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HomeMy WebLinkAbout03 018 lease agree med clinic ·. - ".., e . THE CORPORATION OF THE MUNICIPALITY OF KINc4mINE A BY-LAW TO AUTHORIZE THE SIGNING OF A LEASE AGREEMENT WITH SOUTH BRUCE GR Y HEALTH CENTRE TO ALLOW FOR THE CONSTRUCTIO OF THE KINCARDINE COMMUNITY MEDICAL CLI IC I I WHEREAS THE Municipal Act, 2001, S.D. 2001, c. 25, Secjtion 117, allows municipalities to acquire and develop land for the purpose of lel1sing the land to health care professionals; I , AND WHEREAS the Council for the Corporation of the MuniciPJlity of Kincardine deems it advisable to construct a community medical clinic fO~ the residents of the Municipality; : i , AND WHEREAS the Council for The Corporation of the Municipality of Kincardine deems it advisable to enter into a 100 year lease agreement with South Bruce Grey Health Centre for part of Lot 18, Concession ,Municipality of Kincardine, (former Township of Kincardine), County of Bruce to allow for the construction of the Kincardine Community Medical Clinic; I I NOW THEREFORE the Council for The Corporation of th~ Municipality of Kincardine ENACTS as follows: . , I That The Corporation of the Municipality of Kincardine ~nter into a lease agreement with South Bruce Grey Health Centre. I : , That the Mayor and CAO be authorized to sign, O~ behalf of The Corporation of the Municipality of Kincardine, the Leas Agreement with South Bruce Grey Health Centre and attached to this by law as Schedule "A", i That this By-law shall come into full force and effect uptn the Ministry of Health approving the final form of the lease. I That this By-law may be cited as the "Kincardine coLmunity Medical Clinic Lease Agreement, By-law". 1" READ a FIRST, SECOND, and THIRD time and DEEMED TO ~E PASSED this 5th day of February, 2003. I I u···ì-~ 0.---'--- BY-LAW NO. 2003 -18 1. 2. 3. 4. ---- -------.- , Clerk "' i I I I .e ~ duplicate, the I" day of January, 2003 This Indenture IV\I~LoW~ of~Shc:wt fcwl'l'l4'of L~AcX: I 13ejttVeet'\I SOUTH BRUCE GREY HEALTH CENTRE hereinafter called the Lessor/Landlord of the First Part; - and- THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE hereinafter called the Lesseerrenant of the Second Part. Wi~nesseth that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Lessee the Le r cloth demise and lease unto the said Lessee the lands and premises described in Schedule A attached .he unicipality of Kincardine (former Town of Kincardine), County of Bruce for use and occupation only for the purposes hereafter described. I TO H"IVE AND HOLD the said demised premises for a period of ONE HUNDRED (100) YEARS from the )51 day of January, 2003 yielding and paying therefore unto the said Lessor the sum of S2.00 and other good and valuable consideration on the exeFution of this lease, in advance ~SE OF THE LEASE I (a) I The Lessee shaH construct on the lands, a building of approximately 15,000 square feet to be used as a Medical Centre for the provision of Health f::are related business and services (hereinafter called the Medical Clinic). I I (b) I The Medical Clinic shall be constructed in accordance with detaíl plans and specifications submitted to and approved by the Lessor prior to the cþmmencement of construction. (c) The Lessor acknowledges that the operation of the Medical Clinic will be under the control of the Lessee and will be sublet to persons who wi,1 be occupying the building for its intended purpose. , I (d) ¡! The Lessor hereby consents to the Lessee's subletting the premises without the consent of the Lessor provided that the Lessor retains the right to approve the nature of all business and services performed or supplied from the building, such approval to be obtained by the Lessee in advan~ of the completion orany sub-leases. ~ OF TENANT IN CONSTRUCTION. The T~nant shall perform and comply with the following covenants and requirements in the construction of the Medical Clinic: : (a) -me Medical Clinic shall be constructed in all respects in accordance with the Detail Plans except in so far as any requirements hereof~ave been waived or varied by the Landlord in writing; (b) All necessary building permits shall be obtained and all municipal by-laws and legal requirements pertaining to the conduct of the wotk shall be complied with; I (c) T,+= construction work shall be conducted expeditiously in a good and workmanlike manner and otherwise in accordance with the profisions of this lease; I (d) m Tenant, through the Tenant's ArchitecI, shall properly supervise the work; (e) Any contractor engaged on the work shall be required to observe all provisions of its contract as approved by the Tenant and to furnish'and maintain all security, indemnity, insurance and performance bonds required by the contract; (I) Thp Landlord and its agents and engineers shall at all times have the right to inspect the work and to protest to the Tenant or to its archite~t or engineer any default or noncompliance with this lease, and the Tenant shall forthwith deal with the protest and remedy any de(ault or nonwcompliance; . Th~ Landlord may require the Tenant at its own expense to submit at reasonable intervals certificates of the Tenant's Architect of the sta ding of the work, the existence and extent of any faults or defects, the value of the work then done and to be done under any contrac the amount owing to any contractor and the amounts paid or retained by the Tenant on any contract, and the Tenant shall also, w enever requested by the Landlord, furnish copies of certificates furnished to it by contractors or by the Tenant's Architect in coonee . on with construction; -2- (h) £e Tenant shall promptly pay all proper accounts for work done or materials furnished under all contracts which it has entered into elatmg to the construction of the Medical Clinic, but this shall not prevent the Tenant from retaining any amounts claimed due whic the Tenant's Architect has nol certified to be due, or which are properly and reasonably retained to secure the performance of any ork or the correction of any defect or which in the opinion of the Tenant's Architect are reasonably retained in anticIpation of Amtes arising from any contractor's default, or which are required to be retained under provisions of the Constructton LIen Act, ~.s. . 1990 c.30. P.J :56- ~ (i) e Medical Clinic shall be substantially completed on or before tV. ~ I , 200J or such other date as may be agreed to in~iting by the parties. ú) e Tenant shall complete all work consisting of fmishing the interior of space to be occupied by Lessees (and including work that as excluded from the Detail Plans and fÌom the construction contracts as being then unascertained and dependent upon Lessees' requi ements) and all other work necessary fully to complete the Medical Clinic as soon as the work can be completed with the use of all re~sonable diligence after leases or agreements to lease with Lessees have been entered .into and the work has been ascertained. 1 ~ AND LIABILTY INSURANCE DURING CONSTRUCTION (a) 1'he Tenant shall effect or shall cause its contractor or contractors to effect prior to the commencement of construction of the Medi~al Clinic, and shall maintain and keep in force until the insurance required under this agreement has been effected, insurance: (1) protecting both the Tenant and the Landlord (without any rights of cross claim or subrogation against the Landlord) against claims for personal injury, death or property damage or other third party or public liability claims arising from any accident or occurrence upon, in or about the Lands and from any cause, including the risks occasioned by the construction of the Medical Clinic, and to an amount of not less than $5,OOO.000.00for any personal injury, death, property or other claims in respect of anyone accident or occurrence; and : . (~i) protecting both the Tenant and the Landlord from loss or damage (without any rights of cross claim or subrogation against the Landlord) to the Medical Clinic and all fixtures, equipment, improvements and building materials on the Lands from time to time, both during and after construction (but which may be by policies effected from time to time covering the risk during different phases of construction) against fire, all other perils from time to time customarily included in the usual extended coverage endorsements upon fire policies applicable to similar properties during construction and effected in Ontario by prudent owners, and other perils as the Landlord may reasonably require to be insured against, excluding earthquakes and hurricanes, to the full insurable value thereof at all times to he computed upon a replacement cost basis with deduction only of the cost of excavation and foundations and of the value of building materials from time to time on the site but not incoIporated in the Medical Clinic if and to the extent the building materials are at the risk of the contractor or contractors and not at the risk of the Tenant and in any event in an amount sufficient to prevent the Landlord being deemed a co-insurer. (b) Th~ proceeds of insurance which may become payable under any policy of insurance effected pursuant to this agreement shall be payable to a trustee, and shall be available 10 fmance repair and reconstruction. I (c) All the provisions of this agreement respecting insurance which are of general application apply to the insurance during consnyction of the Medical Clinic required by this paragraph. OWN~RSHIP OF MEDICAL CLINIC AND FIXTURES ø 's ownershi 0 Medical Clinic. The Landlord and the Tenant agree that the Medical Clinic and all other fixed improvements chlthe Tenant may construct upon the Lands from time to time are and shall be fixtures to the Lands and are intended to be and beco,* the absolute property of the Landlord upon the expiration or termination of this lease, but shall be deemed, as between the LandlQrd and the Tenant during this lease, to be the separate property of the Tenant and not of the Landlord but subject to and govenjed by all the provisions of this lease applicable thereto notwithstanding the right of the Tenant; provided always that the Landl<jrd's absolute right of property in the Medical Clinic and other fixed improvements upon the Lands which will arise upon the terminJtion of this lease takes priority over any other interest in the Medical Clinic and fixed improvements which may now or herea~r be created by the Tenant, and that all dealings by the Tenant with the Medical Clinic or the fixed improvements which in any way affect title thereto shall be made expressly subject to this right of the Landlord, and the Tenant shall not assign, encumber or otherwise deal with the Medical Clinic or the fixed improvements separately from any permitted dealing with the leasehold interest under this lease, to the intent that no person who does not at the same time hold a like interest in the Medical Clinic and the fixed impro~ements shall hold or enjoy any interesl in this lease acquired from the Tenant; but the above proviso does not apply to sublea'j"s and agreements for leases permitted by this agreement . OwnerfhiD of Tenant's rl.Xtures. The provisions of this lease shall not be construed to prevent the Tenant from conferring on lessees or occ¡jpants of the Medical Clinic the right of property in, or the right to remove, fixtures or improvements which are of the nature of usual ,*nant's fixtures and normally removable by lessees and which are not part of the structure or any essential part of the Medical Clinic or any building services. The Tenant shall make good, or shall cause the Lessees to make good. all damage to the Medical Clinic .r building service caused by any removal of Tenant's fixtures. Remo ' 10 Tenant's I.Xtures. Provided the Tenant is not in de fault hereunder, the Tenant may at or immediately before the expira n ofthe term of this lease, remove its furniture, chattels and other usual tenant's fixtures not forming any part of the structure .e l'fIedical Clinic or any building services, and the Tenant may from time to time remove such tenant's fixtures in the ordinary rse I>f its business or in the event of any reconstruction, changes and alterations of the Medical Clinic pursuant to this agreement providdd that the Tenant shall, except upon the expiration of the term of this lease, cause the Tenant's fixtures to be replaced with fixture~ having a value and utility at least equal to that of the fIxtures so removed, considering the need to replace obsolete or defecti~e fixtures and to substitute improved fixtures, and the consequences of any reconstruction, changes and alterations to the Ml CO.". - 3- Co fiance with b -laws. (a) 'Throughout the term of this lease the Tenant shall, without cost or expense to the Landlord, comply with all laws, by-laws, regulations and requirements of all government, municipal and other authorities having jurisdiction, including the equirements of the Board of Fire Underwriters and any body exercising similar functions, and whether compliance involves extr ordinary measures, structural repairs or alterations. The Tenant shall likewise observe and comply with the requirements of Asu ers under policies of public liability, pressure vessel, fire, and any insurance at any time covering the Medical Clinic, unless the "'equ rements are unreasonable or involve a breach of any provision of this lease. , (,') The Tenant has the right to contest the application or validity of any law, by-law, regulation or requirement affecting the Med cal Clinic, without expense to the Landlord, and may defer compliance with any requirement provided that the delay is lawful, that t does not subject the Landlord to any penalty for failure to comply, and that it does not otherwise constitute a breach of this leas~. The Tenant shall prosecute any proceedings taken by, it to contest the application or validity of any law, by-law, regulation or requirement affecting the Medical Clinic with due diligence. I : ª-'f ESATE TAXES AND UTILITY CHARGES 1 Real estate taxes. (a) The Tenant shall pay before any fine, penalty, interest or costs accrue for the non-payment thereof (but subject to p ragraph (d) hereot} all real estate taxes, assessments, rates and charges and other government impositions, general or special, ordÍl\"ry or extraordinary, foreseen or unforeseen, of every kind (including assessments for local or public improvements and school taxe-9 which may at any time during the Term be imposed, assessed or levied in respect of the Lands, the Medical Clinic and all fixtutes and improvements from time to time thereon, or which, however, imposed, might constitute a lien on the Lands or the Me¡a I Clinic or any part thereof or a liability of the Landlord (all of which taxes, assessments, rates, charges and impositions are refe d to in this paragraph as "Realty Taxes"). The Tenant may, nevertheless take advantage of any provisions of law whereby Real Taxes may be paid by installments or deferred for some portion of the fiscal year to which they relate, provided that no fine, pena ty or cost is incurred except accrued interest on the unpaid balance of the taxes. If any Realty Taxes relate to a fiscal period whic~ extends beyond the expiration of the Term, and the Tenant is obliged by the provisions of this paragraph to pay taxes, the Landlord shall, upon demand and proof of payment, reimburse the Tenant for that proportion of the Realty Taxes which relates to the .rioj! after the date of expiration of the Term. If the Tenant fails to pay any Realty Taxes, the Tenant shall pay any fine, penalty, teftlst and expense arising therefrom. . I (b~ Nothing in this paragraph requires the Tenant to pay any franchise, estate, inheritance, succession, capital levy or transfer tax of th~ Landlord, or any income, profits or revenue tax of the Landlord, or any tax imposed upon the rent received by the Landlord, or to par business taxes assessed against and personal to the Lessees of the Medical Clinic but not assessed against the Tenant, the Land ord, the Lands or the Medical Clinic unless they can constitute a lien or charge against the Lands or the Medical Clinic. (C] The Tenant shall furnish to the Landlord, within thirty days after payment of Realty Taxes is due, official receipts or other proOII satisfactory to the Landlord evidencing the payment thereof. , (d) The Tenant has the right to contest the amount or validity of all Realty Taxes imposed in respect of the Lands or the Medical Cliniq, but this does not relieve the Tenant of its obligation to pay Realty Taxes or authorize the Tenant to defer payment of Realty Taxe~, unless the deferment is lawful. If the Tenant wishes to take advantage of any lawful right to defer payment of any Realty Taxe~ pending the outcome of any proceedings taken by the Tenant to contest the taxes, and if the entire amount (including fines, pena¡ ies, interest and costs) for which the Tenant might become liable, if unsuccessful, exceeds $1,000.00 the Tenant shall deposit in the n.me of the Landlord in a trust account with any corporation authorized to transact the business of a trust company as the Landlord may direct in writing, as security for the paymenl of the Realty Taxes, a sum sufficient in the judgment of the Landlord to pay tj.e Realty Taxes together with all fines, penalties, interest and costs in connection therewith and all amounts that might be asses~d against or become a charge upon the Lands or the Medical Clinic or any part thereof as a result of the proceedings being taken¡by the Tenant, and the Tenant shall prosecute the proceedings with due diligence. Upon tennination of the proceedings taken fth~ Tenant the sums deposited shall be applied to so much of the Realty Taxes (and any fines, penalties, interest and costs relating retp) as then remain unpaid, and any balance shall be repaid to the Tenant If the money deposited at any time appears insufficient tho[ Landlord to pay the Realty Taxes and all fmes, penalties, interest and costs relating thereto, the Tenant shall upon demand deposIt the additional sum as the Landlord requires and if the sum proves insufficient to pay all Realty Taxes, fmes, penalties. interest and cqsts, the Tenant shall forthwith pay any balance. Interest earned by any sum upon deposit under this paragraph shall be added to the sujn on deposit : (e)iIf the Tenant is contesting in good faith the amount or validity of any Realty Taxes and has complied with the provisions of this p*agraph and if it becomes necessary for the Landlord to join in or consent to the proceedings, the Landlord shall join or consent as reqjlired, and the Tenant shall indemnify the Landlord against all expense arising therefrom. Utili . char es. The Tenant shall payor cause to be paid when due all charges for gas, electricity, light, heat, power, telephone and other tilities and services used in or supplied to the Medical Clinic through out the Term of this lease, and shall indemnify the Landl~rd against any liability or damages pertaining thereto. INSU~CE LÏJ!!lilitv insurance resoectinl! Medical Clinic. The Tenant shall effect, not later than the completion of construction of the Medical Clinic, and shall keep in force during the Term insurance protecting both Landlord and Tenant (without any rights of cross claim or SUbro~' tion against the Landlord) against claims for personal injury, death, property damage, or third party or public liability claims arisin from any accident or occurrence upon or in the Lands and the Medical Clinic, from any cause to an amount of not less than $10,0 ,000.00 (or from time to time such greater amounts as are sufficient, having regard to any de cline in the real value of the ,ad an dollar as detennined from time to time by the Landlord acting reasonably, to afford equivalent protection) for personal ry,l death, property or other claims in respect of anyone accident or occurrence. Press e vessel in uran e. The Tenant shall effect, not later than the completion of construction of the Medical Clinic, and shall keep in for e during the Term, pressure vessel insurance protecting both Landlord and Tenant in respect of all steam boilers and other preSSUj. , ",., . ,. C.,,",,'" ." ""'" ,m. ,,, ,~ ""'" ;, _'"" '" ;.,," . ., .mo""' "'" . ""'," ,,' "" ,;'" " '" norma Iy covered by prudent owners of similar properties in Ontario. ~ ,,-ire (nsurance on Medical Clinic. The Tenant shall effect, not later than the completion of construction of the Medical Clinic and shall ¡<cep in force throughout the Tenn, insurance on the Medical Clinic and all fixtures and improvements erected on the Lands in ihe j int names of Landlord and Tenant protecting both Landlord and Tenant (without any rights of cross claim or subrogation again t the Landlord) from loss or damage caused by . () ftre and other perils as may from time to time be included in the standard fire insurance additional perils supplementary con I tract generally available in Ontario; (~) risks nonnally insured against in Ontario for a building of construction, location and use similar to the Medical Clinic; and () risks which the Landlord may from time to time reasonably require to be insured against (except earthquakes and hurricanes). In urance shall be for the full insurable value of the Medical Clinic and the replacement value of fixtures and improvements (excl sive of the cost offoundations) and shall in any case be for an amount sufficient to prevent the Landlord being considered a co- insur with the insured. The policies of insurance effected under this paragraph shall, if the Tenant directs, include the interest of any mortg gees or encumbrancers of the Tenant's leasehold interest. - 4- Identl 0 insurers and olic terms The terms of the policies required to be effected by'the Tenant under this paragraph or under any 0 er provision of this lease, and the insurers issuing them, are subject to the approval of the Landlord, but the approval shall not be nn¢ason ably withheld. ~fnt of/oss under fire Dolicv. The parties agree as follows: (a)IWhere insurance proceeds under any fire insurance policy be come payable in an amount not exceeding [$100,000] they shall be pai~ to the Landlord or to the Landlord and any Tenant's encumbrancer jointly, the cost of work in progress shall be borne by the Tenant and payment for the work shall be made to the Tenant in a lump sum on completion of the repairs. . (b)~fthe Tenant fails to effect repairs in accordance with paragraph (a) within a reasonable time, the Landlord is entitled to effect the re¡irs itself, retain any insurance moneys against the cost, and recover any balance from the Tenant. eC) hen at the time of the occnrrence of the damage or the completion of its repair the Tenant is in defanlt to the Landlord under this Ie se but the Landlord has not elected to forfeit the lease, the Landlord is entitled, ont of any insurance moneys in its hands, or in the h ds of the Landlord and any Tenant's encumbrancer jointly, to retain any moneys not paid over for the cost of repair against the rectifi4"tion of the Tenant's default. (d) there the insurance proceeds payable exceed S I 00,000.00 they shall be paid to a trustee on behalf of the Landlord, the Tenant and an encumbrancers of their interests, work in process shall be paid for in installments as progress payments out of the insurance procee s, and provision shall be made to ensure that no increase in the cost over the amount of the original estimate shall fall on the Landlord or the trustee, so that the trustee at all times retains in its hands sufficient of the insurance proceeds to pay for the estimated cost of Ire pair outstanding at the date it makes any progress payment. (e) kefore any contract is entered into by the Tenant or a Tenant's encumbrancer for the carrying out ofany repair work pursuant to parafraph (d) above, copies of the estimates for all work and the contracts for the completion of the work shall be submitted to the trustee,t.:'nd it shall distribute copies to the Landlord, the Landlord's encumbrancers, the Tenant, and the Tenant's encumbrancers as are not rarties thereto. I (I) .f.ny progress payments to be made under this paragraph by the trustee to either the Tenant or a Tenant's encumbrancer shall not beEde without the submission of a statement, certified by the architect of the party to whom the payments are to be made, stating e estimated cost to complete the work of repair al the date of the certificate, the amounl claimed by individual contractors at that da, , the amount owing on work already done, and the amount of any payments made at that date for work already done, and verifyi!jg the standard and quality of the work already done, and the trustee is required to retain in its hands at the date of any Aeljl an amount sufficient to pay the estimated outstanding cost of completion, even though that has the effect that the payment _ ~comes less than the amount certified to be due. , (g) If making any payment under this paragraph the trustee shall have regard to construction lien legislation applicable in the Provincr of Ontario and shall retain within its control for the period specified in the legislation the amount ofany hold-back required. (h) I1I1 case of dispute over the outstanding cost or the filing of liens on the Medical Clinic or Lands arising out of the work of repair, the trustee for the Landlord where the insurance proceeds do not exceed $50,000.00 is not under any obligation to make or authori# any progress or lump sum payment until the dispute is settled or the lien discharged, as the primary duty of repair falls on the Ten"'t. (i) Where at the time of the occurrence of the damage or the completion of its repair the Tenant is in default under the tenns of any enc"mbrance of its interest, the encumbrancer is subrogated to the rights and obligations of the Tenant. Ü) Irthis lease is forfeited, for whatever cause, all moneys remaining in the trustee's hands are payable to the Landlord. (k) T/'e fees of the trustee shall be shared equally between the Landlord and the Tenant or those subrogated to them. (I) ) In case of any dispute as to the terms of any contract or the amount of any estimate, or any matter relating to the actual work or repair, the dispute s~aJI be decided by the Chief Building Official of the Municipality of Brockton. County of Bruce, whose decísion shall be finaJ. (m) III case ofany dispute as to the terms of this paragraph apart from those in paragraph (I) above, the dispute shall be the subject 0W1tion in accordance with the Arbitration Act of the Province of Ontario. Premiu . s and roo 0 insurance. The Tenant shaU pay aU premiums and costs of aU insurance required to be effected by the Tenant der any provision of this lease, and shaU from time to time keep on file with the Landlord certified copies of insurance policies, irenewal contracts and other documents sufficient to show and establish accurately at aU times the current status of policies in force, ajd in particular shaU submit to the Landlord before the explfation of every current policy evidence of the renewal of the policy 0 the issuance of a replacement policy and of the payment of aU premIUms due for the renewal or replacement, and shaU <~ ~ l -5 - prom tly notify the Landlord of any canceIlation or intended canceIlation by any insurer of any policy or any circumstances known to the Tenant materiaIly affecting its coverage. The Tenant shaIl not cancel any policy of insurance without the prior written consent of the Landlord. Each policy shall provide that no cancellation is effective without prior notice by the insurer to the Landlord. rd's ri ht to insure. If the Tenant defaults on any of its obligations under this lease regarding insurance including the ion to submit proof of insurance to the Landlord, the Landlord may, but is not obliged to. place any insurance at the cost and e of the Tenant, or pay any arrears of premium, and any expense incurred by the Landlord shall be reimbursed to it by the on demand. GE OR DESTRUCTIO OF MEDICAL CLINIC Rebui din with alterations. If the Medical Clinic is destroyed or damaged, but in the opinion of the Tenant's Architect (as certified by h· to the Landlord) it is practicable and economic to rebuild or restore the Medical Clinic with changes or alterations, and if the Tena~ desires to make the changes or alterations, then notwithstanding the provisions of this agreement the Tenant may, in the COUTS. of repairing the damage or destruction, incorporate changes or alterations provided that the provisions of this agreement are compl ed with. Rent at to bate. The Tenant's obligation to pay rent and all other sums payable by the Tenant under the provisions of this lease is not a ected, nor shaIl rent abate or be diminished, in the event of damage to or destruction of the Medical Clinic or any fixtures or improyements upon the Lands, regardless of the cause or extent thereof, and the Tenant hereby waives the provisions of any statute or rule o(law to the contrary now or hereafter in effect, it being the intent of this lease, which is essentiaIly a lease of the Lands, that the Meditl Clinic and all fixtures and improvements are at the risk of the Tenant. Term' ation b Tenant in certain events. If the Medical Clinic is destroyed or damaged, and in the opinion of the Tenant's Architect as ce ·fied to the Landlord either the estimated cost of repairing the destruction or damage exceeds the value of the Medical Clinic, due di igence of the destruction or damage exceeds six months, and if the destruction or damage has occurred after the expiration of .ni etieth lease year, and if the Tenant is entitled to terminate and does tenninate all existing leases and agreements to lease with se and occupants of the Medical Clinic, and is not in default under this lease, the Tenant has the option by written notice given to the andlord within ninety days after the occurrence of the destruction or damage to tenninate this lease, the tennination to take effect ixty days after the exercise of the option. On termination all proceeds of insurance payable in respect of the destruction or damagF shall be paid as follows (and the trustee referred to in this agreement is hereby authorized to disburse any proceeds of insura¡ce then held by it accordingly): (aj The Tenant shall release all its right to and interest in the proceeds of insurance and shall cause all encumbrancers of its leasehold interest to release all their interest in the proceeds, and the Tenant shaIl pay to the Landlord any portions of the proceeds which it may have received in respect of the destruction or damage referred to; (b) The trustee shall pay to the Landlord or to the Landlord's encumbrancers as the Landlord directs, all the proceeds of insur- ance in respect of the destruction or damage in its hands or which it may receive; and (c~ , I I : The Tenant shall pay to the Landlord the amount, if any, by which the market value of the Lands and Medical Clinic in the state in which it was immediately before the destruction or damage exceeds the aggregate of the proceeds of insurance payable in respect of the destruction or damage received by the Landlord from the Tenant and the trustee, plus the market value of the Lands and Medical Clinic in the state in which it was immedialely after the happening of the destruction or damage. I I In the þvent of tennination of this lease, rent and all other charges affecting the Lands shall be paid and adjusted to the date of ç. ~Tenant shall throughout the Tenn at its own expense (a) keep in good and tenant like repair, as is fitting to a good quality office d commercial development, the Medical Clinic and all structures, improvements and fixtures at any time erected upon the Lands including all building equipment, fixtures, elevators, heating, air-conditioning and plumbing apparatus, and the sidewalks, parkin area and electric lighting fixtures and equipment) whether the repairs are interior or exterior, structural or non-structural, ordi or extraordinary, foreseen or un foreseen, excepting from the standard of repair reasonable wear and tear to the extent only that re~sonable wear and tear is not inconsistent with maintenance in good order and condition of the Medical Clinic generally. Repair~ include replacements and renewals when necessary. All repairs made by the Tenant shall be equal in quality and class to the original work. To the extent that repairs involve structural or major portions of the building or a cost as estimated by the Tenant's Archit""t in excess of $10,000.00, all the provisions of this agreement apply thereto, (b) maintain the Medical Clinic and all fixtures and imf>rovements from time to time on the Lands, including adjacent sidewalks, in a clean and orderly condition, free from any accumljlation of dirt, rubbish, water, snow and ice, and generally as is fitting to a good quality office and commercial development, (c) ke"l' or cause to be kept in good order and condition, reasonable wear and tear excepted, all chattels located in or about the Medical Clinic and belonging to the Tenant, and (d) promptly upon notice in writing from the Landlord make and do all repairs and mainte.µmce which it has hereunder covenanted to perfonn. , ~þES AND ALTERATIONS IN MEDICAL CLINIC The ~enant has the right from time to time during the Tenn to make changes, alterations, additions, extensions or rebuildings, Itu"'l or otherwise (collectively called "Improvements") in and to the Medical Clinic as the Tenant thinks necessary, but subject e f1110wing conditions (which the Tenant covenants to observe and perfonn): (I)' The Improvements shaIl be such as will not, when completed, diminish the value or utility of the Medical Clinic, or change its character as a good quality office and commercial development; (2) No Improvements shall be commenced until the Tenant has obtained all building and other pennits required by lawful authority; ,~ - J -6 - (31 No Improvements which involve structural or substantial changes, alterations, additions, extensions or rebuildings to the ~ Medical Clinic shall be commenced until detailed plans and specifications have first been submitted to and approved by the Landlord in writing, the approval not to be unreasonably withheld; . ( No Improvements involving a cost as estimated by the Tenant's Architect of more than $100,000.00 and the Tenant shall obtain the estimate for any Improvements or repairs when requested by the Landlord shall be commenced until the Tenant I has produced evidence in fonn and substance satisfactory to the Landlord for the due completion of the improvements in accordance with all the provisions of this lease and the payment of their entire cost; I (5 No improvement shall be commenced which involves any breach of the Tenant's obligation to Lessees or occupants of the Medical Clinic or any encumbrancer of the Tenant's leasehold interest; (6 Every improvement involving an estimated cost of more than $100,000.00 shall be conducted under the proper supervision of the Tenant's Architect; (7 Every improvement shall be constructed expeditiously, in good and workmanlike mauner, in compliance with the detailed plans and specifications approved by the Landlord, and in compliance with all applicable municipal by-laws and other laws, regulations and requirements of all authorities having jurisdiction; (81 (9) i The cost of every improvement shall be paid by the Tenant when due subject only to the retention of any amounts which are required to be withheld under the provisions of the Ontario Construction Lien Act or which the Tenant's Architect has certified are properly to be retained in order to secure due performance of the work; The Tenant shal1 maintain fire and liability insurance during the construction of every improvement involving an estimated cost of more than $50,000.00 whenever the Landlord reasonably requires, sufficient to comply with the provisions of this agreement; .(1 ) The Landlord has the right to approve al1 construction conttacts for Improvements involving an estimated cost of more than $100,000.00 and the provisions of this agreement thereto. CONS RUCTION LIENS The Tenant shall not pennit any lien under the Ontario Construction Lien Act or any like statute to be filed or registered against the ds, the Medical Clinic or any fixtures or Improvements on the Lands, by reason of work, labour, services or materials supplied or clauped to have been supplied to the Tenant or anyone holding any interest in any part thereof through or under the Tenant. If any lien is ~t any time filed or registered the Tenant shal1 procure registration of its discharge within twenty days after the lien has come to its nÞtice or knowledge; provided that if the Tenant desires to contest in good faith the amount or validity of any lien and has so notifie4 the Landlord, and if the Tenant has deposited with the Landlord or with the truslee, or paid into court to the credit of any lien action, the amount of the lien claimed plus a reasonable amount for costs, then the Tenant may defer payment of the lien claim for a period f time sufficient to enable the Tenant to contest the claim with due diligence, provided always that neither the Lands nor the Medic I Clinic or any part thereof, nor the Tenant's leasehold interest therein thereby becomes liable to forfeiture or sale. The Landlo d may, but is not obliged to, discharge any lien filed or registered at any time if in the Landlord's judgment the Lands or the Medic I Clinic or any part thereof or the Tenant's interest therein becomes liable to any forfeiture or sale or is otherwise injeopardy, and a amount paid by the Landlord in so doing, together with all reasonable costs and expenses of the Landlord, shall be reimbu sed to the Landlord by the Tenant on demand together with interest at the rate of 10 per cent per annum from the date incurre until paid, and may be recovered as rent in arrears. Nothing herein contained authorizes the Tenant, or implies any consent or agre ment of the Landlord, to subject the Landlord's estate and interest in the Lands and Medical Clinic to any lien. TION BY LANDLORD on b Landlord. The Landlord, its employees and agents are entitled to inspect the Medical Clinic and al1 fixtures and Impro ments upon the Lands at any time during usual business hours for the purpose of ascertaining their condition or state of repair r of verifying that the provisions of this lease are being complied with, and the Tenant shall, upon reasonable notice, pennit access or this purpose. ~MENTS AND OTHER DEALINGS BY LANDLORD Ri ht f Landlord /0 as ¡nor encumber. Nothing contained in this lease prohibits or restricts the Landlord or implies any prohibiion or restriction from assigning, syndicating, mortgaging, encumbering or otherwise dealing with its reversionary interest in the Lat¡ds and al1 its interest in the Medical Clinic under this lease, but subject always to this lease and the rights of the Tenant hereun< er. Cerlifi 'ate b Tenant The Tenant shal1 promptly, whenever from time to time requested by the Landlord, execute an ackno edgment or certificate in favour of any actual or prospective purchaser, mortgagee or encumbrancer of the Landlord's interes~ acknowledging or certifying the status of this lease, any modifications thereof, any breaches of covenant known to the Tenant and the state of the rent account, with the intent that any acknowledgmenl or certificate may be relied upon by any person to whom il is addressed. ASSIG MENT AND OTHER DEALINGS BY TENANT . ubleases I ubject to the terms of this lease, it is agreed that the Tenant may without the consent of the Landlord sublet the Medical linic premises from time to time provided that al1 sub-leases are for purposes related to the use of the Medical Clinic as reviously agreed. (2) e Tenant may not without the prior written consent of the Landlord, assign the lease in its entirety to any other party. -"" I t -7 - AB LITY AND INDEMNITY OF LANDLORD Exem tion of Landlord from liabüi . The Landlord is not liable or responsible in any way for personal or consequential injury of . k d that is suffered or sustained by the Tenant, or any employee, agent or invitee of the Tenant, or any other persons who may _m he Lands, or for any loss, theft, damage or injury to any property on the Lands however caused. : lnde ni 0 Landlord b Tenant. The Tenant shall indemnify the Landlord against all claims by any person arising from the opera 'on of the Medical Clinic or any defect or want of repair therein or any want of maintenance thereof or anything done or omill on or in the vicinity of the Lands (including any adjoining sidewalks) or any other thing, whether arising from any breach or defaul or from any negligence by the Tenant, its agents, contractors, employees, invitees or licensees, or from any accident, injury or darna e or any other cause; and the indemnity extends to all costs, counsel fees, expenses and liabilities which the Landlord may incur ith respect to any claim. NO-npES An~' notice, election, demand or exercise of option to which a party to this lease is entitled or required to give is deemed to have been ly given to any other party if in writing and delivered personally to some responsible officer of the party; if to the Landlord, to the CEO of the Landlord, and if to the Tenant, to the Tenant in care of The Clerk of the Municipality of Kincardine at the Kincaldine Municipal Office;.Notice is deemed to have been given seventy-two hours from the time when it was mailed. A party may from ~me to time change the address to which notice is to be sent by mail by giving wrillen notice to the other parties hereto. ~tLIANCE WITH LAWS GENERALLY In ddition to complying with the requirements of the lease, the Tenant shall ensure, in its and its Lessees' use and occupation of the L ds and Medical Clinic and other fixtures and Improvements on the Lands, and in the conduct of its business thereon, and in tile intenance and repair thereof, and as to all other mailers or things pertaining to the Lands, compliance with all laws, by-laws, .te , orders and regulations of all governmental authorities having jurisdiction. UTILI Y EASEMENTS I. I The Landlord agrees to grant to the Tenant easements for the purposes of installing and connecting to such utilities as may be required to service~he Medical Clinic for its intended purpose and for future rights of access to maintain and repair the facilities located on, over or under the said e~ment. I 2. i The location of all such easements shan be at the discretion of the Landlord and the Tenant agrees any such easements will be located so they will not interfere with the Landlords use of the adjoining Hospital Facility. : j 3. I The location of all such easements shall be described by a reference plan prepared by a qualified Ontario Land Surveyor and deposited at the Brufe County Registry Office. The costs of preparing and filing the plan shall be at the expense of the Tenant. 4. ¡ The Tenant agrees that at all times it shall be responsible to maintain the facilities installed on the easement at its cost and shall return the lands t~ their original condition after any works have been done which result in the disruption or change to the easement so granted by the Landlo~. , , ~AL LINK TO HOSPITAL : ... 11 It is acknowledged and agreed by the parties that the Landlord may at its discretion and when it so desires, connect the Medical Clinic to .xi ing hospital building owned and operated by the Landlord. 2. I The design, cost of construction and future maintenance of the physical link between the hospital and the Medical Clinic shall be at the cost of~e Landlord, provided that the Tenant shall be consulted in advance and shall agree to the plans and location of the structure and method of connecting to the buildings. : ~TERMINATION ~ I ~~ I. -I It is agreed that the MedicãTtli~shall be substantially completed as defined by the provisions of the Ontario Construction Lien Act by the , day of IJo rJe"."..,.b", 2005, failing which this lease shall tenninate without further liability to the parties and the land and all improv~ments existing as of that date shall revert to the sole ownership of the Landlord without claim or payment"of compensation to the Tenant and the renant shall surrender possession of the lands and buildings to the Landlord. ¡ ~ TERMINATION ! I. Upon any other termination of this lease, either by expiry of the tenn of this lease or for any other reason, the land and all improvements existing!as of the date of termination shall revert to the sole ownership of the Landlord without claim or payment of compensation to the Tenant and the Ten~nt shaH surrender possession of the land and buildings to the Landlord. APPRdv AL BY THE MINISTER OF HEALTH It I The obligations of the Landlord pursuant to this agreement are conditional on the approval of the Minister of Health as required by the Public ~osPitals Act, R.S.O. 1990, Chapter P.40 s.s. 4(4). 2. Any work done and expenses incurred by the Tenant prior to such approval shall be at the risk of the Tenant. .... - "'! ~ , - 8- 3. If such approval is not received the Tenant shall at its cost return the lands to the condition in which they existed prior to such work. . AU~Orized by resolution of the Board of Directors passed this /(,... day of I Olroeel<... ,2002- Þ.J I , .' orized by By-law No. 2003- ~ ed this day of ,2003 . _I ! 1 THE LANDLORD SOUTH BRUCE G Y HEALTH CENTRE Per: Per: .Jt ~ ~~~ . W.....·, -) CEO/Secretary (~) THE TENANT THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE Per: Per: ~oL- ~:z "0 'L.JJ . c>-.'....r ~~""'-,""5~c~.~ bf{« «í ....,... ·f· ./ ,. ,~- t_ ;lr."'. t ~ Schedule "A" to Hedical Clinic Lease between South Bruce Grey Health Centre :1 as Landlord and Tbe Corporation of the Municipality of Kincardine a8 Tenant. ! - . --..' ------ ~~ . ~::: r j 'I I I ~ (~ I - , " ~J. I .~ I t .;=, I 1<':' 1~'\ U), I J~ ~ '.' ;11 '11 I , \;;' "1 ?ti '7.!~ !i2 ¡l~- l..~ In :r. ! ¡;f ..-.n _ :u 1! fTI §I L _ .. I :U ,~ 0 . a ~ '" , I ., r ;~ i i I :" ~ I I, I h \I . . ~ I I I ; F: ; I ( <; i ~ ~ , .. . "- ,,--- -.... - - , " '~ ., " ~ ! ,,/ ',\. '" j I j/~;' l .' , , , ....,. .... ....,.. ..... ......., -- . 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