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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."