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
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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
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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
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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