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HomeMy WebLinkAbout07 078 Connaught Park Race Track Lease Extension . . . . THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE BY-LAW NO. 2007 - 078 BEING A BY-LAW TO AUTHORIZE THE TRANSFER AND EXTENSION OF A LEASE AGREEMENT FOR THE CONNAUGHT PARK RACING TRACKNIEWING STANDS TO 2137911 ONTARIO INC. WHEREAS Section 8 (1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, provides that the powers of a municipality under this or any other Act shall be interpreted broadly so as to confer broad authority on the municipality to enable the municipality to govern its affairs as it considers appropriate and to enhance the municipality's ability to respond to municipal issues; AND WHEREAS pursuant to the said Municipal Act, Section 9 provides that a municipality has the capacity, rights, powers and privileges of a natural person for the purpose of exercising its authority under this or any other Act; AND WHEREAS the Council for The Corporation of the Municipality of Kincardine, with the passage of By-law No. 2002 - 156, entered into a lease agreement with MacGregor Enterprises Limited to lease exclusively the racing track and viewing stands located immediately in the area known as "Connaught Park" and being more particularly described as Lots 1 and 2, north side of Broadway, Plan 4, [geographic Town of Kincardine], now Municipality of Kincardine, County of Bruce, for a five-year term, ending on the 31st day of October, 2007; AND WHEREAS MacGregor Enterprises Limited has consented to the assignment of the SAID lease agreement to Jim Cook, in trust for a Corporation to be registered in his name; AND WHEREAS Mr. Cook has incorporated as 2137911 Ontario Inc.; AND WHEREAS the Council for the Corporation of the Municipality of Kincardine deems it expedient to transfer the existing exclusive lease agreement from MacGregor Enterprises Limited to 2137911 Ontario Inc.; AND WHEREAS 2137911 Ontario Inc. has expressed interest in renewing the exclusive lease for the track and viewing stands in Connaught Park for a further two year period, with an option to extend the lease by one year; AND WHEREAS the Council for the Corporation of the Municipality of Kincardine deems it expedient to lease exclusively to 2137911 Ontario Inc. the racetrack and viewing stands in Connaught Park for a two year term, ending on the 30th day of June, 2009, with an option to extend the lease to the 30th day of June, 2010 in consideration of the rents, covenants and obligations stipulated therein; . . . /2 . . . . Page 2 Connaught Park Racing TrackNiewing Stands Lease Extension (2137911 Ont. Inc.) By-law By-law No. 2007 - 078 NOW THEREFORE the Council of the Municipality of Kincardine ENACTS as follows: 1. That the Corporation of the Municipality of Kincardine enter into an agreement with 2137911 Ontario Inc. for the exclusive lease of those premises commonly known as the racing track and viewing stand in Connaught Park. 2. That the Mayor and CAO be authorized to sign, on behalf of the Corporation of the Municipality of Kincardine, the agreement with 2137911 Ontario Inc. which is attached hereto as Schedule "A". 3. This by-law shall come into full force and effect upon its final passage. 4. This by-law may be cited as the "Connaught Park Racing TrackNiewing Stands Lease Extension (2137911 Ont. Inc.) By-law". READ a FIRST, SECOND, and THIRD time and FINALLY PASSED this 6th day of June, 2007. ~~~ Cler THIS AGREEMENT made in TRIPLICATE till . This is Schedule" il. " to By-Law " No.joo7-D7~assed the /, ~ day - 200."1 ~~~ Clerk . ---J .. The Corporation Of The Municipality of Kincardine (Hereinafter called "the Municipality") of the first part; AND 2137911 Ontario Inc. (Hereinafter called the "the leaseholders") of the second part. WHEREAS the Municipality owns the land located immediately in the area known as 'Connaught Park" and being more particularly described as Lots 1 and2, north side of Broadway, Plan 4, former Town of Kincardine, now Municipality of Kincardine; AND WHEREAS a racing track and viewing stands (hereinafter called the "facilities"), located on this land, are owned by the Municipality; AND WHEREAS the leaseholders are proposing to lease the use of the existing facilities for use in the horse business; NOW THEREFORE in consideration of the mutual covenants and conditions herein contained, the parties hereto covenant and agree with one another as follows: 1. The Municipality will lease exclusively to the leaseholders the use of the facilities, located on the lands of Connaught Park for the period of time running from July 1st, 2007 to June 20th, 2009. The leaseholders may extend this lease by one year, upon written notification to the Municipality. (Le. July 1, 2009 to June 30, 2010). The lease fee will be a 5% gross fee for all events held during the lease. 2. The leaseholders shall pay on a quarterly basis. 3. The Municipality agrees to remain solely responsible for the facilities and surrounding area, such responsibilities include, but are not limited to, the provision of maintenance services to the facilities and surrounding areas and liability insurance. 4. In the event that the leaseholders intend to use the facilities at any time during the term of this agreement, then on thirty (30) days written notice to the Municipality by the leaseholders of their intent: a} The leaseholders agree to maintain the cleanliness of the stands and surrounding area to the satisfaction of the Director of Parks and Recreation or any other regulatory body having jurisdiction over livestock handling. b} The leaseholders agree not to store animal waste within the perimeter of the facility for any extended period and that waste will be removed from the site on a daily basis. c} The leaseholders agree that the use of the facilities will be done with due consideration for the Public and the needs of the Agricultural Society. d) Insurance The leaseholders shall put in effect and maintain in its name, at its expense, all the necessary insurance that would be considered appropriate for a prudent tenant undertaking this type of operation for the period during which the Agreement is in effect with insurers acceptable to the Municipality, including: 1. Commercial General Liability Insurance, for third party bodily injury, personal injury and property damage to an inclusive limit of not less than Two Million Dollars ($2,000,000.00) per occurrence. The policy shall include: a) The Corporation of the Municipality of Kincardine as an additional insured; b) Cross liability c) Contractual liability; d) Tenant's legal Liability e) Contents coverage on a replacement cost basis for all property owned by the leaseholders and located at Connaught Park; f) Non-Owned automobile coverage with blanket contractual and physical damage coverage for hired automobiles; and g) A thirty (30) day written notice of cancellation 2. The leaseholders shall provide the Municipality with a valid Certificate of Insurance as evidence of the above coverage's upon signing the agreement. The leaseholders shall provide the Municipality with any renewal replacement certificates as may be necessary during the term of the Agreement. 3. The leaseholders shall be responsible to obtain Certificates of Insurance for the above coverage's from each tenant and shall make these available to the Municipality for its review if requested. e) The leaseholders agree that no alterations shall be made to the facility prior to approval by the Municipality of Kincardine. f) The leaseholders agree to abide by all local, provincial and federal regulations and to obtain any permits, which may be required, g) The leaseholders agree to maintain the racing track and viewing stands in a safe condition, applicable to all federal, provincial and municipal standards, 5. It is the Municipality's intention that both recreational activities and the Kincardine Fall Fair will continue to be held in Connaught Park. The Recreation Director shall communicate these dates to the leaseholders at the start of the Spring season each year. 6. The leaseholders note that the Municipality reserves the right to use the existing track and barn for training purposes. Any other use of the facilities for horse- related activities by the Municipality through the term of this agreement shall require the mutual written consent of both parties, such consent not to be unreasonably withheld. 7. Both parties agree that any employee or contractor retained by the leaseholders shall be the exclusive responsibility of the leaseholders and shall be paid by the leaseholders. 8. This agreement is assignable only with the mutual written consent of both parties to this agreement, such consent not to be unreasonably withheld, 9. Either party upon 365 days written notice may terminate this agreement. 10. The Municipality's Chief Administrative Officer shall be the Municipal liaison and shall be responsible for all contractual matters. ": '. . 11. In this agreement, words importing the singular shall include the plural and vice- versa, and words importing the masculine gender shall include the feminine gender, and words importing persons shall include firms and corporations, and vice versa. IN WITNESS WHEREOF the Landlord and the Tenant have executed this Lease. SIGNED, SEALED AND DELIVERED in the presence of LUl~:.v (UT Witness ) THE CORPORATION OF THE ) MUNICIPALITY OF KINCARDINE ) ) ) ) ) ) )- ~ l- ~ r.f'-- )..---=~--"^- ) Chief Administrative Officer - ) John deRosenroll ) ) ) )2137911 ONTARIO INC. ) ) l~~ ) Ji Cook, President I HAVE AUTHORITY TO BIND THE CORPORATION