HomeMy WebLinkAbout14 004 Incentive House Residential Lease Agreement (286 Wieck Boulevard) By-law THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
de43,T,
"
, � 9g �LITY OF KINGNP\a O
BY -LAW
NO. 2014 - 004
BEING A BY -LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT
WITH 2332356 ONTARIO INC.FOR THE USE OF
USE OF RESIDENTIAL PROPERTY FOR PHYSICIAN RECRUITMENT
(Incentive House)
WHEREAS Sections 8 (1) and 9 of the said Municipal Act, provide 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 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 Corporation of the Municipality of Kincardine requires
physicians to meet the needs of its residents;
AND WHEREAS 2332356 Ontario Inc. c.o.b as the Society of Energy
Professionals IFPTE Local 160 is the registered owner of the property known
municipally as 286 Wieck Boulevard, Kincardine, Ontario and legally described
as: LT 18 PL 3M98; Municipality of Kincardine;
AND WHEREAS the Municipality deems it advisable to enter into a lease
agreement with the above for the use of 286 Wieck Boulevard, Kincardine as an
Incentive House for physician recruitment;
• NOW THEREFORE the Council of The Corporation of the Municipality of
Kincardine ENACTS as follows:
1. That the Council of The Corporation of the Municipality of Kincardine enter
into a lease agreement with 2332356 Ontario Inc., for the use of 286 Wieck
Boulevard, Kincardine as an Incentive House for physician recruitment,
attached hereto as Schedule `A' and forming part of this by -law.
2. That the Mayor and Chief Administrative Officer be hereby authorized to
execute, on behalf of The Corporation of the Municipality of Kincardine, the
Lease Agreement and any other documents required.
3. This by -law shall come into full force and effect upon its final passage.
4. This by -law may be cited as the "Incentive House Residential Lease
Agreement (286 Wieck Boulevard) By -law ".
READ a FIRST and SECOND TIME this 9 day of January, 2014.
• READ . THIRD TIME an INALLY PASSED this 9 day of January, 2014.
\A
d 1
Mayor Clerk
This is Schedule "A_" to By -Law
No 201 `1-0fpassed the Q day
of .ion( 20 P'-}
RESIDENTIAL LEASE AGREEMENT
(Incentive House)
THIS TENANCY AGREEMENT dated the 9th day of January, 2014 made pursuant to the
provisions of the Residential Tenancies Act, 2006, S.O. 2006, c. 17, as amended (the "Act ").
2332356 Ontario Inc. c.o.b. as
Society of Energy Professionals IFPTE Local 160
Address for Service: 2239 Yonge Street
Toronto, Ontario M4S 2B5
Canada
(the "Landlord ")
and
The Corporation of the Municipality of Kincardine
Address for Service: 1475 Concession 5
R.R. #5
Kincardine, ON
N2Z 2X6
(the "Tenant ")
WHEREAS 2332356 Ontario Inc. is the registered owner of the property known
municipally as 286 Wieck Boulevard, Kincardine, Ontario and legally described as: LT 18 PL
3M98; Municipality of Kincardine;
AND WHEREAS 2332356 Ontario Inc. is holding itself out to be the Society of Energy
Professionals IFPTE Local 160;
AND WHEREAS the parties hereto are interested in entering into a lease agreement with
each other;
Page 2 of 10
THE PARTIES THEREFORE AGREE AS FOLLOWS:
1. Rented Premises
The Landlord agrees to rent to the Tenant the private dwelling house known municipally as
286 Wieck Boulevard, Kincardine, Ontario and legally described as: LT 18 PL 3M98;
Municipality of Kincardine, being all of PIN 33315 -0037 (the "Rented Premises "), together with
the yards associated therewith (the "Premises ") pursuant to the terms of this Tenancy Agreement.
2. Use of Rented Premises
a) It is understood and agreed that the Tenant will be using the Premises as part of its
physician recruitment strategy to offer no -cost, short and medium twit housing accommodation
to locum, new permanent family physicians and specialists, and health and wellness professionals
or practitioners.
b) The Tenant agrees to use the Rented Premises in accordance with all applicable federal,
provincial, municipal and other laws; and to abide by the covenants, agreements, rules and
regulations of this Tenancy Agreement.
3. Term
The Landlord leases to the Tenant the Rented Premises for a period commencing on June 1,
2014 (the "Commencement Date ") and ending on May 31, 2024 (the "Termination Date "),
subject to the terms and conditions of this Lease.
4. Renewal Term
At the option of the Landlord, the parties may enter into an extension agreement for a further
lease term as agreed to by the parties.
5. Rent
a) The Tenant shall pay to the Landlord for the Term, rent for the Premises in the amount of
$1.00 (the "Rent ").
b) In reference to the Tenant's intended use of the Premises as set out in paragraph 2 above,
the parties hereto acknowledge and agree that the Tenant shall maintain a capital reserve
fund in fulfillment of its obligations as set out in paragraph 10(g) below and that said
fund will be maintained by the Tenant for the duration of the Term of this lease.
c) Beginning in 2014 and provided the within Agreement is formally executed by the Tenant
and Landlord, an annual amount of $10,000.00 shall be placed in a capital reserve fund
as described in paragraph 5(b) above, to be applied to any major interior or exterior
repair contribution(s) for the Premises, as more particularly set out in paragraph 10(g)
below.
.
Page 3 of 10
d) Notwithstanding the stipulated amount in subparagraph (c) above, it is understood by the
parties hereto that the "target" amount for the capital reserve fund will be $25,000.00 for
the Premises and that said fund will be maintained by the Tenant for the duration of the
Term of this lease.
6. Utilities
(1) In addition to the Rent, the Tenant agrees to pay to the supplier directly for any utilities
(hydro, heat, water, etc.).
(2) In the event that any supplier amends its policy during the term of this Tenancy
Agreement, or any renewals thereof, such that the payment to the supplier is required to be made
by the Landlord, then the Tenant's reimbursement to the Landlord shall not constitute a rent
increase. The Tenant covenants and agrees to indemnify and save the Landlord harmless from
any and all claims, cost or expenses that the Landlord may incur as a result of the Tenant's failure
to pay such utility accounts in a timely manner.
7. Tenant's Covenants
The Tenant covenants:
a) not to use or permit the Rented Premises to be used for any income generating activities;
not to exercise or carry on, or permit to be exercised or carried on in or on the Premises, the
Rented Premises or any part thereof, any trade, business, occupation, calling or illegal act;
b) not to do anything or omit to do anything in the Rented Premises or its environs which
impairs the safety or other bona fide and lawful right, privilege or interest of any other
Tenant, nor permit any person allowed in the Rented Premises by the Tenant to do anything
or omit to do anything; and
c) not to permit such number of persons to occupy the Rented Premises on a continuing
basis where such number is in contravention of any health or safety standards, including any
housing standard required by law, or where such number exceeds twice the number of
bedrooms in the Rented Premises.
S. Assignment and Sub- letting
a) There shall be no assignment of this Tenancy Agreement without the prior written
consent of the Landlord.
b) Notwithstanding anything else herein contained, the Tenant shall not be required to obtain
the consent of the Landlord in the case of subletting or parting with possession of all or
any part of the Rented Premises to any locum or family physician or health specialist as
part of the Tenant's physician recruitment strategy as more particularly outlined in
paragraph 2 (a) herein, and said occupants shall not be considered unauthorized.
Page 4 of 10
9. Condition of Rented Premises
a) The Tenant shall be entitled to access to the Rented Premises prior to the Commencement
Date for the purpose of conducting an inspection of the property, which inspection may
include the taking of photographs of the Rented Premises.
b) An independent Home Inspection will be signed off by both the Tenant and the Landlord
as the agreed to initial condition of the premises. That Home Inspection will become
Appendix A of this document. The Tenant, by taking possession of the Rented Premises
on the commencement date of this Lease, acknowledges that the Rented Premises, all
common areas, facilities, appliances and appurtenances are in a good state of repair,
clean, well maintained, fit for use and habitation, and appear to be free from defects.
c) The Tenant agrees to notify the Landlord in writing within seven (7) days of the
beginning of the Term of this Tenancy Agreement of any deficiencies in the Rented
Premises.
10. Care of Rented Premises and Premises
a) The Landlord agrees to keep the Rented Premises in a good state of repair and fit for
habitation. The Tenant agrees to keep the Rented Premises clean and in the same condition
as existed at the beginning of the Term of this Tenancy Agreement, normal wear and tear
excepted.
b) The Tenant further agrees to dispose of garbage and recyclables appropriately.
c) The Tenant agrees to keep the walkway and driveway free of snow and ice and shall be
responsible for mowing the lawn.
d) The Tenant shall give the Landlord prompt written notice of any accident or defects
involving water pipes and fixtures, gas pipes and fixtures, heating apparatus, tub
surrounds, wiring, electric lights or any other installation or part of the Rented Premises.
The Tenant shall permit the Landlord, or his agents, contractors and employees, to enter
the Rented Premises on twenty -four (24) hours written notice to him and during
reasonable times for the purpose of making repairs.
e) The Tenant shall act with dispatch, as a prudent landowner would, in the event of an
emergency, such as, and without limitation, the events of flood and /or fire.
f) The Tenant shall advise the Landlord of any repairs or maintenance required to be done by
the Landlord by giving notice in writing. The Landlord shall be allowed a reasonable
period of time within which to make necessary repairs or maintenance required by law or
under this Tenancy Agreement.
g) The Tenant shall cooperate fully and cause all Permitted Occupants to cooperate fully to
permit all repairs, maintenance and improvements to be completed expeditiously,
Page 5 of 10
including, but not limited to, preparing the Rented Premises by removing or relocating
personal possessions from specific areas, if requested by the Landlord or its authorized
agents, facilitating access to the Rented Premises at times convenient to the Landlord's
workers and contractors, and otherwise facilitating the completion of the work.
h) In reference to the provisions of paragraph 5 above, the Tenant shall contribute financially
to any major interior or exterior repairs which may be required to the Rented Premises
during the term of this Lease, reasonable wear and tear excepted. The amount of
contribution, if any, shall be mutually agreed upon by the parties hereto on a case by case
basis. To guide the parties, decisions on such cost - sharing shall be based on the condition
assessment of the property at the beginning of the Term as well as a projection of the
remaining useful life of the item under consideration. For greater certainty, major interior
or exterior repairs shall be repairs that a prudent owner of a similar building in the vicinity
would make.
i. The parties shall take an equitable approach to the amount of contribution for
major interior or exterior repairs, as provided above, and the parties shall consider
the following in determining cost sharing, if any:
i. the condition of the Premises as at the time of executing this Tenancy
Agreement;
ii. the economic and physical life of the proposed repair(s) to be made based
on generally accepted appraisal valuation guidelines;
iii. any appreciation or depreciation of the Premises as a result of the repair(s)
based on generally accepted appraisal valuation guidelines; and
iv. the remaining term of the Tenancy Agreement.
ii. In the event the parties cannot agree on the proportionate share of financial
contribution, or that any contribution should be made at all, the Landlord shall at
its own expense carry out the repair and effect any maintenance it deems is
required to maintain the Rented Premises in a good state of repair and fit for
habitation, and the parties will resolve the dispute through a voluntary mediation
process where appropriate and expeditious.
i) The Tenant shall pay for any damage to the Rented Premises, the appliances and facilities,
where such damage is caused by the wilful or negligent conduct of the Tenant, or any
person permitted into the Rented Premises by the Tenant.
11. Bi- Annual Inspection
a) The parties agree that the Landlord may have the Rented Premises inspected bi- annually
by a qualified home inspector, which inspector shall be retained by the Landlord. Any
Page 6 of 10
inspections will occur in December and June of each year.
b) The Landlord and Tenant agree to meet annually in July, or at another date mutually
agreed upon, for the purposes of reviewing any finding the home inspector may make
pursuant to paragraph 11(a) and to discuss matters of mutual interest under the Lease.
12. Right of Entry
a) The Tenant acknowledges that the Landlord has the right to enter the Rented Premises at
any time without written notice in the event of an emergency.
b) The Tenant acknowledges and agrees that the Landlord has the right to enter the Rented
Premises on giving at least twenty -four (24) hours' written notice of entry for the
purposes specified in the Act or any successor Act. Such written notice shall specify the
day of entry and, to the extent possible, the approximate time of entry.
13. Fire Insurance
The Tenant, Permitted Occupants and guests shall not do or permit anything to be done in or
about the Rented Premises or Premises, or bring or keep anything therein which will in any way
create a risk of fire or increase the rate of fire insurance on the Premises.
14. Damage
The Tenant agrees not to cause or permit damage to the Rented Premises or the Premises
either by the Tenant's wilful or negligent act or omission, or by those of any person whom the
Tenant permits on the Rented Premises or the Premises.
15. Property Taxes
The Landlord will pay all real property taxes for the Rented Premises as assessed against the
Landlord.
16. Termination Notice
(1) If either the Tenant or the Landlord wishes to terminate the tenancy at the end of the
Term of this Tenancy Agreement or any renewal thereof, then either party shall give written
notice in accordance with the. Act or any successor Act, using the approved form under the Act or
any successor Act, not less than one (1) year prior to the expiration of the Term of this Tenancy
Agreement, or any renewals thereof, to be effective on the last day of a month of the tenancy.
(2) The parties shall give any notice of termination by delivering such notice, or mailing
such notice to the other party at the address for service indicated in this Tenancy Agreement (or
any amendments thereto).
Page 7 of 10
(3) Following delivery of a notice of termination, the parties shall arrange an appointment
for the completion of an outgoing inspection report, which appointment shall be attended by both
parties and which outgoing inspection report shall be considered in relation to paragraph 9 above.
17. Deemed Renewal
When the Term of this Tenancy Agreement expires, and in the absence of a subsequent
written renewal agreement, this Tenancy Agreement shall be deemed to be renewed as a monthly
tenancy pursuant to s. 40 of the Act or any successor Act, on the same terms and conditions as
this Tenancy Agreement except the Rent payable by the Tenant to the Landlord shall be the rent
which the Landlord may charge from time to time pursuant to the provisions of the Act or any
successor Act.
18. Breach of Covenant
Should the Landlord be in breach of any covenant herein provided, the Tenant shall be
required to give written notice of such breach within thirty (30) days of such breach coming to
his or her attention and providing to the Landlord a reasonable period to remedy such breach.
Provided further if such breach be remedied, there shall be no further liability for the breach, and
provided further that if no such notice is given, the Tenant shall not have any remedy for the said
alleged breach.
19. Tenant Insurance
(1) The Tenant shall carry appropriate and adequate insurance coverage for fire, property and
content damage and for public liability, during the Term of this Tenancy Agreement and any
renewals or extensions thereof, at the Tenant's own expense. Upon request by the Landlord, the
Tenant shall provide proof to the Landlord that such insurance is in full force and effect.
20. Liability
(1) 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. And the Tenant further
covenants to indemnify the Landlord with respect to any encumbrance on or damage to the
premises occasioned by or arising from the act, default, or negligence of the Tenant, his agent,
servants, employees, contractors, customers, invitees or licensees. The Landlord shall not be
liable for and is hereby released from any and all liability for any death or injury to any person in
the Rented Premises occasioned or caused wholly or in part by any act or omission of the Tenant
or anyone for whom it is in law responsible; or arising from any breach by the Tenant of any
provision of this Lease.
(2) The Tenant agrees that the foregoing indemnity shall survive the termination of this
Lease notwithstanding any provisions of this Lease to the contrary.
Page 8ofl0
(3) The Landlord shall not be liable for any damage to the Tenant's belongings and property.
(4) The Tenant shall be liable to remedy any damage caused to the Rented Premises by
reason of water left running from the taps in the Rented Premises by the Tenant, its agents,
contractors or permitted occupants.
21. Entire Agreement, no Waiver or Amendment
(1) The parties acknowledge that prior to signing this Tenancy Agreement the parties have
read and understand this Tenancy Agreement, and consent to all of the covenants, terms,
conditions and provisions of this Tenancy Agreement. This Tenancy Agreement and the Tenancy
Application constitute the entire agreement between the Landlord and the Tenant with respect to
the Rented Premises and supersede and take the place of any and all previous agreements and
representations of any kind, written or verbal, that may have previously been made relating to the
Rented Premises or the Premises, by the Landlord or any of its employees or agents.
(2) This Tenancy Agreement shall not be amended, modified or waived in whole or in part
except by further written agreement attached to or endorsed on this Tenancy Agreement.
22. Severability
Any term, condition, covenant or provision of this Tenancy Agreement that is determined to
be invalid or unenforceable shall be severed from this Tenancy Agreement and the remainder of
this Tenancy Agreement, and any renewals hereof and the rules and regulations, as amended
from time to time, shall remain in full force and effect.
23. Number, Gender, Effect of Headings
Words used in this Tenancy Agreement in the singular number include the plural and vice
versa, words importing the neuter, masculine or feminine gender include the other genders and
words importing persons include firms and corporations and vice versa. The titles of all the
clauses hereof are inserted for convenience of reference only and shall not affect the construction
or interpretation of this Tenancy Agreement.
24. Joint and Several Obligations
Everything contained in this Tenancy Agreement shall extend to and be binding on the
respective heirs, executors, administrators, successors and permitted assigns of each of the parties
to this Tenancy Agreement. All covenants, terms, conditions and provisions of this Tenancy
Agreement shall be joint and several.
25. Counterpart
The parties agree that this Tenancy Agreement may be signed in counterpart.
Page 9 of 10
26. Acknowledgements and Consent of Parties
The acknowledgements and consents contained herein are made by each party named as
Tenant and Landlord herein.
SIGNED, SEALED AND DELIVERED:
Tenant: The Corporation of the Municipality
of Kincardine
Per: MN.
Witness: Larry Kra c , Mayor
"We haveltr ority to bind the
corporation"
Per: c►
Witness: Murray Clarke, CAO
"I have authority to bind the corporation."
Landlord: 2332356 Ontario Inc.
s
Per: �.� •
Witness: Scott 7ers President
"I have authority to bind the corporation."
Per: ; ` /
Witness: ` ob anley, EVP Finance
"I have authority to bind the corporation."
Page 10of
SCHEDULE `A'
Condition of Rented Premises: Inspection by Tenant
The Tenant acknowledges that it has inspected the Rented Premises before executing this
Lease and has satisfied itself as to its condition, and its taking possession shall be deemed
conclusive evidence that he or she received it in good order and repair except as otherwise stated
herein.
Date: /V' 4. 3e9 /1t The Corporation of the Municipality of Kincardine
l r C & Per: 4L 0 '0 Cu.
Witness: � Name:
Title:
"I have authority to bind the corporation."