HomeMy WebLinkAboutTR-8-87 REPORT #3
TOWN OF NEWCASTLE
REPORT
File
Res.
By-Law #
MEETING: COUNCIL
DATE: January 26, 1987
REPORT TR_8_8� FILE #:
SLB,ECT: COMMERCIAL LEASE AGREEMENT
152 CHURCH STREET, BOWMANVILLE
N.W. KING
RECOMMENDATIONS:
It is respectfully recommended to Council the following:
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1. That this report be received; and
2. That the necessary By-Law be passed authorizing the Mayor and the
Clerk to sign a rental agreement with Mr. N.W. King, Oshawa, Ontario;
and
3. That Mr. N.W. King, Oshawa, Ontario, be advised of Council's actions.
BACKGROUND AND COMMENT:
An Offer to Lease, submitted by N.W. King for the office facility at 152 Church
Street, Bowmanville, Ontario, for a three (3) year period was received on
December 18, 1986 for consideration by the Town of Newcastle.
On reviewing this Offer, it was noted that the proposed rent increase for the
first year of a three (3) year lease was in excess of 60% over the 1986 rental
rate. A further 14% and 12.5% increase for the second and third year is also
proposed.
The Town of Newcastle currently leases 2520 square feet at a rental rate of
$4.29 per square foot or $900.00 per month. The proposed lease would increase
the rate per square foot to $8.00.
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TR-8-87
COMM E%CI&L LEASE AGREEMENT
152 CHURCH STREET, B(0VMANVICLE
N.W. KING
As a result of a series of negotiations, staff have submitted a counter-offer
recommending a rental rate of $6.50 per square foot, or $1,365.00 per month.
Said lease is for a one (l) year term with the option to renew and includes an
escape clause that will permit the Town to terminate the lease upon three (3)
nmotbo written notice. The second year will be on a nmutb to oxootb basis at a
rate of $7.00 per square foot or $1/470 per month.
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A copy of the proposed lease is attached, marked 8nbe]uIe xAo.
Staff have been advised that the proposed rate of $6.50 per square foot or
$1,365.00 is acceptable to the lessor.
In view of the rental rate relative to other office space in the area, staff
respectfully recommends that the proposed rental agreement be accepted,
effective February I, 1987.
Respectfully submitted, Respectfully recommended for
presentation to Council,
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Treasurer. Chief Jk]m tive officer.
L&B/h'm
Attachment