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HomeMy WebLinkAboutFND-050-20Clarington Staff 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 30, 2020 Report Number: FND-050-20 Submitted By: Trevor Pinn, Director of Financial Services Reviewed By: Andrew C. Allison, CAO Resolution#: GG-456-20, C-525-20 File Number: By-law Number: Report Subject: Bowmanville Tennis Club — Lease Renewal Recommendations: 1. That Report FND-050-20 be received; 2. That a lease extension agreement with the Bowmanville Tennis Club for the term January 1, 2021 to December 31, 2021 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 $1,630.80 be adjusted on December 31 of each year by the annual percentage increase in the Consumer Price Index, All Items Ontario, (most current issue) as published by Statistics Canada; 4. That subject to Council approving recommendation #2, the Purchasing Manager in consultation with the Director of Community Services be given the authority to extend the lease agreement for up to three (3) additional one (1) 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. Municipality of Clarington Report FND-050-20 Report Overview Page 2 Renewal of lease agreement with the Bowmanville Tennis Club, which expires on December 31, 2020 1. Background 1.1 The Bowmanville Tennis Club has been leasing the tennis court facility at Beech Avenue since 1997.The original lease agreement 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 existing lease agreement between the Municipality and the Bowmanville Tennis Club is for a term of five years with an option to renew for an additional four one-year terms. The first term of the lease is set to expire on December 31, 2020 and in keeping with Council's Resolution #GG-509-19, staff is reporting back to Council with a recommendation for the renewal of the optional lease extensions. 1.3 The Bowmanville Tennis Club has expressed an interest in renewing the existing lease agreement and is presently paying an annual rent of $1,630.80 (excluding HST) subject to a yearly increase based on the Consumer Price Index as published by Statistics Canada. 2. Comments 2.1 The recommendation is to renew the lease arrangement with the Bowmanville Tennis Club for one year with a yearly rent adjusted based on the Consumer Price Index, All Items Ontario, (most recent month) as published by Statistics Canada and with an option to renew the lease agreement for up to three additional one-year terms. 3. Concurrence This report has been reviewed by the Director of Community Services who concurs with the recommendations. Municipality of Clarington Report FND-050-20 4. Conclusion Page 3 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 three additional one-year terms in a form acceptable to the Municipal Solicitor. Staff Contact: David Ferguson, Purchasing Manager, 905-623-3379 ext. 2209 or dferguson@clarington.net Attachments: Not Applicable Interested Parties: The following interested parties will be notified of Council's decision: The Bowmanville Older Adult Association The Bowmanville Tennis Club