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HomeMy WebLinkAboutLEG 04-14 C'ay 00 Report to =TCKERTNG N- - � Council P Report Number: LEG 04-14 1 t� 11 V Date:. March 24, 2014 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Pickering Golf Academy- - Extension of Lease - File: L-4620-006-05 Recommendations: • 1. That Report LEG 04-14 respecting the City's lease agreement with 1317970 Ontario Inc., carrying on business as Pickering Golf Academy at 2510 Brock Road North be received; 2. That the said lease agreement be extended for a one year term with no further extension or renewal beyond October 31, 2014, and that Lease Extension Agreement be executed substantially as set out in Attachment 2 to this Report; and 3. That the said Lease Extension Agreement be executed by the Mayor and City Clerk and that the appropriate City officials be authorized to take the necessary actions to implement these recommendations. Executive Summary: Pickering Golf Academy has leased land on Brock Road from the City for many years. The land is located in the Duffin Heights Development Area and is designated as Mixed Use Corridor. Because of the uncertain timing of development in the area, a lease extension for the property has been granted only on a short-term basis, generally for no more than one year at a time. The current City lease with the Pickering Golf Academy expired on October 31, 2013. Staff have received a request from Pickering Golf Academy for a further lease extension. We have reviewed the request and recommend to Council that Pickering Golf Academy be granted a further lease extension for a one year term to October 31, 2014. The extended lease will be terminable on 60 days notice. The rental rate remains unchanged. Financial Implications: The recommended lease extension for the Pickering Golf Academy would generate $1,200 per month in additional City revenue (excluding HST and property tax) from April to October, 2014. 65 Report LEG 04-14 March 24, 2014 Subject: Pickering Golf Academy Lease Extension Page 2 Discussion: The City currently leases approximately 5.0 hectares of land to the Pickering Golf Academy on the we st side of Brock Road, immediately north of the Arnts Topsoil site. • The Golf Academy lands are designated Mixed Use Corridor in the Official Plan. The Golf Academy lease expired on October 31, 2013. The tenant has requested another lease extension. Staff recommend that the City enter into a Lease Extension Agreement with Pickering Golf Academy substantially in the form set out in Attachment 2 to this Report. 'Attachments: 1. 2013 Pickering Golf Academy Lease Renewal Agreement 2. Prepared 2014 Pickering Golf Academy Lease Extension Agreement Pre• - -d/Approved By: Paul :igioni Direct. C. ..rate Services & City Solicitor • Recommended for the consideration of Pickerin City Council zavell Va.& tOt 20/4. Tony Prevedel, P. Eng. Chief Administrative Officer • 66 ATTACHMENT# TO REPORT# �; D q— .of. This Lease Extension Agreement is made as of.the 1st day of November 2012. • Between: The Corporation of the City of Pickering (the "Landlord") - and - . 1317970 Ontario Inc. carrying on business as Pickering Golf Academy (the "Tenant") Whereas pursuant to a lease-agreement dated January 1, 2005 (the "Original Lease"), the Landlord leased to the Tenant those lands consisting of 50,167.64 square metres of rentable area located in Lot 19, Concession 3, Pickering, and comprising that part of - Parts 37 and 40, Plan 40R-6934 for a term of one year commencing on January 1, 2005 and expiring on December 31, 2005; Whereas by a Renewal Lease dated January 1, 2006, and by further Lease Extension Agreements dated November 1, 2009, November 1, 2010 and November 1,2011, the Original Lease was further extended to October 31, 2012; and Whereas the Landlord and the Tenant wish to further extend the term of the Original Lease. • . Now therefore the Landlord and the Tenant agree as follows: • 1. The term of the Original Lease shall be extended by one year commencing November 1, 2012 and ending October 31, 2013. • 2. There shall be,no renewal or extension of the term of the Original Lease beyond October 31, 2013. 3. Rent in the amount of$1,200.00 per month plus HST and any other applicable taxes shall be payable by the Tenant to the Landlord on the first day of the months of April through October, 2013. 1 67 • • • • 4. All of the terms and conditions in the Original Lease, as previously amended, continue in full force and effect, except as modified by this Lease Extension Agreement. In witness whereof the parties have executed this Lease Extension Agreement as of the • date first written above. . The Corporation of the • City of Pickering Awl • David Ryan, May. r � . Debbie Shields, City Clerk • 1317970 Ontario Inc. • Per: GL-- Dan Lally—Authorized Signing Officer • • • • • • • • 2 68 ATTACHMENT# TO REPORT# c4" .of. This Lease Extension Agreement is made as of the 1st day of November, 2013. Between: The Corporation of the City of Pickering (the "Landlord") - and - • 1317970 Ontario Inc. carrying on business as Pickering Golf Academy (the "Tenant") Whereas pursuant to a lease agreement dated January 1, 2005 the Landlord leased to the Tenant those lands consisting of 50,167.64 square metres of rentable area located in Lot 19, Concession 3, Pickering, and comprising that part of Parts 37 and 40, Plan 40R-6934 for a term of one year commencing on January 1, 2005 and expiring on December 31, 2005; Whereas by a Renewal Lease dated January 1, 2006, and by further Lease Extension Agreements dated November 1, 2009, November 1, 2010, November 1, 2011, and November 1, 2012,the lease was further extended to October 31, 2013; Whereas the Landlord and the Tenant wish to further extend the term of the lease; and Whereas the lease, as amended herein, is referred to as the "Lease". - Now therefore the Landlord and the Tenant agree as follows: .. ....................... ................... ....... ...... ................. ........ ............ 1. The term of the Lease shall be extended by one year commencing November 1, 2013 and ending October 31, 2014. . • 2. There shall be no renewal or extension of the term of the Lease beyond October 31, 2014. . 3. Rent in the amount of$1,200.00 per month plus HST and any other applicable taxes shall be payable by the Tenant to the Landlord on the first day of the months of April through October, 2014. • 1 69 4. Notwithstanding the terms of the Lease or of this renewal, the Lease may be terminated by either the Landlord or the Tenant upon sixty (60) days written notice-to the other. 5. All of the terms and conditions in the Lease continue in full force and effect, except as modified by this Lease Extension Agreement. In witness whereof the parties have executed this Lease Extension Agreement as of the date first written above. The Corporation of the City of Pickering David Ryan, Mayor • • Debbie Shields, City Clerk 1317970 Ontario Inc. Per: Dan Lally—Authorized Signing Officer • • 2 70