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HomeMy WebLinkAboutCS 34-24Report to Executive Committee Report Number: CS 34-24 Date: November 4, 2024 From: Laura Gibbs Director, Community Services Subject: Community Association Lease Agreement at West Shore Community Centre -856 Pickering Kinsmen Royal Canadian Air Cadet Squadron-File: A-1440-001 Recommendation: 1.That the Mayor and City Clerk be authorized to execute the Lease Agreement with 856Pickering Kinsmen Royal Canadian Air Cadet Squadron for storage spaces at WestShore Community Centre, 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; and, 2.That the appropriate City officials be authorized to take the necessary actions asindicated in this report. Executive Summary: The purpose of this report is to renew the current Lease Agreement for the exclusive use of storage space in the basement of West Shore Community Centre (WSCC) to the 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron (the “Squadron”). As per Council Resolution #167/19, the City entered into the Lease Agreement with the Squadron for a five-year term, ending November 30, 2024. The new Lease Agreement (Attachment 1) expires on January 31, 2027. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of Strengthen Existing & Build New Partnerships. Financial Implications: The cost to rent the storage spaces at WSCC is one dollar for the term of the lease. The City of Pickering is responsible to fund the general operating costs (utilities, snow/garbage removal, maintenance and cleaning) of WSCC which is reflected annually within the Community Services Department Current Budget (cost centre 10220). The Squadron is responsible to fund the day-to-day costs to operate their activities, which includes maintenance of storage materials/equipment and insurance costs. The Squadron is also responsible for submitting financial statements annually to the City as a condition of this lease. CS 34-24 November 4, 2024 Subject: Community Association Lease Agreement at West Shore Community Centre Page 2 Discussion: The purpose of this report is to renew the current Lease Agreement. As per Council Resolution #167/19, the City renewed a Lease Agreement with the Squadron for their exclusive use of storage space in the basement of WSCC, with a term ending November 30, 2024. See Schedule ‘A’ (Attachment 1) Cadets for a diagram of the premises to be leased. The Royal Canadian Air Cadets is a community-oriented program for Canadian youth between the ages of 12 and 19 years. The Cadet program offers the opportunity for youth to develop into community-oriented citizens through challenges, unique experiences, and humanitarian endeavours. The program includes aviation studies, citizenship, leadership, effective speaking, outdoor survival, drill, sports, and drum and bugle band. The program also offers the opportunity to learn to fly, expand horizons, contribute to the local community, and develop lifelong friendships. The program is supported by a volunteer-based Squadron Sponsor Committee who look after all fundraising, organization, permits and transportation. The Squadron currently has 160 cadets. The cost to join is an $85.00 annual administration fee that is paid to the Ontario Provincial Committee to cover insurance and training. The City provides the Squadron with use of storage space at WSCC for Squadron programs annually. The current lease agreement expires on November 30, 2024. City staff have prepared a Lease Agreement (Attachment 1). As per the terms and conditions of the attached written agreement, the Squadron shall use the premises for storage. The Squadron will also maintain insurance in the amount of $5,000,000. The City is responsible for all day to day operating expenses of the WSCC, including utilities, snow and garbage removal, and regular maintenance. As well, as per Council Resolution #788/22, the Squadron has an additional five-year lease agreement for the exclusive use of the second floor meeting room, office and two storage rooms at East Shore Community Centre (ESCC) that expires on January 31, 2027. The Community Services Department recommends that the Lease Agreement at WSCC be initiated for a two year, three month term, beginning December 1, 2024 and ending January 31, 2027, at which time both WSCC and ESCC Leases will expire. It is staffs intent to combine the two leases into one lease for the meeting room, office and storage spaces at both facilities if both parties identify the continued need for this space. Attachment: 1.Draft Lease Agreement for 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron Prepared By: Approved/Endorsed By: Original Signed By Original Signed By Kim Bradley Laura Gibbs, MBA, MSc. Special Advisor, Community Initiatives Director, Community Services CS 34-24 November 4, 2024 Subject: Community Association Lease Agreement at West Shore Community Centre Page 3 Original Signed By Marilou Murray Manager, Community Services Administration & Strategic Initiatives MM:kb Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Attachment 1 to Report CS 34-24 Lease Agreement This Lease is made as of the 1st day of December 2024. Between: The Corporation of the City of Pickering (the "City") -and - 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron (the "Squadron") Article I Interpretation Definitions 1.In this Lease, (a)"Commencement Date" means December 1, 2024. (b)"Lease" means this lease as it may be amended from time to time. (c)"Premises" means a portion of the West Shore Community Centre considered to be the 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron’s storage rooms as shown on Schedule “A” attached hereto, located at 1015 Bayly Street, in the City of Pickering, Regional Municipality of Durham. (d)"Rent" means the rent payable pursuant to Section 21. (e)"Term" means the term of this Lease as set out in Section 17. 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” is incorporated into and form part of this Lease. Severability 4.All 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 corporations 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 Squadron of its obligations under this Lease, the City leases the Premises to the Squadron for its use during the Term. Squadron Use of Premises 9.The premises shall be used only for storage purposes of the Squadron, and for no other purpose without the prior written consent of the City. For the purpose of clarification, the Squadron shall not use the premises for any business or profit generating purposes. 3 Nuisance 10.The Squadron 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. The public using West Shore Community Centre or any tenants of West Shore Community Centre. City Use of Premises 11.The City reserves the right to use these premises for its own purposes at any given time if it determines, in its sole discretion, that it requires the use of the premises and the Squadron’s right to use the premises pursuant to this lease agreement is subject to the needs of the City which will always take priority. Furthermore, The Squadron shall not be entitled to receive any rental fee remuneration, damages, or any other compensation associated with the use of the Premises by the City. 12.Provided it is not required by the City for any other use, the Squadron shall be entitled to use the premises throughout the Term, provided the Squadron’s activities are not deemed a nuisance by the City or other users of the West Shore Community Centre. Assignment and Subletting 13.The Squadron shall not assign this Lease or sublet all or any portion of the Premises without the prior written consent of the City. Licences 14.The Squadron may not grant licences to use the Premises. 15.The Squadron shall submit their annual financial statement to the City by October 31st of each year. 16.The Squadron shall submit a list of their Board of Directors and total number of annual members/participants to the City by December 1st each year. Article III Term Term 17.The Term of this Lease shall be two (2) years commencing on December 1, 2024 (the “Commencement Date”) and expiring on December 31st, 2026, unless it is 4 terminated earlier pursuant to the terms of this Lease or unless it is extended by the agreement of the parties hereto. 18.Notwithstanding anything else contained herein, the City may terminate this Lease at any time for any reason provided it has given the Squadron six (6) months prior notice. The City shall not be liable for costs or damages of any kind caused to the Squadron by such termination. 19.Upon the expiration or earlier termination of this Lease, the Squadron shall surrender to the City possession of the Premises, and all the rights of the Squadron under this Lease shall terminate (the Squadron shall, notwithstanding such termination, be liable to the City for any loss or damage suffered by the City by reason any default of the Squadron). Overholding 20.If the Squadron 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 Squadron 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 21.The Squadron 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). 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 5 23. The Squadron shall maintain and operate the Premises so that they shall always be of good appearance and suitable for the proper operation of the Premises. The City shall provide general maintenance services to the common areas of the Premises at its expense. 24. The City shall provide snow removal services for the parking lot, sidewalks, walkways and all other areas of pedestrian passage on the Premises. 25. (1) Subject to subsection (2), the City shall be responsible for all inspections and preventative maintenance with respect to the heating equipment, transformer, parking lot, lights and exterior grass cutting and landscaping. (2) The Squadron shall be responsible for any damages or costs incurred due to the misuse or negligence of the Squadron, its employees, invitees, servants, agents, or others under its control and the Squadron 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. 26. The Squadron shall immediately notify the City of any unsafe conditions on the Premises. Security 27. The City shall be responsible for the security of the Premises. The Squadron is permitted to use the premises without City personnel on site for storage purposes only. 28. The Squadron will ensure that no copies of the keys to the Premises are made without the prior written consent of the City. Alterations/Improvements to Premises 29. The Squadron shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Article VI Insurance and Indemnity Squadron's Insurance 30. The Squadron, 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, 6 (b) commercial general liability insurance pertaining to the Squadron'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 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. 31. Prior to the Commencement Date, the Squadron 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. 32. The provision of the insurance policy required by this section shall not relieve the Squadron from liability for claims not covered by the policy or which exceed its limits, if any, for which the Squadron may be held responsible. Insurance Risks 33. The Squadron 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 Squadron on the Premises causes or results in any increase in premiums for any of the City's insurance policies, the Squadron shall pay such increase to the City. Indemnification 34. Each of the City and the Squadron 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 Squadron, 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 7 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 35. If any amount payable to the City under this Lease shall remain unpaid for fifteen (15) days after the Squadron 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 36. In addition to all other remedies the City may have under this Lease and in law, if the Squadron 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 Squadron (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 Squadron shall be responsible for all such costs. Waiver 37. No condoning, excusing or overlooking by the City of any default, breach or non-observance by the Squadron 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 Squadron save only an express waiver in writing. 8 Article VIII Miscellaneous Quiet Enjoyment 38. The City shall permit the Squadron to peaceably possess and enjoy the Premises during the Term and as per the conditions and times set out in their city issued facility permit without any interference from the City, or any person lawfully claiming by, from or under the City provided the Squadron is not in default. Right of Entry 39. The Squadron 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 Squadron's use of the Premises during any such entry. Signs 40. The Squadron 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 41. The Squadron, 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 Squadron or the making of any improvements to the Premises by the Squadron. No Registration Notice 42. The Squadron shall not register this Lease or any notice thereof against the title to the Premises. Notice 43. Any notice required to be given by the City to the Squadron under this Lease shall be in writing and shall be delivered to the Premises or such other address of which the Squadron has notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 9 44. Any notice required to be given by the Squadron 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 Squadron 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. Schedule A – West Shore Community Centre Basement Plan 10 In Witness Whereof the parties have executed this Lease. 11 The Corporation of the City of Pickering ________________________________ Kevin Ashe, Mayor ________________________________ Susan Cassel, City Clerk 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron ________________________________ Caroline Pascoe, Chair ________________________________ Sue Passmore, Treasurer We have the authority to bind the Squadron