HomeMy WebLinkAboutCR 24-15 Ca% 00 : Report to
= Executive Committee Meeting
I KERI
Report Number: CR 24-15
Date: December 7, 2015
From: Marisa Carpino
Director, Culture & Recreation
Subject: Office Space
- Lease Agreement
- File: A-1100
Recommendation:
1. That the Mayor and City Clerk be authorized to execute the Lease Agreement
allowing the City of Pickering to lease office space from Emix Ltd. for a five year
and six month term, effective January 1, 2016 to June 30, 2021 with an option to
renew for an additional two five year terms, in the form included as Attachment 1,
subject to such revisions as are acceptable to the Director, Culture & Recreation
and the Director, Corporate Services & City Solicitor; and
2. That the appropriate City of Pickering officials be authorized to take the necessary
actions as indicated in this report.
Executive Summary: The City of Pickering has a Commercial Lease Agreement
with Transport Canada for the use of Bentley House as City staff offices. Bentley
House is approximately 2,090 square feet and features 4 enclosed offices, open space
for multiple workstations, reception area, kitchenette, photocopy/storage area, meeting
room and washroom. The Lease Agreement is for a three year term beginning August
1, 2011 with an option to extend for an additional two years. The extended term of the
agreement is set to expire on July 31, 2016 and staff have identified a need for a more
suitable and centrally located office facility.
As such, City staff have confirmed the availability of commercial office space located at
1101 Kingston Road in Pickering. The commercial office space, offered by Emix Ltd., is
2,853 square feet of rentable office space on the 2nd floor of a commercial office tower
and features 7 enclosed offices, open space for multiple workstations, meeting room,
reception area, photocopy area, kitchenette and storage room.
The purpose of the report is to seek Council's authorization to enter into the Lease
Agreement with Emix Ltd. for 1101 Kingston Road, Suite 280, in Pickering for a five
year and six month term effective January 1, 2016 to June 30, 2021, with an option to
extend for an additional two five year terms, as per attachment 1.
CR 24-15 December 7, 2015
Subject: Office Space
- Lease Agreement Page 2
Financial Implications: The annual City cost to operate at the Bentley House is
approximately $102,087 (including $24,000 in the 2015 Current Budget for facility
repairs). The City cost to operate at 1101 Kingston Road, Suite 280 in its first year of
full rent, is projected to be approximately $91,377. The chart below does not account
for staff productivity which is projected to improve at the 1101 Kingston Road, Pickering
office location.
Facility_and Relateid Costs Bentley'House 1101 Kingston Road,
(Full Year) Suite 280
(Full Year)
Direct Costs
Annual Lease at 1101 Kingston N/A $69,687*
Road
Annual Lease at Bentley House $27,631 N/A
Hydro $14,126 Included '
Water $500 Included
Telephone $5,451 $3,981
Network Access $12,813 ' $12,813
Fire Alarm & Security Monitoring $735 Included
Building Repairs/Maintenance $24,000 N/A
Misc. Equipment Repairs $1,500 N/A
Cleaning $6,489 $1,896
Sub-Total $93,245 $88,377
Indirect Costs
Travel $8,842 $3,000
Total $102,087 $91,377
* As per the attached agreement, the lease at 1101 Kingston Road (Suite 280) is based
on 2,853 of rentable square feet. "Basic Rent" is $10.00 plus HST per rentable square
feet for the first 18 months of the agreement and will increase by approximately 4.5%
beginning July 1, 2017 and annually thereafter. The "Additional Rent" is the
proportionate share of the Landlord's costs to operate, maintain and manage the
building, including hydro and water, is estimated to be $14.00 plus HST per rentable
square foot in 2016 but will be subject to inflationary increases.
CORP0227-07/01 revised
CR 24-15 December 7, 2015
Subject: Office Space
Lease Agreement Page 3
Culture & Recreation staff plan to occupy the office space at 1101 Kingston Road, Suite
280, in early July 2016. Occupancy cannot take place earlier because staff must
complete the planning of several corporate and community events scheduled in the first
half of 2016 (to include Artfest, Ribfest and Canada Day) before being available to
complete a move of staff offices. Additionally, staff require Council's approval of the
2016 Current Budget to incur the one-time expense to relocate offices. To reflect the
vacancy of these premises from January 1, 2016 to July 1, 2016, the Commercial Lease
Agreement with Emix Ltd. for 1101 Kingston Road, Suite 280, will be "Additional Rent-
free" for the first six months resulting in a savings of$19,971 in 2016.
Discussion: As per Council Resolution #69/11, the City of Pickering entered into
a Commercial Lease Agreement with Transport Canada for the use of Bentley House as
City staff offices for a three year term beginning August 1, 2011, with an option to renew
for an additional two years. The Bentley House is a heritage building dating back to
1853 of approximately 2,090 square feet located at 3590 Mowbray Street (formerly
known as Brock Road) in Brougham. The Bentley House is a two storey building
featuring four enclosed offices, open space for multiple workstations, reception area,
kitchenette, photocopy/storage area, meeting room and washrooms, and storage.
Since 2011, the Bentley House has been occupied by eight Culture & Recreation Staff
(primarily of the Cultural Services Section) and one City Development Staff (Supervisor,
Sustainability).
The extended term of the agreement is set to expire on July 31, 2016 and staff have
identified a need for a more suitable office facility located in downtown Pickering. The
use of the Bentley House as City staff offices has posed a number of challenges over
the years which include the following:
1. Inefficient use of staff time and considerable mileage expenditures in order for
staff to commute to City Hall on official business, as is required on a daily basis.
2. Inconvenient and inaccessible location to host community and/or public meetings
as is often required by the Cultural Services staff team when preparing for
community events. •
3. Inconsistent and unreliable internet access which impacts the work of the Culture
& Recreation staff who are responsible for the marketing and promotions of the
Cultural & Recreation Department, including social media initiatives.
4. Limited availability within the Bentley House for additional workstations rendering
the City unable to participate in grant or education programs that would
accommodate co-op students and/or interns.
CORP0227-07/01 revised
CR 24-15 December 7, 2015
Subject: Office Space
- Lease Agreement Page 4
5. Aging conditions of the heritage facility which, as per Article 10 of the existing
Commercial Lease Agreement with Transport Canada, the City would be
responsible to maintain and repair during the term of the agreement.
For these reasons, City staff have identified more suitable commercial office space
located at 1101 Kingston Road in Pickering. This particular commercial office space
(Suite 280) is offered by Emix Ltd. and features 2,853 of rentable office space on the 2nd
floor of the commercial office tower with 7 enclosed offices, open space for multiple
workstations, meeting room, reception area, photocopy area, kitchenette and storage
room. The Lease Agreement with Emix Ltd. is for a five year and six month term
effective January 1, 2016 to June 30, 2021, with an option to extend for an additional
two five year terms, as per Attachment 1. The lease can be terminated without penalty
by the Tenant with no less than 12 months written notice.
1101 Kingston Road, Suite 280, is considered more suitable for the Culture &
Recreation Department staff team and addresses the variety of issues present at the
Bentley House.
1. Staff Productivity and Mileage: 1101 Kingston Road, Suite 280, is less than two
kilometer from City Hall and the Pickering Recreation Complex and as such,
Y 9 p
reduces the time staff spend travelling to these municipal facilities as is required
to conduct official City business. This both reduces mileage expenditures and
increases staff productivity.
2. Location for Public Meetings: 1101 Kingston Road, Suite 280, is located in
downtown Pickering and is easily accessible to community associations,
advertisers and the general public with whom Culture & Recreation staff team
work. The facility is also fully accessible, which was not the case with the
Bentley House which featured a second floor accessible only by stairs.
3. Reliable Internet Service: The commercial lease features a hot spot on premises
providing for reliable internet service.
4. Ample & Suitable Workstations: 1101 Kingston Road, Suite 280, provides
sufficient office space for 13 work stations, allowing Culture & Recreation their
immediate need of 10 work stations and flex space to participate in grant, co-op
or intern programs and/or accommodate seasonal employees.
5. Facility Improvements: As per the Commercial Lease Agreement for this office
space in Attachment 1, the City is responsible to perform such maintenance,
repairs and replacements as required to keep the premises in good condition.
However, 1101 Kingston Road, Suite 280, is a relatively new construction posing
limited risk to the City in regards to facility repair and maintenance expenditures.
This is unlike the Bentley House which is a heritage building of over 160 years,
CORP0227-07/01 revised
CR 24-15 December 7, 2015
Subject: Office Space
- Lease Agreement Page 5
which poses a higher risk to the City in regards to facility maintenance and repair
expenditures (as per Article 10 of Attachment 2).
The purpose of the report is to seek Council's authorization to enter into the Lease
Agreement with Emix Ltd. for 1101 Kingston Road, Suite 280, in Pickering for a five
year term effective January 1, 2016 with an option to extend for an additional two five
year terms, as per Attachment 1.
Attachments:
1. Lease Agreement of 1101 Kingston Road (Suite 280), Pickering between Emix
Ltd. and the Corporation of the City of Pickering.
2. Lease Agreement of 3590 Brock Road, Pickering between the Government of
Canada and the Corporation of the City of Pickering.
3. Location Map.
Prepared/Approved/Endorsed By:
Marisa Carpino
• Director, Culture & Recreation
:mc
Recommended for the consideration
of Pickering City Council
X23, 20/.5
Tony Prevedel, P.Eng.
Chief Administrative Officer
CORP0227-07/01 revised
ATTACHMENT# I TO REPORT# CR 21-(
OFFER TO LEASE Page 1
Agreement made this 15th day of December 2015.
BETWEEN City of Pickering
(hereinafter referred to as the "Tenant")
AND: Emix Ltd.
(hereinafter referred to as the "Landlord")
LOCATION: 1101 Kingston Road, Pickering, Ontario
(hereinafter referred to as the "Building")
PREMISES: The Tenant hereby offers to lease 2,853 Rentable Square Feet of
space on the 2nd floor of the Building shown as Suite 280
(hereinafter referred to as the "Premises"). The approximate
location of said Premises is indicated on Schedule "A" of this Offer
to Lease.
TERM: The Term of the Lease (the "Term") shall be for a period of Five
(5) years and Six (6) months from January 1, 2016 (the
"Commencement Date") to June 30, 2021.
Notwithstanding any other provision of this Offer to Lease, the
Landlord shall not be deemed in default if it is unable to give
possession of the Premises on the date fixed for commencement
of the Term because repairs, improvements or decorations of the
Premises are not completed, or for any reason other than the
Landlord's wilful act or neglect. In such circumstances, the Rent
will not commence until possession of the Premises is given to the
Tenant or the Premises are available for fixturing by the Tenant,
and no failure to give possession of the Premises on the date fixed
for commencement of the Term shall in any way affect the validity
of the Lease or the obligations of the Tenant under the Lease or
the Terms or conditions of this Lease. The Landlord shall
diligently exercise its rights to obtain completion of the Premises
as soon as reasonably possible. There shall be no abatement of
Rent for any delay in occupancy due to the Tenant's failure to
complete all or any installations or other work required to be
completed by the Tenant in accordance with the provisions of this
Offer to Lease or required for the purpose of carrying on its
business operations in the Premises. The Tenant shall not be
entitled to any abatement of Rent where the Landlord's failure to
complete or deliver vacant possession of the Premises on the
Commencement Date is due to any act or omission on the part of
the Tenant. The decision of the Landlord's consultant shall be
final and binding on the parties hereto as to whether or not the
Premises are ready for occupancy by the Tenant, and as to the
extent to which any delay in completion.of the Premises or in the
delivery of vacant possession is due to any act or omission of the
Tenant or its agents, servants or contractors. The Tenant shall,
promptly on the request by the Landlord, execute an
acknowledgement of the date on which complete and vacant
possession of the Premises is delivered to the Tenant.
OFFER TO LEASE Page 2
BASIC RENT: The annual "Basic Rent" for the Premises shall be:
Months 1-18: $10.00 per square foot Rentable Area per annum
Months 19-30: $10.50 per square foot of Rentable Area
Months 31-42: $11.00 per square foot of Rentable Area
Months 43-54: $11.50 per square foot of Rentable Area
Months 55-66: $12.00 per square foot of Rentable Area
ADDITIONAL RENT: In addition to the Basic Rent above, the Tenant shall also pay, as
"Additional Rent", its proportionate share of the Landlord's cost of
operating, maintaining and managing the building, its
proportionate share of realty taxes and the cost of any additional
services or special expenses, all as more fully defined in the
Lease document, it being intended that the rent payable to the
Landlord shall be completely net. The Tenant acknowledges that
Additional Rent shall include a management fee of fifteen (15%)
percent of gross amounts received or receivable by Landlord in
respect of the Building for all items (exclusive of the said
management fee) as are included in the Lease as Additional Rent
and of Realty Taxes payable in accordance with the terms of the
Lease. The sum of Additional Rent including hydro and janitorial
for 2015 is estimated to be $14.00 per rentable square foot.
NET FREE RENT: Notwithstanding anything herein to the contrary, the Tenant shall
be entitled to occupy the Premises of a period of up to six months
on an Additional Rent-free basis for the period from January 1,
2016 to the earlier of (i) the date on which the Tenant's staff
begins to occupy the Premises and (ii) June 30, 2016 (the
"Additional Rent-Free Period") and the Tenant shall not be
responsible for Additional Rent during the Additional Rent-Free
Period but shall be responsible for payment of Basic Rent.
SIGNAGE: All signage on the Project is at the Landlord's complete and sole
discretion. The Landlord's consent must be in writing. The
Landlord shall install at the Landlord's expense, standard building
signage on the Directory Board in the lobby of the Building, and at
the entrance to the Premises.
USE: The Premises will be used solely for the purpose of standard office
for typical and normal City of Pickering administration and
operational uses.
LANDLORD'S WORK: The Tenant shall take possession of the premises on an "as is"
basis subject to the completion of Landlord's Work prior to the
Commencement Date as outlined in Schedule "B".
LEASE FORM: Within thirty (30) days of being called upon, and in any case prior
to occupancy or the Commencement Date the Tenant shall
execute a Lease based on the Landlord's standard form for the
OFFER TO LEASE. Page 3
Building containing the essential terms and conditions contained in
• this Offer and such other terms and conditions as may be
reasonably required for the purpose of Landlord to carry on its
business developing and operating the Building, subject to
reasonable changes requested by the Tenant's solicitor. The
parties acknowledge that all definitions, terms and provisions of
this Agreement shall be dealt with in greater detail in the Lease
and where there is any conflict between the non-financial terms of
this Agreement and the terms of the Lease, the latter shall
govern. If the Tenant fails to execute and deliver the Lease as
aforesaid, the Landlord is entitled to terminate this Offer and all of
the rights of the Tenant hereunder on written notice, without
prejudice to the Landlord's right to retain the Deposit and to claim
and prove a greater sum of damages or to avail itself of any other
remedies. If the Landlord, at its sole discretion, permits the
Tenant to open for business in the Leased Premises without the
prior execution and return of the Lease, the Tenant, in such case,
shall nevertheless be bound by all the terms, provisions and
covenants contained in the Lease as if the Tenant had executed
same.
SUB-LEASE: The Tenant will not assign this Offer to Lease or the Lease in
whole or in part nor sublet, part with or share possession of any
part of the Premises, not mortgage or encumber the Tenant's
interest in the Premises or any part thereof, nor suffer or permit
the occupation of all or any part thereof by others (all of the
foregoing being collectively referred to as the "Transfer" and a
Transfer shall include a transfer or issue by sale, assignment,
bequest, inheritance, operation of law or otherwise of any part or
all or the corporate shares of the Tenant so as to result in any
change in the present effective voting control of the Tenant)
without the prior written consent of the Landlord in each Instance,
which consent shall not be unreasonably withheld but which shall
in every case be subject to the provisions of the Lease.. The
Tenant acknowledges that the factors governing the granting of
the Landlord's consent to any Transfer may include, without
limitation, the restrictive clauses entered into with other tenants by
the Landlord, the financial background, business history and the
capability of the proposed Transferee in the Tenant's line of
business, and the nature of the business practices of the proposed
Transferee.
DEPOSIT: The Tenant shall submit with the signed Offer to Lease a cheque
in the amount of $13,947.78 to be held without interest as a
deposit for application by the Landlord as follows:
a) as to the first $6,447.78, to be held as a rental deposit and
to be applied against payment of the first month's Gross
Rent, inclusive of HST; and
b) as to the deposit amount $7,500.00 to be held as a security
deposit, exclusive of HST.
OFFER TO LEASE Page 4
In the event of an occurrence of an Event of Default before
application of any of the rental deposit or security deposit
(collectively, the "Deposits"), the Landlord may apply the Deposits
toward any costs the Landlord may incur on behalf of the Tenant •
and the Tenant shall forthwith pay to the Landlord the amount
necessary to restore such Deposits to the required amount. If this
Agreement and the Lease shall be terminated for any reason
involving the occurrence of an Event of Default before application
of any or all of the Deposits, the whole of the remaining Deposits
may be retained by the Landlord without limitation to any other
right or remedy. Nothing contained herein shall limit the Landlord's
right of action against the Tenant for such further or other
damages or remedies, either pursuant to the Lease or at law.
FACSIMILE
TRANSMISSION: Acceptance of this Offer or any Counter Offer may be made by
either party by fax reproducing the original with the necessary
signatures and initials.
PARKING: The Tenant and its employees, suppliers and customers having
business with the Tenant, shall park their cars only in those
portions of the parking area designated for that purpose by the
Landlord. The Landlord shall have the right to assign parking
spaces and to restrict the Tenant to the use of eleven (11) parking
spaces at no cost to the Tenant, during the term of the lease and
any renewals thereof.
INSURANCE: During the whole of the Term of the Lease any extension thereof,
the Tenant shall provide at its expense:
(a) Fire and extended coverage insurance on furniture,
fixtures, improvements and stock-in-trade to the amount of
the full insurable value, calculated on replacement cost;
•
(b) Plate glass insurance;
(c) Liability insurance not less than five million dollars
($5,000,000.00) per occurrence, with the Landlord added
as additional insured, and with a cross liability clause;
and as otherwise provided in the Lease.
NO REPRESENTATION: It is understood and agreed that there are no covenants,
representations, agreements, warranties or conditions in any way
relating to the subject matter of this Offer to Lease, whether
expressed or implied, collateral or otherwise, except those set
forth herein.
WAIVER: The parties to this Agreement acknowledge that it has been
recommended that they obtain advice from their legal counsel
prior to signing this document.
OFFER TO LEASE Page 5
GENERAL: a) Time shall be of the essence of this Offer to Lease and
each and every part thereof.
b) The agreement arising from acceptance of this Offer to
Lease shall be governed by and construed in accordance
with the laws of the Province of Ontario.
c) The agreement resulting from acceptance of this Offer to
Lease shall not be assigned by the Tenant without the
written consent of the Landlord, which consent shall not be
unreasonably withheld.
d) All schedules referred to in this Offer to Lease are •
annexed to and form a part of this Offer and shall form part
of this agreement or Lease constituted by the acceptance
of this Offer.
e) Goods and Services Tax (GST) or Harmonized Sales Tax
(HST)'shall be added to all monies payable pursuant to
this Offer to Lease.
• f) This Agreement or any notice thereof or any caution
indicating an interest in the lands shall not be registered
against any part of the lands comprising the Building or the
Premises by the Tenant or by anyone on its behalf.
OPTION TO RENEW Landlord covenants with Tenant that if Tenant duly and regularly
pays the rent and performs all of the covenants, provisos and
agreements on the part of Tenant to be paid and performed in the
Lease, and provided the Tenant is not then in default under the
terms of the Lease, Landlord, at the expiration of the Term, and
upon Tenant's written request, mailed by registered post, return
receipt requested, to, or delivered to, Landlord and received by
Landlord at least six (6) months prior to the expiration of the Term,
shall grant to Tenant a renewal of the Lease of the Premises on
an "as is" basis for two (2) further periods as follows:
i. The First Renewal Term shall be for a period of five (5) years;
ii. The Second Renewal Term shall be for a period of five (5) years;
with the First Renewal Term commencing upon the expiration of
the initial Term and the Second Renewal Term commencing upon
the expiration of the First Renewal Term on the same terms and
conditions as are contained in the Lease, save and except for:
(a) the Tenant shall not be entitled to the benefit of or to
receive any rent free period or any payments by the Landlord to
the Tenant as set out in the original Lease;
(b) the Basic Rent for the First Renewal Term shall be the
greater of (a) Basic Rent in the immediately preceding year of the
Term or(b) fair market rental rate ("FMRR") based on the
OFFER TO LEASE Page 6
prevailing market rental rates for similar space in a similar area at
the time of exercise by the Tenant of the first option to renew,
(c) The Basic Rent for the Second Renewal Term will be the
greater(a) Basic Rent in the immediately preceding year of the
First Renewal Term or(b) fair market rental rate ("FMRR") based
on the prevailing market rental rates for similar space in a similar
area at the time of exercise by the Tenant of the second option to
renew; and
(d) there shall be no further right of renewal or extension after
the Second Renewal Term.
If the parties are unable to agree as to FMRR, such renewal
rent shall be determined by arbitration using the ADR Chambers
Expedited Arbitration Rules. The parties agree that the ADR
Chambers Expedited Arbitration Rules give the parties a fair
opportunity to present their case and respond to the case of the
other side. The arbitration shall be held in Toronto and shall
proceed in accordance with the provisions of the Arbitration Act
(Ontario). Judgment upon the award rendered by the arbitrator
may be entered in any court having jurisdiction. It is agreed that
whether such FMRR is agreed upon or determined by arbitration,
such FMRR shall in no event provide for a Rent plus percentage
rent, if any, in an amount less than the Rent, for the last year of the
Term. Pending agreement of the parties as to, or as to the
determination by arbitration of the FMRR, Tenant shall continue to
pay the Rent for the last year of the Term or the First Renewal
Term, as the case may be, and upon agreement or determination
by arbitration as aforesaid shall commence to pay the FMRR
retroactive to the commencement of the applicable renewal term.
Any underpayments by the Tenant shall be adjusted retroactive to
the commencement of the applicable renewal term.
Notwithstanding the forgoing, the Tenant shall have an option (the
"Termination Option") to terminate the Lease on the following
terms and conditions:
(a) The Termination Option is exercised either during the First
Renewal Term or the Second Renewal Term;
(b) The Tenant gives the Landlord not less than 12 months
irrevocable written notice (the "Termination Notice") of its
exercising the Termination Option. Upon giving the Termination
Notice, and complying with the provisions of this paragraph, this
Lease shall terminate at 11:59 p.m. on the last day of the calendar
month in which the notice period expires (the last day of such
calendar month being called the "Termination Date";
If the Tenant so terminates this Lease, it shall, surrender this Lease,
and all the remainder of the Term of any, yet to come and
unexpired, as of the Termination Date and will, subject nevertheless
OFFER TO LEASE Page 7
to the provisions hereinbefore contained thereupon vacate the
Premises and yield up to the Landlord peaceable and vacant
possession thereof.
SUBORDINATION At the option of the Landlord, to be expressed in writing from time
to time, this Offer to Lease and the resulting Lease and the rights
of the Tenant are and shall be subject and subordinate to all
Mortgages and all renewals, modifications, consolidations,
replacements and extensions of them which may now or in future
affect the Premises or the Building in whole or in part
NOTICE: Any notice to be given under the terms of this Offer to Lease shall
be sufficiently given if delivered (by hand or courier) to the party for
whom it is intended. The addresses for notice are as follows:
LANDLORD:
1004 Eglinton Ave West
Toronto, ON M6C 2C5
Attention: Christian Hepfer
TENANT:
One The Esplanade
Pickering, ON L1V 6K7
Any of the parties may change its address for notice by written
notice to the other.
Any notice given as aforementioned shall be conclusively deemed
to have been given on the date on which it was delivered.
IRREVOCABLE: This Offer to Lease is irrevocable until 5:00 p.m. on the 25th day of
November 2015 after which if not accepted, it will become null and
void. Acceptance of this Offer to Lease will have occurred upon
both execution by both Landlord and Tenant
'TENANT: With authority, the undersigned hereby executes this Offer to
Lease:
DATED AT THIS DAY OF December, 2015.
SIGNED, SEALED & DELIVERED )
Witness ) Tenant's Signature
)
Please Print Name
OFFER TO LEASE Page 8
LANDLORD: DATED AT THIS DAY OF December, 2015.
SIGNED, SEALED & DELIVERED )
) Emix Ltd.
Witness ) Landlord's Signature
Please Print Name
SCHEDULE "A"
LOCATION OF PREMISES
,tons
I 2,853 sq ft
pow 'mow M 12'.9' 12'41" AK 1z -C• I♦ % '04 10'-0"
41 x 11'-fr 9'_10• 8-11'
9'-9' 1r x B T-11'_ x x
13%6" LI x 14%10' 13'-11"
. 16'-Z.
\ :$'
1T-11' M 241-5" M
i
1
SCHEDULE "B"
LANDLORD'S WORK
The Landlord will provide the Premises with the following items at its expense, all such work in
compliance with the Ontario Building Code applicable at the time the work is being carried out.
1. Paint throughout the Premises in a neutral colour.
2. Curved wall in back of Premises removed and flooring under such wall repaired.
3. Open office closed in with a door and wall to reasonably match the existing office glazed
wall detail.
ATTACHMENT# 2 TO REPORT# C_ 2-14 _ \ S
COMMERCIAL LEASE
3590 Brock Road
Bentley-Gibson House
Brougham, Ontario
HER MAJESTY THE QUEEN IN RIGHT OF
CANADA
AND
THE CORPORATION OF THE CITY OF
PICKERING
Page ii
ARTICLE I-DEFINITIONS AND INTERPRETATIONS 1
SECTION 1.01 DEFINITIONS 1
SECTION 1.02 EXTENDED MEANINGS 4
SECTION 1.03 ENTIRE AGREEMENT 4
SECTION 1.04 SCHEDULES 4
SECTION 1.05 LAW 4
SECTION 1.06 TIME OF THE ESSENCE 4
ARTICLE 2-GRANT 5
SECTION 2.01 GRANT 5
ARTICLE 3-USE 5
SECTION 3.01 USE 5
SECTION 3.02 NUISANCE 5
SECTION 3.03 SIGNAGE 5
ARTICLE 4-TERM 5
SECTION 4.01 TERM AND LANDLORD'S RIGHT TO TERMINATE 5
SECTION 4.02 SURRENDER OR TERMINATION 5
SECTION 4.03 REMOVAL OF MOVEABLE PROPERTY 6
SECTION 4.04 REMOVAL OF IMPROVEMENTS 6
SECTION 4.05 OBLIGATIONS SURVIVE EXPIRY,SURRENDER OR TERMINATION 6
SECTION 4.06 OVERHOLDING 7
SECTION 4.07 OPTION TO EXTEND 7
ARTICLE 5-QUIET ENJOYMENT 8
SECTION 5.01 QUIET ENJOYMENT 8
ARTICLE 6-NET LEASE 8
SECTION 6.01 NET LEASE 8
ARTICLE 7-RENT 9
SECTION 7.01 GENERAL PROVISIONS 9
SECTION 7.02 RENT 9
SECTION 7.03 MANNER OF PAYMENT 9
SECTION 7.04 INTEREST ON ARREARS OF RENT 10
ARTICLE S-TAXES 10
SECTION 8.01 PAYMENTS IN LIEU OF REAL PROPERTY TAXES 10
SECTION 8.02 OTHER TAXES 10
SECTION 8.03 HARMONIZED SALES TAX 10
ARTICLE 9-UTILITIES 11
SECTION 9.01 LANDLORD NOT OBLIGATED 11
SECTION 9.02 TENANT TO PAY FOR UTI MES 11
SECTION 9.03 SUSPENSION OF UTILITIES 11
ARTICLE 9A-DRINKING WATER QUALITY 11
SECTION 9A.01 COMPLIANCE WITH DRINKING WATER QUALITY LAWS 11
SECTION 9A.02 COPIES OF REPORTS 12
SECTION 9A.03 TERMINATION FOR DEFAULT 12
SECTION 9A.04 ACKNOWLEDGMENT OF SHARED WELL 12
ARTICLE 10-MAINTENANCE AND REPAIRS 13
SECTION 10.01 LANDLORD NOT OBLIGATED 13
SECTION 10.02 TENANT'S OBLIGATIONS 13
SECTION 10.03 REPAIR BY LANDLORD 13
SECTION 10.04 RESERVATIONS BY LANDLORD 13
ARTICLE 11-ALTERATIONS 14
SECTION 11.01 ALTERATIONS 14
SECTION 11.02 CONTRACT SECURITY 15
ARTICLE 12-INSURANCE 16
SECTION 12.01 INSURANCE 16
ARTICLE 13-DAMAGE AND DESTRUCTION 17
SECTION 13.01 PROPERTY INSURANCE 17
ARTICLE 14-LIABILITY,RELEASE AND INDEMNITY 18
Page iii
SECTION 14.01 LANDLORD NOT RESPONSIBLE 18
SECTION 14.02 RELEASE AND INDEMNITY 19
SECTION 14.03 TENANT TO DEFEND ACTION 20
ARTICLE 15—LAWS AND CONTROL 20
SECTION 15.01 COMPLIANCE WITH ALL LAWS 20
SECTION 15.02 COPIES OF REPORTS 20
SECTION 15.03 TERMINATION FOR DEFAULT 20
ARTICLE 16-ENVIRONMENT 21
SECTION 16.01 COMPLIANCE WITH ENVIRONMENTAL LAWS - 21
SECTION 16.02 LANDLORD'S RIGHT TO ENVIRONMENTAL ASSESSMENT 22
' SECTION 16.03 TENANT TO PERFORM 22
SECTION 16.04 LANDLORD MAY PERFORM 22
SECTION 16.05 OWNERSHIP OF DELETERIOUS SUBSTANCES 22
SECTION 16.06 BOND FOR DELETERIOUS SUBSTANCES 23
ARTICLE 17-DEFAULT 23
SECTION 17.01 TENANT'S DEFAULT 23
SECTION 17.02 LANDLORD'S RIGHTS 24
SECTION 17.03 REMEDIES NOT EXCLUSIVE 26
ARTICLE 18-FORCE MAJEURE 26 •
SECTION 18.01 FORCE MAJEURE 26
ARTICLE 19-ASSIGNMENT AND SUBLETTING 26
SECTION 19.01 PROHIBITION AGAINST ASSIGNMENT OR SUBLETTING 26
SECTION 19.02 ASSIGNMENT BY LANDLORD 27
ARTICLE 20-SUCCESSORS AND ASSIGNS 27
SECTION 20.01 BINDING ON SUCCESSORS 27
ARTICLE 21-ADDITIONAL PROVISIONS 27
SECTION 21.01 ADDITIONAL RIGHTS OF LANDLORD 27
SECTION 21.02 NOTICES 28
SECTION 21.03 AMENDMENTS 28
SECTION 21.04 NO PARTNERSHIP OR JOINT VENTURE 28
SECTION 21.05 MEMBERS OF HOUSE OF COMMONS NOT TO BENEFIT 28
SECTION 21.06 WAIVER 29
SECTION 21.07 FURTHER ASSURANCES 29
SECTION 21.08 REGISTRATION 29
SECTION 21.09 BRIBES 29
SECTION 21.10 DISPUTE RESOLUTION 29
SECTION 21.11 PARKING AND MAINTENANCE OF PREMISES 29
Schedule"A"Description of Land
Schedule"B"Plan of Site(Showing all Existing Improvements)
THIS LEASE made as of the day of ,2011.
BETWEEN:
HER MAJESTY THE QUEEN IN RIGHT OF CANADA,represented
by the Minister of Transport,Infrastructure and Communities(the
"Landlord")
OF THE FIRST PART
AND:
THE CORPORATION OF THE CITY OF PICKERING,a municipal
corporation incorporated pursuant to the laws of the Province of Ontario
(the"Tenant")
OF THE SECOND PART
WHEREAS the Premises are part of lands expropriated by Her Majesty for the purpose of
an airport;
AND WHEREAS it is deemed expedient that the Premises be leased for so long as they
are not required for public purposes;
THIS AGREEMENT WITNESSES that, in consideration of the Premises, the mutual
covenants and agreements herein contained and subject to the terms and conditions
hereinafter set out,the parties hereto agree as follows:
ARTICLE I-DEFINITIONS AND INTERPRETATIONS
Section 1.01 Definitions
When used in this Lease,unless the context otherwise requires,the following expressions
have the meaning hereinafter set forth.
"Additional Improvement" means any structure, fixed equipment or fixed
machinery constructed on or affixed to the Land after the Date of Commencement
and includes any alteration or replacement of any such Additional Improvement.
"Additional Rent"means any sum of money or charge required to be paid by the
Tenant under this Lease,other than Rent.
"Architect"means a person who is appointed by,but who is at arm's length with,
the Tenant and is as an architect in the Jurisdiction.
"Business Day"means a day other than a Saturday,Sunday or statutory holiday in
the Jurisdiction.
"Claims" means any claims, proceedings, actions, judgments, executions and
liabilities.
"Costs"means all expenses,losses,charges and payments relating to an event and
includes any professional,consultant and legal fees(on a"solicitor/client"basis).
"Damage"means any loss of or damage to property and includes loss of profits or
revenue;or loss of tenants,lenders,investors or patrons,direct,indirect,incidental,
special,exemplary or consequential damage,interference with business operations,
inability to use any part of the Premises,and Costs.
"Date of Commencement"means the 1st day of August,2011.
Page 2
"Deleterious Substance" means any substance which is deleterious or hazardous
to persons;animals,fish,plants,property,soil,water or the environment,including
pesticides and herbicides.
"Engineer"means a person who is appointed by,but who is at arm's length from
the Tenant and is licensed to practice public engineering in the Jurisdiction.
"Event of Bankruptcy"means,with respect to a Person,
(a) whenever any resolution or action is taken or consented to in
respect of its liquidation,dissolution or winding-up,whether by extra-
judicial means or under any statute of any applicable jurisdiction,or an
assignment is made for the benefit of its creditors or an assignment in
bankruptcy is filed under the Bankruptcy and Insolvency Act(Canada)
or any successor legislation or any comparable statute of any applicable
jurisdiction, or any resolution or action is consented to or taken in
respect of a proposal for any reorganization,arrangement,or extension
of time in respect of any of its debts or obligations,whether by extra-
judicial means or under the Bankruptcy and Insolvency Act(Canada)or
the Companies' Creditors Arrangement Act(Canada)or any successor
legislation or any comparable statute of any applicable jurisdiction;
(b) whenever a trustee, receiver or agent for a secured creditor, or
other Person with similar powers is appointed for any substantial
portion of its properties or assets, whether by a court or by extra-
judicial means;or
(c)whenever a petition or other legal process in respect of its
bankruptcy, insolvency, liquidation, dissolution or winding-up is filed •
against it,unless the same is dismissed or discharged within sixty(60)
days.
"Existing Improvement"means any structure,fixture,fixed equipment and fixed
machinery constructed on or affixed to the Land on the Date of Commencement
and includes any alteration or replacement of such Existing Improvement.
"Force Majeure"means a strike,lockout,riot,insurrection,war,fire,tempest,Act
of God or lack of material causing a delay,notwithstanding the best efforts of the
party delayed,in the performance of any obligation under this Lease.
"HST"has the meaning ascribed in Section 8.03.01.
"Injury" means any personal injury including any personal discomfort, libel,
slander, invasion of privacy, discrimination,wrongful entry and eviction,and any
bodily injury including death resulting therefrom and whether the death occurs
before or after the end of the Term.
"Interest Rate" means, during any part of a Lease Year, the Bank of Canada
prime rate applicable on the date of default plus two percent(2%).
"Jurisdiction"means the Province of Ontario.
"Land(s)"means the land described in Schedule"A".
"Law(s)" means law, regulation, order, decision, policy, directive or rule, and
similar enactments and statements, and shall be read, where applicable, as being
"relevant as made or amended from time to time".
"Lease Year" means a twelve-month period commencing on April 1 and ending
on March 31.
•
Page 3
"Leasehold Improvements"means all equipment installed and alterations made
by the Tenant or any Occupant which serve the Premises whether or not easily
disconnected or moveable,and includes production equipment,service equipment,
all ceiling and wall fixtures and floor covering,but does not include trade fixtures.
"Leasehold Interest" means the right, title and interest of the Tenant in the
Premises.
"Minister"means the Minister of Transport,Infrastructure and Communities and
includes any of the following:
(a) a Person acting for;or if the office vacant,in place of,the Minister
of Transport,Infrastructure and Communities
(b) his successors in office,
(c) and his lawful deputy.
"Moveable Property"means chattels,goods,supplies and materials.
"Net Rent"means the Rent payable by the Tenant pursuant to Section 7.02.
"Other Taxes" means any tax or other charge including any fines or cost which
are imposed against the Premises including local improvement charges and
development charges and water, snow and sewer rates of every kind whatsoever
that are imposed from time to time by any taxing authority save and except Real
Property Taxes.
"Person(s)" means any individual, sole proprietorship, partnership, corporation,
trust or government authority,howsoever designated.
"Premises" means the Land, all Existing Improvements, all Additional
Improvements,and all Utilities serving the premises.
"Real Property Taxes" means all taxes and assessments (excluding local
improvement charges and development charges and water, snow and sewer taxes
and rates), of every kind whatsoever that are imposed from time to time by any
taxing authority, whether federal, provincial, municipal, school or otherwise or
which would have been so imposed but for any attribute of the Landlord which
resulted in an exemption or partial exemption therefrom against:
(a) the Premises;and
(b) includes any taxes or other amounts, which are imposed instead
of,or in lieu of,or in addition to,any such taxes and assessments.
"Rent"means all Net Rent and Additional Rent collectively.
"Replacement Costs of the Improvements" means the costs to replace the
Existing, Additional and Leasehold Improvements to the condition immediately
prior to the happening of an event of damage or destruction.
"Subject Property" means the Land and all Existing Improvements as shown in
Schedule"B".
"Term"has the meaning ascribed to it in Section 4.01.01.
"Utility(ies)" means utilities and services, and all related systems, facilities and
equipment.
Page 4
"Work" means all material and services furnished or performed pursuant to this
Lease including all the maintenance, repair, alterations acid replacement of all
Existing Improvements,Additional Improvements and Leasehold Improvements.
Section 1.02 Extended Meanings
1.02.01 Where this Lease provides that the Tenant shall "ensure" a covenant or
obligation of an Occupant, Transferee or Leasehold Mortgagee
("Transferee") or provides that the Tenant agrees to a specific matter on
behalf of a Transferee,the obligation of the Tenant shall be deemed to have
been performed if the Tenant has obtained from such transferee an
agreement no less stringent,and in the event of a breach of such agreement
by the Transferee, the Tenant has used diligent efforts to enforce such
agreement,including the prosecution of legal proceedings.
1.02.02 In this Lease "includes" means "includes without limitation" and each
obligation or agreement of either party is considered a"covenant", and all
references in this Lease to laws, policies, schedules, manuals, directives,
specifications and similar enactments and statements shall be read, where
applicable, as being"relevant as replaced or amended from time to time",
and,with regard to the Premises and the Land,"in"shall be read as"on",
"in","over","under',"through"or"across".
1.02.03 Words importing the singular number include the plural number and vice
versa and words importing gender include the masculine, feminine and
neuter genders.
1.02.04 If the day on which any act or payment is required to be done or made under
the terms of this Lease is a day which is not a Business Day,then such act
or payment is duly done or made if done or made on the next following
Business Day.
Section 1.03 Entire Agreement
This Lease constitutes the entire agreement between the Landlord and the
Tenant and supersedes and revokes all previous arrangements, including
pre-contractual representations, if any,whether oral or in writing, between
the parties hereto.
Section.1.04 Schedules
The following Schedules are attached to and from part of the Lease:
Schedule"A"Description of Land.
Schedule`B"Plan of Site(showing all Existing Improvements)
Section 1.05 Law
This Lease shall be interpreted in accordance with the laws in force in the
Jurisdiction,subject,so long as Her Majesty is the Landlord,to any Federal
Crown prerogative and any paramount or applicable federal law.
Section 1.06 Time of the Essence
Time is of the essence of this Lease except as otherwise expressly provided
herein.
•
•
•
Page 5
• ARTICLE 2-GRANT •
Section 2.01 Grant •
In consideration of the rents,covenants and agreements herein contained on
the part of the Tenant to be paid, observed and performed. the Landlord
leases to the Tenant.and the Tenant leases from the Landlord,the Premises
in"as is"condition Iirr the Term.
•
ARTICLE 3-USE
•
Section 3.01 Use
•
The Tenant shall use the Premises for municipal office use and for no other
purpose whatsoever and shall comply with all Laws in such use.The Tenant
• agrees that it has examined the Premises and is familiar with the condition
and permitted use thereof. The Tenant acknowledges that the Premises
have been designated as a Federal Heritage Building by the Federal
Heritage Building Review Office.
•
Section 3.02 Nuisance
The Tenant shall not do.suffer or permit to be done any act or thing on the
Premises which constitutes a nuisance to any Person on any lands or
premises or to the public generally.
Section 3.03 Signage
The Tenant shall not. on or after the Date of Commencement. construct,
erect, place or install on the outside of or on the Premises any new or
• additional poster, advertising sign or display. electrical or otherwise.
without first obtaining the consent, in writing, of the Landlord. which
consent shall not be unreasonably withheld. Only free-standing piton
signage will be approved by the Landlord.Signage attached to the building
will not be approved.
ARTICLE 4-TERM
•
Section 4.01 Term and Right to Terminate •
•
4.01.01 The term of this Lease shall he for a Three Year period ('''f ertn-l. 1 he
Term commences on August 1st,2011 and terminates on.luly 31''".2014.
4.01.02 Either Party may terminate this Lease at any time during the cun-ency of the •
Lease and any extension thereof, for any reason, by giving the other Party
one year notice in writing.
Section 4.112 Surrender or Termination
4.02.01 On expiry of the Term or any period of overholding. or on surrender or
sooner determination of this Lease, the Tenant shall surrender and deliver
up to the landlord vacant possession of the Premises in the state of good
order. condition and repair in which, by this lease. the Tenant has
covenanted to keep them during'the Term, and tree and clear of all
mortgages.charges or encumbrances created by the Tenant or its assignees,
and of all Deleterious Substances. and all rights of the Tenant under this
Lease shall then terminate.
•
•
•
•
Page 6
Section 4.03 Removal of Moveable Property
4.03.01 Except as otherwise provided in this Lease,the Tenant shall,on expiry of
the Term or any period of overholding, or on surrender or sooner
determination of this Lease, forthwith remove from the Premises all
Moveable Property and,shall also,to the satisfaction of the Landlord,repair
all damage to the Premises by reason of the installation or removal thereof,
without compensation. Unless the Landlord so requests, no Moveable
Property shall be so removed until all Rent due or to become due under this
Lease is fully paid. The Tenant hereby agrees that if it fails to effect such
removal forthwith, that the said Moveable Property shall be deemed
abandoned and worthless, and that the Landlord may, in Her absolute and
unfettered discretion immediately dispose of the Moveable Property in any
manner She sees fit,all without service of notice by the Landlord or resort
by Her to any legal process, and without Her being considered guilty of
trespass or becoming liable for any loss or Damage. The Tenant further
agrees to indemnify the Landlord for all expenses incurred by Her, in
effecting such removal, and in returning the Premises to a state of good
order,condition and repair.
Section 4.04 Removal of Improvements
4.04.01 Subject to Section 16.05, all Existing Improvements, Additional
Improvements and Utilities shall be fixtures to the Premises and shall
become the absolute property of the Landlord on the expiry of the Term or
any period of overholding, or on the surrender or early termination of this
Lease,without any compensation to the Tenant.
4.04.02 Subject to Section 16.05,all Leasehold Improvements which are fixtures to
the Premises shall become the absolute property of the Landlord on the
expiry of the Term or any period of overholding, or on the surrender or
early termination of this Lease,without any compensation to the Tenant.
4.04.03 At any time prior to expiry of the Term or expiry of any period of
overholding or sooner determination of this Lease,or within six(6)months
after such expiry or sooner determination, the Landlord may notify the
Tenant in writing that the whole or any part of any Additional Improvement
or any Leasehold Improvement", (the"Improvements")must be removed,
in which event,removal will occur:
(a) within(10)ten days of such notification where the Improvements are
deemed by the Landlord to pose a safety or environmental concern,or
(b) prior to expiry of this Lease if the Landlord's notice is received prior
to such the expiry,or
(c) within thirty(30)days of such notification,if the Landlord's notice is
received on or after such expiry,or
(d) within thirty (30) days of such notification or in the event of any
overholding,the Tenant shall,at its own cost,in the case of any
Improvements,remove any such improvement and repair any damage
made in constructing,erecting or removing it and leave the area upon
which had stood in a similar condition to which existed prior to its
erection, installation or construction and in a clean, neat and tidy
condition to the satisfaction of the Landlord.
Section 4.05 Obligations Survive Expiry,Surrender or Termination
4.05.01 Notwithstanding the expiry, surrender or termination of this Lease in any
manner,
•
Page 7
(a) the Tenant remains liable to the Landlord for any loss or damage
suffered by the Landlord arising from this Lease,and
(b) the obligations of the Tenant
(i) to indemnify and save harmless the Landlord with respect to
liability by reason of any matter arising prior to the expiry,surrender or
termination of this Lease,and
(ii) to respect the rights of the Landlord contemplated in Articles 16
and 17 and Sections 4.03 and 4.04, shall, notwithstanding any
other provision of this Lease or any Law now or hereafter in
force, continue in full force and effect until discharged whether
before or after the expiry,surrender or termination of this Lease.
Section 4.06 Overholding
4.06.01 if the Tenant remains in possession of the Premises after the expiry of the
Term or any extension thereof,whether with or without the consent of the
Landlord,there shall be no tacit renewal or extension of this Lease.In this
event, notwithstanding any statutory provision or legal presumption to the
contrary, the Tenant shall be deemed exclusively to be occupying the
Premises as a tenant at will, on the same terms as set forth in this Lease
(including the payment of Rent),except that the monthly Net Rent shall be
an amount equal to the aggregate of
•
(a) one hundred and fifty percent(150%)of the Rent payable for the last
month of the Term,and
(b) Additional Rent for the current month,where applicable.
4.06.02 The Tenant shall promptly indemnify and save harmless the Landlord from
and against any and all Costs incurred by Her as a result of the Tenant
remaining in possession of the Premises after the expiry of the Term and the
Tenant shall not make any counterclaim,against the Landlord.
Section 4.07 Option to Extend
4.07.01 Subject to the provisions of this Lease, if the Tenant pays for Rent and
other sums herein provided when due, and punctually observes and
performs all of the covenants,terms and conditions hereunder,and provided
that the Tenant has given notice to the Landlord of its intention to exercise
its Option to Extend not less that one year prior to expiration of the initial
Term (or the extended Term as the case may be), the Landlord hereby
grants the Tenant the right to extend the Term of this Lease for one further
and consecutive period of two years commencing upon expiration of the
initial Term pursuant to the terms and conditions contained in this Lease,
provided that:
(a) the Tenant shall not be entitled to any improvement allowance or any
payment, inducement, from the Landlord as a result of the Tenant
exercising its Option to Extend;and
(b) the Net Rent for the first extension period shall be the figures set out
in subsection 7.02.04 of this lease,and for any subsequent extension
periods,shall be the then prevailing fair market rent for similar lands
located in Brougham,Ontario at the time the Tenant shall exercise its
Options to Extend;and
(c) the Premises are leased for the extension period,in"as is"condition
as of the last day of the initial Term;and
(d) the Tenant is The Corporation of the City of Pickering and is in
possession and is conducing its business in the whole of the Premises
for the whole of the initial Term (or extended Term as the case may
he).in accordance with the provisions ol'this Lease;and
te) • if the Tenant shall tail to serve the Landlord required notice within
the time limit set out herein for extending the initial Term (or the
•
extended Term as the case may be). then this Option to Extend shall
he null and void and of no further effect;and•
• (t) if the'Tenant shall serve the Landlord required notice within the time •
limit set out•herein .fi>r extending the initial Term (or the extended
Term as the case may be),then the Tenant shall forthwith execute all
documentation related to the extension of the l..ease.
ARTICLE 5-QUiET ENJOYMENT
•
Section 5.01 Quiet Enjoyment •
•
5.01.01 Subject to the other provisions of this [.ease. if the Tenant pays the Rent
and other sums herein provided when due, and punctually observes and •
performs all of the covenants. tems and conditions hereunder. the Tenant
• shall peaceably and quietly hold and enjoy the Premises for the 'Tenn
without hindrance or interruption by the Landlord or any other.Person
lawfully claiming under the Landlord.
•
•
ARTICLE 6-NET LEASE
•
Section 6.01 Net Lease •
6.01.01 The Tenant agrees that the Premises are leased in an"as is condition and
this Lease shall be an absolutely net lease to the Landlord except as
. expressly herein set out.The Tenant shall pay all charges and expenses of
every kind. extraordinary as well as ordinary and foreseen as well as
unforeseen.relating to:
(a) its use and its occupancy of the Premises and its contents:
(h) the business carried on therein,and
(c) the carrying out of any construction or maintenance and the making of
• any alterations or repairs in the Premises by or for the Tenant during
• the'term or any extension thereof.
•
6.01.02 Notwithstanding s.6.01.01.the Landlord shall he responsible tor:
(a) all structural and roof maintenance and repairs. save and except
structural and roof repairs and maintenance resulting from the
negligence or willful misconduct of the Tenant, its occupants.
employees or invitees and
•
(h) replacement of the HVAC systems,save and except where replacement
•
is required as a result of negligence or willful misconduct of the
'tenant. its occupants. employees or invitees. Ongoing maintenance
• and repairs of the 1-11.VAC., system shall be the sole responsibility of'the
Tenant.
• 6.01.03 The Tenant acknowledges that any amount and•any obligation with respect
to the Premises which is not expressly declared in this Lease to'be the
responsibility of the Landlord shall be the responsibility of the Tenant to be
paid or performed in accordance with the terms of this Lease.
•
•
•
•
•
Page 9
ARTICLE 7-RENT
Section 7.01 General Provisions
7.01.01 The Tenant covenants that it shall, during the Term or any extension
thereof, pay to the Landlord Rent in accordance with the terms of this
Lease.
Section 7.02 Rent
7.02.01 For Lease Year One:
Tenant shall pay Net Rent in the amount of$24,000.00 plus HST for the
period commencing August 1St,2011,and ending July 31St,2012 such Net
Rent payable in advance on the first day of each and every month in equal
monthly installments of$2,000.00 plus HST.
7.02.02 For Lease Year Two:
Tenant shall pay Net Rent in the amount of$24,600.00 plus HST for the
period commencing August 15t,2012,and ending July 31St,2013 such Net
Rent payable in advance on the first day of each and every month in equal
monthly installments of$2,050.00 plus HST.
7.02.03 For Lease Year Three:
Tenant shall pay Net Rent in the amount of$25,215.00 plus HST for the
period commencing August 1St,2013,and ending July 31St,2014 such Net
Rent payable in advance on the first day of each and every month in equal
monthly installments of$2,101.25 plus HST.
7.02.04 In the event the Tenant exercises its Option to Extend pursuant to s.4.07,
(a)For Lease Year One of the first extension period:
Tenant shall pay Net Rent in the amount of$25,845.00 plus HST for the
period commencing August 1St,2014,and ending July 31st,2015 such Net
Rent payable in advance on the first day of each and every month in equal
monthly installments of$2,153.75 plus HST.
(b)For Lease Year Two of the first extension period:
Tenant shall pay Net Rent in the amount of$26,491.00 plus HST for the
period commencing August 1St,2015,and ending July 31st,2016 such Net
Rent payable in advance on the first day of each and every month in equal
monthly installments of$2,207.58 plus HST.
Section 7.03 Manner of Payment
7.03.01 The Tenant shall pay all Rent and Additional Rent when due,without any
prior demand therefore and without any set-off or alteration whatsoever,
and the Tenant hereby waives the benefit of any statutory or other right in
respect of any Claims, such payment to be made to the Receiver General
for Canada at:
Transport Canada—Pickering Lands Branch
4900 Yonge Street
Suite 300,
North York,Ontario
M2N 6A5
7.03.02 Any payment by the Tenant of any Rent,Net Rent,Additional Rent or an
amount less than the monthly payment of Net Rent or Additional Rent,
shall be credited to the earliest of any arrears of Rent.
Section 7.04 Interest on Arrears of Rent
7.04.01 If the Tenant fails to pay any amount of Rent on the date on which it
becomes due and payable,the Tenant shall pay interest at the Interest Rate
on any such amount, calculated from the date the Tenant was required to
pay such amount to the date all arrears are paid. Such interest shall be
deemed to be part of the Rent reserved in this Lease and the remedies
available to the Landlord relating to Rent herein and at law shall apply
mutatis mutandis thereto.
7.04.02 The Interest Rate applicable to any amount on which the Tenant is paying
interest shall be the rate in effect at the close of business on the last
Business Day of the previous month.
7.04.03 All interest shall be compounded monthly and shall apply retroactively
from the date it is due.
7.04.04 In the event of non-sufficient funds or the Bank refusing to process the
Landlord's request for payment for any other reason, the Tenant shall
immediately issue a certified cheque which shall include any interest at the
Interest Rate and an administrative charge to be set in accordance with the
Landlord's current policy.
ARTICLE 8-TAXES
Section 8.01 Payments in Lieu of Real Property Taxes
8.01.01 The Landlord shall not be required to make any Payments in Lieu of Real
Property Taxes or any charges imposed in lieu thereof including any fine,
interest and cost related thereto during the Term of this Lease or any
extension thereof.
Section 8.02 Other Taxes
8.02.01 The Tenant shall, on or before their due date,pay to the taxing authorities
and shall discharge when they become due and payable:
(a) any Other Tax or charge imposed in lieu thereof and other charges
including any fines and costs which are imposed against or in
respect of any Leasehold Improvement, trade fixtures or personal
property in the Premises,and
(b) any tax and license fee including any cost related thereto which is
imposed against any business or undertaking carried on in the
Premises or in respect of any use or occupancy thereof:
whether any such tax,other charge or license fee is imposed by any federal,
provincial,municipal,school or other authority.
Section 8.03 Harmonized Sales Tax
8.03.01 The Tenant shall pay an amount equal to any and all taxes, rates, levies,
fees,charges and assessments whatsoever,whether or not in existence at the
Date of Commencement,assessed,charged,imposed,levied or rated by any
taxing authority whether federal, provincial, municipal or otherwise, on or
against the Landlord or the Tenant,with respect to the Rent payable by the
Tenant to the Landlord under this Lease or the rental of space under this
Page 11
Lease or the, provision or supply of any goods, services or utilities
whatsoever by the Landlord to the Tenant under this Lease, whether any
such tax,rate,duty,levy,fee,charge or assessments called or characterized
as a sales, use, consumption, value-added, business transferor goods and
services tax or otherwise(collectively,"HST").If the applicable legislation
requires that any HST is to be collected by the Landlord,the amount of the
HST so payable by the Tenant shall be calculated by the Landlord in
accordance with the applicable legislation and shall be paid by the Tenant
to the Landlord at the same time as the Minimum Rent is payable or at such
other time or times as the applicable legislation may from time to time
require. Despite any other provision of this Lease, the amount or amounts
from time to time payable by the Tenant under this Section 8.03 shall be
deemed not to be consideration for the supply of space under this Lease,but
shall be considered to be Rent for the purposes of the Landlord's rights and
remedies for non-payment and recovery of any such amounts.
ARTICLE 9-UTILITIES
Section 9.01 Landlord Not Obligated
9.01.01 The Landlord shall not be obligated to furnish to the Premises any Utilities
or to pay for their consumption.
Section 9.02 Tenant to Pay for Utilities
9.02.01 The Tenant shall, at its cost,be solely responsible for the installation and
maintenance of and for alteration to any connecting system to all utilities
including,when supplied,the Landlord's water, sanitary sewage and storm
sewage,to the point of connection designated by the Landlord.
9.02.02 The Tenant shall pay when due,all charges for all utilities consumed on or
supplied to the Premises and shall indemnify the Landlord against any
liability or damages pertaining thereto.
Section 9.03 Suspension of Utilities
9.03.01 The Tenant shall not make any Claims or bring any action against the
Landlord,and the Tenant hereby releases the,Landlord from any Claims for
any Injury or any Damage by reason of any interruption,in whole or in part,
from whatever cause arising in the supply of any utilities serving the
Premises,whether supplied by the Landlord or by others.
ARTICLE 9A—DRINKING WATER QUALITY
Section 9A.01 Compliance with Drinking Water Quality Laws
9A.01.01 The Tenant shall,at its own cost,comply with all Laws and codes relating
to drinking water quality matters, specifically including but not limited to
the Safe Drinking Water Act and Ontario's Health Protection and
Promotion Act, as amended, and any Regulations promulgated pursuant
thereto and shall assume all responsibilities of"occupier" or`operator"as
defined in the aforementioned Acts with respect to all water distribution
systems located on the Premises.
9A.01.02 The Tenant shall immediately give written notice to the Landlord of the
occurrence of any event on the Premises in violation of any Law relating to
drinking water and in such event at its own expense promptly correct any
deficiency which is not in conformity and compliance with all Laws or •
• from an independent consultant approved by the Landlord, verifying the
complete and proper compliance with the requirements of all Laws or codes
or,if such is not the case,reporting as to the extent and nature of any failure
to comply with the foregoing provision.
9A.01.03 The Tenant shall provide and maintain a potable water supply to the
Premises at its sole cost.
9A.01.04 The Landlord may, at any time, enter the Premises to determine the
Tenant's compliance with all Laws and codes relating to drinking water
quality matters and for such purpose the Landlord may carry out any tests
on the Premises. If any such inspection or testing by the Landlord reveals
non-compliance, the Tenant shall in addition to its other obligations,
forthwith on demand,pay to the Landlord the full cost of such inspection or
tests as Additional Rent.
Section 9A.02 Copies of Reports
9A.02.01 The Tenant shall provide the Landlord with copies of:
(a) every test result obtained in respect of the test required in compliance
with all Laws or codes;
(b) copies of annual reports required to be sent to the Ministry of the
Environment, the Ministry of Health and Long-Term Care and/or any
Regional Health Inspection Offices and;
(c) all correspondence between the Tenant and the Ministry of the
Environment, the Ministry of Health and Long-Term Care and/or any
Regional Health Inspection Offices with respect to compliance with
applicable Laws or codes.
Section 9A.03 Termination for Default
9A.03.01 Notwithstanding any other provision of this Lease, the Landlord may
terminate this Lease if the Tenant fails to rectify or commence diligently to
rectify (and thereafter proceed diligently to rectify) any breach of Section
9A.01 within forty-eight(48)hours after written notice by the Landlord to
the Tenant.
Section 9A.04 Acknowledgment of Shared Well
9A.04.01 The Tenant acknowledges that the Premises receive water from the Jolly
Well and that this well services various other residential users. The Tenant
shall ensure that its use of the Jolly Well does not interfere with the use of
other users and shall adjust its use in accordance with the Landlord's
written request. Notwithstanding any other provision of this Lease, the
Landlord may terminate this Lease if the Tenant fails to rectify or
commence diligently to rectify and thereafter proceed diligently to rectify
any breach of this section 9A.04.01 within forty-eight (48) hours after
receiving written notice from the Landlord.
9A.04.02 The Landlord shall not be responsible for any damage, loss, disruption or
personal injury to the Tenant or any third parties permitted on the Premises
by the Tenant resulting from the quantity, quality or availability of water
from the Jolly Well or the distribution system.
Page 13
ARTICLE 10-MAINTENANCE AND REPAIRS
Section 10.01 Landlord Not Obligated
10.01.01 The Premises are leased in"as is"condition,and the Landlord shall not be
obligated to make any repairs or perform any maintenance to the Premises
unless expressly set out in this Lease
Section 10.02 Tenant's Obligations
10.02.01 The Tenant shall,at its cost,at all times during the Term or any extension
thereof, continuously and diligently keep the Premises in a clean and safe
condition and operate, maintain and repair the Premises, Leasehold
Improvements and all the contents thereof and all Utilities located in or
primarily serving the Premises as would a careful and prudent owner, in
first-class order, condition and repair,and in accordance with all Laws and
the Landlord's requirements.
Section 10.03 Repair By Landlord
10.03.01 If the Premises require repair,replacement or alteration or become damaged
or destroyed through the fault or negligence of the Tenant,or because of the
Tenant's operations, and if the Tenant does not effect the required repair,
replacement or alteration within a reasonable time as determined by the
Landlord, the Landlord may have such repair, replacement or alteration
effected,and the Tenant shall pay as Additional Rent,the full cost plus an
amount equal to twenty percent(20%)of such cost.
Section 10.04 Reservations by Landlord
10.04.01 The Landlord may,at all reasonable times,
(a) enter the Premises for the purpose of making alterations to:
(i) any part of the Premises,or
(ii) any utility in the Premises on the Date of Commencement or for
which an easement or licence is granted by the Landlord after the
Date of Commencement,
(b) bring onto the Premises and use such machinery, .equipment,
materials and workmen as may be reasonably required for making
alterations,
and such entry shall not constitute an eviction of the Tenant from the
Premises or a re-entry or an interference with the Tenant's possession.The
Rent hereunder shall in no way abate while such alterations are being made.
10.04.02 The Landlord may,when necessary in order to make any alterations,cause
temporary obstruction of any pedestrian or vehicular access to the Premises
and may interrupt or suspend the supply of any Utility to the Premises until
such alterations are completed,all without any abatement in Rent.
10.04.03 The Landlord reserves the right to grant any easements or licenses that may
be required, as determined in Her sole discretion. The Tenant agrees to
postpone its interests to any such license or easement granted by the
Landlord.
10.04.04 The Tenant hereby releases the Landlord from any Claim for any Injury or
Page 14
Damage resulting from any Alteration permitted hereunder; it being
expressly agreed that, notwithstanding Subsection 10.04.01, if such
alterations result in a substantial impediment to the Tenant's operations,the
Tenant, acting reasonably, may request an appropriate abatement in Rent
from the Landlord. The Landlord shall use its reasonable best efforts to
perform such alterations in a manner which does not materially interfere
with the Tenant's use of the Premises.
10.04.05 Notwithstanding the foregoing, the Landlord's alterations shall not
materially reduce the useable area of the Premises after completion. The
parties agree that during the period of alterations the useable area of the
Premises may be reduced as a result of the ongoing work.
ARTICLE 11-ALTERATIONS
Section 11.01 Alterations
11.01.01 The Tenant acknowledges that the Premises have been designated as a
Federal Heritage Building by the Federal Heritage Building Review Office.
(FHBRO). The Tenant covenants to comply with any and all directives
issued by the Landlord,Parks Canada or FHBRO in respect of the Premises,
including without limitation,directives related to any Improvements.
11.01.02 The Tenant shall not,nor shall it permit any Person to
(a) make any Alterations, Additional Improvements, or Leasehold
Improvements,or
(b) add any Utilities to the Premises,
without first submitting to the Landlord the plans, drawings and
specifications (in this article "plans") therefore and any other information
requested by the Landlord, and obtaining the Landlord's prior written
approval in each instance,and further obtaining Her prior written approval
to any change in such plans.The Tenant shall,before proceeding with any
work based on the plans, pay to the Landlord the cost of approving the
plans and any changes thereto.
11.01.03 At the same time as the Tenant submits any plans to the Landlord for Her
approval,the Tenant shall provide Her with satisfactory evidence that it has
obtained an assignment to and irrevocable licence in favour of the Landlord
of the copyright of the plans from the Architect(or Engineer)creating the
plans unless the Landlord waives this requirement in writing. The
agreement providing such assignment and licence shall expressly state that
the Architect(or Engineer)shall not hold the Landlord responsible for any
costs incurred or to be incurred in connection with the preparation of the
plans or their subsequent use by the Landlord, and that the Landlord is
entitled to use the plans for any purpose(s)related to the project which is
the subject matter of such plans at any time without further consent or
payment.
11.01.04 The Tenant,once it commences any Work,shall complete such Work:
(a) in a good and workmanlike manner;
(b) strictly in accordance with any terms specified in the Landlord's prior
written approval, including without limitation all requirements and
. directives issued by Parks Canada and/or FHBRO;
(c) in accordance with the plans as approved;and
the Premises and the Leasehold Interest.
11.01.05 It is agreed that the Landlord, acting reasonably, may halt or suspend the
Work without notice.
11.01.06 . Within thirty(30)days of the Landlord determining that any Work which is
the subject matter of the Landlord's prior written approval is substantially
complete, the Tenant shall deliver to the Landlord two copies of the "as
built"plans for such Work.At the request of the Landlord,the Tenant shall
also deliver copies of any computer files embodying such plans in a format
acceptable to the Landlord. If the Tenant does not deliver the plans within
the said thirty(30)day period,the Landlord may have such plans prepared,
and the Tenant shall pay as Additional Rent the full cost of having such
plans prepared plus an amount equal to twenty percent(20%)of such costs.
11.01.07 It is agreed that the Landlord's review and approval or non-approval of any
such plans is not for any professional,technical or regulatory purpose but is
only to protect Her interest. The Landlord, in approving or not approving
any plans or in making any inspections of the Work as it progresses is not
making any representations nor is She undertaking any responsibility of a
planning, engineering,or architectural nature. The Tenant assumes all such
responsibility. Receipt by the Landlord of any plans or inspection of the
Work as it progresses shall not imply that the Landlord has examined or
approved such plans or the Work nor shall it operate as a waiver of any
rights of the Landlord or operate as an estoppel against Her in any matter.
The Tenant covenants to indemnify and save harmless the Landlord from
all Claims made against the Landlord as a result of Her having reviewed
and approved any plans.
Section 11.02 Contract Security
11.02.01 For all alterations, additional improvements and leasehold improvements
exceeding an estimated contract value of $50,000.00, the Tenant shall
ensure that all its contractors as well as its sub-tenants and any sub-
contractors shall purchase,provide and maintain for any construction:
(a) fifty percent(50%)Performance Bonds;
(b) Labour and Material Payment Bonds being one hundred percent
(100%) if the construction period provided for in the construction
contract is three (3) months or less, and being fifty per cent (50%) if
such construction period is more than three(3)months.
11.02.02 The Tenant on demand shall provide proof of the existence of such Bonds
to the Landlord. The Landlord shall be named as an obligee pursuant to
such Bond or such Bonds shall,with the consent of the Bonding Company,
be validly assigned to the Landlord.
Section 11.03 Builders'Liens
11.03.01 The Parties hereto agree that the Construction or Builders' Liens legislation
in the Jurisdiction shall have no jurisdiction over the Landlord or Her
interest in the Premises and Leasehold Improvements as long as Her
Majesty is the Landlord.
11 03.02 The Tenant covenants that it shall not permit any construction or builder's
liens to be registered against the title to the Premises or the Leasehold
Interest therein and that it will cause any such liens to be discharged within
Page 16
fifteen (15)days of receiving notice of such liens. The foregoing shall not
prevent the Tenant or anyone holding any such interest from contesting any
third-party claim.
11.03.03 If the Tenant desires to contest the amount or validity of any lien, it may
pay the amount of the lien into Court and have the lien discharged.
11.03.04 If, in the opinion of the Landlord, the Premises or the Tenant's interest
therein may become liable to any forfeiture or sale or is otherwise in
jeopardy,the Landlord may secure the removal of any lien registered, and
any costs incurred by the Landlord for this purpose shall be paid as
Additional Rent by the Tenant with interest at the Interest Rate calculated
from the day the Landlord incurs the cost.
11.03.05 The Tenant covenants to indemnify and save harmless the Landlord for and
from any Claims or costs incurred by the Landlord as a result of
construction or builder's liens affecting the Premises,by or on behalf of any
worker, supplier, contractor or subcontractor of the Tenant or anyone
holding any interest in the Land under the Tenant.
ARTICLE 12-INSURANCE
Section 12.01 Insurance
12.01.01 The Tenant shall,during the entire term of the Lease,purchase and keep in
full force and effect and in the names of the Tenant and the Landlord the
following insurance coverage:
(a) commercial general liability insurance containing provisions adequate
to protect both the Tenant and the Landlord from and against any and
all claims or actions at the instance of third parties for personal injury
(including death) and or for property damage occurring upon the
Lands and the Premises and or elsewhere occasioned directly or
indirectly by any fault, default, negligence, act or omission of the
Tenant or the Landlord and of any other parties for whom in law the
Tenant and/or Landlord may be responsible, such insurance having
personal and bodily injury and property damage limits of liability of
not less than$5,000,000 per occurrence,
(b) all risks (including flood and earthquake) property insurance
containing provisions adequate to protect the Tenant's business
enterprise, on all objects owned or operated by the Tenant or by
others(other than the Landlord)on behalf of the Tenant on the Lands
or relating to or servicing the Lands, with reasonable deductibles of
up to three percent(3%)of the replacement cost of property insured,
and
(c) any other form of insurance and with whatever higher limits the
Landlord reasonably requires from time to time.
12.01.02 The policy of insurance required by this subsection shall provide that it
shall not be modified or cancelled without at least 30 days prior written
notice to the Landlord and to the Tenant. The Tenant shall deliver a copy of
the policy to the Landlord upon execution of the Lease and shall further
deliver an updated certificate of insurance on commencement of each Lease
Year of the Term and any extension thereof.
12.01.03 The Tenant agrees that, if the Tenant fails to take out or keep any such
Insurance referred to in this Article 12, or should such Insurance not be
approved by the Landlord and should the Tenant not commence diligently
to rectify (and thereafter proceed diligently to rectify) the situation within
........,.,. ,.cul .... 115,1L, aNsu►u►ng any onngatron in connection
therewith and without prejudice to any other rights and remedies of the
Landlord under this Lease, to effect any such Insurance at the sole cost of
the Tenant and all outlays by Landlord plus an administration fee of twenty
percent (20%) thereof shall be immediately paid by the Tenant to the
Landlord on the first day of the next month following such payment by the
Landlord.
ARTICLE 13-DAMAGE AND DESTRUCTION
Section 13.01 Property Insurance
13.01.01 If the Premises are damaged or destroyed, in whole or in part,by fire or other
peril,then the following provisions shall apply:
(a)the Tenant shall give the Landlord prompt notice thereof;
(b)if the damage or destruction renders the Premises unfit for occupancy and
impossible to repair or rebuild using reasonable diligence within 120 clear
days from the happening of such damage or destruction, then the Term
shall cease from the date the damage or destruction occurred, and the
Tenant shall immediately surrender the remainder of the Term and give
possession of the Premises to the Landlord, and the Rent from the time of
the surrender shall abate;
(c)if the Premises can with reasonable diligence be repaired and rendered fit
for occupancy within 120 days from the happening of the damage or
destruction, but the damage renders the Premises wholly unfit for
occupancy, then the Rent shall not accrue after the day that such damage
occurred and while the process of repair is ongoing,and the Landlord shall
repair the Premises with all reasonable speed,and the Tenant's obligation
to pay Rent shall resume immediately after the necessary repairs have been
completed;
(d)if the Premises can be repaired within 120 days as aforesaid, but the
damage is such that the Premises are capable of being partially used,then
until such damage has been repaired, the Tenant shall continue in
possession and the Rental shall continue in possession and the Rent shall
abate proportionately.
(e)at any time,and for any reason,the Landlord reserves the right to excise its
sole discretion in determining whether to repair or rebuild the Premises.If
the Landlord decides not to repair or rebuild the Premises, the Term shall
cease and the Tenant shall not be required to pay Rent for the date the
destruction or damage occurred.
•
13.01.02 Any question as to causation and/or to the degree of damage or destruction or
the period of time required to repair or rebuild shall be determined by a
consultant retained by the Landlord.
13.01.03 Apart from the provision of this Article 13, there shall be no abatement from
or reduction of the Rent on account of damage or destruction, nor shall the
Tenant be entitled to claim against the Landlord for any damages, general or
special,caused by fire,water, sprinkler systems,partial or temporary failure or
stoppage of services or utilities or from any cause whatsoever.
13.01.04 Any repair or rebuilding by the Landlord hereunder to the Premises shall be
made solely in the discretion of the Landlord acting reasonably, provided
that if the useable area of the Premises is materially reduced following the
•
Page 18
completion of the repair or rebuilding,the Rent shall abate proportionately.
The parties agree that during the period of alterations the useable area of the
Premises may be reduced as a result of the ongoing work and the Tenant
shall not be entitled to an abatement of Rent.
13.01.05 If the Premises are damaged or destroyed by fire or other peril as the result of
negligence on the part of the Tenant,their employees,invitees,contractors or
anyone to whom the Tenant is responsible at law, then the following
provisions shall apply:
(a) the Tenant shall give the Landlord prompt notice thereof;
(b) the Tenant shall proceed promptly at its own cost to repair or reconstruct
the Premises to a state of good order and repair in which the Tenant was
required to maintain them immediately prior to the damage or
destruction;
(c) this Lease shall continue in full force and effect,without any abatement
or reduction of Rent,notwithstanding any present or future law or statute
to the contrary;
(d) the Premises shall, as a minimum, be repaired or reconstructed to the
same height, volume, floor area, general form, mass, condition and
quality as existed prior to the date of damage or destruction;
(e) the Tenant shall comply with all provisions of this Lease applicable to
alterations,and
(f) any repairs or rebuilding shall be done using materials and workmanship
at least equivalent in value and quality to those existing at the Premises
prior to such damage or destruction.
ARTICLE 14-LIABILITY,RELEASE AND INDEMNITY
Section 14.01 Landlord Not Responsible
14.01.01 The Tenant acknowledges that the Landlord, as long as the Landlord is Her
Majesty in right of Canada,is self-insured and there is no policy of insurance
to cover the Landlord's liability as owner.
14.01.02 The Tenant acknowledges and agrees that the Landlord shall not be liable or
responsible for any Injury to any Person (including death) or for Damage of
any nature whatsoever to the Tenant or any other Person in respect of any
occurrence on or after the Date of Commencement, arising from any act or
omission of the Tenant or its staff, licenses, invites, or permitted guests, in,
upon,at or relating to the Premises or any part thereof or from the ownership,
occupancy or use of the Premises or any part thereof by the Tenant including,
without limitation:
(a) any damage to any property (including loss of use thereof) of the
Tenant or of any other Person,
(i) from any cause whatsoever if such property is located in or
on the Premises or any part thereof;and
(ii) if such Damage is caused by or results from any use of or
any operation, occurrence or omission on the Premises, if
such property is not located on the Premises;
(b) any Damage to the Premises or the contents thereof;
or any interruption, cessation, unavailability or failure in any
utility,service,system or road;
(d) any Injury or Damage insured against or required to be insured,
against by the Tenant except, subject to Subsection 14.01.02 (e)
and(f),any Injury(including death)or Damage arising out of or in
connection with any fault, default, negligence, act or omission of
the Landlord. or Her agent, servant, employee, contractor or any
other Person for whom the Landlord is in law responsible;
(e) any Injury(including death) or Damage caused by, resulting from,
arising out of or in connection with any fault, default, negligence,
act or omission of the Landlord, or Her agent, servant, employee,
contractor or any other Person for whom the Landlord is in law
responsible, not insured against but required to be insured against
by the Tenant;and
(f) any Injury(including death)or Damage caused by,resulting from,
arising out of or in connection with the ownership, occupancy or
use of the•Premises or any part thereof including any Claims
against the Landlord or the Tenant resulting from occupiers
liability.
Notwithstanding any of the foregoing,nothing in this lease shall absolve the
Landlord from liability for any injury or damage resulting from the fault,
default, negligence or omission of the Landlord or any Person from when
the Landlord is in law responsible.
14.01.03 The Tenant further acknowledges that the liability of the Landlord, if any,
will be subject to the provisions of the Crown Liability and Proceedings
Act, R.S.C. 1985,as amended from time to time.
Section 14.02 Release and Indemnity
14.02.01 The Tenant hereby expressly releases the Landlord from any and all Claims
whatsoever which the Tenant would be entitled to advance but for this
release, and covenants and agrees to indemnify and save harmless the
Landlord from and against any and all claims, demands, losses, liabilities,
obligations and expenses(including legal costs)the Landlord may suffer or
incur by reason of any claim asserted by any Person resulting or arising out
of or relating to:
(a) the Premises and Utilities and any act, omission, misconduct,
default or negligence of the Tenant, its agents, contractors,
employees and servants;
- (b) any breach, violation or non-performance of any covenant,
condition, agreement or obligation in this Lease on the part of the
Tenant;
(c) the occupancy or use of the Premises and Utilities by the Tenant,
its agents, contractors, employees, servants, licensees or anyone
permitted to be on the Premises and for whom in law the Tenant
may be responsible;
(d) directly or indirectly from the state or condition or any activity or
event occurring in,upon or about the Premises;
(e) any inability to develop any part of the Premises for any reason
whatsoever;
(f) any substance:
Page 20
(i) which is present on the Premises at any time during the Term
or any extensions thereof or after the expiry or termination of
this Lease,or
(ii) which was released,spilled,leaked or flowed from the Lands
any time during the Term or after the expiry or termination
of this Lease provided it was present on the Lands prior to
the expiry or termination of this Lease and which causes or
contributes to an adverse environmental condition.
Section 14.03 Tenant to Defend Action
14.03.01 The Tenant shall, whenever the Landlord is made a party to any legal
proceeding in respect of a Claim to which the Tenant's obligation to
indemnify the Landlord under this Lease extends, if so requested by the
Landlord, defend such legal proceeding in the name of the Landlord and
pay all Costs;provided that the Tenant may not compromise,or satisfy any
such legal proceeding without the Landlord's consent which consent may
be unreasonably withheld.
ARTICLE 15—LAWS AND CONTROL
Section 15.01 Compliance with all Laws
15.01.01 In complying with the requirements of this Lease, the Tenant covenants
with the Landlord to comply with all applicable Laws of governmental
authorities and to conduct its business in accordance with and comply with
any direction or certificate or occupancy permit issued pursuant to any
applicable Law by any public officer.
15.01.02 The Landlord shall not be responsible to the Tenant for non-observance or
violation of any Law by any other Person.
15.01.03 The Tenant shall,upon receipt,deliver to the Landlord a copy of any notice
of non-compliance with or violation of any applicable Law, and shall
promptly commence to remedy such non-compliance or violation and with
due diligence complete such action within a reasonable period of time.
15.01.04 The Tenant hereby authorizes the Landlord to make inquiries of any
governmental agency with respect to the Tenant's compliance with any Law
pertaining to the Tenant and to the Premises or any business conducted
thereon; and the Tenant covenants that it will, on demand, provide to the
Landlord such written authorization as She may reasonably require.
15.01.05 The Tenant acknowledges that the Landlord is subject to the federal Access
to Information Act and the Federal Privacy Act.
Section 15.02 Copies of Reports
15.02 The Tenant shall provide the Landlord with copies of:
(a) every test result obtained in respect of a test required in compliance
with all Laws;
(b) copies of annual reports required to be sent to public authorities in
compliance with applicable Laws.
Section 15.03 Termination for Default
1,1111111411.. 1.111J uaJC 11 UM I euant taus to realty or commence diligently to
rectify(and thereafter proceed diligently to rectify)any breach of Article 15
within two (2) business days after written notice by the Landlord to the
Tenant.
ARTICLE 16-ENVIRONMENT
Section 16.01 Compliance with Environmental Laws
16.01.01 The Tenant shall not cause or permit any Deleterious Substance to be
brought onto or used on the Premises, any business or undertaking on the
Premises, or the use of or activity on the Premises which may cause or
contribute to an adverse environmental effect with respect to the Premises,
the surrounding area or the environment.
16.01.02 - The Tenant shall, at its own cost, comply with, and shall ensure that all
Transferees comply with, all Laws and codes relating to environmental
matters requiring the Tenant to take any action in respect of the release or
leaking of any Deleterious Substance into the Premises or the groundwater
or surface water, or from the Premises onto any adjacent property, land,air
or water, or which results in any Deleterious Substance being released into
the environment, or requiring a clean-up of any Deleterious Substance or
the remedying of any damage caused by such Deleterious Substance, and
shall immediately give written notice to the Landlord of the occurrence of
any event in the Premises constituting an offence thereunder or a breach of
this provision and, if any such event shall happen, the Tenant shall, at its
own cost:
•
(a) immediately notify the Landlord and thereafter give the Landlord
from time to time written notice of the extent and nature of the
Tenant's or the Transferee's compliance with the following
provisions of this section,
(b) promptly correct any Work which is not in conformity and
compliance with all Laws or codes,or cease any activity which is not
in conformity and compliance with all Laws or codes, and if
requested by the Landlord, obtain a certificate from an independent
consultant approved by the Landlord, verifying the complete and
proper compliance with the requirements of all Laws or codes or, if
such is not the case, reporting as to the extent and nature of any
failure to comply with the foregoing provision;
(c) promptly cease any activity which causes or permits any Deleterious
Substance to be released or leaked into the Premises,the groundwater
or surface water, or from the Premises onto any adjacent property,
land,air or water,or which results in any Deleterious Substance being
released into the environment; and verifying that this activity has
ceased;
(d) remedy any damage to the Premises (including surface water and
groundwater), adjacent property,or adjacent land,air or water caused
by any action or failure to act occurring in the Premises or caused by
the performance or lack of performance of any of the Tenant's
obligations under this Article 16.
16.01.03 If any governmental authority having jurisdiction requires the clean up of
any Deleterious Substance held, released, leaked, abandoned, flowing into
or placed in the Premises (including surface water and groundwater) or
released, leaked or flowing from the Premises onto adjacent property, or
Page 22
adjacent land,air or water or released into the environment,then the Tenant
shall,at its own cost prepare all necessary studies,plans and proposals and
submit them to the Landlord for approval, provide all bonds and other
security required by such authorities and carry out the Work required,keep
the Landlord fully informed with respect to proposed plans and the Work,
and comply with the Landlord's reasonable requirements with respect to the
plans and Work.The Tenant further agrees that if the Landlord determines,
in Her sole discretion, that Her property or Her reputation is placed in
jeopardy by the requirement for any such Work,the Landlord may Herself
undertake such Work or any part thereof and the Tenant shall forthwith pay
to the Landlord the cost of the Work plus twenty percent (20%) of such
cost.
Section 16.02 Landlord's Right to Environmental Assessment
16.02.01 The Landlord may, at any time, enter the Premises to determine the
existence of any Deleterious Substance in the Premises (including surface
water and groundwater)or whether any Deleterious Substance is released or
leaks from the Premises and which may cause or contribute to an adverse
environmental effect,and for such purpose the Landlord may carry out any
tests in the Premises. The Landlord will use best efforts to minimize the
effects of the testing on the Tenant. If any assessment,which the Landlord
causes to be done,determines that there is an adverse environmental effect,
the Tenant shall, in addition to its other obligations, forthwith on demand,
pay to the Landlord the full cost of such assessment as Additional Rent.
Section 16.03 Tenant to Perform
16.03.01 The Tenant shall,promptly on notice,at its cost,carry out and conclude any
Work required by applicable Laws or codes,or requested by the Landlord to
remedy any adverse environmental effect caused or contributed to by:
(a) the existence of any Deleterious Substance in the Premises(including
groundwater and surface water);
(b) the release or leaking of any•Deleterious Substance from the
Premises;
(c) the release or leaking of any Deleterious Substance into the sewer
system, storm drains or surface drainage facilities at or on the
Premises;or
(d) any act or omission of any Person.
Section 16.04 Landlord May Perform
If the Tenant fails to promptly commence and diligently complete any Work
it is required to perform pursuant to Sections 16.01 or 16.03,the Landlord
may enter the Premises and perform any such Work at the cost of the
Tenant, but having commenced such Work, the Landlord shall not be
obligated to complete it. No such entry shall be deemed a re-entry under
this Lease or a breach of the covenant for quiet enjoyment.
Section 16.05 Ownership of Deleterious Substances
16.05.01 If the Tenant brings, permits, creates or uses in the Premises any
Deleterious Substance or if the conduct of any business or any other activity
in the Premises or the use of the Premises causes there to be any substances
in the Premises which cause or contribute to any adverse environmental
effect, then, notwithstanding any provision of this Lease or rule of law to
Page 23
the contrary,such Deleterious Substance or substances shall be and remain
the sole and exclusive property of the Tenant,notwithstanding the degree of
affixation of such Deleterious Substance or substances or the goods
containing them to the Premises and notwithstanding the expiry, surrender
or early termination of this Lease.
16.05.02 To the extent that the performance by the Tenant of the obligations
contemplated in this Article 16 requires access to the Premises after the
expiry, surrender or early termination of this Lease,the Tenant shall have
such access only upon such terms and conditions as the Landlord may from
time to time specify;and the Landlord may,at the Tenant's cost,undertake
the performance of any Work in order to complete such obligations of the
Tenant, but having commenced such Work the Landlord shall not be
obligated to complete it.
Section 16.06 Bond for Deleterious Substances
16.06.01 At least one (1) year prior to the termination or expiry of this Lease, the
Tenant shall,at its own cost,engage an independent consultant approved by
the Landlord to perform an environmental assessment of the Premises to:
(a) determine the existence and extent of any Deleterious Substance in
the Premises(including surface water and groundwater), or being
released or leaked from the Premises into adjacent premises,land,
air or water,or into the environment;
(b) establish the estimated cost(including the usual contingencies)to
clean up such Deleterious Substance or repair the damage caused
by it and, in either case, returning the Premises or damaged
property to a condition which is in compliance with environmental
laws and codes.
The Tenant shall ensure that the independent consultant provides the
Landlord with a copy of the environmental assessment immediately after its
completion.
16.06.02 Should the environmental assessment reveal that the Premises have been
environmentally damaged due to the presence of a Deleterious Substance or
as a result of any use or occupation of the Premises or that a Deleterious
Substance is being released or leaked from the Premises,the Tenant shall
forthwith post a bond in the name of the Landlord and in the amount
contemplated by Section 16.06.01(b)as security for the Tenant's remedying
any adverse environmental effect.
16.06.03 The Tenant shall, at its cost, promptly commence the Work required to
remedy any such adverse environmental effect and thereafter continue such
Work to completion within a reasonable time.If the Tenant fails to do so or
thereafter to diligently pursue to completion the remedying of such adverse
environmental effect, the Landlord may, at the Tenant's cost, Herself
undertake the performance of any necessary Work, calling on the bond
referred to in s. 16.06.02,but having commenced such Work,the Landlord
shall not be obligated to complete it.
ARTICLE 17-DEFAULT
Section 17.01 Tenant's Default
17.01.01 Notwithstanding any Laws to the contrary, each of the following shall
constitute an event of default("Event of Default"):
Page 24
(a) the Tenant defaults in the payment of any Rent on the day
appointed and such default continues for three (3)Business Days
after the Landlord's written notice;
(b) any of the goods and chattels of the Tenant are at any time seized
in execution or attachment by any creditor of the Tenant;
(c) an Event of Bankruptcy has occurred with respect to the Tenant;
(d) the Tenant enters into an Assignment or Sublet of this Lease
without the prior written consent of the Landlord;
(e) the Tenant ceases to use the Premises for their stated purposes;
(f) the Premises are vacated or remain unoccupied for fifteen (15)
consecutive days;
(g) any breach of the representation or warranty provisions of this
Lease;
(h) the Tenant fails to observe any of the covenants and obligations in
this Lease to be observed by it (other than the payment of Rent)
and such failure continues for a period of fifteen(15)days(or such
shorter period as may be specified in this Lease for a particular
default) after the Landlord's written notice of such failure(herein
"Notice of Default'). If any default under this paragraph (h)
reasonably requires more time to cure than the fifteen days
required therein the Tenant shall not be in default provided that the
curing of the default is promptly commenced upon receipt of the
Notice of Default,and with due diligence is thereafter continued to
completion and is completed within a reasonable time and
provided that the Tenant keeps the Landlord well informed at all
times of its progress in curing the default.
17.01.02 The occurrence of an Event of Default shall give rise to the rights in
relation thereto set out in s. 17.02 to s. 17.03 inclusive.
Section 17.02 Landlord's Rights
17.02.01 Where there is an Event of Default,it shall be lawful for the Landlord,at
Her option:
(a) with or without entry,to terminate this Lease,and all the rights of the
Tenant shall terminate upon the date of receipt of a notice of
termination;
(b) to enter the Premises for the purpose of curing any default of the
Tenant, and the Tenant shall permit such entry,and the Tenant shall
pay, as. Additional Rent, all Costs of the Landlord in curing any
default, plus a sum equal.to twenty percent (20%) thereof and
together with interest on the total amount at the Interest Rate as
defined,but the Landlord shall not be obligated to cure or continue to
cure such default, it being understood that the Landlord shall not be
liable to the Tenant for any loss or damage to the Tenant's stock or
business caused while curing or attempting to cure any default of the
Tenant;
(c) to pay on behalf of the Tenant, when due, any moneys which the
Tenant has covenanted to pay under this Lease other than a sum
payable to the Landlord,and the Tenant shall reimburse the Landlord
Page 25
for any amount so paid together with interest thereon at the Interest
Rate as defined;
(d) to restrain the Tenant by injunction; •
(e) to deny the Tenant services such as the supply of electricity, water
etc.;and
(f) to claim Damages from the Tenant, including consequential and
indirect damages.
17.02.02 Whenever the Tenant shall be in default in the payment of any money
hereunder,the Landlord may,without notice or any legal process enter upon
the Lands and seize, remove and sell the Tenant's property therefrom and
seize,remove and sell any property at any place to which the Tenant or any
other Person may have removed it,in the same manner as if it had remained
upon the Lands.
17.02.03 All Costs incurred by the Landlord as a result of any default by the Tenant
shall forthwith on demand be paid by the Tenant as Additional Rent
together with interest,at the rate for rent in arrears,from the date any such
Costs are incurred until they are fully paid.
17.02.04 The Landlord may use such force as She deems necessary for the purpose of
gaining entry to and retaking possession of the Premises, and the Tenant
hereby releases the Landlord from all actions, claims and demands
whatsoever in respect of any such entry or any loss or Damage in
connection therewith.
17.02.05 Notwithstanding any Laws to the contrary,whenever re-entry is specifically
permitted under any provision of this Lease,the Landlord's rights and the
Tenant's obligations shall not be affected.
17.02.06 The Tenant agrees that if the Landlord is not able to deliver a Notice of
Default or a Notice of Termination to the Tenant's last address, She may
effect notice on the Tenant by posting it in the Premises, and such notice
shall be deemed to have been given from the date it is so posted.
17.02.07 If the Landlord re-enters or this Lease terminates prior to the end of the
term of the Lease:
(a) notwithstanding any such termination or the Term thereby becoming
forfeited,the provisions of this Lease relating to the consequences of
termination shall survive;
(b) Rent shall immediately become due and be paid up to the time of such
re-entry or termination together with an amount equal to the Rent for
the next ensuing three (3) months and the reasonable expenses of the
Landlord as hereinafter defined;
(c) the Landlord may re-let the Premises for a term to be fixed at Her
discretion;
(d) the Landlord may require the Tenant to pay monthly on the first day of
each month following such re-entry or termination and until the
expiration of the original Term any deficiency between:
(i) the aggregate of the monthly installment of Rent which would
otherwise have been payable for that calendar month;and
Page 26
(ii) the net amount of any rents received on account of the re-letting of
the Premises;and
(e) the Tenant shall pay such Costs as the Landlord may incur in re-letting
the Premises.
17.02.08 The Tenant hereby waives;
(a) the benefit of any present Laws, statutory or otherwise, which in any
way may take away or diminish the Landlord's right to terminate this
Lease or re-enter into possession of the Premises in pursuance of Her
rights or remedies in this Lease;and
(b) any rights of redemption granted by or under any present Laws,
statutory or otherwise, in the event of the Tenant being evicted or
dispossessed, or the Landlord obtaining possession of the Premises by
reason of the violation by the Tenant of any of the terms or conditions
of this Lease or otherwise.
Section 17.03 Remedies not Exclusive
17.03.01 The rights and remedies of the Landlord specified in this Lease are
cumulative and are in addition to Her rights and remedies at law or in
equity or by statute,and are not exclusive or dependent upon any other right
or remedy. The right of the Landlord to claim arrears of Rent and loss or
damages against the Tenant shall survive the surrender or termination of
this Lease.
ARTICLE 18-FORCE MAJEURE
Section 18.01 Force Majeure
18.01 To the extent that either party is unable, in good faith, to fulfill or is
delayed or restricted in fulfilling any of its obligations under this Lease by
an event of Force Majeure,such party shall be relieved from the fulfillment
of the part of its obligations affected by Force Majeure while it lasts,
provided that the Tenant notifies the Landlord within five (5) Business
Days of the commencement of any event which is an event of Force
Majeure and provides the Landlord with a description of the facts and
circumstances of the event of Force Majeure and the action to be taken to
minimize the delay, all of which, in the opinion of the Landlord,justifies
the delay.
18.02 Notwithstanding an event of Force Majeure,the party affected shall proceed
with the performance of its obligations not thereby affected.
18.03 The provisions of this Article shall not excuse the Tenant from the payment
of any Rent or any other obligation under this Lease including the
obligation with respect to Insurance.
ARTICLE 19-ASSIGNMENT AND SUBLETTING
Section 19.01 Prohibition against Assignment or Subletting
19.01.01 The Tenant shall not assign or sublet this Lease without the Landlord's
prior written consent.
Page 27
Section 19.02 Assignment by Landlord
19.02.01 In the event of the sale, lease or other disposition by the Landlord of the
Land,or the assignment by the Landlord of this Lease or any interest herein
to the extent that the purchaser, lessee or assignee assumes the covenants
and obligations of the Landlord, the Landlord shall be relieved of all
liability with respect to such covenants and obligations. The Tenant shall,
upon request,attorn in writing to such successor-in-interest.
ARTICLE 20-SUCCESSORS AND ASSIGNS
Section 20.01 Binding on Successors
20.01.01 Subject to Article 19,this Lease and all its covenants and agreements shall
be binding upon and enure to the benefit of the parties hereto and to any
their successors.
ARTICLE 21-ADDITIONAL PROVISIONS
Section 21.01 Additional Rights of Landlord
21.01.01 The Landlord is entitled from time to time,during normal business hours
and in the presence of a representative of the Tenant,to enter the Premises
in order to;
(a) inspect the Premises in order to determine the extent of compliance
with all applicable Laws and this Lease;
(b) enforce any provision of this Lease;
(c) carry out any of Her rights;
(d) show the Premises to prospective purchasers, encumbrances,
tenants or assignees and,during the last twelve(12)months of the
Term,to place upon them a notice of reasonable dimensions being
reasonably placed,stating that the Premises are for sale or for rent.
21.01.02 Notwithstanding any other provision herein, the Landlord may enter the
Premises at any time where, in the Landlord's judgment,there is a real or
apprehended emergency or danger to persons or property. In this event, if
the Tenant is not personally present to open and permit entry into the
Premises, the Landlord may,without notice or resort to any legal process,
forcibly enter the Premises without rendering Her liable therefore, and
without in any manner affecting the obligations and covenants of this Lease.
21.01.03 Except where the Landlord intends to terminate this Lease,no entry by the
Landlord into the Premises or anything done in or for the Premises by the
Landlord pursuant to any right or remedy granted by this Lease or at law
shall constitute a breach of any covenant for quiet enjoyment contained in
this Lease or implied by law or(except where expressed by the Landlord in
writing) a re-entry into the Premises, or an interference with the Tenant's
possession,or be deemed to be a forfeiture,surrender or termination of this
Lease, or an actual or constructive eviction, or a derogation from the
Landlord's grant.
21.01.04 Nothing in this Lease shall be construed to impose upon the Landlord any
obligation,responsibility or liability whatsoever for the maintenance or
repair of the Premises except as otherwise herein specifically provided.
Page 28
Section 21.02 Notices
21.02.01 All notices or other communication required or permitted by this Lease
shall be in writing and shall be delivered or sent by an acceptable means to
an acceptable address.Acceptable means are:
(a) delivery during normal business hours to the person who is the
addressee or to a person responsible for receiving communications
in the addressee's office, in which case it is effective when
delivered;
(b) delivery by registered mail,in which case it is effective when the
postal system obtains a signature accepting delivery;and
(c) electronic transmission to the addressee's office,in which case it is
effective when receipt is acknowledged by a specific message to
that effect.
21.02.02 The acceptable addresses are
(a) in the case of the Landlord:
Transport Canada—Pickering Lands Branch
4900 Yonge Street,Suite 300,
North York,Ontario M2N 6A5
(a) in the case of the Tenant:
Steve Reynolds
Division Head Culture and Recreation
do Corporation of the City of Pickering
One The Esplanade,
Pickering,Ontario L1V 6K7
Such addresses may be changed from time to time by either party giving
written notice as above provided.
Section 21.03 Amendments
21.03.01 No'amendment to this Lease shall have any effect unless it is in writing and
is signed by both the Landlord and the Tenant.
Section 21.04 No Partnership or Joint Venture
21.04.01 The parties hereto expressly disclaim any intention to create a partnership,
joint venture or principal and agent relationship and agree that nothing in
this Lease nor any acts on their part constitute them as partners, joint
ventures or principal and agent in any way, nor shall any such acts create
any relationship other than that of Landlord and Tenant, and the Tenant
shall not represent itself to be an agent of the Landlord.
Section 21.05 Members of House of Commons Not to Benefit
21.05.01 No member of the House of Commons shall be admitted to any share or
part of this Lease or to any benefit to arise therefrom.
Page 29
Section 21.06 Waiver
21.06.01 The failure of the Landlord to insist on the strict performance of any
provisions or to exercise any right under this Lease shall not be construed as
a waiver for the future of any such provisions or right or any other provision
or right, or as a waiver of any subsequent breach. The consent by the
Landlord to any act by the Tenant requiring such consent shall not be
construed as a waiver of the requirement of such consent to any subsequent
similar act.The acceptance of Rent by the Landlord shall not be deemed a
waiver of any preceding breach by the Tenant of any term of this Lease,
regardless of the Landlord's knowledge of such preceding breach, and no
term of this Lease shall be deemed to have been waived by the Landlord
unless such waiver is in writing signed by the Landlord.
Section 21.07 Further Assurances
21.07.01 The parties hereto shall execute such further assurances as may reasonably
be required to give effect to any provision of this Lease.
Section 21.08 Registration
21.08.01 If the Tenant registers this Lease, all relevant Costs shall be the
responsibility of the Tenant, it being agreed that upon the surrender or
termination of this Lease,the Tenant shall at its cost remove and discharge
this Lease from the title.
Section 21.09 Bribes
21.09.01 The Tenant hereby represents and warrants that it has not, nor has any
person on its behalf, given, promised or offered to any Member of the
House of Commons or to any official or employee of the Landlord, for or
with a view to obtaining this Lease,any bribe,gift or other inducement and
that it has not,nor has any person on its behalf,employed any person,other
than a recognized real estate broker,to solicit or secure this Lease upon any
agreement for a commission,percentage,brokerage or contingency fee.
Section 21.10 Dispute Resolution
21.10.01 In the event of disagreement arising out of this Agreement, the parties
hereto agree, that prior to having recourse to a court of competent
jurisdiction to resolve a dispute, the parties will try to resolve their
differences, and will consider alternative dispute resolution processes
before resorting to litigation.
Section 21.11 Parking and Maintenance of Premises
21.11.01 Parking is permitted on the paved parking area outlined in yellow on
attached Schedule B.
21.11.02 The Tenant is responsible for all interior and exterior maintenance of the
Premises including without limitation the parking areas and all walkways
incident thereto. The Tenant is responsible for the removal of snow and ice
from the Premises,including all walkways and the parking lot.
IN WITNESS WHEREOF, }�
THE LANDLORD has executed this agreement on the (1 U.YS , - ktt�T day of
�tl� ,2011.
Page 30
THE TENANT has executed this agreement on the 7`1,711A day of
<.1:!(,1 ,2011.
HER MAJESTY THE QUEEN IN RIGHT OF
CANADA as represented by the Minister of
Transport,Infrastructure and Communities
Per: ROB BERGEVIN,
ACTING REGIONAL DIRECTOR,
PROGRAMS A■ I PICKERING LANDS
BRANCH
THE CORPORATION OF THE CITY OF
PICKERING
Per:
mac o,-
R.d CA.n
Per: • IA \♦• •
lL S
We have authority to bind the Corporation
Page 31
Description of Leased Land(Schedule A)-All of PWGSC PIN 614662
Description of All of PWGSC PIN 614662
That parcel or tract of land situate,lying and being in the City of Pickering in the Regional •
Municipality of Durham containing by measurement 1.98 acres more or less,being All of
Lot 1, Registered Plan No. 10 (formerly part of Lot 19, Concession 5, Geographic
Township of Pickering)save and except Part 8,Plan 40R-5747 and Part 1,Plan 40R-5682
and outlined on the Plan attached and referenced as PIN 614662.
PWGSC PIN 614662 is part of the Durham Land Registry Office (No. 40) property
identifier number 26402—0012(LT).
Page 32
SCHEDULE B: PIN 614662 SKETCH•:.. ice •i 37 X R f i� 7%,.649•■
ti" i�' 743 ' •° .1:,..".
i�: 65U. „
• 4 e1'. '[" r4 `^, 653
675 ,v 6'S "
.{. ' ,.r 6.63; ., 657
�'' r.,%. ,� +, €.•, r•�w. l •6.68
fw k ..7•.-` 68' _ ' - AE613t.iYe "';A' ., a o/
} FIN BOUNDARIES TOTAL FIN AREA-:.G A[rei
TA Y ' STRUCTURE 6CaR10[.
\ `J, ftIES
Imagery sere Sept 2::2 0 Pub i[Works and Go.orrmmc SMi[es Canada :AN.:D.2011
• ATTACHMENT# TO REPORT#c._' . - 1 s
W` �, t7O �� 1 f
‘ 1
p
a
i '#1. .A r....
1 , „„,„„„, ,,,,110 , ....,
o � � OPc‘- �1 ,;. . � i 440 .o
IN ge-I,° 11.4C) /
.(<,'\. tP4ICIPPW
' /.> .
t
0 .
c 1105
IT; -o , 09 (HOME DEPOT)
SUBJECT
BUILDING
04 101
oct
■
1099
o �.
■
1095 o
o
1
ENGINEERING&PUBLIC ATTACHMENT FOR CULTURE &
WORKS DEPARTMENT City o¢
CAPITAL PROJECTS& RECREATION REPORT CR 24-15 ,l��_
INFRASTRUCTURE PROPOSED OFFICE SPACE - LEASE AGREEMENT -'' — ' '
SCALE
N.T.S November 19/2015 1101 Kingston Road S 1■1 1C7
.