HomeMy WebLinkAboutCD-45-82 DG( CORPORATION OF THE TOWN OF NEWCASTLE tU'
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OFFICE OF THE TOWN CLERK
40 TEMPERANCE STREET
TELEPHONE 623-3379
BOWMANVILLE, ONTARIO
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REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF
JULY 12TH 1982
CD-45-82
OUR FILE: 16. 19. 105.
SUBJECT: REQUEST ON BEHALF OF THE NEWCASTLE HYDRO ELECTRIC
COMMISSION TO ALTER THE TERM OF THE LEASE FOR LANDS
LOCATED ON PT. LOT 10, BROKEN FRONT CONCESSION
PARTS 1 AND 2, REF. PLAN 1OR-1195
RECOMMENDATIONS:
1. That this report be received; and
2. That the request that the lease respecting Town-owned
lands described as Pt. Lot 10, B/F. Concession,
Parts 1 and 2, on Reference Plan 1OR-1195, be amended
and the term of the lease reduced to forty-nine (49)
years; and
3. That the Mayor and Clerk be authorized to execute
the amending agreement on behalf of the Town; and
4. That the firm of Van Nest and Associates , Solicitors ,
118 King Street, Bowmanville, Ontario , L1C 3K9, be
so advised.
BACKGROUND AND COMMENT:
By letter dated July 5th 1982, the firm of Van Nest Associates has requested
that the Town consider amending the lease for the subject lands to a term
of forty-nine years. At present the lease provides for a term of ninety-nine
years.
Continued . . . . . 12
CD-45-82 - 2 - July 12th 1982
The rationale for the request, relates to the position being taken by the
Ministry of Revenue with respect to the payment of Land Transfer Taxes
on all leased lands, where the term of the lease exceeds forty-nine years.
The current lease was executed by the parties on September 30th 1981.
Staff have reviewed the lease and see no difficulty in recommending the
amendment requested by Newcastle Hydro's Solicitor.
Respectfully submitted,
David W. Oakes, A.M.C.T.
Town Clerk.
DWO/ms
Att chment
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VAN NEST & AsSOclATES
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BARRISTERS AND SOLICITORS
TELEPHONES 118 KING STREET EAST
(416) 623-2771 P.O. BOX 14S &'�N op He''a'acjsmj
(416) 623-2537
BOWMANVILLE, ONTARIO CLERK DEPARTMENT
UC 3K9
REPLY TO Paul L. Bellefontaine
July 5, 1982
David W. Oakes , Esq. , A.M.C.T. ,
Clerk, Town of Newcastle,
40 Temperance Street,
BOWMANVILLE, Ontario.
L1C 3A6
! Dear Mr. Oakes :
Re: Newcastle Hydro Electric Commission
lease from the Town of Newcastle
Pt. Lot 10, Broken Front Concession,
Parts 1 & 2, Plan IOR-1195
Your File: 16 . 19 .105
I have spoken with the Land Transfer Tax
Branch of the Ministry of Revenue with respect to the Corporation
of the Town of Newcastle lease to the Newcastle Hydro Electric Com-
mission for the power distribution centre on Parts 1 and 2 on Plan
1OR-1195.
The Ministry of Revenue is correctly taking
the position that as the Lease exceeds 49 years in length, Land
Transfer Tax would be payable by the Hydro Electric Commission on
the fair market value of the property. In order to determino the
fair market value it would be necessary to have the local Assess-
ment office determine the value of the property.
Alternatively, and I would suggest preferably,
we could amend the Lease to provide for a 49 year term, in which
case no tax would be payable.
If you are agreeable to this amendment,
please advise us and we will alter it .
Yours very truly,
VAN NEST &,,9SOCIATES
Per: /
PLB:hb Paul L. Bellefontaine.
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LEASL 4
THIS INDENTURE
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Made (in duplicate) the 30th day of September
one thousand nine hundred and eighty-one. I
IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT
BETWEEN
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CORPORATION OF THE
TOWN OF NEWCASTLE j
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herein called the Landlord of the
First Part
and
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NEWCASTLE HYDRO ELECTRIC COMMISSION
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herein called the Tenant of the
Second Part
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WITNESSETH:
WHEREAS:
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(1) By resolution #W-195-80 dated the 2nd day of September, 1980,
and ratified and adopted by Council on the 8th day of
September, 1980, the landlord agreed to lease to the tenant and
the tenant agreed to take a lease from the landlord of the lands
described as Part of Lot 10, broken front concession, geographic
township of Darlington, Parts 1 & 2, Plan 1OR-1195.
(2) The said resolution provided that the tenant should construct a
power distribution center on the said property.
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NOW THEREFORE in consideration of the rents reserved, the landlord hereby
leases to the tenant the lands, including any structures presently situate
on the lands.
TO HOLD the lands subject as herein provided for the term of ninety-nine
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Zears commencing on the 14th day of September, 1981 and ending on the
13th day of September, 2080.
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LEASE �(h)
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THE TENANT PAYING THEREFOR yearly and every year during the term the
sum of $2.00, this sum representing the entire amount due and owing i
to the landlord from the tenant for the term of the lease.
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IN WITNESS WHEREOF the said parties hereto have hereunto set their
hands and seals
THE CORPORATION OF THE TOWN OF NEWCASTLE
BY:
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NEWCASTLE HYDRO ELECTRIC CO MISSION
BY:
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THE CORPORATION OF THE TOWN OF NEWCASTLE
BY-LAW 82- 99 { i
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being a by-law to authorize the entering into
of an amending agreement with Newcastle Hydro
Electric Commission
The Council of the Corporation of the Town of Newcastle
HEREBY ENACTS AS FOLLOWS:
1. That the Mayor and Clerk be authorized to execute on behalf
of the Town of Newcastle, and seal with the Corporation seal,
an amending agreement between Newcastle Hydro Electric
Commission, and the said Corporation, dated the
day of 1982, to provide for a reduction in the
term of the lease dated September 30th 1981, from ninety-nine
(99) years to forty-nine (49) years.
By-law read a first and second time this 19 day of July 1982.
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By-law read a third and final time this 19 day of July 1982.
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Mayor
Seal
Clerk
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