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Home My WebLink About17 160 Lake Huron Learning Collaborative Lease Agreement (2017) By-law THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE i2AKBT t k `'.. ik.. 494)1I 0PALMYOF K,N BY-LAW NO. 2017 - 160 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 pursuant to the said Municipal Act, 2001, Section 8 (1) and 9 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 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 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 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 (2017) By-law". READ a FIRST and SECOND TIME this 6th day of December, 2017. READ a THIRD TIME and FINALLY PASSED this 6th day of December, 2017. optietia.thaimgeti Mayor Clerk • This is Schedule ",A " to By-Law No. f "r(o° passed the (n day 201 - This AGREEMENT made the 6 H' day of L Ccr bcr , 2017. 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 one year. 1.2 This lease agreement to be in effect as of January 1st, 2018 to December 31st, 2018. 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: a) The area currently occupied by the Municipality for its Emergency Response Centre and Municipal Vault (basement area). b) The area currently occupied by E-learn (area in black). c) The area used by the Municipality for storage (area in green on Schedule `A'). d) All other common areas (e.g. washrooms, halls, utility rooms and public parking). 3. RENT Rent means the amounts payable by the Tenant to the Municipality The Tenant covenants to pay to the Municipality, during the twelve-month term of this Lease, rent in the amount of FIFTY THOUSAND DOLLARS ($50,000) inclusive of Harmonized Sales Tax (HST), to be paid in quarterly payments of$12,500 inclusive of HST. Quarterly payments are to be made the 1st day of: January 2018, April 2018, July 2018 and October 2018. (a) All payments to be made by the Tenant pursuant to this Lease shall be delivered to the Municipality at the Municipality's address. (b) All Rent in arrears and all sums paid by the Landlord 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 of 1.25% per month (15% per annum). (c) The Tenant acknowledges and agrees that the payments of Rent provided for in this Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the terms of this Lease or agreed to by the Municipality in writing; and (i) no partial payment by the Tenant which is accepted by the Municipality shall be considered as other than a partial payment on account of Rent owing and shall not prejudice the Municipality's right to recover any Rent owing. (d) As part of this Lease, the Landlord shall supply at his expense the utilities for the Premises being electricity, water, heat and taxes. 4. LEASEHOLD IMPROVEMENTS 4.1 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. 5. MAINTENANCE 5.1 External and internal structural maintenance shall be the responsibility of the Municipality 5.2 All maintenance and janitorial work related to the operation of the Tenant shall be at the Tenant's cost. 5.3 Snow removal and general yard maintenance shall be the responsibility of the Municipality. 6. INSURANCE 6.1 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: i) The Corporation of the Municipality of Kincardine as an additional insured ii) Cross Liability iii) Contractual Liability iv) Tenant's Legal Liability v) Contents coverage on a replacement cost basis for all property owned by the Tenant vi) 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. 7. 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) any insurance policy is cancelled or not renewed by reason of the use or occupation of the Premises, or by reason of non-payment of premiums; (iv) the Premises; (A) become vacant or remain unoccupied for a period of thirty (30) consecutive days; or (B) are not open for business on more than thirty (30) business days in any twelve (12) month period or on any twelve (12) consecutive business days; (C) 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 of the Tenant has occurred: (i) the current rent together with the next quarterly 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. 8. SUB-LEASING In the event that the Tenant subleases any space to a third party (who is not part of the L.H.L.C. education partnership) the following conditions will apply: a) the sub-tenant must be approved by the Municipality. b) all sub-tenants are required to provide insurance coverage with the Municipality. c) 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 10.1 This lease will terminate December 31, 2018. SIGNED, SEALED AND DELIVERED )THE CORPORATION OF THE in the presence of ) MUNICIPALITY OF KINCARDINE j M. or ft,telwA CAO ) ) ) LAKE HURON LEARNING ) CO IF.LABO�� IV, ) Ca ( Witness ) - CHAIR ) I HAVE THE Authority to bind the Organization 0 ;- '�:•� , !1111 III �° t -T 4 .. ,IT ttu. I a` h: : ., C-' __. _.. _._._ ' ,.' i „to.- A. `- / 4 r1 T�'t � \ n -LA., n`i e if JT ;; ___ TrC sr i-, ) r J T P I, -vt. Room _]n' ' i iii >+ �E 2 pp t II I /� 5 t _ t cn 4; Room 2 i1 I 4 o A---- . t ..i i 4 t , - , -r --r Trade Training Community Storage elearnnetwork.ca Industrial Area Area Distance Education LIONS CLUB LAKE HURON LEARNING CONTACT NORTH E-LEARNWALKER HOUSE CHAMBER OF COMMERCE ROBOTICS SPEECH AND LANGUAGE MUNICPAL STORAGE ADULT LEARNING MAllANINE CONTACT NORTH E-LEARN MAllANINE MUNICIPAL STORAGE FANSHAWE COLLEGE ROBOTICS WALKER HOUSE UPPER LEVEL FANSHAWE COLLEGE LOWER LEVEL MUNICIPAL SPACE