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HomeMy WebLinkAboutOES 11-06 276 REPORT TO THE EXECUTIVE COMMITTEE Report Number: OES 11-06 Date: February 27,2006 From: Everett Buntsma Director, Operations & Emergency Services Subject: Lease of City of Pickering lands to O.J. Muller Landscape Contractor Ltd. Renewal of Lease Agreement for those lands comprising those parts of Lot 19, Concession 3, Pickering, designated as Part 2, Plan 40R-7012, save and except Part 2, Plan 40R-14541 and Part 3, Plan 40R-7012 - File: A-2130 Recommendation: 1. That Report OES 11-06 regardin~ renewal of a lease agreement be received; and 2. That the request by O.J. Muller Landscape Contractor Ltd. to renew a lease for City land on Brock Road for the purposes of cultivating the land for cash crops and to store and market nursery stock that includes landscape materials be APPROVED. 3. That the Mayor and the City Clerk be AUTHORIZED to sign a renewal lease agreement with O.J. Muller Landscape Contractor involving City lands, substantially on terms set out in the form prepared by the City Solicitor. Executive Summary: O.J. Muller Landscape Contractor Ltd. have been leasing the property located on Brock Road, Pickering, and compromising those lands consisting of a stone house and 6.1074 acres to use and occupy the property or the premises to cultivate the land for cash crops and to store market nursery stock. The property and premises are located at 2710 Brock Road, Pickering, and compromising those parts of Lot 19, Concession 3, Pickering, designated as Parts 2 and 3, Plan 40R- 7012. The lease agreement expired on De!cember 31, 2005 and a renewal lease agreement has been prepared by the City Solicitor to extend the terms of the Original Lease with the following modifications: 1. The term of the Renewal Lease shall have the same terms and conditions as in the Original Lease. 2. The term of the Renewal Lease shall be month-to-month commencing January 1, 2006. 3. Either party shall have the option of terminating the Renewal Lease upon 60 days prior notice to the other. ( t", i·.· (' , Report to Council OES 11-06 Date: February 27,2006 Subject: O.J. Muller Landscape Contractor Ltd. Lease Agreement Page 2 4. The amount of the rent payable by the Tenant to the Landlord monthly and every month during the renewal term shall be $1 ,500/month plus GST. 5. The following words shall be added to section 1 of the Original Lease: o The Tenant acknowledges that the Landlord will be boarding up the stone house on the Premises and will be decommissioning the well and septic system on the Premises. Financial Implications: Month-to-Month Rent of $1 ,500/month plus GST Business taxes (to be determined) Background: The subject property was deeded to the City as part of an agreement with Veridian Connections (formerly known as Pickering Hydro Electric Commission) in November 1999. Much of the property is natural woodlot ancillary to the area used by the tenant. The property is presently used as a nursery for a landscape business and the home on the property was previously used for residential purpose, however, the following words shall be added to section 1 of the "Original" Lease. "The Tenant acknowledges that the Landlord will be boarding up the stone house on the Premises and will be decommissioning the well and septic system on the Premises. 11 The tenant has advised that they no longer require the use of the residential building. Due to the aesthetic improvements required to the building and the issues with the well and failing septic system, it is in the City's best interest to remove these components from the lease, board up the house and decommission the well and septic system. The term of lease has been chan!~ed from a yearly renewal to a month-to-month commencing January 1, 2006. The lands are within the Duffin Heights Neighbourhood which are subject to redevelopment in the near future. The rent being recommended as the same to what the tenant was paying in previous years. Any increase will require further notification to the tenant. Attachments: 1. Location Map 278 Report to Council OES 11-06 Subject: O.J. Muller Landscape Contractor Ltd. Lease Agreement Date: February 27,2006 Page 3 Prepared By: RH:ds Copy: Chief Administrati ¡liEN'! 40 I rOREPORT# ()£5 /I-Ot;; _Lot / 27;] 1 :7500 FEBRUARY 27/2006 2710 BROCK ROAD REPORT TO COUNCIL OPERA nONS & EMERGENCY SERVICES DEPARTMENT MUNICIPAL PROPERTY & ENGINEERING DIVISION SCALE: DATE: L:\MPandE\ Thematic Mapping\Maps\MP&E - Admin \ Report