HomeMy WebLinkAboutTM-29-79 TM-29-79
TO: Chairman and Members of the Community
Services Committee
FROM: A. C. Guiler.
DATE: March 5th, 1979
SUBJECT: Lease of Building
Part of Lot 15, Concession 1 , Darlington
Harry Locke---
As requested by Committee we have reviewed the lease arrangement with
Mr. Locke which expires on June 30th, 1979.
At the present time the Town leases a two storey concrete block
building containing 4,160 square feet. The lower floor is used by
the Community Services Department as a workshop for repairs of Park
and Cemetery equipment, an office for the Foreman, and garage for
storage of two trucks and a tractor. The upper floor is used for storage
of parks and other recreational equipment.
Under the present lease agreement the Municipality pays $400.00 per month
or $4,800.00 per year and this rate includes all services. This rate
works out to $1.15 per square foot.
In Mr. Locke' s letter dated January 18th, 1979 he is suggesting a new
monthly rate of $600.00 per month ($7,200.00 per year) which works out
to $1. 73 per square foot. This new rate does not include heat and hydro
costs. He also states that if he were to assume the cost of heat and
hydro fie would want a monthly rate of $650.00 or $7,800.00 per year which
would work out to $1. 875 per square foot.
Staff also checked into leasing of other suitable properties in the
Municipality and found that the rate for leasing an industrial type
facility would be in the range of $1.65 to $1. 75 per square foot on
a net, net basis which simply stated would cost $1. 75 per square foot
plus utilities, insurance and taxes.
We also considered the possibility of leasing sufficient space to
consolidate the Community Services Department into one area and our
research showed that we would need an area of approximately 3,000
square feet and this would be possible if we were to locate in an
industrial area. Based on the current situation of trying to consolidate
our operations we rejected this idea as it would remove the operation
too far from the ratepayers,
We would, therefore, respectfully recommend to Committee the following:
1. That we renew the lease with Mr. Locke on a two year basis
at the rate of $1.73 per square foot and that the Municipality
assume the cost of heat and light.
2. That we obtain an option clause for a further two years if
desired by Council,
3. That Mr. Locke be requested to have a separate hydro meter
instal-led for the building,
4. Consideration be given in the next six months to acquiring
land and building a permanent parks maintenance facility prior
to the expiration of the lease.