HomeMy WebLinkAboutCOD-007-03
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REPORT
CORPORATE SERVICES DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Report #: COD-007-03
File # /it-I
GPll 1'//'03
By-law #
Date: March 24, 2003
Subject:
LEASE AGREEMENT - LIONS CLUB, CLARINGTON BEECH CENTRE
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-007-03 be received; and
2. THAT Council select either Option 1 or Option 2 as identified in the body of this report.
Submitted by:
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Reviewed by; ,r'4?c,'-CJ _--5 WI....
Franklin Wu,
Chief Administrative Officer
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REPORT COD-007-03
PAGE 2 OF 3
BACKGROUND AND COMMENT
The Lions Club currently lease space from the Municipality at the Clarington Beech Centre, for
the purposes of a Nursery School which they have been operating since 1947. The existing
lease is at an annual rate to the Municipality of $20,500.00 and expires September 30'h, 2003.
As part of the agreement, the Lions and Lioness also utilize the space for their monthly
meetings.
As the operation of the Nursery School represents an approximate annual loss of $15,000.00,
the Lions in the spring of 2002 surveyed their membership with respect to the continuation of
the school as of June 2003. Of those responding to the survey, 19 out of 20 indicated that they
were in favour of discontinuing subsidizing the operation and offer the business and equipment
to the supervisor of the school, Kerri Houston, at no cost. Due to problems associated with
changing ownership and the ongoing financial loss, Ms. Houston has declined the offer and
since approached the Lions to reconsider the discontinuance of the operation of the school.
Subsequently, the Lions have approached staff to negotiate a new lease at a substantially
reduced fee.
The Lions have proposed to pay a total rental fee of $6,000.00 to lease the same space for the
period of October 2003 to June 2004 only. Effectively this reduction of the rental fee becomes a
subsidy of the privately run day care. In addition, they are proposing that they rent space for
their monthly meetings from the Clarington Beech Centre Board at their existing daily rates and
only as required, the total cost of which is minimal. This represents an approximate net total
$14,500.00 annual loss of revenue to the Municipality of Clarington.
Should Council decide not to renew the lease agreement with the Lions, in accordance with the
memorandum of understanding dated December 20'h, 2001, the Municipality must consult with
the Board of Directors of the Association before deciding whether the use of the space should
be made available to the Clarington Beech Centre Association. Should an agreement not be
reached with the Clarington Beech Centre then other opportunities to lease the space may be
explored. A copy of the memorandum of understanding was circulated to Council in a memo
from the Purchasing Manager dated March 15'h, 2003.
The following options are therefore respectfully provided to Council.
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REPORT COD-007-03
PAGE 3 OF 3
OPTION 1
Accept the proposal from the Lions Club to enter into a new lease agreement for the period of
October 2003 to June 2004 for a total lease amount of $6,000.00. Should Option 1 be selected,
a lease agreement and by-law will be brought forward to Council in April.
OPTION 2
Reject the offer from the Lions Club and enter into discussions with the Clarington Beech Centre
Association to determine if there is a potential need for the space.
Should the existing agreement with the Lions terminate, in accordance with the memorandum of
understanding, the approved financial arrangements identified in Report FND-011-01, (copy
attached, marked schedule "A") the Clarington Older Adults Association Board would have to
address the short fall in funding either through their own means or via a request to council.
As the Nursery School must commence preparation for September enrolment, the Lions have
requested a decision of Council by the end of March 2003.
CORPORATION OF THE MUNICIPAliTY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T(905)623-3379 F (905)623-4169
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