Report to: General Committee Report Date: February 23, 2009
SUBJECT:
PREPARED BY: David Pearce, Manager of Real Property, Extension 5988
RECOMMENDATION:
1) That the report entitled “Miller Avenue – Rodick Road Land Lease Renewal – Employee Parking Lot and Dog Off-Leash Area” be received; and,
2) That Council approve an Offer to Lease and a new five (5) year Lease Agreement between Ontario Realty Corporation (ORC) and the Town for lands located at the northwest corner of Miller Avenue and Rodick Road, being Part of Lot 7, Concession 4 and designated as Parts 3 and 6 on Plan R-4411 for the continued use of its employee parking lot and dog off-leash area; and,
3) That the Mayor and Town Clerk be authorized to execute the Offer to Lease and Lease Agreement in a form satisfactory to the Town Solicitor on the terms described herein; and,
4) That Staff be authorized and directed to do all things necessary to give effect to this resolution; and further that;
5) That the above resolution be reported out in public session.
EXECUTIVE SUMMARY:
Not applicable.
1. Purpose 2. Background 3. Discussion 4. Financial 5. Others (Strategic, Affected Units) 6. Attachment(s)
PURPOSE:
The purpose of this report is to request Council’s approval to an offer to lease and authority to enter into a new five (5) year lease for lands owned by Ontario Realty Corporation (“ORC”), located at the northwest corner of Miller Avenue and Rodick Road (the “subject property”) for continued use of a parking area for the Miller Avenue Works Yard employees and a dog off-leash area.
BACKGROUND:
The Town has leased the subject property comprising 4.061 acres of
land, from ORC since 1995. The lease was renewed in October 1997 and again in
September 2002. The current lease expired
Prior to the 2002 renewal of the lease, the Dog Leash-Free Committee
determined a site was needed along
The subject property is encumbered by a hydro transmission corridor. The front section has been developed with a gravel parking lot for the use of Town employees at the Miller Avenue Works Yard. Funding for the completion of the dog off-leash area was provided by the Town.
OPTIONS/ DISCUSSION:
Negotiations with ORC resulted in the following terms and conditions for a new Lease Agreement, which staff recommend:
- Five (5) year term
commencing
- Base rent of $13,145.69 (plus GST) per annum payable in monthly installments of $1,150.24. The base rent will escalate by 3% in each year of the term, compounded annually for the balance of the term;
- Permitted uses include employee parking and a dog off-leash area;
- Cancellation requires three months prior written notice by either party;
- Five ($5,000,000.00) million liability insurance.
The rent payment in the first year of the new term is $13, 145.69 (plus GST) and is based on a 5% increase of the rental rate in the final year of the current term ($12,520.00). The rent for the final year of the new five (5) year term will be $14,795.52. Total rent payments over the course of the lease are $69,791.88 plus GST.
Funds for the current lease have been provided by the Roads Department Operating Account. It is recommended that the rent payments for new five year lease continue to be funded from the Roads Department Operating Account #700-998-5502.
ALIGNMENT WITH STRATEGIC PRIORITIES:
Not applicable.
DEPARTMENTS CONSULTED AND AFFECTED:
Operations and Parks.
RECOMMENDED
BY: ________________________ ________________________
David Pearce Catherine M. Conrad
Manager of Real Property Town Solicitor
ATTACHMENTS:
No. 1 – Plan R-4411
No. 2 - Aerial View – Location of employee parking lot and dog off-leash area
Attachment No.
1 – Plan R-4411
Attachment No. 2 – Aerial View –
Location of employee parking lot and dog off-leash area
