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HomeMy WebLinkAboutCS 09-21p](KERJNG Report to Executive Committee Report Number: CS 09-21 Date: June 7, 2021 From: Brian Duffield (Acting) Director, Community Services Subject: Community Association Lease Agreement - Pickering Ajax Italian Social Club - File: A-1440 Recommendation: 1. That the Mayor and City Clerk be authorized to execute the Lease Agreement with thePickering Ajax Italian Social Club as set out in Attachment 1 to this report, subject to minor revisions as may be required by the (Acting) Director, Community Services and the Director, Corporate Services & City Solicitor; and, 2. That the appropriate City officials be authorized to take the necessary actions as indicated in this report. Executive Summary: On April 22, 2014, Council approved Resolution #224/14 authorizing staff to prepare written facility agreements with various community associations regarding exclusive and/or regular use of City owned facilities; with each such agreement to be brought back to Council for consideration and approval. As such, staff have prepared a draft Lease Agreement with the Pickering Ajax Italian Social Club (the “Club”) for their exclusive use of the four bocce courts, the kitchenette and an external storage room located in the City owned washroom building, within Centennial Park, located at 2250 Brock Road, in the City of Pickering, Regional Municipality of Durham. The Community Services Department recommends that the draft Lease Agreement included as Attachment 1 be initiated for a five year term beginning June 1, 2021 and ending May 31, 2026. Financial Implications: The City of Pickering is responsible to fund the general operating costs (such as utilities, garbage removal, maintenance and cleaning) of the courts within Centennial Park which are reflected annually within the Community Services Department’s Current Budget (Cost Centre 2718). The Current Budget does not reflect capital expenditures that vary year-to-year depending on facility need. The Pickering Ajax Italian Social Club is responsible to fund the day-to-day costs to operate the Club, which includes program/office supplies, administrative and insurance costs. The Club is also responsible to supply, maintain, repair and/or replace furniture, appliances and equipment at its expense, in order to operate its activities. The Club shall pay annual charges (subject to the Council approved Summary of Fees & Charges) to the City for the CS 09-21 June 7, 2021 Subject: Pickering Ajax Italian Club Lease Agreement Page 2 bocce courts on site for hydro use. The club is the sole owner of the portable building on the site and shall be responsible for all associated costs for its upkeep. Discussion: The Pickering Ajax Italian Social Club was founded in 1992 with a focus on inspiring community involvement. The Club brings the Italian community together and creates positive social relationships. The Club has adopted Centennial Park under the City’s Adopt-A-Park Program and take pride in being good stewards by hosting litter clean ups. The Club has operated their activities at Centennial Park under a verbal agreement with the City of Pickering up to the present. During this time, the Pickering Ajax Italian Social Club has operated their activities in a diligent and conscientious manner that has satisfied the City. As per Council Resolution #224/14, City staff have prepared a written Lease Agreement to document these longstanding verbal agreements. As per the terms and conditions of the attached written agreement, the Club shall use the premises for non-profit, charity events or non-commercial receptions of the Clubs, at their costs. The Club will also maintain insurance in the amount of two million dollars. The City is responsible for all day-to-day operating expenses of the respective parks including garbage removal and regular maintenance. The City is also responsible for the capital replacement costs of the bocce courts, pathways and the washroom building. The Community Services Department recommends that the Lease Agreement included as Attachment 1 be initiated for a five year term, beginning June 1, 2021 and ending May 31, 2026. Attachments: 1. Draft Lease Agreement with Pickering Ajax Italian Social Club 2. Centennial Park Schedule A CS 09-21 June 7, 2021 Subject: Pickering Ajax Italian Club Lease Agreement Page 3 Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Rob Gagen Brian Duffield Supervisor, Parks Operations (Acting) Director, Community Services RG:nw Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer Attachment #1 to Report CS 09-21 Lease Agreement This Lease is made as of the 1st day of June 1, 2021 Between: The Corporation of the City of Pickering (the "City") -and - Pickering Ajax Italian Social Club (the "Club") Article I Interpretation Definitions 1. In this Lease, (a) "Commencement Date" means June 1, 2021 (b) "Lease" means this lease as it may be amended from time to time; (c) "Premises" means that portion of the Centennial Park comprising of the Portable building, the Kitchenette and external Storage Room; and, the outdoor grounds which include 4 Bocce Courts as shown on Schedule “A” attached hereto, located at 2250 Brock Road, in the City of Pickering, Regional Municipality of Durham; (d) "Rent" means the rent payable pursuant to Section 21; and (e) "Term" means the term of this Lease as set out in Section 18. Headings 2. The division of this Lease into articles, sections, subsections and schedules and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Lease. 2 Schedule 3. Schedule “A” site map is incorporated into and forms part of this Lease. Severability 4. All of the provisions of this Lease are to be construed as covenants even where not expressed as such. If any such provision is held to be or rendered invalid, unenforceable or illegal, then it shall be considered separate and severable from this Lease and the remaining provisions of this Lease shall remain in force. Number 5. Wherever a word importing the singular number only is used in this Lease, such word shall include the plural. Words importing either gender or firms or corporations shall include the other gender and individuals, firms or corporation where the context so requires. Governing Law 6. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 7. This Lease constitutes the entire agreement between the parties concerning the Premises and may only be amended or supplemented by an agreement in writing signed by both parties. Article II Grant and Use Grant 8. In consideration of the performance by the Club of its obligations under this Lease, the City leases the Premises to the Club for its use during the Term. Club Use of Premises 9. The Premises shall be used only for non-profit functions, charity events or non- commercial receptions of the Club at its expense and for no other purpose without the prior written consent of the City. 3 Nuisance 10. (a) The Club shall not carry on any activities, do, or suffer any act or thing that constitutes a nuisance or which is offensive or an annoyance to the City. (b) The Club may not sell, give away or in any manner dispense alcoholic beverages to any person. No alcoholic beverages will be permitted on the Premises. City Use of Premises 11. Subject to section 11, the City shall have first right of refusal to use the Premises. The Club shall not be entitled to any rental fees or other remuneration associated with the use of the Premises by the City. Assignment and Subletting 12. The Club shall not assign this Lease or sublet all or any portion of the Premises without the prior written consent of the City. Licences 13. The Club may not grant licences to use the Premises. 14. The Club shall submit an annual calendar (February 1 to January 31) of Club activities to the City by February 1st of each year. 15. The Club shall submit their annual financial statement to the City by February 15th of each year. 16. The Club shall submit a list of their Board of Directors and their contact information to the City by February 15th of each year. Article III Term Term 17. The term of this Lease shall be five (5) years from the Commencement Date to May 31, 2026. 18. The City may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice. 4 Over holding 19. If the Club remains in possession of the Premises after the expiry of the Term, there shall be no tacit renewal of this Lease or the Term, notwithstanding statutory provisions or legal presumption to the contrary, and the Club shall be deemed to be occupying the Premises from month to month upon the same terms, covenants and conditions as are set forth in this Lease insofar as they are applicable to a monthly tenancy. Article IV Rent Rent 20. The Club shall pay to the City as rent for the entire the Term in lawful money of Canada the sum of One (1) Dollar ($1.00). Utilities 21. The club shall pay $200.00 plus HST in annual charges for the Bocce Courts lighting hydro use. This amount shall be paid on or before April 1 in each year of the Term. Annual charges are subject to the General Municipal Fees By-law. Gross Lease 22. The City acknowledges that this is a gross lease and agrees to pay all charges, impositions and outlays of every nature and kind relating to the Premises except as expressly set out in this Lease. Article V Maintenance, Repairs and Alterations Maintenance of Premises 23. The Club shall maintain and operate the Premises so that they shall always be of good appearance and suitable for the proper operation of the Premises. 24. The club shall provide general maintenance services to the premises at its expense and shall provide all necessary cleaning and maintenance supplies such as cleaning products, related paper products and cleaning equipment related to the portable building, the storage room, the kitchenette and to the area inside the fence largely comprised of the Bocce courts. 5 25. The Club shall be responsible for the portable building in its entirety, at its expense and shall keep it in good repair. 26. The club shall have use of the washrooms for its members for events held between November 1 to April 30 each year and the club shall be responsible for cleaning during this time. 27. The club shall be responsible for winter maintenance to the stairs, accessibility ramp and the pathway from the parking lot to the Kitchenette and the Portable building at their sole expense and liability when used by the club or its members in the winter season from November 1 to April 30. 28. The City, or its designate, shall be responsible for all day-to-day operating expenses including garbage removal, washroom maintenance from May 1 to October 31, benches, fencing, plumbing, picnic shelter, asphalt pathways, parking lot and the washroom building. 29. The City shall provide snow removal services for the parking lot only. 30. (1) Subject to subsection (2), the City shall be responsible for all inspections and preventative maintenance with respect to the heating equipment, plumbing, transformer, parking lot, lights, and exterior grass cutting and landscaping. (2) The Club shall be responsible for any damages or costs incurred due to the misuse or negligence of the Club, its employees, invitees, servants, agents, or others under its control and the Club shall pay to the City on demand the expense of any repairs including the City’s reasonable administration charge necessitated by such negligence or misuse. 31. The Club shall immediately notify the City of any unsafe conditions on the Premises. Security 32. The Club shall be responsible for the security of the Premises. The Club will ensure that keys are provided to the City for maintenance and inspection access. Alterations/Improvements to Premises 33. The Club shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. 6 Article VI Insurance and Indemnity Club's Insurance 34. The Club, at its sole cost and expense, shall take out and maintain, (a) insurance upon property owned by it which is located on the Premises; and (b) commercial general liability insurance pertaining to the Club's liability to others in respect of injury, death or damage to property occurring upon, in or about the Premises, and includes coverage for tenants’ legal liability. Such insurance to be of an amount which is reasonable and sufficient having regard to the scope of the risk and the current practice of prudent owners of similar premises for the carrying on of similar businesses, but in any event in an amount not less than five million dollars ($5,000,000.00) for claims arising out of one occurrence. Such policy shall also name the City as an additional named insured and may not be cancelled unless prior notice by registered letter has been given to the City by the insurer 30 days in advance of the expiry date. 35. Prior to the Commencement Date, the Club shall file with the City a Certificate of Insurance in a form satisfactory to the City Treasurer, verifying that the commercial general liability insurance policy is in effect and setting out the essential terms and conditions of the insurance. 36. The provision of the insurance policy required by this section shall not relieve the Club from liability for claims not covered by the policy or which exceed its limits, if any, for which the Club may be held responsible. Insurance Risks 37. The Club shall not do, omit to do, or permit to be done or omitted to be done upon the Premises anything that may contravene or be prohibited by any of the City's insurance policies in force from time to time covering or relevant to any part of the Premises or which would prevent the City from procuring its policies with companies acceptable to the City. If the conduct of business in the Premises or any acts or omissions of the Club on the Premises causes or results in any increase in premiums for any of the City's insurance policies, the Club shall pay such increase to the City. Indemnification 38. Each of the City and the Club shall indemnify and save harmless the other from and against any and all actions, losses, damages, claims, costs and expenses 7 (including solicitors' fees on a solicitor and client basis) to which the party being indemnified shall or may become liable by reason of any breach, violation or non- performance by the party so indemnifying of any covenant, term or provision of this Lease or by reason of any damage, injury or death occasioned to or suffered by any person or persons including the City or the Club, as the case may be, or any property by reason of any wrongful act, neglect or default on the part of the party so indemnifying or any of those persons for whom it is in law responsible. For greater certainty, the limitation of liability set out above in this section does not extend to claims, losses or damages resulting in whole or in part from the gross negligence or wilful misconduct of the party claiming indemnification, its employees or those for whom it is in law responsible. Article VII Remedies on Default City's Right to Re-Enter 39. If any amount payable to the City under this Lease shall remain unpaid for fifteen (15) days after the Club has received notice thereof, then it shall be lawful for the City at any time thereafter to re-enter the Premises. City's Right to Remedy Default 40. In addition to all other remedies the City may have under this Lease and in law, if the Club is in default of any of its obligations under this Lease, and such default has continued for a period of ten (10) days after receipt of notice by the Club (or such longer period as may be reasonably required in the circumstances to cure such default, except in an emergency where the City will not be required to give notice), the City, without prejudice to any other rights which it may have with respect to such default, may remedy such default and the Club shall be responsible for all such costs. Waiver 41. No condoning, excusing or overlooking by the City of any default, breach or non-observance by the Club at any time or times in respect of any covenant, obligation or agreement under this Lease shall operate as a waiver of the City’s rights hereunder in respect of any continuing or subsequent default, breach or non-observance, or so as to defeat or affect in any way the rights of the City in respect of any such continuing or subsequent default or breach, and no waiver shall be inferred from or implied by anything done or omitted by the Club save only an express waiver in writing. 8 Article VIII Miscellaneous Quiet Enjoyment 42. The City shall permit the Club to peaceably possess and enjoy the Premises during the Term and during facility operating hours without any interference from the City, or any person lawfully claiming by, from or under the City provided the Club be not in default. Right of Entry 43. The Club agrees to permit the City and authorized representatives of the City to enter the Premises during normal business hours for the purpose of inspecting the Premises. The City shall use its best efforts to minimize the disruption to the Club's use of the Premises during any such entry. Signs 44. The Club may only erect signs on the Premises with the City’s prior approval. All such signs shall be removed from the Premises at the end of the Term. Compliance with Laws 45. The Club, at its sole cost and expense, shall comply with all legal requirements (including statutes, laws, by-laws, regulations, ordinances, orders, rules and regulations of every governmental authority having jurisdiction) that relate to the use of the Premises by the Club or the making of any improvements to the Premises by the Club. Notice 46. Any notice required to be given by the City to the Club under this Lease shall be in writing and shall be delivered to the Premises or such other address of which the Club has notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 47. Any notice required to be given by the Club to the City under this Lease shall be in writing and shall be delivered to The Corporation of the City of Pickering, Pickering Civic Complex, One The Esplanade, Pickering, Ontario (Attention: City Clerk) or such other address of which the City has notified the Club in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. ________________________________ ________________________________ ________________________________ ________________________________ 9 Successors and Assigns 48. This Lease shall enure to the benefit of and be binding upon the parties and their respective successors (including any successor by reason of amalgamation or statutory arrangement) and permitted assigns. Schedules 49. Schedules “A” attached hereto form part of this Agreement. In Witness Whereof, the parties have executed this Lease. The Corporation of the City of Pickering David Ryan, Mayor Susan Cassel, City Clerk Ajax Pickering Italian Social Club Insert Name, Title Insert Name, Title 1 I I I I \ I ' -r t T T I I I D l , I I ~.y J. DRIVEDUBERRY ROADBROCK PLAYGROUND BUILDING WASHROOM BOCCEBUILDING (SEE COURTSENLARGEMENT) PARKING BASEBALL DIAMOND LOT SCHEDULE "A" TOILETS SHELTER WASHROOM BUILDINGPORTABLE UTILITY TOILETS KITCHENETTE STORAGE Attachment #2 to Report CS 09-21 PARK INFO. CENTENNIAL PARK P-008