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Report
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Municipal Clerk at 905-623-3379 ext. 2102.
Report To: General Government Committee
Date of Meeting: April 18, 2016
Report Number: COD-005-16 Resolution: GG - c` S%-1
File Number: By-law Number:
Report Subject: Kendal Community Centre Lease and Sublease Renewal
Recommendations:
It is respectfully recommended that the General Government Committee recommend to
Council the following.-
1.
ollowing:1. That Report COD-005-16 be received;
2. That approval be granted for the Municipality to renew the head-lease agreement
with the Kendal Community Centre in a form acceptable to the Municipal Solicitor in
an amount of $2.00 per year for a 5 year period commencing on January 1, 2016 to
December 31, 2020.
3. That the Municipality, as head landlord, consent to renew the sublease agreements
with the Kendal Lions Club and Paula Sheppard (Kendal Postal Outlet) in a form
acceptable to the Municipal Solicitor for use of the facilities at the Kendal Community
Centre each in an amount of $2,400.00 plus H.S.T. per year for a 5 year period
commencing on January 1, 2016 to December 31, 2020 and subject to a yearly rate
increase based on the Consumer Price Index, All Items, Ontario (most recent issue);
and
4. That the Mayor and the Clerk be authorized to execute the necessary agreements.
Municipality of Clarington
Report COD-005-16 Page 2
Report Overview
Renewal of Lease agreement with Kendal Community Centre and sublease agreement with
the Kendal Lions Club and Kendal Postal Outlet.
1 . Background
The Municipality has had a lease agreement with the Kendal Community Centre since
2000 for an annual fee of$2.00 and in 2009 a provision was included in the lease
allowing the Kendal Community Association to sublet portions of the hall. A condition of
the lease agreement makes provision for the subletting of space by the Kendal
Association provided it meets the intended use of the facility. Currently there are two
subleases in place at Kendal; the Kendal Lions Club and Paula Sheppard (Kendal Post
Outlet).
2. Analysis
The existing agreement expired on December 31, 2015. Since then staff has had
discussions with the Acting Chair of the Kendal Community Association regarding the
terms for renewal of the agreements. During the discussions a proposal was made by the
Kendal Board to increase the current lease rate for the Lions Club from $2,208.00 to a
new yearly lease rate of $2,400.00 plus H.S.T. and to increase the Kendal Postal Outlet's
yearly rate from the current amount of$1,936.80 to a new yearly rate of$2,400.00 plus
H.S.T.
Both the Lions Club and the Kendal Postal Outlet have agreed to the proposed increase
which will be subject to a yearly increase based on CPI, most current issue. It is also
proposed that the Municipality continue with a 5 year head-lease arrangement as this will
provide continuity for all parties thus enabling the Kendal Community Association to
establish sublease terms tied to the terms of the head-lease. The Kendal Community
Association has agreed to these terms.
3. Financial/Budget Funding
The financial implications of this lease and subleases are not significant. The lease
payment of the Kendal lease is the required $2.00 per year and the revenue from the
subleases go directly to the Kendal Community Association and is used to offset the
operating cost of the facility.
Municipality of Clarington
Report COD-005-16 Page 3
4. Concurrence
This report has been reviewed by Nancy Taylor, Director of Finance/Treasurer, Fred
Horvath, Director of Operations and Andrew Allison, Municipal Solicitor who concur with
the recommendation.
5. Conclusion
It is respectfully recommended that approval be granted for the Municipality to renew the
lease agreement with the Kendal Community Centre and to consent to renew the
sublease agreements with the Lions Club and Paula Sheppard (Kendal Postal Outlet) in a
form acceptable to the Municipal Solicitor.
6. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by: Reviewed
M e Marano, H.B.Sc., C.M.O. Franklin Wu,
Director of Corporate Services Chief Administrative Officer
Staff Contact: David Ferguson, Purchasing Manager, 905.623.3379 Ext 2209 or
dferguson@clarington.net
MM/DF