HomeMy WebLinkAbout10 153 lake huron learning collaborative lease agreement THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
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BY-LAW
NO. 2010 — 153
BEING A BY -LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT
WITH THE LAKE HURON LEARNING COLLABORATIVE FOR RENTAL
SPACE AT 385 QUEEN STREET, MUNICIPALITY OF KINCARDINE
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 the Lake Huron Learning
Collaborative, 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 the Lake Huron Learning Collaborative for the rental of the
property known as the old Westario Building, and known municipally as
385 Queen Street, Municipality of Kincardine in consideration of rents,
covenants and obligations.
• 2. That the Mayor and Chief Administrative Officer be authorized and
directed to sign and execute, on behalf of the Council of The Corporation
of the Municipality of Kincardine, the lease agreement with the Lake Huron
Learning Collaborative attached hereto as Schedule 'A' and to affix the
corporate seal.
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 "Lake Huron Learning Collaborative
Lease Agreement By -law ".
READ a FIRST and SECOND TIME this 20 day of December, 2010.
.,� tie
Mayor Cl erk
READ a THIRD TIME and FINALLY PASSED this 20 day of December, 2010. OS
• Mayor Clerk
This AGREEMENT made the day of .,l <G' i,�Cit , 2010.
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
hereinafter called the "Municipality" of the First Part.
-and -
LAKE HURON LEARNING COLLABORATIVE
hereinafter called the "Tenant" of the Second Part.
WHEREAS the Municipality and the Tenant wish to enter into an agreement for the
property known as the old Westario Building, known municipally as 385 Queen Street,
Kincardine;
AND WHEREAS both parties support education as a key driver in our local economy.
NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration
of the mutual covenants and agreements hereinafter contained, and subject to
the terms and conditions hereinafter set out, the parties agree as follows:
1. TERM
1.1 The term of the lease shall be two years, with an option to renew.
1.2 This lease agreement to be in effect as of January 1 2011 to
December 31 2012.
2. SPACE TO BE LEASED
2.1 The entire area outlined in blue on the attached Schedule `A' noted
as Post Secondary Skill Enhancement Area.
The Municipality agrees to donate the area outlined in red (Trade
Training Industrial Area) upon notice by the Lake Huron Learning
Collaborative. Until such time notice is given, the Municipality of
Kincardine will continue using the space for municipal purposes.
The Municipality will retain the following uses in the building:
i) The area currently occupied by the Municipality for its
Emergency Response Centre and Municipal Vault (basement
area).
ii) The area currently occupied by E -learn (area in black).
iii) The area used by the Municipality for storage (area in green
on Schedule `A').
iv) All other common areas (e.g. washrooms, halls, utility rooms
and public parking).
3. RENTAL FEES
3.1 The gross rental rate is $50,000.00 per year, with a municipal
subsidy of $25,000.00. Therefore, the net rental fee is $25,000.00
per year.
3.2 A $25,000.00 lump sum payment to the Municipality to fund all utility
costs (hydro, water & yard costs).
3.3 Taxes: The Tenant shall pay property taxes as billed twice a year
over four installments as per the Municipal Act. Taxes are levied on
the Current Assessment Values (CVA) each year as provided by the
Municipal Property Assessment Corporation (MPAC) based on the
square footage occupied by the Tenant.
4. PAYMENT SCHEDULE
4.1 Payment of the rental and utility fees will be made in two installments
each year in advance in March and October.
5. LEASEHOLD IMPROVEMENTS
5.1 All interior leasehold improvements are the responsibility of the
Tenant and prior to occupying, the Tenant must review improvement
plans with the Municipality's Building Department.
6. MAINTENANCE
6.1 External and internal structural maintenance shall be the
responsibility of the Municipality
6.2 All maintenance and janitorial work related to the operation of the
Tenant shall be at the Tenant's cost.
6.3 Snow removal and general yard maintenance shall be the
responsibility of the Municipality
7. INSURANCE
7.1 The Tenant 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:
(a) 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:
1. The Corporation of the Municipality of Kincardine as an
additional insured
2. Cross Liability
3. Contractual Liability
4. Tenant's Legal Liability
5. Contents coverage on a replacement cost basis for all
property owned by the Tenant
6. A thirty (30) day written notice of cancellation
(b) The Tenant shall provide the Municipality with a valid Certificate of
Insurance as evidence of the above coverage upon signing the
agreement. The Tenant shall provide the Municipality with any
renewal replacement certificates as may be necessary during the
term of the agreement.
8. SUB - LEASING
In the event that the Tenant subleases any space to a commercial third
party (who is not part of the L.H.L.C. education partnership) the following
conditions will apply:
- the sub - tenant must be approved by the Municipality.
- all rents collected will be forwarded to the Municipality to form a building
capital repair /maintenance reserve fund.
- all sub - tenants are required to provide insurance coverage with the
Municipality.
- all leasehold improvements will be the responsibility of the sub - tenant.
9. SIGNAGE
9.1 The Tenant, as part of this agreement, shall use the existing
standard for signage.
Please note compliance with the municipal sign by -law.
10. TERMINATION UPON NOTICE
10.1 Either party to this agreement may, with twelve months written notice
of intent, dissolve the agreement.
IN WITNESS WHEREOF the Municipality has hereto affixed its corporate seal
attested by the hands of its Mayor and CAO this r -20 1-1 day of 1 , 2010. The
Tenant has hereunto set their hand this day of 1J.eG , 2010.
SIGNED, SEALED AND DELIVERED ) THE CORPORATION OF THE
in the presence of ) MUNICIPALITY OF KI ARDINE
•
) 4 Mayor
CAO
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)
) LAKE HURON LEARNING
) COLLABORATIVE
W2 LaL 1 4,n- Nees' ) , � .I
Witness 'CHAIR
)
) I HAVE THE Authority to bind the Organization
• • •
SCHEDULE'A'
LEARNING CENTRE
(385 QUEEN STREET, FORMER WESTARIO BUILDING)
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• i Trade Training Community Storage
elearnnetwork.ca Industrial Area Area
Distance Education
Notes
Post Secondary Skill 1j This is a draft concept plan only
Enhancement Area