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HomeMy WebLinkAboutCOD-006-04 CI!Jl-!lJgton REPORT CORPORATE SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: FEBRUARY 9TH, 2004 F"",g GPA--01 S' -0+ Report #: COD-006-04 File#_ By-law #dOOtf - o'ffp Subject: VISUAL ARTS CENTRE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report COD-006-04 be received; 2. THAT the lease agreement with the Visual Arts Centre (Schedule B) be extended to expire May 12, 2016; 3. THAT the insurance clause item 1 b be amended to reflect the current municipal standard and practice; and 4. THAT the attached By-law marked Schedule "A" be approved authorizing the Mayor and the Clerk to execute the necessary agreements; S"bm_by' ~ . arie Marano, H.B.Sc., C.M.O. Director of Corporate Services ""- Reviewed by: C Franklin Wu, Chief Administrative Officer MMILABlkm 1 'J' L ,) or REPORT NO.: COD-006-Q4 PAGE 2 BACKGROUND AND COMMENT The Municipality has an existing Lease agreement with the Visual Arts Centre, which expires May 12, 2011. The Visual Arts Centre have requested an extension to the agreement in order to be eligible to apply for funding from foundations and other granting agencies. Most granting agencies require that there be at least a ten year lease agreement in place and as the existing lease expires in seven years, an extension is requested. Upon review of the lease, it was noted that the insurance clauses are out dated and it is therefore recommended that they be revised at the same time. The proposed revisions are as per Schedule "C" attached. CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T(905)623-3379 F (905)623-4169 1 'j i i L" J Schedule "A" THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-lAW 2004- Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Visual Arts Centre, Bowmanville, Ontario, to enter into agreement for lease of Visual Arts Centre at 143 Simpson Avenue, Bowmanville. THE CORPORATION OF THE MUNICIPALITY OF ClARINGTON HEREBY ENACTS AS FOllOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, a contract between, Visual Arts Centre, Bowmanville, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this day of ,2004. By-law read a third time and finally passed this day of ,2004. John Mutton, Mayor Patti L. Barrie, Municipal Clerk 1 L :j " ~ ~. SCHEDULE "B" 'j/~, U THIS INDENTtlRE MADE THE I'iff. DAY OF )uo. 1986 IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT. THE CORPORATION OF THE TOWN OF NEWCASTLE (hereinafter called the "Landlord") OF THE FIRST PART r - and - ! THE VISUAL ARTS CENTRE OF NEWCASTLE A Corporktion Incorporated under the laws of the Province of Ontario (hereinafter called the "Tenant") OF THE SECONO PART WITNESSETH: WHEREAS by resolution GPA-562-86 dated June 2nd, 1986 and ratified and adopted by Council on the 9th day of June, 1986, the Landlord agreed to amend the lease to the Tenant dated May 13, 1986 as follows: THAT Paragraph #5, Page 3 of thesa,id Lease is hereby deleted in its entirety and replaced with the following: 5. Provided that the tenant may share in common with the 8aseba11 Club, the small back room in the annex until suitable al,ernate facilities are found. IN WITNESS WHEREOF the Tenant has hereto affixed its corporate seal duly attested by the hands of its proper officers in that behalf and the Landlord has hereto affixed its corporate seal duly attested by the hands of its Mayor and Clerk. SIGNED, SEALED AND DELIVERED ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) . ) THE CORPORATION OF THE TOWN OF NEWCASTLE fJ'k ~un~~~ MAYOR iit,dLd~.L f)-p"Tl(-CL RK THE VISUAL ARTS CENTRE OF NEWCASTLE 'ti . . , /$"11 {, (, I i 'I !\I"i\;e ~ CREtARY 12 Ii 7 " ~-- ,_. .~ '. SCHEDULE "B" THIS INDENTURE MADE THE /.) rlf DAY OF IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT. ~/'~I 1986 BETWEEN: THE CORPORATION OF THE TOWN OF NEWCASTLE (hereinafter Ci lIed the lILandlord11) OF THE FIRST PART -and- TIlE VISUAL ARTS CENTRE OF NEWCASTLE A Corporation Incorporated under the Laws of the Province of Ontario (hereinafter called the IlTenantU) OF THE SECOND PART , WITNESSETH that in consideration of the rents and covenants hereinafter set forth the Landlord hereby teases unto the Tenant the lands and premises describec in Schedul~ uN' attached hereto; TO HOLD the premises for a term of TWENTY-FIVE (25) YEARS from the date hereof_ The Tenant paying therefor yearly in advance durtn9 the term hereby granted the sum of ONE ($1.00) DOLLAR of lawful money of Canada, the first such payment to be due and payable upon the execution hereof and subsequent payments to be due and payable on the 29th day of March in each year during the term hereof. 1. The Tenant covenants with the Landlord as follows: a) to pay rent; b) to provide publiC liability and property damage insurance in an amount not less than $1,000,000.00 for each occurrence durtng the currency of this lease;. c) to maintain and make normcl repairs necessary for the operation of the building; d) to pay during the term hereof all rates and charges for water, gas, electric lights. telephone and power dnd other public utilities or services supplied to the premises; and any municipal taxes levted thereon; eJ to maintain and keep the premises, described in Schedule "A" Ilereto, and every part thereof> in a clean and ttdy condi tton and not to permit waste paper, garbage, ashes or waste or objectionable material to accumulate thereon. 12 8 ".'. SCHEDULE "B" -2- "::: e) not at any time to permit any mechanic.s, labourer.s material-man's or similar lien to stand agatnst the premises for any labour or materials furntshed t~, or with the consent of, the Tenant, its agen~s, or contractors, in connection with work of a~y character performed or claimed to have been performed on the premises by or at the direction OP sufference of the Tenant; PROVIOEO, however, that the Tenant shall have the right to contest the validity of or the amount clatmed under or tn respect of, any such lien, if such contestation shall involve no forfeiture, foreclosure or sale of the premises or any part thereof, but upon a ftnal determination of such contest the Tenant shall tmmedtately pay and satisfy any judgement 'or decree rendered agatnst the Tenant, with alt proper costs and charges, and cause such lten to be discharged and released off record, all wtthout cost or expense to the Landtord; PROVlOED FURTHER ttlat on the Tenant's fatlure promptly to remove or contest any such lien, the Landlord, at its option, may pay and discharge such lien, and all amount paid by or en behalf of the Landlord, together with all expenses tncurred in connection therewith by or for the Landlord shall be charged to and paid forthwith by the Tenant as additional rent; g) to indemnify the Landlord from any and atl liabilities, damages. costs. claims. suits or actions growing out of any n~gligence or breach. violation or non-performance of any covenant or provtso hereof on the part of the Tenant or any of its servants. agents, or employees or any person having business with the Tenant. Such tndemntficatton in respect of any such negttgence, breach, violation or non-performance occurring during the term of the lease shall survive any termination of this lease, anything in this lease to the contrary notwithstanding; PROVlOED, however, that such indemnification shall in no event extend to the direct. primary and proximate results of the negltgent, reckless or wilful conduct of tile Landlord, tts agent, employees or representatives; 2. Tile Landlord covenants with tile Tenant as follows: a) for quiet enjoyment; 12 9 ,., . L SCHEDULE "B" -3- b) Subject to the approval of the Landlord that the Tenant when not tn default of performance of any of its obligattons hereunder shall have the rtght to make at its own expense such alterations or , addttions and improvements to the premises as it may deem advisable provtded that no such alteration, additton or improvement shall reduce the vatue or character of the premises or weaken their structural safety or be detrimental to thetr use. 3. Proviso for re-entry by the satd Landlord on non-payment of rent or non-performance of covenants. 4. provtded that the Tenant may remove its fixtures and property. 5. Provtded that the Tenant may share in common with others so entttled the public washroom faciltties and connecting common areas to such factlities adjoining to the north of the main or first floor of the subject premises. 6. Provtded that the Tenant hereby agrees to use the subject premises as a centre for the arts and to maintain its Charter and By-Jaws tn a form the same as or similar to the present ones now tn existence so that the membershtp in the Tenant organization will be open and available to all members of the Community who comply with the rules and regulations of the Tenant, such rules and regulations to be of a form usual to such organizatton. 7. Should the Tenant cease to be acttve in the Town of Newcastte for more than stx months, thts Lease shall be forfetted and vacant possession shall be given forthwith to the Landlord. 8. Provided that should the premi~.s be damaged or destroyed by fire or other cause, the proceeds of any insurance held by the Tenant and/or Landlord shall be used to rebuild the premises tf practicable; otherwise such proceedS shall be used to provide a Centre suitable to the Tenant to be used and occupied by the Tenant on the same or a similar basis ~~hat upon which the premises hereby leased now are used and occupted. e ,1~~( 9. The Tenant may terminate this lease by giving notice in writing to the Landlord and the effective dates of such termtnation shall be six months after such nottce ts received by the Landlord. 10. If the Tenant goes out of possess ton of the premises, the Landlord may enter and take such steps as may be necessary to maintain same and the Tenant may acquire possession of the premises once agaIn tf it pays to the Landlord the latter's reasonable expenses in so maintaining the premises provided that 12 1 0 , " ~/ -4- '-/ SCHEDULE "B" I such rtght to regain possession\shall lapse stx months after the Tenant first goes out of po\seSSion. I. At the termtnation of the term or any renewal of this lease. the Tenant shall have th~ right of first refusai to rent ~he premises. IN WITNESS WHEREOF the Tenant has hereto affixed its corporate seal duly attested by the hands of its proper officers tn that behalf and the Landlord has hereto afftxed its corporate seal duly attested by the hands of its Mayor and Clerk. SIGNED, SEALED AND DELIVERED 1 ',! 1 , (. ' ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) , ) ) ) ) ) ) THE CORPORATION OF THE TOWN OF NEWCASTLE Ij, n/1~ . L~(CO. U ~ THE VISUAL ARTS CENTRE OF NEWCASTLE .t!y$~ PRES WLN I A~ }G,,^.tl I SLCRU ARY '.. 1. The use of portions of the structure or building known as the "Cream of Barley Mi II" located in the Town of Newcastle in the Regional Municipality of Durham, now situated on lands described as Part of Lot 9, Concesston 1, particularly designated as Part I, Plan 10R-263, and being the following floors and rooms therein: a) All of the basement floor area, adjoining rooms and connecting hallway theretn, said latter rooms'being commonly known as the utiltty-storage and the fireplace rooms. and b) All of the entire first, second and third floor areas and any partitioned rooms or spaces therein. 2. The use of an adequate quantity of land immediately surrounding the Mill structure, referred to in paragraph 1 in this Schedule, sufficient for the purposes of automobile parking for atl Mtll functtons and activittes as well as necessary ingress and egress to and from the said Mill structure. 121 ? Schedule "C" THIS INDENTURE dated as of the in pursuance of the Short Forms of Leases Act. day of ,2004, BETWEEN: , THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON I (hereinafter called the "Landlord") OF THE FIRST PART -and- THE VISUAL ARTS CENTRE OF NEWCASTLE A Corporation Incorporated under the laws of the Province of Ontario (hereinafter called the "Tenant") OF THE SECOND PART WITNESSETH: WHEREAS by resolution dated , 2004 and ratified and adopted by Council on the day of , 2004, the Landlord agreed to extend the lease to the Tenant dated May 13,1986 to May 12, 2016 and THAT Paragraph 1 (b), Page 1 of the said Lease is hereby deleted in its entirety and replaced with the following: 1b. Insurance and Indemnification (a) The Lessee shall provide and maintain during the temn of the lease Commercial / Comprehensive General Liability insurance acceptable to the Municipamy and subject to limits of not less than $3,000,000.00 inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof. (b) The Commercial/ Comprehensive General Liability insurance policies shall be in the name of the Lessee and shall name the Lessor as an additional insured thereunder. (c) Such insurance policies shall contain an endorsement to provide the Municipality with thirty (30) days written notice of cancellation. Evidence of insurance satisfactory to the Municipality's Insurance Administrator shall be provided prior to execution of the lease. If requested by the Lessor, Certified Copies of the above-referenced policy must be provided. (d) The Lessee shall indemnify and save harmless the Lessor from any and all claims, demands, causes of action, loss, costs or damages that the Lessor may suffer, incur or be liable for, resulting from the perfomnance of the Lessee of his obligations under the lease agreement, save and except damages, claims, demands, actions or cause of action arising out of or as a result ofthe actions of the Municipality, its agents or employees. PAGE 1 H:\LEASES\VIS-ART-C-2004.doc I.. ) Schedule "C" IN WITNESS WHEREOF the Tenant has hereto affixed its corporate seal duly attested by the hands of its proper officers in that behalf and the Landlord has hereto affixed its corporate seal duly attested by the hands of its Mayor and Clerk. SIGNED, SEALED AND DELIVERED THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON By: John Mutton, Mayor And: Patti L. Barrie, Clerk THE VISUAL ARTS CENTRE By: And: l~lq PAGE 2 H:\lEASES\VIS-ART-C_2004.doc