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HomeMy WebLinkAboutTR-77-87 TOWN OF NEWGASTEE REPORT File # °• Res_ By-Law # . MEUING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: October 19, 1987 REPORT #: TR-77-87 FILE #: SUB,ECT: LEASE AGREEMENT WITH THE MINISTRY OF GOVERNMENT SERVICES HOLDING CELLS AND COURT ROOMS 132 CHURCH STREET, BMIANVILLE RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That this report be received; and 2. That the lease renewal of the Holding Cells and Court Rooms in the amount of $55,700.00, annually from January 1, 1988 be approved; and 3. That a By-Law authorizing the Mayor and Clerk to execute a Lease Agreement with Her Majesty the Queen, as represented by the Minister of Government Services for the Province of Ontario, for the rental of the Holding Cells and Court Rooms in the premises located at 132 Church Street, Bowmanville, be executed. BACKGROUND AND COMMENT: The Ministry of Government Services currently rents space from the Town of Newcastle at 132 Church Street, Bowmanville, under two (2) separate Lease Agreements. The first Agreement being for the Court Rooms and the second being for the Holding Cells. Total combined area is 5577 square feet. Both Agreements are due to expire December 31, 1987 and are at a rental rate of $6.00 per square foot or a combined yearly rate of $33,460.00. Page - 2 - TR-77-87 LEASE AGREEMENT WITH THE MINISTRY OF GOVERNMENT SERVICES HOLDING CELLS AND COURT ROOMS 132 CHURCH STREET, BOWMANVILLE With the expiry of these two (2) leases, it is proposed that the rental of both areas be incorporated into one (1) lease. A renewal rate of $10.00 per square foot or $55,770.00 annually for a five (5) year term was proposed and agreed to by the Ministry of Government Services. See attachments marked Schedule "A" and "B". With respect to the operating costs of the building, the lease includes an escalation clause derived by multiplying the base costs by the percentage of increase reflected by Statistic Canada Consumer Price Index. The base costs per square foot, per annum will be adjusted to the most current year's operating costs. All other terms and conditions of the original Lease Agreements remain the same. In reviewing rental space rates in the area, staff feel that the proposed rate is reasonable and recommend that the Lease renewal be accepted. Respectfully submitted, Recommended for presentation to the Committee, ,7.R. Blanchard, wrenc Kotseff, Treasurer. Chief inistrative Officer. LAB/hjm Attachments SCHEDULE "A" Intemational Year of Ministry of Realty Shelter for the Homeless V J Government Group v V Services 1987 LA Ui Ontario Annee internationale du Ontario Ontario logement des sans-abri Ministere des Groupe des Ferguson Block Edifice Ferguson Services biens immobiliers Queen's Park Queen's Park Toronto, Ontario Toronto,Ontario gouvernementaux M7A 1 N3 M7A 1 N3 PROPERTY DIWSION (416) 963-0038 Leasing Services Branch 5th Floor October 2, 1987 OCT 6 Corporation of the Tows of Newcastle "5 W . .aAi 40 Temperance Street BOINUMIvi.11e, Ontario L1C-3A6 Attention: Ms. Lou Ann Birkett, Purchasing & Supply Agent Dear Ms. Birkett: Re: Ministry of Attorney General Renewal of Lease 132 Church Street Bowmanville, Ontario File No.: L-1739 Further to your letter of September 21, 1987 we are enclosing six (6) copies of our renewal. forms. You will notice that lease No. L-5198 has been included in the rental for the above lease. Lease NO- L-5198 will be closed upon t of the renewal under lease No. L-1739. Would you kindly arrange to have five (5) copies signed, sealed, dated and returned to the writer as soon as possible. we wish to thank you for your co-operation in this matter. Yours truly, V eizt on GEIN/ec Encl. .3 OFFER TO RENEW LEASE -- BETWEEN HER MAJESTY THE QUEEN AND NAME OF LESSOR: Corporation of the Town of Newcastle DATE OF EXISTING LEASE: January 1, 1983 ADDRESS OF PREMISES: 132 Church Street, Bowmanville, Ontario FILE NUMBER: L-1739 (Includes L-5198) We, The Corporation of the Town of Newcastle the undersigned, being lessors of the above-noted accommodation, hereby Offer to Renew the said lease for a ,period of five (5) years from January 3, 1988 , at a rental of $55,770.00 per annum, payable $4, 647.50 monthly in advance. All other terms and conditions to remain the same, with the exception of the following: 1) The area of the premises will be increased from 5,242 square feet to 5,577 square feet by the inclusion of 335 square feet from Lease No. L-5198 (to be closed upon commencement of this renewal. ) 2) The base year for the purpose of the operating escalation clause shall be changed from 1977 to 1986. and the Province shall have the option to renew the said lease for a further period of five (5) years at a rental to be negotiated and under the same terms and conditions. Dated at this day of , 1987. Per: Corporation of the Town of Newcastle SIGNATURE: SIGNATURE: ADDRESS: 40 Temperance Street Bowmanville, Ontario L1C-3A6 w, -= SCHEDULE "B" F CORPORATION OF THE TOWN OF NEWCASTLE �- _-ul ) � 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623-3379 September 21, 1987 Ministry of Government Services, Realty Group, 5th Floor, Ferguson Block, Queen's Park, Toronto, Ontario. M7A 1N3 Attention: Mr. Gerald B. Miles, B.Comm., F.R.I., O.L.E., Leasing Agent Leasing Services Branch Dear Sir: Re: Leases - 132 Church Street Bowmanville Courtroom and Cells Further to your recent correspondence with Mr. D.W. Oakes, regarding the renewal of the above mentioned lease(s) , I would advise that a renewal rate of $10.00 per square foot is proposed. As in prior years, the term would be for five (5) years with renewal options. It is suggested that in preparing the new lease, that the year 1986 is established as the base year and that the base costs per square foot are adjusted accordingly. Please advise me of your acceptance of this proposal at your earliest opportunity in order that Council approval may be obtained. Yours truly, Lou Ann Birkett, Purchasing and Supply Agent. LAB/hjm cc/ J.R. Blanchard, Treasurer THE CORPORATION OF THE 'TOWN OF NEWCASTLE BY-LAW NUMBER 87- Being a By-Law to authorize the Town to enter into an Agreement with Her Majesty, the Queen as represented by the Minister of Government Services for the Province of Ontario THE COUNCIL OF THE CORPORATION OF THE TOWN OF NEWCASTLE ENACTS AS FOLLOWS: 1. Thee Mayor and Clerk be authorized to execute under the Corporate Seal of the Town of Newcastle, an Agreement in the form annexed hereto as Schedule "A". By-Law read a first and second time this day of October 1987. By-Law read a third time and finally passed this day of October 1987. Mayor Clerk r .