HomeMy WebLinkAbout03 154 lease 44 queen pharmacy
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THE CORPORATION OF THE MUNICIPALITY OF KINC^4DINE
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BY-LAW
NO. 2003 -154
BEING A BYLAW TO AUTHORIZE THE SIGNING OF A LEA E AGREEMENT
WITH MCKECHNIE PHARMACY LIMITED FOR RENTAL S ACE IN THE
KINCARDINE COMMUNITY MEDICAL CLINIC AT 44 QU EN STREET,
MUNICIPALITY OF KINCARDINE
WHEREAS The Municipal Act, 2001, S.O. 2001, c. 25, Se tion 117, allows
municipalities to acquire and develop land for the purpose of I asing the land to
health care professionals;
AND WHEREAS the Council for The Corporation of th Municipality of
Kincardine deems it advisable to enter into a lease agreemen with McKechnie
Pharmacy Limited for rental space located in the Kincardine C mmunity Medical
Clinic, 44 Queen Street, Municipality of Kincardine;
NOW THEREFORE the Council for The Corporation of th Municipality of
Kincardine ENACTS as follows:
1. That The Corporation of the Municipality of Kincardine nter into a lease
agreement with McKechnie Pharmacy Limited for the re tal of commercial
office space at the Kincardine Community Medical linic, 44· Queen
Street, Municipality of Kincardine in consideration of ren s, covenants and
obligations;
2.
That the Mayor and CAO be authorized to sign, n behalf of The
Corporation of the Municipality of Kincardine, the Leas Agreement with
McKechnie Pharmacy Limited, attached hereto as Sche ule A;
3. That this By-law shall come into full force and en ct upon its final
passage.
4. That this By-law may be cited as the "Kincardine C mmunity Medical
Clinic McKechnie Pharmacy Limited Lease Agreement, y-Iaw 2003".
READ a FIRST, SECOND, and THIRD time and DEEMED TO BE PASSED
this 15th day of October, 2003.
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KINCARDINE COMMUNITY MEDICAL CENTRE
. TIllS LEASE made as of the 15th day of October, 2003
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
(hereinafter called the "Landlord")
- and-
McKECHNIE PHARMACY LTD.
(hereinafter called the "Tenant")
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WHEREAS the Landlord has constructed the Kincardine Community Medical Centre (the "KCMC")
for the purposes of attracting qualified medical practitioners to its community and to provide such
practitioners with a modern facility from which to operate their medical practices;
AND WHEREAS the Tenant is a corporation in good standing that is in the pharmacy business of
selling retail products to the public that wishes to rent space in the KCMC.
NOW TIffiREFORE for Two Dollars ($2.00) and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Landlord and the Tenant agree as follows:
TERMS OF LEASE
Premises
1.1 In consideration of the rents, covenants and agreements of the Tenant to be paid, observed
and performed, the Landlord hereby leases to the Tenant the lower level of the KCMC
known as Unit I, 44 Queen Street, Kincardine and being approximately one thousand, six
hundred and seventy-five (1,675) square feet (the "Premises"), together with a right in
common with other tenants to utilize the walkways, stairs, corridors, lobbies, washrooms and
other common areas forming part of the KCMC (the "Common Areas") for purposes
associated with and ancillary to the Tenant's occupancy of the Premises, all as outlined on
. Schedule "A" attached hereto and forming part of this Agreement.
Nature of Rie:ht
1.2 The Tenant is hereby granted the exclusive use and enjoyment of the Premises for the term
herein. In addition, the Tenant is hereby granted the use and enjoyment of the Common
Areas for the term herein in conjunction with such other persons as the Landlord may now
or hereinafter determine in its sole discretion may enjoy the right to use the Common Areas,
all subject to reasonable limits as established by the Landlord.
Ternl
1.3 The Tenant is entitled hereby to have and to hold the Premises for and during the term of ten
(10) years to be computed from and inclusive of the 20th day of October, 2003, and to be
completed and ended on the 231Ú day of October, 2013. (pending occupancy approval by the
C.B.O. and Contractor, JP Commercial)
Overholding Tenant
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1.4 If the Tenant continues to occupy the Premises after the termination of this Agreement, with
the consent of the Landlord and without any further written agreement, the Tenant shall be
a yearly tenant.
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Renewal
1.5 In the event that the Tenant is not in breach of this Agreement, the Tenant shall have the right
to renew the term hereof for an additional five (5) years upon giving the Landlord not less
than three (3) months' prior notice thereof. The renewal shall be on the same terms and
conditions set out herein save and except with respect to the annual rent, which shall be set
at an amount to be mutually agreed upon by the Landlord and Tenant.
Rie:hts of Termination
1.6 The Landlord and tenant shall have the right to terminate this Agreement, subject to a mutual
agreement by both parties.
Rent
1.7 For the first year of the lease term, the Tenant shall pay unto the Landlord the sum of
twenty dollars and twenty-five cents per square foot per annum ($20.25/ft2/year), payable
in advance in equal monthly instalments of two thousand, eight hundred and twenty-six
dollars and fifty-six cent ($2,826.56). For the remaining nine (9) years of the lease term,
the Tenant shall pay unto the Landlord, in equal monthly instalments, a sum which is
equal to yearly amount of rent paid by the Tenant in the immediately preceding year,
adjusted to reflect the change in the Consumer Price Index (CPI) for that year. In all
cases, the monthly rental payments shall be made on or in advance of the first day of the
respective month for which they are owing. If the term of this lease is extended or the
Tenant remains in occupancy of the Premises in accordance with section 1.4 of this
Agreement, the parties shall negotiate a monthly rent. The rent shall be GST exempt.
Please note that in the event that utility cost exceed a 4% increase on a yearly basis, the
difference shall be recoverable from the tenant. (Note this shall be calculated on a
proportional basis including all other tenants)
COVENANTS OF THE TENANT
The Tenant hereby agrees to fully and faithfully comply with all of the covenants of the Tenant as
set out below:
Pav rent
2.1 To pay rent in a timely manner in accordance with the provisions of this Agreement..
. Use of Premises and Sf?CCial Uses with Landlord Permission
2.2 The Premises shall be used only for the purposes of conducting a pharmacy and shall not be
utilized for any other purpose or purposes without the express consent of the Landlord in
writing. The Tenant shall be responsible for the furnishing and maintenance of the Premises.
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Expenses of Tenant's Activities
2.3 To pay all taxes, rates, charges and licences whatsoever now or hereafter charged or levied
in respect of any personal property, fixtures, business or other activity of the Tenant carried
out upon or in connection with the Premises.
Landlord's Access
2.4 To permit the Landlord and its agents at all reasonable times to enter the Premises for the
purpose of showing the Premises or to inspect the condition thereof, providing that the tenant
is present.
Return of Premises on termination
2.5 The Tenant shall, at the determination of the term unless otherwise arranged with the
Landlord, peacefully surrender the Premises unto the Landlord in good and substantial repair
and condition, reasonable wear and tear excepted.
Complv with all Laws
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2.6
The Tenant shall comply with the requirements of all applicable laws, by-laws, regulations
and orders at any time in force during the term hereof and affecting the condition, equipment,
maintenance, use or occupation of the Premises.
Insurance and Indemni~
2.7 The Tenant shall throughout the term of this Agreement provide and keep in force general
liability insurance in an amount, not less than one million ($1,000,000.00) dollars in a form
and content that is satisfactory to the Landlord and shall provide the Landlord with proof
thereof. Further, the Tenant shall name the Landlord as an additional insured in respect of
damages occasioned to the Premises or loss or expenses incurred by the Landlord, arising
by virtue of the Tenant's use of the Premises or arising by virtue of the Tenant's obligations
pursuant to this Agreement.
2.8
The Tenant hereby agrees to indemnify and hold harmless the Landlord against any and all
liability, claims, actions, damages or expenses (including legal expenses) and without
limiting the generality of the foregoing, all claims for personal injury, death and/or property
damage caused by any act or omission of the Tenant, those for whom it is responsible at law
or its contractors, subcontractors or invitees arising from the use by the Tenant of the
Premises or from the exercise by the Tenant of any rights granted pursuant to this
Agreement.
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Waste
2.9 The Tenant shall not do or permit any waste, damage, or injury to the Premises or the fixtures
and equipment thereof and shall take every reasonable precaution to protect the Premises
from danger of fire, vandalism, water damage or the elements.
Assignment
2.10 The Tenant shall not transfer, assign, sub-lease, encumber or in any way deal with or part
with the whole or any part of the said Premises to anyone during any part of the term without
written consent first being obtained from the Landlord.
Ril!:ht of re-entrY
2.11 The Tenant hereby agrees that the Landlord may re-enter the Premises upon non-payment
. of rent or non-performance of covenants, subject to the provisions of this Agreement.
Liens
2.12 The Tenant hereby indemnifies the Landlord against all liability, claim, damages or expenses
(including legal expenses) arising from any claim made for liens respecting work done by
or on behalf of the Tenant relating to the Premises and the Tenant shall cause all registration
of claims for liens and/or certificates of action under the Construction Lien Act to be
discharged or vacated as the case may be within fifteen (15) days after receipt of notice
thereof from the Landlord.
Insolvency or Abandonment
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2.13 If the Tenant makes assignment for the benefit of creditors or takes the benefit of any Act for
bankrupt or insolvent debtors, or if a receiving order is made against the Tenant, or an order
is made for the winding up of the Tenant, or if the Premises shall become and remain vacant
for a period of twenty (20) days, or be used by any other persons than such as are entitled to
use them under the terms of this Agreement, then the Landlord may re-enter and take
possession of the Premises and, upon immediate notice, terminate this Agreement.
Remedies of the Landlord
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2.14 If the Tenant fails to perform or observe any covenants herein, which failure continues for
fifteen (15) days after the Tenant's receipt of written notice thereof, the Landlord shall have
the following remedies, which are cumulative and not in the alternative and which are
without prejudice to any other rights or remedies it may have:
(a) The Landlord may enter the Premises and perfonn the Tenant's obligation on behalf
of the Tenant, without liability for any loss or damage to the Tenant's goods, chattels
or business caused in so doing. Any reasonable expenses incurred by the Landlord
thereby shall be paid by the Tenant forthwith and shall be recoverable in the same
manner as rent; and
(b) The Landlord may by written notice terminate this Agreement, in which case rent and
any other payments for which the Tenant is liable shall be apportioned and paid in full
to the date of termination, together with the expenses of the Landlord attributable to
the termination, and the Tenant shall immediately deliver up possession of the
Premises.
COVENANTS OF THE LANDLORD
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The Landlord hereby agrees to fully and faithfully comply with all of the covenants of the Landlord
which are set out below:
Ouiet eniovment
3.1 Provided the Tenant performs all its covenants in this Agreement, the Tenant shall have quiet
enjoyment of the Premises.
Insurance
3.2 The Landlord shall insure the Premises against such perils and in such amount is necessary,
in the opinion of the Landlord, to protect the Landlord's interests in the Premises.
Dama!!e or destruction
3.3 If the Premises are damaged by fire or other casualty, the rent shall abate until the Premises
is repaired to the Landlord's satisfaction; provided, however, that the Landlord may
determine in its sole discretion not to repair the Premises and may terminate this Agreement
· on written notice given within 45 days after the occurrence of such damage.
Electrical Facilities
3.4 The Landlord shall be responsible for the cost of supplying the Premises with electric power.
SUDDly of Water IS ewer Services
3.5 The Landlord shall be responsible for the cost of water and sewer charges supplied to the
Premises.
Supply of Heatin!!
3.6 The Landlord shall at its sole expense supply adequate heat and air conditioning to the
Premises.
Elevator
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3.7 The Landlord shall install and maintain an elevator in the KCMC.
REPAIR AND MAINTENANCE OBLIGATIONS
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Repair. Maintenance and Replacement of Capital Items
4.1 The Tenant shall at all times and at its own cost and expense maintain and repair the interior
of the Premises to standards acceptable to the Landlord, including;
- all minor repairs less than $100.00 in nature,
- cleaning the floors, walls and windows,
- repairs to plumbing fixtures,
- replacement of light bulbs,
- repainting the walls should this be required by the Tenant, upon obtaining the Landlord's
approval therefor, and
- placing refuse and litter in containers for disposal in accordance with the Landlord's
standards.
4.2
The Landlord shall at all times and at its own cost and expense maintain, repair and replace
the following capital aspects of the Premises to standards acceptable to the Landlord,
including;
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- all major repairs greater than $100.00 in nature,
- repairing and replacing the roof,
- repairing and maintaining the exterior facade of the building,
- replacing its plumbing, heating, water and ventilation systems and major repairs thereto,
- replacement of broken windows.
Groundskeeping
4.3 The Landlord shall maintain and repair the grounds forming part of the KCMC to standards
acceptable to the Landlord, including;
- pruning and removal of trees and shrubs, except that no live tree or shrub shall be removed
by the Tenant without the prior approval of the Landlord,
- cutting the grass,
- watering the landscaping, and
- picking up leaves, waste and other debris and disposing of them in accordance with the
Landlord's procedures for such debris.
. Snow Removal
4.4 In the event that the South Bruce Grey Health Centre agrees to conduct the snow removal,
the Municipality agrees to the change. In the event that the South Bruce Grey Health Centre
does not conduct snow removal for the building sidewalks, then the tenant shall be
responsible for a proportionate share, together with the other tenants.
Tenant's Obligation to Advise Landlord
4.5 The Tenant shall report all damage and all conditions which might create a hazard to users
of the Premises as soon as possible to the Landlord.
Waiver of Responsibilitv for Loss
4.6 The Landlord shall not be responsible for loss or damages arising from its obligations in this
Agreement respecting repair, maintenance or replacement in relation to the Premises.
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Notice of Repairs and Maintenance Reauired of the Tenant
4.7
Where inspection reveals that repairs or maintenance are required to be performed by the
Tenant, the Landlord shall give notice in writing and the Tenant will, within fifteen (15) days
thereof, commence making and diligently complete such repairs or maintenance, failing
which the Landlord may enter and perform the repairs or maintenance at the Tenant's
expense. In this regard, the Landlord shall take such measures as are reasonable in its
opinion to minimize disruption to the Tenant's activities, but shall not be responsible for loss
or harm occasioned thereby.
Access for Repairs. Maintenance and ReDlacement Required of the Landlord
4.8 Where maintenance or replacement is required to be performed by the Landlord, the Landlord
may enter at all reasonable times to perform the repairs or maintenance. The Landlord shall
take such measures in this regard as are reasonable in its opinion to minimize disruption to
the Tenant's activities, but shall not be responsible for loss or harm occasioned thereby.
PARKING AND ACCESS
Parking
5.1
At this time draft pay parking concepts are being reviewed by the South Bruce Grey
Health Center. In addition the South Bruce Grey Health Center has proposed three 5
minute drop off spots, on the eastside of the building for pharmacy pick-ups. (please note
that this issue is to be confirmed)
Access
5.2 In addition to the rights granted in this Agreement, the Tenant and its invitees shall have a
right in the nature of a licence, together with other persons from time to time entitled thereto,
to use the Common Areas and to use such driveways and laneways as may be required to
access the KCMC and the Premises in conjunction with the permitted uses of the Premises
by the Tenant.
SIGNS AND IMPROVEMENTS
Signs. Flae:s and Fixtures
6.1
The Tenant shall not erect on, fix or fasten to the Premises any sign, antenna or fixture of any
kind whatsoever without advance written permission from the Landlord. The Landlord
acknowledges that the Tenant shall be permitted to erect a sign notifying the public of the
Tenant's presence at the KCMC, in accordance with any applicable laws or municipal by-
laws and with the prior written approval of the Landlord.
Alterations by the Tenant
6.2 The Tenant shall not make any installation, alteration, addition or improvement to the
Premises without first obtaining the Landlord's approval in writing, which approval shall be
in the Landlord's sole discretion. Any such works shall be subject to all provisions of this
Agreement.
Dealine: with Imorovements on Termination
6.3
Upon termination of this Agreement, the Tenant shall surrender the Premises together with
all installations, alterations, additions, fixtures or anything in the nature of a leasehold
improvement made thereon. Notwithstanding the forgoing, upon termination, the Landlord
may require the Tenant to remove its installations, alterations, additions, fixtures, or anything
in the nature of a leasehold improvement and to make good any damage caused to the
demised Premises by such installation or removal.
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No Landlord Obli2ation to ReDair
6.4 The Landlord shall be under no obligation to repair or maintain any installations, alterations,
additions, fixtures of the Tenant or anything in the nature of a leasehold improvement.
Landlord Rie:ht to Reconstruct
6.5 Should the Landlord determine in its sole discretion to renovate or reconstruct the KCMC,
the Common Areas or the Premises, the Tenant agrees to provide the Landlord and its agents
with access to the Premises for the purpose of such work and for all purposes necessary or
incidental thereto. The Landlord shall take such steps as it deems necessary to minimize
disruption to the activities of the Tenant during the renovation or reconstruction. The
Landlord shall not be responsible for claims for loss or damages arising from such renovation
or reconstruction.
GENERAL PROVISIONS
Prioritv of Head Lease
7.1. The Tenant acknowledges that the Landlord leases the KCMC through a long-term lease
from the South Bruce Grey Health Centre (the "Head Lease"). The Tenant further
acknowledges that the Head Lease was approved by Municipality of Kincardine By-law No.
2003-18 and runs for a 100 year term, commencing in February, 2003. In the event that the
Head Lease is terminated for any reason, the Tenant's rights under this Agreement shall also
be terminated and in such an event the Tenant shall indemnify and hold the Landlord
hann1ess in accordance with section 2,8 of this Agreement.
The terms and conditions of the Head Lease shall have priority over the terms of this
Lease.
Notices
7.2
The Landlord's representative for administration of this Agreement and all decisions related
thereto is set forth herein. All notice given or required to be given under this Agreement
shall be in writing, signed by the party giving notice and personally delivered or transmitted
by facsimile transmission to the Landlord at: Municipal Administration Centre, 1475
Concession 5, RR #5, Kincardine, Ontario, Attention: John deRosenroll, Fax No.: (519)
396-8288;
and to the Tenant at Unit I, 44 Queen Street, Kincardine, Ontario; Fax No.: (519) 396-9576.
Any notice or document so given shall be deemed to have been received on the date of
personal delivery or on the next business day if transmitted by facsimile transmission. Any
party may from time to time by notice given as provided above change its address for the
purposes of this clause.
No waiver of default
7.3 No condoning or delay by the Landlord in respect of any default, breach or non-observance
by the Tenant of any covenant in this Agreement operates as a waiver of the Landlord's rights
under this Agreement.
Entire a21'eement
7.4 There are no covenants, representations, warranties, agreements or conditions, express or
implied, collateral or otherwise, forming part of or in any way affecting this Agreement.
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Registration
7.5 The Tenant shall not register this Agreement or any notice thereof except with the Landlord's
permission and in a form which is acceptable to the solicitors for the Landlord.
Severability
7.6 If any clause or parts thereof in this Agreement are determined to be unenforceable, they shall
be considered separate and severable from the Agreement and the remaining provisions of
the Agreement shall remain in full force and effect.
Successors
7.7 This Agreement shall be binding upon and enure to the benefit of the parties hereto and their
heirs, successors and permitted assigns (as limited by the provisions of this Agreement).
IN WITNESS WHEREOF the parties hereto have executed this indenture by their personal hands
or by the hands of their proper signing officers duly authorized in that regard.
THE CORPORATION OF THE
AL 0 CARDINE
Larry ,ayor J!
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Jo n deRosenroll, CAO
McKECHNIE PHARMACY LTD.
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Name: ~tf M- "",...",,-,,,,
Title: ~
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Name:qt9T )r.. C ,(:;.,/".~
Title:S'~ co "-~J --r;."o.$(..o.~.,.
I/We have authority to bind the Corporation.
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Schedule 'A'
Pagelof2
I Lower Plan KCMC
Hdeclmie 1'hanIacý'
Dr.
Boron
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Dr. Bcmm Empty
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Dr. Boch Dr. Smith
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Schedule 'A'
Page2of2
A Upper Plan KCMC C
B Dr. Taylor
Ii<
Dr. Hann Empty Dr. Wiebe
D
Dr.
Dr.
~ebe
Dr.
ty Dr.
Taylo
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./
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Orphan Dr. Dr.
Tlumso ItDox
Orphan Dr. Dr.
./ ./Knax
· Orphan Dr. . ItDox
Thomson
E F G H
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