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HomeMy WebLinkAboutTR-73-95 /r THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# /L A Date: MONDAY, OCTOBER 23, 1995 Res. # DqS, c's Report#: TR-73-95 File#: By-Law# Subject: LEASE AGREEMENT - ORONO ARMOURIES RecompengponVespectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report TR-73-95 be received FORTHWITH; 2 . THAT the attached By-law marked Schedule "A" be approved, authorizing the Mayor and the Clerk to execute a lease agreement with 760719 Ontario Ltd. /Apogee Production; and 3 . THAT 760719 Ontario Ltd. /Apogee Production be advised of Council' s decision. j I BACKGROUND AND COMMENT Currently the rear portion of Orono Armouries is being used by the Clarke Museum for storage of artifacts . The front offices have been vacated since the Youth Centre ceased their operations at this location several years ago. i Staff recently received an expression of interest, through the Chief Administrative Office, from 760619 Ontario Ltd. /Apogee Productions for utilization of the complete building through a lease agreement . The total square footage of the building is 3 , 953 and a 3 year lease is proposed at a monthly rate of $741 . 18, which will be reviewed annually and adjusted for inflationary increases . Subject to the review and comment of the Municipality' s solicitor, the proposed lease includes a purchase option up to sixty (60) days following the lease expiry, at a price based on the 1995 appraised i value . RECYCLED PA lI-PAPER RECYCLE TH-PRIMEDC RECYCLEDPAPER REPORT NO. : TR-73-95 PAGE 2 LEASE AGREEMENT - ORONO ARMOURIES Before the tenant can utilize the entire space of the Armouries, the artifacts of the Clarke Museum will need to be relocated. Their space requirements are 2, 000 square feet which must be heated and secured. There are several options available regarding the Museum' s storage requirements including the use of some existing municipal facilities . Should Council approve the lease to purchase recommendation outlined in this report, details on the storage options will be brought to Council with specific recommendations . The area which would be rented initially is 1, 097 sq. ft . , at a monthly rate of $205 . 69 with the understanding that the complete building would become available within six (6) months . The lease rate proposed is substantially higher than the rate received for this building in its entirety in 1988 and is consistent with current market conditions . In addition, by leasing the facility, the Municipality will not be incurring costs as it relates to heat, water and fire safety equipment and incidental repairs . However, funds in an approximate amount of $2000 . 00 will need to be spent to upgrade various components of the building envelope and will be provided for in the Community Services 1996 Capital Budget . Similar to other lease arrangements, the Municipality will continue to be responsible for the building envelope and heating equipment . For the information of Council, over the past 4 years, the Municipality has, on 2 occasions, publicly advertised this property for sale with unacceptable prices being received. I Further to this a written offer to purchase the property, conditional on zoning and financing has now been received. However, the offer in the amount of $50, 000 . 00 is lower than the I 1994 appraised value of $95, 000 . 00 obtained for this property. l J REPORT NO. : TR-73-95 PAGE 3 LEASE AGREEMENT - ORONO ARMOURIES After further review of both the immediate offer to purchase and the offer to lease/purchase, it is recommended that the offer to lease submitted by 760719 Ontario Ltd. /Apogee Productions be accepted. Respectfully submitted, W.H. Stockwell, Chief Administrative Officer MM*LB*ld i I I i i I i THIS INDENTURE made in triplicate the day of , 1995. IN PURSUANT OF THE SHORT FORMS OF LEASES ACT BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON herein called the LESSOR of the FIRST PART - and - 760719 ONTARIO LIMITED O/A APOGEE PRODUCTIONS herein called the LESSEE of the SECOND PART. WITNESSETH that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Lessee, the Lessor doth demise and lease unto the Lessee, the building of the Orono Armories,Park Street, Hamlet of Orono,now in the Municipality of Clarington, from month to month. The term of the lease to be from November 1, 1995 to October 31, 1998. The Lessee convenants with the Lessor to provide postdated cheques, by November 1st of each year, for the term of the agreement and to pay $205.69 per month for 1,097 square feet (front office) for the period November 1, 1995 to April 30, 1996, and $741.18 per month thereafter for 3,953 square feet(total building),unto the Lessor, and will not assign or sub-let without leave,which leave shall be reasonable withheld. The Lessor will review the rental rate annually and will provide written notice to the Lessee of any inflationary increase in rent for the subsequent year by June 1st of each year (average of the Ontario Consumer Price,Index for the prior 12 months). Subject to the review and comment of the Municipality's solicitor, the Lessee will have the option to purchase, up to sixty (60) days following the lease expiry. NOTICES That any notice which either of the parties is required or permitted to give pursuant to any provision of this lease may, if intended for the Lessee, be given by a writing left at the demised premises or mailed by registered mail addressed to the Lessee at the demised premises, and if intended for the Lessor by a writing left at the premises of the Lessor at or mailed by registered mail addressed to the Lessor at the Lessor's said premises, and such notice shall be deemed to have been given at the time it was delivered or mailed, as the case may be. OVER PROVIDED further and it is hereby agreed that should the Lessee hold over HOLDING after the expiration of this lease and the Lessors thereafter accept rent for the said premises, the Lessee shall hold the said premises as a tenant only of the Lessors but subject in all other respects to the terms and conditions of the lease. The words importing the singular number only shall include the plural, and i vice versa, and words importing persons shall include firms and corporations and vice versa. Page - 2 - Unless the context otherwise required, the word "Lessor" and the word "Lessee"wherever used herein shall be construed to include and shall mean the executors, administrators, successors and/or assigns of the said Lessor and Lessee,respectively, and where there are two or more Lessees bound by the same covenants herein contained,their obligations shall be joint and several. The Lessee covenants that he will not do or permit to be done any act or thing which may made void or voidable any insurance upon any building, or part thereof, upon the said premises, or which may cause any increase or additional premium to be payable for any insurance. The Lessee shall not allow any ashes, refuse, garbage or other loose or objectionable material to accumulate in or about the building,yards,or passages of the said premises, and will at all times keep the said premises in clean and wholesome conditions, and the said Lessor may enter and view the state of repair. The Lessee shall at its own expense, have the right to carry out any interior alterations during the term or extension thereof, without the written permission of the Municipality. Provided that in the event of the destruction or partial destruction of the said premises, the Lessor may declare the term hereby granted to be forthwith terminated and in such event rent shall be payable up to the time of such destruction. AND that he will leave the premises in good repair,reasonable wear and tear and damage by fire, lightning and tempest only expected. PROVIDED that notwithstanding anything herein contained the Lessor's right of re-entry hereunder for non-payment of rent or non-performance of covenants shall become exercisable immediately upon default being made. The said Lessor further covenants with the Lessee: (a) during the term of this lease, to keep the heating equipment in good operating condition; (b) to keep and maintain the premises in good order and condition and to make promptly all needed repairs thereto; and (c) to provide during the term of this lease subject to the Agreement of the Orono Town Hall Board, two (2) parking spaces for the exclusive use of the Lessee. i I Page - 3 - HOLD The Lessee shall indemnify and save harmless the Lessor and all HARMLESS persons for whom it is responsible from any and all liabilities, damages, costs, claims, suits or actions arising out of: any damage to property including loss of use thereof, and any injury to any person or persons, including death resulting at any time therefrom, occasioned by any act or omissions of the Lessee, its officers, agents, servants, employees, contractors, customers, invitees or licensees, or occurring in or on the Premises or any part thereof arising from or occasioned by any cause whatsoever,except where such damage or injury is due to the act,default or negligence of the Lessor, its officers,agents,servants,employees,contractors,customers,invitees or licensees, IN WITNESS WHEREOF the parties hereto have hereunder set their hands and seals: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Mayor Clerk 760719 Ontario Limited I THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW #95- Being a By-law to authorize the execution of an offer to Lease Agreement between the Corporation of the Municipality of Clarington and 760719 Ontario Limited o/a Apogee Productions in respect of a lease of the premises known as the Orono Armories, Park Street, Orono, 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 between 760719 Ontario Limited and Said Corporation; and 2. THAT this agreement attached hereto as Schedule 'B" form part of this By-law. By-law read a first and second time this day of , 1995. By-law read a third time and finally passed this day of 1995. Mayor Clerk i