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HomeMy WebLinkAboutCS 13-19Report to Executive Committee Report Number: CS 13-19 Date: November 4, 2019 From: Marisa Carpino Director, Community Services Subject: Lease Agreements - Sports Associations - File: A-1440 Recommendation: 1. That the Mayor and City Clerk be authorized to execute the Lease Agreement with 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron set out in Attachment No. 1 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; 2. That the Mayor and City Clerk be authorized to execute the Lease Agreement with Pickering Panthers Junior A Hockey Club set out in Attachment No. 2 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; 3. That the Mayor and City Clerk be authorized to execute the Lease Agreement with The Durham Dolphins Football Club set out in Attachment No. 3 to this report, subject to minor revisions as may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; and, 4. 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. Consistent with this Resolution, staff have prepared draft Lease Agreements for individual sports association groups who exclusively occupy designated spaces in City of Pickering facilities to support their activities and the delivery of community sports programs. The Community Services Department recommends that the Lease Agreements set out in Attachment No. 1, 2 and 3 of this report, be initiated for a five year term beginning December 1, 2019 and ending November 30, 2024. Financial Implications: The City of Pickering is responsible to fund the general operating costs (such as utilities, garbage removal, maintenance and cleaning) of Chestnut Hill Developments Recreation Complex Arena and West Shore Community Centre which are reflected annually in the CS 13-19 November 4, 2019 Subject: Lease Agreements Page 2 Current Budget (cost centres 2735 and 2719 respectively) of the Community Services Department. That said, the City’s direct cost to support the designated spaces set out in each of the attached Lease Agreements are nominal. The respective not for profit sports associations are responsible to fund the day-to-day costs associated with the use of these designated spaces which includes office furniture, supplies, storage/racking systems and insurance. Since the Pickering Panthers are commercially owned and operated, they are responsible to pay $1,000 (plus HST) in annual rental fees to the City for the exclusive use of facility space for their office, laundry and dressing rooms. Discussion: For the past several years, the City of Pickering has made designated facility spaces available to sports associations who deliver community sports programs at Chestnut Hill Developments Recreation Complex Arena and West Shore Community Centre, under a verbal agreement with the City. More specifically, the Pickering Panthers have exclusive use of an office, laundry room and dressing rooms at Chestnut Hill Developments Recreation Complex Arena for their use. The Air Cadets and Durham Dolphins each have exclusive use of storage rooms at West Shore Community Centre for their use. These spaces are integral to the operation of these sports associations as it provides much needed office and/or storage space required to run their activities. During this time, the respective sports associations have used these premises in a compliant manner that has satisfied the City. Consistent with Council Resolution #224/14, City staff have prepared written Lease Agreements to document these longstanding verbal agreements. As per the terms and conditions of the written agreements, the respective sports associations shall use the premises for storage and/or office space which is directly related to their program activities. Moreover, the premises cannot be materially altered without the written consent of the City. The sports associations will also maintain insurance in the amount of two million dollars. The City is responsible for all day-to-day operating expenses of Chestnut Hill Developments Recreation Complex Arena and West Shore Community Centre, including utilities, garbage removal and regular maintenance. The City’s direct cost to support the designated spaces set out in the attached Lease Agreements are nominal. These sports organizations are supported by dedicated staff and volunteers who contribute countless hours and whose programs reach thousands of sports enthusiasts every year for the benefit of this community. The City’s efforts to provide dedicated storage and/or office space is just one way to support their activities, those of which are not provided directly by the City of Pickering. The Community Services Department recommends that the Lease Agreements included as Attachment No. 1, 2 and 3 be initiated for a five year term beginning December 1, 2019 and ending November 30, 2024. LEASE AGREEMENT THIS LEASE AGREEMENT is made as of December 1. 2019 B E T W E E N : 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, the term: (a)"Lease" means this lease as it may be amended from time to time; (b)"Premises" means that 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; and, (c)"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. Severability 3.All of the provisions of this Lease are to be co nstrued 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 r emain 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 corporat ion 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. Attachment No. 1 to Report CS 13-2019 2 Entire Agreement 6. This Lease constitutes the entire agreement between the pa rties 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 Squadron of its obligations under this Lease, the City leases the Premises to the Squadron for its use during the Term. Squadron’s Use of Premises 8. 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. Nuisance 9. 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 ann oyance to the City, the public using West Shore Community Centre or any tenants of West Shore Community Centre. City Use of Premises 10. Notwithstanding anything else contained herein, the City shall have first right of refusal to use the Premises. The Squadron shall not be entitled to any rental fees or other remuneration associated with the use of the Premises by the City. 11. 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 12. 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 13. The Squadron may not grant licences to use the Premises. 14. The Squadron shall submit their annual financial statement to the City by October 31st of each year throughout the Term. 15. The Squadron shall submit a list of its Board of Directors to the City by October 31st of each year throughout the Term. Article III Term Term 16. The term of this Lease shall be five (5) years commencing on December 1, 2019 (the “Commencement Date”) and expiring on November 30, 2024, unl ess earlier terminated pursuant to this Lease (the “Term”). 3 17. 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 Sports Association by such termination. 18. 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 (but the Squadron shall, notwithstanding such termination, be liable to the City for any loss or damage suffered by the City by reason of any default of the Squadron). Overholding 19. 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 20. 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 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 Squadron shall maintain and operate the Premises so that the Premises shall always be of good appearance and suitable for proper operation . 23. The City 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. 24. The City shall be responsible for all day-to-day operating expenses including garbage removal. The Squadron shall not be responsible for utilities. 25. The City shall provide snow removal services for the parking lot , sidewalks, walkways and all other areas of pedestrian passage on the Premises. 26. (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, volunteers, 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 4 City’s reasonable administration charge necessitated by such negligence or misuse. 27. The Squadron shall immediately notify the City of any unsafe conditions on the Premises. Security 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. Such alterations and improvements shall be at the Squadrons’ sole cost and expense. Article VI Insurance and Indemnity Squadron’s Insurance 30. The Squadron, at its sole cost and expense, shall take out and maintain throughout the Term, (a) insurance upon property owned by which it is located on the Premises; and, (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 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 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. 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 th e 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. 5 Indemnification 34. The Squadron shall indemnify and save harmless the City from and against any and all actions, losses, damages, claims, costs and expenses (including, without limiting the generality of the foregoing, all claims for personal injury, death and/or property damage) and also damages arising from any breach of this Lease by the Squadron or from any act or omission of the Squadron or those for whom the Squadron is at law responsible in or around the Premises arising from the Squadron’s use and occupation of the Premises. The City shall not be liable for any loss or damage to any property belonging to the Squadro n or to any other person or for any injury to any person while such person or property is on the Premises, unless such loss, damage or injury is caused directly by the negligence of the City, or those for whom the City is at 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 o f 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. Article VIII Miscellaneous Quiet Enjoyment 38. Provided the Squadron is not in default, the City shall permit the Squadron to peaceably possess and enjoy the Premises during the Term without any interference from the City, or any person lawfully claiming by, from or un der the City, subject to the conditions and times set out herein. Right of Entry 39. The Squadron agrees to permit the City and authorized representatives of the City to enter the Premises 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. 6 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. 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. Schedules 46. Schedule “A” attached hereto forms part of this Lease. IN WITNESS WHEREOF the parties have executed this Lease. The Corporation of the City of Pickering ________________________________ David Ryan, Mayor ________________________________ Susan Cassel, City Clerk 7 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron ________________________________ Name: Title: ________________________________ Name: Title: I/We have authority to bind the Corporation WEST SHORE COMMUNITY CENTRE BASEMENT PLANSCHEDULE "A"NOT TO SCALECADETS STORAGE AREANORTH LEASE AGREEMENT THIS LEASE AGREEMENT is made as of December 1, 2019 B E T W E E N : THE CORPORATION OF THE CITY OF PICKERING (the "City") -and - PICKERING PANTHERS JUNIOR A HOCKEY CLUB (the "Sports Association") Article I Interpretation Definitions 1.In this Lease, the term: (a)"Lease" means this lease as it may be amended from time to time; (b)"Premises" means the portions of the Chestnut Hill Developments Recreation Complex, considered to be the Pickering Panthers Jr. A Hockey Club office, laundry room, and dressing room as shown on Schedule “A” attached hereto, located at 1867 Valley farm Road, in the City of Pickering, Regional Municipality of Durham; and, (c)"Rent" means the rent payable pursuant to Se ction 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. 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 individua ls, 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. Attachment No. 2 to Report CS 13-2019 2 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 Sports Association of its obligations under this Lease, the City leases the Premises to the Sports Association for its use during the Term. Sports Association’s Use of Premises 8. The Premises shall be used only for laundry, sports equipment storage, change room, and administrative functions of the Sports Association, and for no other purpose without the prior written consent of the City. For the purpose of clarification, the Sports Association shall not use the Premises for any other business or profit-generating purpose other than hockey operations. Nuisance 9. The Sports Association 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 the Chestnut Hill Developments Recreation Co mplex, or any tenants of the Chestnut Hill Developments Recreation Complex. Assignment and Subletting 10. The Sports Association shall not assign this Lease or sublet all or any portion of the Premises without the prior written consent of the City. Licences 11. The Sports Association may not grant licences to use the Premises. 12. The Sports Association shall submit their annual financial statement to the City by February 1st of each year throughout the Term. 13. The Sports Association shall submit a list of its Board of Directors to the City by February 1st of each year throughout the Term. City Use of Premises 14. Notwithstanding anything else contained herein, the City shall have first right of refusal to use the Premises. The Sports Association shall not be entitled to any rental fees or other remuneration associated with the use of the Premises by the City. 15. Provided it is not required by the City for any other use , the Sports Association shall be entitled to use the Premises during regular facility operating times of the Chestnut Hill Developments Recreation Complex. 3 Article III Term Term 16. The term of this Lease shall be five (5) years commencing on December 1, 2019 (the “Commencement Date”) and expiring on November 30, 2024, unless earlier terminated pursuant to this Lease (the “Term”). 17. Notwithstanding anything else contained herein, the City may terminate this Lease at any time for any reason provided it has given the Sports Association six (6) months prior notice. The City shall not be liable for costs or damages of any kind caused to the Sports Association by such termination. 18. Upon the expiration or earlier termination of this Lease, the Sports Association shall surrender to the City possession of the Premises, and all the rights of the Sports Association under this Lease shall terminate (but the Sports Association shall, notwithstanding such termination, be liable to the City for any loss or damage suffered by the City by reason of any default of the Sports Association). Overholding 19. If the Sports Association 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 Sports Association 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 Sports Association shall pay to the City rent annually throughout the Term in the amount of One Thousand Dollars ($1,000.00), plus HST, within thirty (30) days of the end of each year of the Term. 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 Sports Association shall maintain and operate the Premises so that the Premises shall always be of good appearance and suitable for proper operation , at the Sports Association’s sole cost and expense. 23. The City shall provide general maintenance services to the Premises at its expense. 24. The City shall be responsible for all day-to-day operating expenses including garbage removal. The Sports Association shall not be responsible for utilities. 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 and lights. 4 (2) The Sports Association shall be responsible for any damages or costs incurred due to the misuse or negligence of the Sports Association, its employees, volunteers, invitees, servants, agents, or others under its control and the Sports Association 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 Sports Association 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 Sports Association is not permitted to use the premises without City personnel on site to perform this function. The Sports Association 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 28. The Sports Association shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Such alterations and improvements shall be made at the Sports Associations’ sole cost and expense. Article VI Insurance and Indemnity Sports Association’s Insurance 29. The Sports Association, at its sole cost and expense, shall take out and keep in full force and effect throughout the Term , a. insurance upon property owned by which it is located on the Premises; and, b. commercial general liability insurance pertaining to the Sports Association’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 sc ope 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. 30. Prior to the Commencement Date, the Sports Association 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. 31. The provision of the insurance policy required by this Section shall not relieve the Sports Association from liability for claims not covered by the policy or which exceed its limits, if any, for which the Sports Association may be held responsible. 5 Insurance Risks 32. The Sports Association 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 Sports Association on the Premises causes or results in any increase in premiums for any of the City's insurance policies, the Sports Association shall pay such increase to the City. Indemnification 33. The Sports Association shall indemnify and save harmless the City from and against any and all actions, losses, damages, claims, costs and expenses (including, without limiting the generality of the foregoing, all claims for personal injury, death and/or property damage) and also damages arising from any breach of this Lease by the Sports Association or from any act or omission of the Sports Association or those for whom the Sports Association is at law responsible in or around the Premises arising from the Sports Association’s use and occupation of the Premises. The City shall not be liable for any loss or damage to any property belonging to the Sports Association or to any other persons or for any injury to any person while such person or property is on the Premises, unless such loss, damage or injury is caused directly by the negligence of the City, or those for whom the City is at law responsible. Article VII Remedies on Default City's Right to Re-Enter 34. If any amount payable to the City under this Lease shall remain unpaid for fifteen (15) days after the Sports Association 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 35. In addition to all other remedies the City may have under this Lease and in law, if the Sports Association 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 Sports Association (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 Sports Association shall be responsible for all such costs. Waiver 36. No condoning, excusing or overlooking by the City of any default, breach or non-observance by the Sports Association 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 Sports Association save only an express waiver in writing. 6 Article VIII Miscellaneous Quiet Enjoyment 37. Provided the Sports Association is not in default, the City shall permit the Sports Association 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, subject to the terms and conditions set out herein. Right of Entry 38. The Sports Association agrees to permit the City and authorized representatives of the City to enter the Premises for the purpose of inspecting the Premises. The City shall use its best efforts to minimize the disruption to the Sports Association’s use of the Premises during any such entry. Signs 39. The Sports Association 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, or such earlier termination of the Lease as provided herein. No Registration Notice 40. The Sports Association shall not register this Lease or any notice thereof against the title to the Premises. Compliance with Laws 41. The Sports Association, 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 Sports Association or the making of any improvements to the Premises by the Sports Association. Notice 42. Any notice required to be given by the City to the Sports Association under this Lease shall be in writing and shall be delivered to the Premises or such other address of which the Sports Association has notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 43. Any notice required to be given by the Sports Association 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 Sports Association in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. Successors and Assigns 44. 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 o r statutory arrangement) and permitted assigns. 7 Schedule 45. Schedule “A” attached hereto forms part of this Lease. IN WITNESS WHEREOF the parties have executed this Lease. THE CORPORATION OF THE CITY OF PICKERING ________________________________ David Ryan, Mayor ________________________________ Susan Cassel, City Clerk PICKERING PANTHERS JUNIOR A HOCKEY CLUB ________________________________ Name: Title: ________________________________ Name: Title: I/We have authority to bind the Corporation. """"'OOIRT . _....., . [I] Is LEASE SPACE � � --------7 -.... , I I I • I I • • • ..-.... ' 0' LAUNDRY ROOM (66 SF) PANTHERS OFFICE (170 SF) MEEIINO ..... MEEIINO ..... NORTH DRESSING ROOM (660 SF) ....... """" ....... """" 0 50 100 FEET SCHEDULE 'A' CHESTNUT HILL DEVELOPMENTS RECREATION COMPLEX 1867 VALLEY FARM ROAD, GROUND FLOOR PLAN LEASE AGREEMENT THIS LEASE AGREEMENT is made as of December 1, 2019 B E T W E E N : THE CORPORATION OF THE CITY OF PICKERING (the "City") -and - THE DURHAM DOLPHINS FOOTBALL CLUB (the "Sports Association") Article I Interpretation Definitions 1.In this Lease, the term: (a)"Lease" means this lease as it may be amended from time to time; (b)"Premises" means the portions of the West Shore Community Centre considered to be the Sports Association’s storage rooms as shown on Schedule “A” attached hereto, located at 1015 Bayly Street, in the City of Pickering, Regional Municipality of Durham; and, (c)"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. 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 numb er 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 supplemente d by an agreement in writing signed by both parties. Attachment No. 3 to Report CS 13-2019 2 Article II Grant and Use Grant 7. In consideration of the performance by the Sports Association of its obligations under this Lease, the City leases the Premises to the Sports Association for its use during the Term. Sports Association’s Use of Premises 8. The Premises shall be used only for storage purposes of the Sports Association, and for no other purpose without the prior written consent of the City. For the purpose of clarification, the Sports Association shall not use the Premises for any business or profit-generating purposes. Nuisance 9. The Sports Association 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 the West Shore Community Centre, or any tenants of the West Shore Community Centre. Assignment and Subletting 10. The Sports Association shall not assign this Lease or sublet all or any portion of the Premises without the prior written consent of the City, which consent may not be unreasonably withheld. Licences 11. The Sports Association may not grant licences to any third party for use of the Premises. 12. The Sports Association shall submit their annual financial statement to the City by February 1st of each year throughout the Term. 13. The Sports Association shall submit an annual list of its Board of Directors to the City by February 1st of each year throughout the Term. City Use of Premises 14. Notwithstanding anything else contained herein, the City shall have first right of refusal to use the Premises. The Sports Association shall not be entitled to any rental fees or other remuneration associated with the use of the Premises by the City. 15. Provided it is not required by the City for any other use, the Sports Association shall be entitled to use the Premises throughout the Term, provided the Sports Association’s activities are not deemed a nuisance by the City or other users of the West Shore Community Centre. Article III Term Term 16. The term of this Lease shall be five (5) years commencing on December 1, 2019 (the “Commencement Date”) and expiring on November 30, 2024, unless earlier terminated pursuant to this Lease (the “Term”). 3 17. Notwithstanding anything else contained herein, the City may terminate this Lease at any time for any reason provided it has given the Sports Association six (6) months prior notice. The City shall not be liable for costs or damages of any kind caused to the Sports Association by such termination. 18. Upon the expiration or earlier termination of this Lease, the Sports Association shall surrender to the City possession of the Premises, and all the rights of the Sports Association under this Lease shall terminate (but the Sports Association shall, notwithstanding such termination, be liable to the City for any loss or damage suffered by the City by reason of any default of the Sports Association). Overholding 19. If the Sports Association 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 Sports Association shall be deemed to be occupying the Premises from month to month upon the same terms, covenants a nd conditions as are set forth in this Lease insofar as they are applicable to a monthly tenancy. Article IV Rent Rent 20. The Sports Association shall pay to the City as rent for the entire Term in lawful money of Canada the sum of One (1) Dollar ($1.00). 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 Sports Association shall keep and maintain throughout the Term and deliver up at the end of the Term (or such earlier termination of this Lease as provided herein), the Premises in a state of good maintenance, cleanli ness and repair at the Sports Association’s sole cost and expense. The Sports Association shall permit representatives of the City to enter the Premises at any time for the purpose of inspection and to determine compliance with this provision. 23. The City shall provide general maintenance services to the Premises at its expense throughout the Term. 24. The City shall be responsible for all day-to-day operating expenses, including supplying heat, hydro, water, air conditioning, and garbage removal to the Premises at its expense throughout the Term . 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 and lights. (2) The Sports Association shall be responsible for any damages or costs incurred due to the misuse or negligence of the Sports Association, its employees, volunteers, invitees, servants, agents, or others under its control and the Sports Association shall pay to the City on demand the 4 expense of any repairs including the City’s reasonable administration charge necessitated by such negligence or misuse. 26. The Sports Association shall immediately notify the City of any unsafe conditions on the Premises. Security 27. The City shall be responsible for security of the Premises throughout the Term. The Sports Association is not permitted to use the Premises without City personnel on site to perform this function. The City shall provide the Sports Association with keys to the Premises. The Sports Association shall not, without the prior written consent of the City, change the lock(s) on the Premises or place additional locks upon the door(s) of the Premises and shall not permit any duplicate keys to be made. The Sports Association ackn owledges that the City will keep in its possession keys that provide access to the Premises by the City in the event it becomes necessary to enter the Premises during a time when the Sports Association is not using the Premises. Alterations/Improvements to Premises 28. The Sports Association shall only be permitted to make alterations and improvements to the Premises that have been approved by the City. Such alterations and improvements shall be at the Sports Associations’ sole cost and expense. Article VI Insurance and Indemnity Sports Association’s Insurance 29. The Sports Association, at its sole cost and expense, shall take out and keep in full force and effect throughout the Term , (a) insurance upon property owned by which it is located on the Premises; and, (b) commercial general liability insurance pertaining to the Sports Association’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 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. 30. Prior to the Commencement Date, the Sports Association 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. 31. The provision of the insurance policy required by this Section shall not relieve the Sports Association from liability for claims not covered by the policy or which exceed its limits, if any, for which the Sports Association may be held responsible. 5 Insurance Risks 32. The Sports Association 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 Sports Association on the Premises causes or results in any increase in premiums for any of the City's insurance policies, the Sports Association shall pay such increase to the City. Indemnification 33. The Sports Association shall indemnify and save harmless the City from and against any and all actions, losses, damages, claims, costs and expenses (including, without limiting the generality of the foregoing, all claims for personal injury, death and/or property damage) and also damages arising from any breach of this Lease by the Sports Association or from any act or omission of the Sports Association or those for whom the Sports Association is at law responsible in or around the Premises arising from the Sports Association’s use and occupation of the Premises. The City shall not be liable for any loss or damage to any property belonging to the Sports Association or to any other persons or for any injury to any person while such person or property is on the Premises, unless such loss, damage or injury is caused directly by the negligence of the City, or those for whom the City is at law responsible. Article VII Remedies on Default City's Right to Re-Enter 34. If any amount payable to the City under this Lease shall remain unpaid for fifteen (15) days after the Sports Association 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 35. In addition to all other remedies the City may have under this Lease and in law, if the Sports Association 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 Sports Association (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 a nd the Sports Association shall be responsible for all such costs. Waiver 36. No condoning, excusing or overlooking by the City of any default, breach or non-observance by the Sports Association 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 Sports Association save only an express waiver in writing. 6 Article VIII Miscellaneous Quiet Enjoyment 37. The City shall permit the Sports Association 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 Sports Association is not in default. Right of Entry 38. The Sports Association agrees to permit the City and authorized representatives of the City to enter the Premises for the purpose of inspecting the Premises. The City shall use its best efforts to minimize the disruption to the Sports Association’s use of the Premises during any such entry. Signs 39. The Sports Association may only erect signs on the Premises with the City’s prior approval. All such signs shall be removed from the Premises by the Sports Association at the end of the Term or such earlier termination of this Lease as provided herein. Compliance with Laws 40. The Sports Association, 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 Sports Association or the making of any improvements to the Premises by the Sports Association. No Registration Notice 41. The Sports Association shall not register this Lease or any notice thereof against the title to the Premises. Notice 42. Any notice required to be given by the City to the Sports Association under this Lease shall be in writing and shall be delivered to the Premises or such other address of which the Sports Association has notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 43. Any notice required to be given by the Sports Association 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 Sports Association in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. Successors and Assigns 44. 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. 7 Schedule 45. Schedule “A” attached hereto forms part of this Lease. IN WITNESS WHEREOF the parties have executed this Lease. THE CORPORATION OF THE CITY OF PICKERING ________________________________ David Ryan, Mayor ________________________________ Susan Cassel, City Clerk THE DURHAM DOLPHINS FOOTBALL CLUB ________________________________ Name: Title: ________________________________ Name: Title: I/We have authority to bind the Corporation. WEST SHORE COMMUNITY CENTRE BASEMENT PLANSCHEDULE "A"NOT TO SCALEDOLPHINS STORAGE AREANORTH