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HomeMy WebLinkAboutCOD-033-02 , CI~#Jglon REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday, June 17, 2002 File # /.JJ1 (f1t-30rJ-O :2- By-law # .:2CD;;L-!tJ ~ Report #: COD-33-02 Subject: LEASE AGREEMENT - COURTlCE COMMUNITY COMPLEX & CLARINGTON KIDS INC. Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report COD-33-02 be received; 2. THAT a monthly fee of $6532.44 for the period July 15, 2002 to July 14, 2003 and $6,653.38 for the period July 15, 2003 to July 14, 2004, and $6,774.19 for the period July 15, 2004 to July 14, 2005 and $6,895.17 for the period July 15, 2005 to July 14, 2006 be approved; and 3. THAT the attached By-law, marked Schedule "A", authorizing the Mayor and Clerk to execute the lease agreement with Clarington Kids Inc. (Janice and Randy Brown) be forwarded to Council for approval. Reviewed bye) ~ ~ Franklin Wu, Chief Administrative Officer MM/LAB/JC/eu 1206 '. REPORT NO.: COD-033-02 PAGE 2 BACKGROUND AND COMMENT Clarington Kids Inc. (Janice and Randy Brown) currently lease space at the Courtice Community Complex at a monthly rate of $5681.00 ($5556.00/month plus $125.00/month for Exterior Play Area) Staff have reviewed the cost of operating the building as well as the current market rates relative to the initial fees received. As with the prior lease, a five (5) year term is proposed. Staff have been advised the proposed current rental rates are acceptable. The total monthly fee includes the rental fee of the Exterior Playground Area. The current lease expires July 14, 2002 and staff respectively recommends that the proposed rental agreement be accepted, effective July 15, 2002. A copy of the lease is attached marked Schedule "B". CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-3330 1207 Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARlNGTON BY-LAW 2002- Being a By-law to authorize the execution of a Lease Agreement between the Corporation of the Municipality of Clarington and Clarington Kids Inc. in respect of a lease for space located in the Courtice Community Complex, Courtice, Ontario. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: I. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington with the Corporate Seal, a Lease Agreement with Clarington Kids Inc. and said Corporation. 2. THAT this agreement attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of ,2002. By-law read a third time and finally passed this day of ,2002. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 1208 LEASE AGREEMENT Page 1 THIS LEASE dated as of the _ day of ,2002. BETWEEN: The Corporation of the Municipality of clarington (hereinafter called the "Landlord") - and- Company Limited, a corporation incorporated under the laws of the Province of Ontario (hereinafter called the "Tenant") OF THE SECOND PART ,... LEASE AGREEMENT \209 Due to the length of the Agreement, copies are available in the Clerk's Dept. H:';LEASES\2002-CLAR-KIDS.DOC .~ LEASE AGREEMENT Page 2 TARI F OF CONTFNTS ARTICLE I PREMISES, TERM, OFFER AND USE ............................................................................ 1.1 Grant and Premises .................................................................................... 1 1.2 Term ............................................................................................................ 1 1.3 Use and Conduct of Business..................................................................... 2 1.4 Nuisance...................................................................................................... 2 ARTICLE II RENT ...................................................... ........................................................................... 3 2.1 Covenant to Pay.......................................................................................... 3 2.2 Net Rent ...................................................................................................... 3 2.3 Payment of Taxes ....................................................................................... 3 2.4 Payment of Estimated Taxes and Operating Costs.................................... 4 2.5 Utilities and Services ................................................................................... 4 2.6 Additional Rent............................................................................................ 5 2.7 Rent Past Due............................................................................................. 5 ARTICLE III CONTROL OF BUILDING .................................................... ............................................ 6 3.1 Landlord's Services ..................................................................................... 6 3.2 Control by Landlord ..................................................................................... 6 ARTICLE IV ACCESS AND ENTRY ................................................... ................................................... 7 4.1 Access to Premises..................................................................................... 7 4.2 Entry not Forfeiture......................................... ................. ............................ 8 ARTICLE V MAINTENANCE, REPAIRS AND ALTERATIONS..__...................................................... 9 5.1 Maintenance by the Landlord ....................__................................................ 9 5.2 Maintenance by Tenant, Compliance with Laws, Repair on Notice ........... 9 5.3 Approval of Tenant's Alterations ................................................................ 10 5.4 Repair where Tenant at Faull..................................................................... 11 5.5 Removal Of Fixtures and Personal Property ............................................. 12 5.6 Liens........................................................................................................... 12 5.7 Notice by Tenant....................................................... .__............................. 12 ARTICLE VI INSURANCE AND INDEMNITY................... ................................................................... 13 6.1 Tenant's Insurance.................................................................__.................. 13 6.2 Form of Policies.......__...................__............................................................ 14 6.3 Landlord's Insurance...........__....................__............................................... 14 6.4 Release of Landiord ................................................................................... 14 6.5 Tenant's Effect on Other Insurance ..__....................................................... 15 6.6 Indemnity of Landlord......................................................................__......... 16 6.7 Loss or Damage...................__.....................__.............................__.............. 17 6.8 Senefit of Reieases .................................................................................... 18 1210 H:'.,LE.4.SES2002-CLAR-KIDS. DOC ..# LEASE AGREEMENT Page 3 ARTICLE VII DAMAGE AND DESTRUCTION ...................................................................................... 19 7.1 Damage to Premises, Building or Development........................................ 19 7.2 Insured Damage to Premises..................................................................... 19 7.3 Uninsured Damage to Premises and Last Two years............................... 19 7.4 Damage to Building or Development ......................................................... 20 7 .5 Termination................................................................................................. 20 7.6 Restoration if Lease Not Terminated ......................................................... 20 7.7 Restoration of Premises or Building and Insurance Proceeds .................. 21 7.8 Determination of Matters............................................................................ 21 7.9 Limitation of Liability ................................................................................... 21 ARTICLE VIII TRANSFERS ..............................................................................................................,..... 22 8.1 Transfers .................................................................................................... 22 8.2 Landlord's Right to Terminate .................................................................... 22 8.3 Conditions of Transfer ................................................................................ 22 8.4 Change of Control...................................................................................... 23 8.5 No Advertising ............................................................................................ 23 8.6 Assignment by Landlord ............................................................................. 23 ARTICLE IX DEFAULT ......................................................................................................................... 24 9.1 Default and Remedies................................................................................ 25 9.2 Distress....................................................................................................... 25 9.3 Costs.......................................................................................................... 25 9.4 Set-Off and Accord and Satisfaction.......................................................... 25 9.5 Survival of Obiigations................................................................................ 25 9.6 Lien............................................................................................................. 26 9.7 Waiver and Remedies Cumulative............................................................. 26 ARTICLE X SPECIAL PROViSiONS.............................................. ..................................................... 27 10.1 Parking ................................................................ .............. ......................... 27 10.2 Extension or Renewal................................................................................ 27 10.3 Operation of Licensed Day Care and Indoor Family PlaY9round .............. 27 10.4 Physical Plant and Equipment ................................................................... 27 10.5 Management and Operation of Premises .................................................. 28 10.6 Disposal of Waste ...................................................................................... 28 10.7 Ground Maintenance - Outdoor Play9round.............................................. 28 10.8 Quality Control............................................................................................ 28 10.9 Sponsorship and Advertising Sales ........................................................... 29 10.11 Marketing and Advertising.......................................................................... 29 10.12 Concessions/Catering ................................................................................. 29 10.13 Chattel Mortgage of Playground Equlpment............................................... 29 \"211 1-l:\LEASES\2002-CLAR-KIOS.OOC LEASE AGREEMENT Page 4 ARTICLE XI GENERAL PROViSiONS................................................................................................. 30 11.1 Rules and Regulations ............................................................................... 30 11.2 Delay........................................................................................................... 30 11.3 Overholding ................................................................................................ 30 11.4 Notices........................................................................................................ 30 11.5 Successors ................................................................................ ................. 30 11.6 Covenants and Joint and Several Liability ................................................. 31 11.7 Heading, Table of Contents, Lease Summary........................................... 31 11.8 Extended Meanings.................................................................................... 31 11.9 Partial Invalidity............................................................ ............................... 31 11.10 Entire Agreement ....................................................................................... 31 11.11 Governing Law........................................................................................... 31 11.12 Time of the Essence .................................................................................. 31 11.13 Quiet Enjoyment......................................................................................... 32 11.14 No Partnership or Agency.......................................................................... 32 ARTICLE XII SPECIAL PROViSiONS................................................................................................... 33 12.1 Schedules................................................................................................... 33 Schedule "A" - Legal Description of Lands Schedule "8" - Floor Plan Schedule "C" - Definitions Schedule "D" - Rules and Regulations 1212 H:"LEASES2002.::::LAR~KIDS_ DOC