party no less than three months prior written notice of termination; and 22.The Landlord agrees to provide liability insurance coverage to the Board and its volunteers while this agreement is in place. Page 2 of 3 \9J 1 -R 1N~:`_-1N~ I.NO'\LCCAL.i 'il~vS,T_11P~P.4 N1'I T N_i IL`$.-J N UT )JIC~, J 15-I(~NOf. L(L CI'll IEN~IN~_ .l" _ C~4 AGREEMENT 23: Right to Sublet The Tenant shall have the right to sublease any portion of their useable leased area, provided that the use and occupation of the Area of the Premises remains as permitted by this lease, and is complimentary to the operation of the Tenant. The Tenant must request from the Landlord written approval of any sublease proposed, approval of which will not be unreasonably withheld. It is the Tenants responsibility to ensure that all terms and conditions of this lease are adhered to by tenants subleasing. At any time during the term of the lease, the Landlord reserves the right to revoke the right to sublease, should the Tenants who have subleased be in violation of the terms of this lease, and or should the intended use of the premises not be maintained. The Tenant will satisfy themselves that subtenants have appropriate insurance in place as identified in this lease. The existence of any sublease shall in no way reduce the responsibility of the Tenant. 24. Notices Any notice, demand, request, consent or other instrument ("Notice") which may be or is required to be given under this lease shall be in writing and shall be delivered in person or sent by registered mail postage prepaid addressed (i) if to the Landlord, Municipality of Clarington, 40 Temperance Street, Bowmanville, Ontario, L1C 3A6, Attention: Purchasing Manager and (ii) to the c/c Chair, Kendal Community Center, 6742 Regional Road 18, Kendal, Ontario, LOA 1J0 at the Landlords option. Any such Notice shall be deemed to have been given and received the day upon which personal delivery is made or, if so mailed, then 48 hours following the date of mailing. Either party may give Notice to the other of any change of address (other than the Premises) whereupon the address therein specfied shall be deemed to be the address of such party for Notice. If postal service is interrupted or substantially delayed, all Notices shall be delivered in person as provided above: IN WITNESS WHEREOF the Tenant has hereto affixed its corporate seal duly attested by the hands of its proper officers in that behalf and the Landlord has hereto affixed its corporate seal duly attested by the hands of its Mayor and Clerk. SIGNED, SEALED AND DELIVERED THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON By: Adrian Foster, And: Patti L. Barrie, Clerk THE KENDAL COMMUNITY ASSOCIATION By: Page 3 of 3 \DO J'. ~' $. I'..-Ei"IN It, _,L,.~.n_~ETIM-$'.i:MNJF4f."' .N_i'ItES\;JN EN., BUT JJI(,',U_ L ~cY~2.C N~. AICIN~ AN 0~1-i "~ ana- SUBLEASE IItTACHMENTS Q TO flEPORT ~ O /- U THIS SUBLEASE is made as of July 1, 2010. BETWEEN: KENDAL COMMUNITY CENTRE ("Sublandlord") -and- LIONS CLUB, KENDAL ("Subtenant") -and - THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (the "Municipality") Grant 1. The Sublandlord leases to the Subtenant Room #104 and the storage room located within the Kendal Community Centre (the "Subleased Premises") on the terms and subject to the conditions set out in this Sublease. Use 2. The Subleased Premises shall be for the sole use of the subtenant and used only for the purposes of the Lions Club meetings and for no other purpose without the prior written consent of the Sublandlord and the Municipality. If use is to be changed, the Subtenant must provide 30 days notice. 3. The Subtenant shall have the use of the Bar/Canteen Area during their meetings for coffee, light refreshments and dishwashing purposes. 4. Rentals other than those indicated will be on a onetime short term rental basis. Term 5. The term of this Sublease shall be 6 months from July 1, 2010 to December 31, 2010. 6. This Sublease may be terminated upon 90 days notice. Rent 7. The Subtenant shall pay to the Sublandlord the sum of $184 per month on the first day of each month during the term of the agreement. Head Lease Except as expressly set out in this Sublease, the Subtenant shall observe and perform all of the covenants of the tenant under the head lease between the. Municipality and the Sublandlord dated January 30, 2009 as if such covenants had been included in this Sublease. Prohibition 9. The introduction and consumption of alcohol beverage shall not be permitted except by permit. Subtenant's Insurance 10. The Subtenant, at its sole cost and expense, shall take out and maintain, a. commercial general liability insurance pertaining to the Subtenant's liability to others in respect of injury, death or damage to property occurring upon, in or about the Subleased Premises, such insurance to be of an amount which is reasonable and sufficient having regard to the scope of the risk and the current practice of prudent owners of similar premises for the carrying on of similar businesses, but in any event in an amount not less than one million dollars ($1,000,000.00) for claims arising out of one occurrence. Such policy shall also name the Municipality as an additional insured and may not be cancelled unless prior notice by registered letter has been given to the Municipality by the insurer 30 days in advance of the expiry date; and b. insurance upon property owned by it which is located in the Subleased Premises is recommended. 11. The Subtenant shall file with the Municipality a Certificate of Insurance in a form satisfactory to the Municipality's Treasurer verifying that the commercial general liability insurance policy is in effect and setting out the essential terms and conditions of the insurance. 12. The provision of the insurance policy required by this section shall not relieve the Subtenant from liability far claims not covered by the policy or which exceed its limits, if any, for which the Subtenant may be held responsible. Notice 13. Any notice required to be given by the Subtenant to the Sublandlord under this Lease shall be in writing and shall be delivered to: KENDAL COMMUNITY CENTRE 6742 Regional Road 18 Kendal, ON LOA 1J0 Attention: Duke Paul, Chair H'.\LEAGES~AGREEMENTSMENDAL COMM CENTRE'LIONS CLUB SV9iEA5E'lIONS CLUB SUBLEASE~VS.000 2 or such other address of which the Sublandlord has notified the Subtenant in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Sublease. 14. Any notice required to be given by the Sublandlord to the Subtenant under this Sublease shall be in writing and shall be delivered to: President, Lions Club, Kendal 6742 Regional Road 18 Kendal, ON LOA 1J0 or such other address of which the Subtenant has notified the Sublandlord in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Sublease. Landlord's Consent 15. The Municipality hereby consents to this Sublease. IN WITNESS WHEREOF the parties have executed this Sublease. KENDAL COMMUNITY CENTRE PER: Duke Paul, Chair PER: LIONS CLUB President Secretary /Treasurer THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON PER: Adrian Foster, Mayor PER: Patti Barrie, Clerk J:VtEPORTS TO CLERKSWPA REPORTSCORPORATE SERVICES GPA (COD)1000~0514D LIONS CLU95UBLEAGE~VS DOC .~ ATTACHMENT # REPORT # -p T r/~ SUBLEASE THIS SUBLEASE is made as of April 1, 2010, BETWEEN: KENDAL COMMUNITY CENTRE ("Sublandlord") -and - JENNIFER PUK ("Subtenant") - and - THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (the "Municipality") Grant The Sublandlord leases to the Subtenant the former Principal's Office (now Postal Outlet) located within the Kendal Community Centre (the "Subleased Premises") on the terms and subject to the conditions set out in this Sublease. Use 2. The Subleased Premises shall be used only for the purposes of a postal outlet and for no other purpose without the prior written consent of the Sublandlord and the Municipality. Term 3. The term of this Sublease shall be 9 months from April 1, 2010 to December 31, 2010. 4. This Sublease may be terminated upon 30 days notice. Rent 5. The Subtenant shall pay to the Sublandlord the sum of $150 per month on the first of each month during the term of the agreement. Head Lease 6. Except as expressly set out in this Sublease, the Subtenant shall observe and perform all of the covenants of the tenant under the head lease between the Municipality and the Sublandlord dated January 30, 2009 as if such covenants had been included in this Sublease. Subtenant's Insurance 7. The Subtenant, at its sole cost and expense, shall take out and maintain, (a) insurance upon property owned by it which is located in the Subleased Premises; and (b) commercial general liability insurance pertaining to the Subtenant's liability to others in respect of injury, death or damage to property occurring upon, in or about the Subleased Premises, such insurance to be of an amount which is reasonable and sufficient having regard to the scope of the risk and the current practice of prudent owners of similar premises for the carrying on of similar businesses, but in any event in an amount not less than one million dollars ($1,000,000.00) for claims arising out of one occurrence. Such policy shall also name the Municipality as an additional insured and may not be cancelled unless prior notice by registered letter has been given to the Municipality by the insurer 30 days in advance of the expiry date. 8. The Subtenant shall file with the Municipality a Certificate of Insurance in a form satisfactory to the Municipality's Treasurer verifying that the commercial general liability insurance policy is in effect and setting out the essential terms and conditions of the insurance. 9. The provision of the insurance policy required by this section shall not relieve the Subtenant from liability for claims not covered by the policy or which exceed its limits, if any, for which the Subtenant may be held responsible. Notice 10. Any notice required to be given by the Subtenant to the Sublandlord under this Lease shall be in writing and shall be delivered to: KENDAL COMMUNITY CENTRE 6742 Regional Road 18 Kendal, ON LOA 1J0 Attention: Duke Paul, Chair or such other address of which the Sublandlord has notified the Subtenant in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Sublease. 11. Any notice required to be given by the Sublandlord to the Subtenant under this Sublease shall be in writing and shall be delivered to: Jennifer Puk 6742 Regional Road 18 Kendal, ON LOA 1J0 or such other address of which the Subtenant has notified the Sublandlord in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Sublease. Landlord's Consent 12. The Municipality hereby consents to this Sublease. IN WITNESS WHEREOF the parties have executed this Sublease. KENDAL COMMUNITY CENTRE PER: Duke Paul, Chair PER: JENNIFER PUC THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON PER: Jim Abernethy, Mayor PER: Patti Barrie, Clerk