HomeMy WebLinkAbout2002-107 COD-34-02
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW 2002- 107
Being a By-law to authorize the execution of an offer to Lease
Agreement between the Corporation of the Municipality
of Clarington and the Bethesda House of Mercy, in respect of a lease for
the premises situated at 150 Port Darlington Road, Bowmanville, Ontario.
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 with the Corporation Seal, an offer
to Lease Agreement Lease Agreement between the Bethesda House of Mercy, and
said Corporation; and
2. THAT this agreement attached hereto as Schedule "A" form part of this By-law.
By-law read a first and second time this 24rday of June 2002.
24th June
By-law read a third time and finally passed this day of , 2002.
Jo o , Mavor
atti a ' , unicipal Clerk
Clar;waton
Leading the Way
Municipality of Clarington
EXECUTED CONTRACT
THIS LEASE dated as of the 26tWay of August , 2002, in pursuance of the
Short Forms of Leases Act,
BETWEEN:
The Corporation of the Municipality of Clarington
(hereinafter called the "Landlord")
- and -
Bethesda House of Mercy
(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 designated space located in the building known as the
Harbourmaster's House, 150 Port Darlington Road, Bowmanville, 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. Term
(a) The Tenant shall have and hold as tenant for a period of one (1) year commencing
June 30, 2002 and ending June 29, 2003 (hereinafter called the "Term"), with the
option to renew for an additional 2 years.
(b) Negotiations for extension or new lease
At least two (2) months prior to the termination of the Term, either the Landlord or
the Tenant may give the other written notice that the party giving the notice wishes
to negotiate an extension of the Term of this lease. During the negotiations, if any,
the Landlord and the Tenant will act in good faith to attempt to settle the terms and
conditions of an extension agreement or the making of a new lease, as the case
may be.
2. use
The Tenant shall continuously occupy the Premises throughout the Term, subject to and
in accordance with the provisions of this Lease, solely for uses permitted by law and for
no other use or purpose.
The Tenant shall not commit or suffer or permit to be committed (i) any waste or damage,
disfiguration or injury to the Premises or the improvements, installations, fixtures and
equipment thereon and (ii) any nuisance in, at or on the Premises.
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.
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3. Basic Rent
During the Term, the Tenant shall pay to the Landlord annual minimum rent ("Basic
Rent") in an amount equal to (i) Two Hundred Dollars ($200.00), plus G.S.T., per month
and to provide post dated cheques for the term of the agreement.
Basic Rent shall be payable in monthly instalments, each payable on the first day of each
month, provided that should the Term commence or terminate on a date other than the
first day of a month, the Tenant shall pay to the Landlord for that month a pro rata portion
of said monthly payment.
Basic Rent shall be considered as accruing from day to day and where it becomes
necessary for any reason to calculate rent for an irregular period of less than one year or
less than one calendar month, an appropriate apportionment and adjustment shall be
made.
4. Lessor's Responsibilities
The Lessor acknowledges covenants and agrees to:
i) maintain annually and when required, the oil furnace;
ii) to provide all utilities to the designated area, including hot and cold water, gas,
electricity and sewer charges; and
iii) costs of any repairs to the structural envelope/physical plant of the building.
5. Tenant's Responsibilities
i) to pay for all operating expenses including, but not limited to, heat, hydro, water,
waste removal, grass cutting, snow removal, etc.
ii) music noise and related activities must be kept to reasonable levels in respect of
the quiet of the community; and
iii) all parties will respect all municipal and provincial legislation, and in particular By-
law#91-20.
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6. Repairs and Maintenance
The Tenant, at its own expense, shall maintain and keep the Premises and every part
thereof, in good working order and condition and promptly make all needed maintenance,
repairs and replacements as would a prudent owner of similar premises (reasonable wear
and tear and damage by fire, lightning and tempest and structural defects only excepted).
The Tenant shall keep the Premises clean and in such condition as a prudent owner
would do. If structural repairs or replacements to the roof, foundation or load bearing
walls or the heating equipment of the Premises are required during the Term, then the
Landlord shall be obligated, at its expense, to effect such repairs or replacements. The
Tenant covenants with the Landlord to leave the Premises in as good repair as the
Premises were at the commencement of the Term.
7. Alterations
(a) If the Tenant, during the Terms of this Lease or any renewal of it, 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 time to time, if the following conditions are met:
(i) before undertaking any alteration or addition that the Tenant may require,
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, and the
Landlord shall not unreasonably or arbitrarily withhold its approval and items
included in the plan; and
(ii) any and all alterations or additions to the Premises made by the Tenant
must comply with all applicable building code standards and by-laws of the
municipality in which the Premises are located.
(b) The Tenant shall be responsible for and pay the cost of any of their alterations,
additions, installations or improvements that any governing authority, municipal,
provincial or otherwise, may require to be made in, on or to the Premises.
(c) No sign, advertisement or notice shall be inscribed, painted or affixed by the
Tenant, or any other person on the Tenant's behalf, on any part of the inside or
outside of the building in which the Premises are located unless the sign,
advertisement or notice has been approved in every respect by the Landlord.
(d) All alterations and additions to the Premises made by or on behalf of the Tenant,
other than the Tenant's Trade Fixtures, shall immediately become the property of
the Landlord without compensation to the Tenant.
(e) The Tenant agrees, at his own expense and by whatever means may be
necessary, immediately to obtain the release or discharge of any encumbrance
that may be registered against the Landlord's property in connection with any
additions or alterations to the Premises made by the Tenant or in connection with
any other activity of the Tenant.
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8. Insurance and Indemnification
(a) The Tenant covenants to keep the Landlord indemnified against all claims and
demands whatsoever by any person, whether in respect of damage to person or
property, arising out of or occasioned by the maintenance, use or occupancy of the
Premises or the subletting or assignment of same or any part thereof. And the
Tenant further covenants to indemnify the Landlord with respect to any
encumbrance on or damage to the Premises occasioned by or arising from the act,
default, or negligence of the Tenant, its officers, agents, servants, employees,
contractors, customers, invitees or licensees and the Tenant agrees that the
foregoing indemnity shall survive the termination of this Lease notwithstanding any
provisions of this Lease to the contrary.
(b) The Tenant shall carry:
(i) insurance in his own name to provide coverage with respect to the risk of
business interruption to an extend sufficient to allow the Tenant to meet his
ongoing obligations to the Landlord and to protect the Tenant against loss
of revenues:
(ii) insurance in his own name insuring against the risk of damage to the
Tenant's property within the Premises caused by fire or other perils and the
policy shall provide for coverage on a replacement cost basis to protect the
Tenant's stock-in-trade, equipment, Trade Fixtures, decorations and
improvement; and
(iii) public liability and property damage insurance in the amount of Two Million
Dollars ($2,000,000.00) in which policy the Landlord shall be a named
insured and the policy shall include a cross-liability endorsement;
and the Tenant shall provide the Landlord with a copy of the policy certified by the
insurer.
9. Damage and Destruction
If the Premises are destroyed or damaged by fire, lightning, tempest or other casualty,
then and in every such event if, the damage or destruction of such Building renders the
whole or any substantial part of the said Building unfit for occupancy or impossible or
unsafe for use and occupancy or impossible for the Tenant to continue to carry on its
business, either the Landlord or the Tenant may at its option, terminate this Lease by
giving to the other notice in writing of such termination, in which event, this Lease and the
Term shall cease and be at an end as of the date of such destruction or damage, and the
rent and all other payments for which the Tenant is liable under the terms of this Lease
shall be apportioned and paid in full to the date of such destruction or damage;
10. Quiet Enjoyment
The Landlord covenants with the Tenant for quiet enjoyment.
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11. Government Requirements
The Tenant shall, at its sole cost and expense, during the Term:
(a) observe and comply with all applicable governmental laws and regulations
including, without limitation, federal and provincial legislative enactments, Building
by-laws and other governmental or municipal regulations which relate to the
Premises or the partitioning, equipment, operation and use thereof and to the
making of any repairs, replacements, alterations, additions, changes, substitutions
or improvements of or to the Premises. The Tenant shall comply with all police,
fire and sanitary regulations imposed by any federal, provincial or municipal
authorities, or made by insurance underwriters and shall observe all governmental
and municipal regulations and other requirements governing the conduct of any
business conducted in the Premises;
(b) obtain all necessary permits, licenses and approvals relating to the use and
occupancy of the Premises and the conduct of business therein; and
(c) carry out all modifications, alterations or changes to the Premises and the Tenant's
conduct of business in or use of the Premises which are required by any such
authorities.
The Tenant shall indemnify and hold the Landlord harmless against any penalty or fine
imposed for any violation of any law, by-law or regulation by the Tenant or those for
whom the Tenant is in law responsible.
12. Default
The following events ("Events of Default") shall be deemed a default (a "default") under
this Lease:
(a) If the Tenant fails to pay any instalment of Basic Rent promptly when due, no later
than five (5) days following the respective due date;
(b) If the Tenant fails to observe or perform any other term, covenant, condition or
obligation under this Lease that is capable of remedy other than a default in the
payment of Basic Rent, and such default remains unremedied after thirty (30) days
following written notice from the Landlord to the Tenant specifying such default
and requiring the Tenant to remedy the default;
(c) If the Tenant fails to observe and perform any other term, covenant, conditions or
obligation under this Lease that is not capable of remedy other than a default in
the payment of Basic Rent, and the Tenant receives written notice from the
Landlord specifying such default;
(d) If the Tenant makes an assignment for the benefit of its creditors generally, or if
the Tenant is declared bankrupt or insolvent, or if a petition in bankruptcy is filed
against the Tenant, or if the Tenant files an assignment in bankruptcy or takes or
attempts to take the advantage of any legislation for relief of bankrupt or insolvent
debtors, or if a receiver or a receiver and manager is appointed for all or a portion
of the Tenant's property, or if any steps are taken or any action or proceedings are
instituted by the Tenant or by any other party including, without limitation, any court
or governmental body of competent jurisdiction for the dissolution, winding-up or
liquidation of the Tenant or its assets, unless such proceeding be set aside,
discharged or abandoned within fourteen (14) days. For the purposes of this
Subsection, "Tenant" shall mean the Tenant and any person carrying on business
in or occupying the whole or any part of the Premises.
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13. Right of Re-Entry
Upon an Event of Default and at the opinion of the Landlord, the Landlord, in addition to
any other remedy or right it may have, and without notice or any form of legal process,
may forthwith re-enter upon and take possession of the Premises without thereby
terminating this Lease and remove and sell the Tenant's goods, chattels, equipment and
trade fixtures therefrom, any rule of law or equity to the contrary notwithstanding. The
Landlord may seize and sell such goods, chattels, equipment and trade fixtures of the
Tenant as are in the Premises and may apply the proceeds thereof to all rent and other
payments to which the Landlord is then entitled under this Lease. Any such sale may be
effected in the discretion of the Landlord by public auction or otherwise, and either in bulk
or by individual item, or partly by one means and party by another, all as the Landlord in
its sole discretion may decide. If any of the Tenant's property is disposed of as provided
in this Section, ten (10) days prior notice to the Tenant of disposition shall be deemed to
be commercially reasonable.
14. Right of Termination
In addition to all rights and remedies of the Landlord available to it by any provision of this
Lease or given by law to the Landlord, the Tenant agrees that upon an Event of Default
the Landlord shall have the right to terminate this Lease upon notice in writing to the
Tenant. Upon such notice, this Lease shall terminate immediately without the necessity
of any legal proceeding whatsoever. The Tenant shall thereupon within three (3) days
quit and surrender the Premises to the Landlord, or if not yet in possession, the Tenant
shall no longer have any right to possession of the Premises, and the Landlord,.its agents
and servants, shall have the right to enter the Premises and dispossess the Tenant and
remove any persons or property therefrom without the necessity of legal proceeding
whatsoever and without being liable to the Tenant therefor in damages, or otherwise.
Either party shall have the right to cancel this Lease at any time during the term by giving
the other party no less than three (3) month prior written notice of termination.
15. Right to Re-let etc.
If the Landlord re-enters pursuant to the provisions of either this Lease or any applicable
law, the Landlord, without limiting its right to recover damages, may either terminate this
Lease under this section or it may from time to time without terminating the Tenant's
obligations under this Lease, make any alterations and repairs considered necessary by
the Landlord to facilitate a reletting, and relet the Premises or any part thereof as agent of
the Tenant for such term or terms and at such rental or rentals and upon such other
terms and conditions as the Landlord in its reasonable discretion considers advisable.
Upon each reletting, all rent and other moneys received by the Landlord from the reletting
will be applied (i) to the payment of indebtedness other than rent due hereunder from the
Tenant to the Landlord (ii) to the payment of costs and expenses of the reletting including
brokerage fees, legal fees and costs of the alterations and repairs and (iii)to the payment
of rent due and unpaid hereunder. The residue, if any, will be held by the Landlord and
applied in payment of future rent as it becomes due and payable. If the rent received
from the reletting during a month is less than the rent to be paid during that month by the
Tenant, the Tenant shall pay the deficiency to the Landlord. The deficiency shall be
calculated by the Landlord and paid monthly in advance on or before the first day of every
month by the Tenant. No re-entry by the Landlord shall be construed as an election on its
part to terminate this Lease unless a written notice of that intention is given to the Tenant.
Despite a reletting without termination, the Landlord may elect at any time to terminate
this Lease for a previous breach.
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16. Daman
If the Landlord shall terminate this Lease as provided herein, the Tenant shall pay to the
Landlord on demand, rent hereunder up to the time of re-entry or termination, whichever
shall be the later.
17. Separate R m di s
The Landlord may from time to time resort to any or all of the rights and remedies
available to it upon an Event of Default, either by any provision of this Lease or by statute
or the general law, all of which rights and remedies are intended to be cumulative and not
alternative and may be exercised generally or in combination.
18. Waiver
(a) Notwithstanding anything contained in any statute now or hereafter in force limiting
or abrogating the right of distress, none of the goods, chattels or trade fixtures of
the Tenant on the Premises at any time during the Term shall be exempt from levy
by distress for rent in arrears, and if any claim is made for such exemption by the
Tenant or if a distress is made by the Landlord of if any action is brought to test the
right of the Landlord to levy upon any such goods as are so exempted, this Lease
may be pleaded as an estoppel against the Tenant, the Tenant hereby waiving
each and every benefit that could or might have accrued to the Tenant under and
by virtue of any such statute by for this Lease.
(b) Failure of the Landlord to insist upon the performance of any covenant or condition
of this Lease or to exercise any right or option contained in this Lease shall not be
construed as a waiver or relinquishment of any such covenant, conditions, right or
option or of any subsequent breach of the same. No variation or waiver of any
covenant or condition of this Lease shall be valid unless in writing and signed by
duly authorized persons on behalf of the Landlord.
19. Covenants
Every obligation of the Landlord or the Tenant expressed in this Lease, even though not
expressed as a covenant, shall be a covenant for all purposes. The Tenant
acknowledges that it shall have no right to any benefit of division or discussion.
20. Time of Essence
Time shall be of the essence in all respects hereunder.
21. Enforceability
If any term, covenant or condition of this Lease or the application thereof to any person or
circumstance is to any extent held or rendered invalid, unenforceable or illegal, the
remainder of this Lease or the application of such term, covenant or conditions to persons
or circumstances other than those with respect to which it is held invalid, unenforceable or
illegal is not affected thereby and continues to be applicable and enforceable to the fullest
extent permitted by law.
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22. Notices
Any notice that one party hereto may desire or be required to give to the other party
hereto shall for all purposes be deemed to have been sufficiently and properly given, if
delivered personally or forwarded by registered mail and addressed in the case of the
Landlord to:
40 Temperance Street, Bowmanville, Ontario, L1 C 3A6
Attention: Lou Ann Birkett, Purchasing Manager
and in the case of the Tenant to the Premises and shall be presumed to have been
received on the date of delivery, if delivered personally, or if forwarded by registered mail
on the third business day following such mailing. Any notice shall be in writing, except as
expressly otherwise provided herein, and shall be given only by delivery as aforesaid in
the event of post interruption.
23. Enurement
This Lease and everything herein contained shall enure to the benefit of and be binding
upon the parties hereto their successors and permitted assigns respectively.
IN WITNESS WHEREOF the parties have duly executed and unconditionally
delivered this Lease as of the date first above written.
THE CORPORATION OF THE
MUNICIPA O CLARINCTON
By:
John Mutton, Mayor
And:
Marie Kn' t Stanley, Dep y Clerk
BETHESDA HOUSE OF MERCY
ASSOCI TION
By:
And:
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