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HomeMy WebLinkAbout08 194 Airport House Lease Agreement By-Law e e e e THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE BY-LAW NO. 2008 -194 BEING A BY-LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT WITH SCOTT & BRENDA PETTI BON FOR THE RENTAL OF PROPERTY COMMONLY KNOWN AS THE AIRPORT HOUSE 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 of The Corporation of the Municipality of Kincardine deems it advisable to enter into a lease agreement with Scott & Brenda Pettibon in consideration of the rents, covenants and obligations stipulated therein; NOW THEREFORE the Council of The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That The Corporation of the Municipality of Kincardine enter into a lease agreement with Scott & Brenda Pettibon for the rental of Concession A. Part Lot 28, Municipality of Kincardine Ref Plan 3R2549; Part 1 1993 Highway 21, commonly known as the 'Airport House' in accordance with the terms and conditions outlined in the agreement attached hereto as Schedule "A" and forming part of this by-law. 2. That the Mayor and CAO be authorized to sign, on behalf of The Corporation of the Municipality of Kincardine, the Lease Agreement with Scott & Brenda Petti bon, attached to this by-law and to affix the corporate seal as and when required. 3. That this by-law shall come into full force and effect upon its final passage. 4. That this by-law may be cited as the "Airport House Lease Agreement By-law". .../2 e e e e Page 2 Airport House Lease Agreement By-law By-law No. 2008 - 194 ECOND time this 1th day of December, 2008. 9~11wA-Q7 eler ~;r:."d FINALLY PASSED fui, 17'~:Of~;; 2008 Schedule 'A' to By-law No. 2008-194 THIS LEASE made as of the ~ day of [)eC 2008 IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT. BETWEEN: THE CORPORTION OF THE MUNICIPALITY OF KINCARDINE (hereinafter called the "Laodlord") OF THE FIRST PART -- and -- SCOTT PETTIBON & BRENDA PETTIBON (hereinafter called the "Tenant") OF THE SECOND PART In consideration of the rents, covenants aod obligations stipulated herein the Landlord aod the Tenant have agreed to enter into a Lease of the Premises being that part of the building (the "Building") which building is located on the laods aod premises (the "Real Property") being Concession A, Pt Lot 28, Municipality of Kincardine on Reference Plan 3R2549; Part I 1993 Highway 21, commonly known as the "Airport House". 1. GRANT OF LEASE (a) The Laodlord leases the Premises to the Tenaot; (i) at the Rent set forth in Section 2; (ii) for the Term set forth in Section 3; aod (iii) subject to the conditions in accordaoce with the covenants, obligations and agreements herein. (b) The Landlord covenaots that he has the right to graot the leasehold interest in the Premises free from encumbrances except as disclosed on title. 2. RENT (a) Rent means the amounts payable by the Tenaot to the Landlord pursuaot to this Section, aod includes additional rent. (b) The Tenant covenaots to pay to the Landlord, rent in the amount of FOURTEEN THOUSAND AND FOUR HUNDRED DOLLARS ($14,400.00) per year payable in equal month instalments of ONE THOUSAND, TWO HUNDRED DOLLARS ($1,200.00), each in advaoce on the 1st day of each and every month, the first payment to be made on the I st day of Jaouary, 2009 and the last such payment to be made on the 1st day ofJune, 2011. (c) All payments to be made by the Tenant pursuaot to this Lease shall be delivered to the Landlord at the Landlord's address for service set out in Section 16 or to such other place as the Landlord may from time to time direct in writing. (d) The Tenant agrees to pay in advance to the Landlord at the commencement ofthe Term the first aod last months' Rent payable under Section 2(b) ofthis Lease. (e) All Rent in arrears and all sums paid by the laodlord for expenses incurred which should have been paid by the Tenant shall bear interest from the date payment was due, or made, or expense incurred at a rate per annum equal to the prime commercial lending rate ofthe Laodlord's bank plus two (2) per cent. (f) The Tenant acknowledges and agrees that the payments of Rent provided for in this Lease shall be made without aoy deduction for aoy reason whatsoever unless expressly allowed by the terms of this Lease or agreed to by the Landlord in writing; and Page #2 (i) no partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent owing and shall not prejudice the Landlord's right to recover any Rent owing. 3. TERM AND POSSESSION (a) The Tenant shall have possession of the Premises for a period of two and a half (2Yz) years commencing on the I st day of January, 2009 and ending on the 30th day of June, 2011: (the "Term"). (b) Subject to the Landlord's rights under this Lease, and as long as the Lease is in good standing the Landlord covenants that the Tenants shall have quiet enjoyment of the Premises during the Term of this Lease without any interruption or disturbance from the Landlord or any other person or persons lawfully claiming through the Landlord. 4. (c) The Tenant shall the right to extend the Lease on a month to month basis subject to mutual agreement with the Landlord. ~ COMMON FACILITIES AND SERVICES .~.I!- fL..... ;t7( ~ ~ T",narrr > (a) As part of this Lease, the l~e shall supply at their expense the utilities for the Premises being electricity, water, heat and air-conditioning and shall further be responsible for the snow ploughing, lawn maintenance, and garbage collection and removal. 5. ASSIGNMENT (a) The Tenant shall not assign this Lease or sublet the whole or any part of the Premises. 6. USE (a) During the Term of the Lease the Premises shall not be used for any purpose other than residential. (b) The Tenant shall not do or permit to be done at the Premises anything which may: (i) constitute a nuisance; (ii) cause damage to the Premises; (iii) cause injury or annoyance to occupants of neighbouring premises; (iv) make void or voidable any insurance upon the Premises; (v) constitute a breach of any by-law, statute, order or regulation of any municipal, provincial or other competent authority relating to the Premises. 7. REPAIR AND MAINTENANCE (a) The Tenant covenants that during the terms of this Lease and any renewal thereof the Tenant shall keep in good condition the Premises including all alterations and additions made thereto, and shall, with or without notice, promptly make all needed repairs and all necessary replacements as would a prudent owner; (i) but the Tenant shall not be liable to effect repairs attributable to reasonable wear and tear, or to damage caused by fire, lightning or storm. (b) The Tenant shall permit the Landlord or a person authorized by the Landlord to enter the Premises to examine the condition thereof and view the state of repair at reasonable times: Page #3 i) and if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice; ii) and if the Tenant refuses or neglects to keep the Premises in good repair the Landlord may, but shall not be obliged to, make any necessary repairs, and shall be permitted to enter the Premises, by himself or his servants or agents, for the purpose of effecting the repairs without being liable to the Tenant for any loss, damage or inconvenience to the Tenant in connection with the Landlord's entry and repairs. (A) and if the Landlord makes repairs the Tenant shall pay the cost of them immediately as Additional Rent. iii) Upon the expiry of the Term or other determination of this Lease the Tenant agrees peaceably to surrender the Premises, including any alterations or additions made thereto, to the Landlord in a state of good repair, reasonable wear and tear and damage by fire, lightning and storm only expected. iv) The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Premises from any cause. v) Any capital improvements/repairs, (new roof, windows, etc.) are the responsibility of the Landlord. 8. ALTERNATIONS AND ADDITIONS (a) If the Tenant, during the Term of this Lease or any renewal of it, desires to make any alteration or addition to the Premises, including but not limited to: erecting partitions, attaching equipment, and installing necessary furnishing, The Tenant may do so at his own expense, at any time and from time to time, if the following conditions are met: (i) before undertaking any alteration or addition the Tenant shall submit to the Landlord a plan showing the proposed alterations or additions and the Tenant shall not proceed to make any alteration or addition unless the Landlord has approved the plan, and the Landlord shall not unreasonably or arbitrarily withhold his approval; (ii) any and all alterations or additions to the Premises made by the Tenant must comply with all applicable building code standards and by-laws of the municipality in which the Premises are located. (b) The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Premises. (c) The Tenant shall, at his own expense, if requested by the Landlord, remove any or all additions or improvements made by the Tenant to the Premises during the Term and shall repair all damage caused by the installation or the removal or both. (d) The Tenant shall not bring on to the Premises or any part of the Premises any machinery, equipment or any other thing that might, in the opinion of the Landlord, by reason of its weight, size or use, damage the Premises or overload the floors of the Premises: (i) and ifthe Premises are damaged or overloaded the Tenant shall restore the Premises immediately or pay to the Landlord the cost of restoring the Premises. Page #4 9. INSURANCE (a) The Tenant covenants to keep the Landlord indemnified against all claims and demands whatsoever by any person, whether in respect of damage to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Premises or the subletting or assignment of same or any part thereof And the Tenant further covenants to indemnify the landlord with respect to any encumbrance on or damage to the Premises, the Building and the Common Facilities occasioned by or arising from the act, default, or negligence of the Tenant, its officers, agents, servants, employees, contractors, customers, invitees or licensees: (i) and the Tenant agrees that the foregoing indemnity shall survive the termination of this Lease notwithstanding any provisions of this Lease to the contrary. (b) The Tenant shall carry insurance in his 0 wn name insuring against the risk 0 f damage to the Tenant's property within the premises caused by fire or other perils and the policy shall provide for coverage on a replacement cost basis to protect the Tenant's belongings. (c) The Tenant shall, during the term of this lease, provide, at his own expense, and keep in full force and effect, in the names of the Landlord and the Tenant, public liability insurance applying to all operations ofthe Tenant and which shall include bodily injury liability and tenants' legal liability with respect to the occupancy by the Tenant of the Premises. Such policies shall be written on a comprehensive basis with limits of not less that TWO MILLION DOLLARS per occurrence and with a cross liability clause. All policies of insurance required to be maintained under this provision shall be with a company or companies licensed to do business within the Province of Ontario and approved by the Landlord. The Tenant shall furnish the Landlord with certificates or other acceptable evidence of all such insurance promptly upon request. 10. DAMAGE TO THE PREMISES (a) Ifthe Premises or the building in which the Premises are located, are damaged or destroyed, in whole or in part, by fire or other peril, then the following provisions shall apply; (i) if the damage or destruction renders the Premises unfit for occupancy and impossible to repair or rebuild using reasonable diligence within 120 clear days from the happening of such damage or destruction, then the Term hereby granted shall cease from the date the damage or destruction occurred, and the Tenant shall immediately surrender the remainder of the Term and give possession of the Premises to the Landlord, and the Rent from the time of the surrender shall abate; (ii) If the Premises can, with reasonable diligence, be repaired and rendered fit for occupancy within 120 days from the happening of the damage or destruction, but the damage renders the Premises wholly unfit for occupancy, then the rent hereby reserved shall not accrue after the day that such damage occurred, or while the process of repair is going on, and the Landlord shall repair the Premises with all reasonable speed, and the Tenant's obligation to pay Rent shall resume immediately after the necessary repairs have been completed; (iii) If the leased Premises can be repaired with 120 days as aforesaid, but the damage is such that the leased Premises are capable of being partially used, then until such damage has been repaired, the Tenant shall continue in possession and the Rent shall abate proportionately. (b) Any question as to the degree of damage or destruction or the period of time required to repair or rebuild shall be determined by an architect retained by the Landlord. Page #5 (c) There shall be no abatement from or reduction of the Rent payable by the Tenant, nor shall the Tenant be entitled to claim against the Landlord for any damages, general or special, caused by fire, water, sprinkler systems, partial or temporary failure or stoppage of services or utilities which the Landlord is obliged to provide according to this Lease, from any cause whatsoever. II. ACTS OF DEFAULT AND LANDLORD'S REMEDIES (a) An Act of Default has occurred when: (i) the Tenant has failed to pay Rent for a period of 15 consecutive days, regardless of whether demand for payment has been made or not; (ii) the Tenant has breached his covenants or failed to perform any of his obligations under this Lease; and (A) the Landlord has given notice specifYing the nature of the default and the steps required to correct it; and (B) the Tenant has failed to correct the default as required by the notice; (iii) the Tenant has; (A) become bankrupt or insolvent or made an assignment for the benefit of Creditors; (B) had its property seized or attached in satisfaction of a judgment; (C) had a receiver appointed; (D) committed any act or neglected to do anything with the result that a Construction Lien or other encumbrance is registered against the Landlord's property; (iv) any insurance policy is cancelled or not renewed by reason of the use or occupation ofthe Premises, or by reason of non-payment of premiums; (v) the Premises; (A) become vacant or remain unoccupied for a period of thirty (30) consecutive days; or (B) are used by any other person or persons, or for any other purpose than as provided for in this Lease without the written consent of the Landlord. (b) When an Act of Default on the part ofthe Tenant has occurred: (i) the current month's rent together with the next three months' rent shall become due and payable immediately; or (ii) the landlord shall have the right to terminate this Lease and to re-enter the Premises and deal with them as he may choose. (c) If, because an Act of Default has occurred, the Landlord exercises his right to terminate this Lease and re-enter the Premises prior to the end of the Term, the Tenant shall nevertheless be liable for payment of Rent and all other amounts payable by the Tenant in accordance with the provisions of this Lease until the Landlord has re-Iet the Premises or otherwise dealt with the Premises in such manner that the cessation of payments by the Tenant will not result in loss to the Landlord; Page #6 (i) and the Tenant agrees to be liable to the Landlord, until the end 0 f the Term of this Lease for payment of any difference between the amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any new tenant pays to the Landlord. (d) The Tenant covenants that notwithstanding any present or future Act of the Legislature of the Province of Ontario, the personal property of the Tenant during the term of this Lease shall not be exempt from levy by distress for Rent in arrears; (i) and the Tenant acknowledges that it is upon the express understanding that there should be no such exemption that this Lease is entered into, and by executing this Lease: (A) the Tenant waives the benefit of any such legislative provisions which might otherwise be available to the Tenant in the absence of this agreement; and (B) the Tenant agrees that the Landlord may plead this covenant as an estoppel against the Tenant if an action is brought to test the Landlord's right to levy distress against the Tenant's property. (e) If, when an act of Default has occurred, the Landlord chooses not to terminate the Lease and re-enter the Premises, the Landlord shall have the right to take any and all necessary steps to rectifY any or all Acts of Default ofthe Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent. (f) If, when an Act of Default has occurred, the Landlord chooses to waive his right to exercise the remedies available to him under this Lease or at law the waiver shall not constitute condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against the Landlord to prevent his exercising his remedies with respect to a subsequent Act of Default: (i) No convenant, tenn, or condition of this Lease shall be deemed to have been waived by the Landlord unless the waiver is in writing and signed by the Landlord. 12. TERMINATION UPON NOTICE AND AT THE END OF TERM (a) If the Landlord desires at any time to demolish the Premises or any part thereof, to an extent that renders continued possession by the tenant impracticable, or if the Premises are expropriated or condemned by any competent authority or the Municipality wishes to terminate the Lease: (i) The Landlord or the tenant shall have the right to terminate this Lease by giving ninety (90) clear days' notice in writing to the Tenant; or (ii) The Landlord may require the Tenant to vacate the premises within ninety (90) days from payment by the Landlord to the Tenant of a bonus equal to three months' rent, (A) but payment of the said bonus shall be accompanied or preceded by written notice from the Landlord to the Tenant advising of the Landlord's intent to exercise this option (b) The Tenant agrees to permit the Landlord during the last three months of the Term of this Lease to display "For Rent" or "For Sale" signs or both at the Premises and to show the Premises to prospective new tenants or purchasers and to permit anyone having written authority ofthe Landlord to view the Premises at reasonable hours. (c) If the Tenant remains in possession of the Premises after termination of Page #7 this Lease as aforesaid and if the Landlord then accepts rent for the Premises from the Tenant, it is agreed that such overholding by the Tenant and acceptance of Rent by the Landlord shall create a monthly tenancy only but the tenancy shall remain subject to all the terms and conditions ofthis Lease except those regarding the Term. 13. ACKNOWLEDGEMENT BY TENANT The Tenant agrees that he will at any time or times during the Term, upon being given at least forty-eight (48) hours prior written notice, execute and deliver to the Landlord a statement in writing certif'ying: (a) that this Lease is unmodified and is in full force and effect (or if modified stating the modifications and confirming that the Lease is in full force and effect as modified); (b) the amount of Rent being paid; (c) the dates to which Rent has been paid; (d) other charges payable under this Lease which have been paid; (e) particulars of any prepayment of Rent or security deposits; and 14. NOTICE (a) Any notice required or permitted to be given by one party to the other pursuant to the terms ofthis Lease may be given. to the Landlord at: Airport House Rent ATTN: Chief Administrative Office 1475 Concession 5 RR#5 Kincardine, Ontario N2Z 2X6 (b) The above address may be changed at any time by giving ten (10) days written notice. (c) Any notice given by one party to the other in accordance with the provision of this Lease shall be deemed conclusively to have been received on the date delivered ifthe notice is served personally or seventy-two (72) hours after mailing if the notice is mailed. 15. REGISTRATION The Tenant shall not at any time register notice of or a copy of this Lease on title to the Property of which the Premises form part without consent ofthe Landlord. 16. INTERPRETATION (a) The words importing the singular number only 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. (b) Unless the context otherwise requires, the word "Landlord" and the word "T enant" wherever used herein shall be construed to include the executors, administrators, successors and assigns of the Landlord and Tenant, respectively. (c) When there are two or more Tenants bound by the same covenants herein contained, their obligations shall be joint and several. Page #8 17. OPTIONS TO RENEW When not in default hereunder, the Tenant shall have the option ofrenewing this lease by giving notice to the Landlord on or before the 30th day 0 f April, 20 II. Such renewal shall be on terms and conditions to be mutually agreed upon by the Landlord and Tenant. IN WITNESS WHEREOF the Landlord and the Tenant have executed this Lease. SIGNED, SEALED AND DELIVERED in the presence of ) THE CORPORATION OF THE ) MUNICIPALITY OF KINCARDINE (Landlord) ) ) ) ) ) ) t-- .? II ~' d-", ,.~,,^,~ ef' Administrative Officer- ) John deRosenroll e.~~ Witne s ) ~ ~~~ Q~ ) cott Pettlbon, Tenant ) ) L6~~ \U 1ZuLh~ ) Brenda Pettibon, Tenant Page #9 SCHEDULE OF RULES AND REGULATIONS FORMING PART OF THIS LEASE The Tenant shall observe the following Rules and Regulations (as amended, modified or supplemented from time to time by the Landlord as provided in this Lease): 1. The toilets, sinks, drains, washrooms and other water apparatus shall not be used for any purpose other than those for which they were constructed, and no sweepings, rubbish, rags ashes or other substances, such as chemicals, solvents, noxious liquids or pollutants shall be thrown therein, and any damage resulting to them from misuse shall be borne by the Tenant by whom or by whose employees, agents, servants, contractors or Invitees the damage was caused. 2. The Tenant shall not mark, drill into, bore or cut or in any way damage or deface the walls, ceilings or floors of the Premises. No wires, pipes or conduits shall be installed in the Premises without prior written approval ofthe Landlord. No broadloom or carpeting shall be affixed to the Premises by means of a non-soluble adhesive or similar products. 3. The Tenant must observe strict care not to allow windows to remain open so as to admit rain or snow, or so as to interfere with the heating ofthe building. The Tenant neglecting this rule will be responsible for any damage caused to the property of other tenants, or to the property of the Landlord, by such carelessness. The Tenant, when closing the Premises, shall close all windows and lock all doors. 4. The Tenant shall not without the express written consent of the Landlord, place any additional locks upon any doors of the Premises and shall not permit any duplicate keys to be made therefor; but shall use only additional keys obtained from the Landlord, at the expense of the Tenant, and shall surrender to the Landlord on the termination of the Lease all keys ofthe Premises. 5. No inflammable oils or other inflammable, toxic, dangerous or explosive materials shall be kept or permitted to be kept in or on the Premises. 6. Nothing shall be placed on the outside of windows or projections of the Premises. No air-conditioning equipment shall be placed at the windows of the Premises without the consent in writing of the Landlord. 7. The Tenant shall first obtain in writing the consent of the Landlord to any alteration or modification to the electrical system in the Premises and all such alterations and modifications shall be completed at the Tenant's expense by an electrical contractor acceptable to the Landlord. 8. The Tenant shall not install or erect on or about the Premises television antennae, communications towers, satellite dishes or other such apparatus. 9. The Landlord shall have the right to make such other and further reasonable rules and regulations and to alter, amend or cancel all rules and regulations as in its judgement may from time to time be needed for the safety, care and cleanliness of the building and for the preservation of good order therein and the same shall be kept and observed by the Tenant. The Landlord may from time to time waive any of such rules and regulations as applied to particular tenants and is not liable to the Tenant for breaches thereof by other tenants. 10. The following items, appliances and services are included in the rent: (Check only those that are included) [,f] Stove [,f] Refrigerator [,f] Microwave [ ] Laundry Facilities [ ] Cable Service [,f] Dishwasher [ ] Electricity [,f] Parking [ ] Water [ ] Telephone/ Internet 11. No smoking inside the building and no tampering with smoke or carbon monoxide detectors.