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HomeMy WebLinkAboutCS 27-17611 PICKERING Report to Executive Committee Report Number: CS 27-17 Date: November 6, 2017 From: Marisa Carpino Director, Community Services Subject: Lease Agreement - Glendale Tennis Club Inc. - File: A-1440 Recommendation: 1. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Glendale Tennis Club Inc. set out in Attachment 1 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; That the appropriate City officials be authorized to take the necessary actions as indicated in this report. Executive Summary: Glendale Tennis Club Inc. (the "Club") operates various leagues and lessons from tennis courts and associated spaces within David Farr Memorial Park, located at 1150 Glenanna Road in Pickering. The Club has exclusive use of these facilities to operate their activities under the terms and conditions of a 5 year lease agreement (October 1, 2006 to September 30, 2012) with the City of Pickering. The lease agreement was amended as of March 1, 2011 to reflect a 5 year extension to the term ending September 21, 2017. The 5 year agreement renewal was sought by the Club as a condition of receiving a 2012 Ontario Trillium Foundation Grant to improve the existing tennis facilities at David Farr Memorial Park. The Community Services Department recommends that the Lease Agreement included as Attachment 1 be initiated for a 5 year term beginning December 1, 2017 and ending November 30, 2022. 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 David Farr Memorial Park which are reflected annually within the Community Services Department Current Budget (Cost Centre 2718). The Current Budget does not reflect capital expenditures that vary year-to-year depending on facility need. The Club is responsible to fund the day-to-day operating costs, including 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 also pay to the City annual charges for hydro use for each of the tennis courts on site. Annual charges are subject to the General Municipal Fees By -Law. CS 27-17 November 6, 2017 Subject: Glendale Tennis Club Inc. Lease Agreement Page 2 Discussion: The Club offers a wide variety of leagues, events, lessons and community outreach programs, for adults and juniors at all skill levels. The Club currently has 330 adults and 245 juniors for a total of 575 Club members. The Club operates its activities exclusively from 4 tennis courts, patio area, practice area, storage facility, kitchenette and access walkways located at David Farr Memorial Park, under a 5 year lease agreement with the City of Pickering from October 1, 2006 ending September 30, 2012. As a condition of receiving an Ontario Trillium Foundation Grant in 2012 for funding to improve existing tennis facilities, the Club was required to enter into a 5 year agreement with the City of Pickering for use of tennis facilities. As a result, the lease agreement was amended as of March 1, 2011 to include a 5 year extension which ended September 21, 2017. Improvements under this grant consisted of a replacement of the existing storage shed, concrete walkway removal and replacement, purchase and installation of new bleachers, and installation of a new wooden shade structure with energy efficient lighting on the underside. Throughout the term of the agreement, the Club has operated their activities in a diligent and conscientious manner that has satisfied the City. As such, the Community Services Department recommends that the Lease Agreement included as Attachment 1 be initiated for a five year term, beginning December 1, 2017 and ending November 30, 2022. Attachment: 1. Draft Lease Agreement with Glendale Tennis Club Inc. CORP0227-07101 revised CS 27-17 November 0, 2017 Subject: Glendale Tennis Club Lease Agreement Page 3 Prepar B Rob Gagen Supervisor, Parks Operations Brian Duffield Division Head, Operations RG:mc Approved/Endorsed By Marisa Carpino Director, Community Services Recommended for the consideration of Pickeri . ity Council to o ?7-1464.4 o f Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07!01 revised ATTACHMENT t# --TOREPORT #C c91. Lease Agreement This Lease is made as of the 1st day of December, 2017. Between: The Corporation of the City of Pickering (the "City") - and - Glendale Tennis Club Inc. (the "Club") Article 1 Interpretation Definitions 1. In this Lease, (a) "Commencement Date" means December 1, 2017; (b) "Lease" means this lease as it may be amended from time to time; (c) "Premises" means that portion of the four tennis courts, patio area, practice area, storage facility, kitchenette and access walkways to the courts within David Farr Memorial Park therein as shown on Schedule "A" attached hereto, located at 1150 Glenanna Road, in the City of Pickering, Regional Municipality of Durham; (d) "Term" means the term of this Lease as set out in Section 17; and (e) "Rent" means the rent payable pursuant to Section 20. 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 Severability 3. 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 4. 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 5. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 6. 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 7. 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. The club acknowledges its right to use the washrooms facilities is non-exclusive. Club Use of Premises 8. The Premises shall be used only for non-profit tennis club, at its expense and for no other purpose without the prior written consent of the City. Nuisance 9. The Club shall not carry on any activities or do or suffer any act or thing that constitutes a nuisance or which is offensive or an annoyance to the City or other users of David Farr Memorial Park. 3 City Use of Premises 10. Subject to Section 8, the City shall have right of first 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 11. 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 12. The Club may not grant licences to use the Premises. 13. The Club shall submit their annual financial statement to the City by Novemberl st of each year. 14. The Club shall submit a list of the Club Board of Directors and their contact information to the City by November 1st of each year. 15. The Club shall submit their membership numbers to the City by April 1St of each year. Article III Term Term 16. The term of this Lease shall be five (5) years from the Commencement Date to November 30, 2022. 17. The City may terminate this Lease at any time for any reason provided it has given the Club six (6) months prior notice in writing. Overholding 18. 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 19. 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 20. The club shall pay annual charges to the City for each of the tennis courts on site for 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 21. 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 22. The Club shall maintain and operate the Premises so that they shall always be of good appearance, safe and suitable for the proper operation of the Premises. 23. 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 courts and any associated building under their exclusive use. 24. The Club, at its sole expense shall provide the court nets and any shade screening, This would include installation, removal and storage each year. 25. The Club shall maintain at its expense the shade structure that is over the spectator bleachers and area between the courts. 26. The City, or its designate, shall be responsible for all day-to-day operating expenses including garbage removal, bleachers, benches, fencing, plumbing, any building associated with use of the courts, lighting and the court surface life cycle replacement. 5 27. 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. 28. The Club shall immediately notify the City of any unsafe conditions on the Premises. Security 29 The Club shall be responsible for the security of the Premises. The Club will ensure that a key or combination to any lock are provided to the City for maintenance and inspection access. Alterations/Improvements to Premises 30. The Club shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Article VI Insurance and Indemnity Club's Insurance 31. 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 abuse insurance. 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 two million dollars ($2,000,000.00) 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. 6 32. 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. 33. 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 34. 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 35. 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 (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 Vll Remedies on Default City's Right to Re -Enter 36. 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. 7 City's Right to Remedy Default 37. 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 38. 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. Article VIII Miscellaneous Quiet Enjoyment 39. The City shall permit the Club to peaceably possess and enjoy the Premises during the Term without any interference from the City, or any person lawfully claiming by, from or under the City provided the Club is not in default. Right of Entry 40. The Club agrees to permit the City and authorized representatives of the City to enter the Premises during normal business hours or in an emergency for the purpose of inspecting and or maintaining 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 41. 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. 8 Compliance with Laws 42. 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 43. Any notice required to be given by the City to the Club under this Lease shall be in writing and shall be delivered to 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. 44. 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. Successors and Assigns 45. 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 46. Schedule "A" attached hereto form part of this Agreement. 9 In Witness Whereof the parties have executed this Lease. The Corporation of the City of Pickering David Ryan, Mayor Debbie Shields, City Clerk Glendale Tennis Club Pascal Arpin, President Christina Koichopolos, Secretary SPOR LIGHT SOCCER PITCH (JR.) if BASEBALL DIAMOND (JR.) LP(2 ;. CR O GARB. CAN JR. & SR. PLAY AREA WITH SWING o O WASHROOM BUILDING 0 PRACTICE AREA INIT KITCHENETTE TENNIS COURT FACILIT LIGHT (7)« Schedule "A" ASPHALT PLAY AR EA ASPHALT PATH TENNIS COURT TENNIS COURT T SHED TENNIS COURT AREA OF LEASE AGREEMENT S -ORT BHT (i) PORT IGHT (2) BUTTERFLY MEADOW ASPHALT OATH GLENANNA 'go No PARK INFO. 61.1.14161, 27. PARK Ni410 •ow uiorurt DAVID FARR PARK 0•4.112 P-011 SHEET 1 OF 1