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HomeMy WebLinkAboutCS 01-22 Report to Executive Committee Report Number: CS 01-22 Date: January 10, 2022 From: Sarah Douglas-Murray Director, Community Services Subject: Community Association Lease Agreement -856 Pickering Kinsmen Royal Canadian Air Cadet Squadron -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 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 as indicated in this report. Executive Summary: As per Council Resolution #252/17, the City entered into a Lease Agreement with the 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron (the “Squadron”) for their exclusive use of one office, one meeting room and two storage rooms located at the East Shore Community Centre. The Lease agreement expires on January 31, 2022. The Community Services Department recommends that the Lease Agreement included as Attachment 1 be initiated for a five year term beginning February 1, 2022 and ending January 31, 2026. Financial Implications: The City of Pickering is responsible to fund the general operating costs (such as utilities, snow/garbage removal, maintenance and cleaning) of the East Shore Community Centre which are reflected annually within the Community Services Department Current Budget (cost centre 10245). The Current Budget does not reflect capital expenditures that vary year-to-year depending on facility need. The Squadron is responsible to fund the day-to-day costs to operate their activities, which includes program/office supplies, administrative and insurance costs. The Squadron is also responsible to supply, maintain, repair and/or replace furniture, appliances and equipment at its expense, in order to operate their activities. Discussion: For the past number of years, the Squadron have operated their committee from dedicated office, meeting room and storage rooms located on the 2nd floor of the East Shore Community Centre. CS 01-22 January 10, 2022 Subject: Community Association Lease Agreement Page 2 The Royal Canadian Air Cadets is an inclusive community oriented program for Canadian youth between the ages of 12 and 18 years. The Cadet program offers the opportunity for youth to develop into upstanding community orientated 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. 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron currently has 150 cadets and the only cost to join is a $60 annual administration fee that is paid to the Ontario Provincial Committee to cover insurance and training. The Squadron has the exclusive use of the second floor meeting room, office and two storage rooms, at no cost to coordinate their administrative duties. The Squadron is scheduled to host their programs and exercise drills through their use of the East Shore Community Centre Gymnasium, Community Room, Meeting Rooms 2 and 4 on Wednesdays from 6:00 pm to 10:00 pm. and the Community Room on Fridays from 7:00 pm to 9:30 pm from September to June annually, at no cost to the Club. During this time, the Squadron have operated their activities in a diligent and conscientious manner that has satisfied the City. The current Lease Agreement executed under Council Resolution #252/17 expires January 31, 2022. City staff have prepared an updated Lease Agreement attached as Attachment 1. As per the terms and conditions of the attached written agreement, the Squadron shall use the premises for non-profit, charity events or non-commercial receptions of the Squadron, at their cost. The Squadron will also maintain insurance in the amount of five million dollars. The City is responsible for all day-to-day operating expenses of the East Shore Community Centre including utilities, snow and garbage removal and regular maintenance. The Community Services Department recommends that the Lease Agreement included as Attachment 1 be initiated for a five year term, beginning February 1, 2022 and ending January 31, 2026. Attachments: 1. Draft Lease Agreement with 856 Pickering Kinsmen Royal Canadian Air Cadet Squadron. CORP0227-07/01 revised CS 01-22 January 10, 2022 Subject: Community Association Lease Agreement Page 3 Prepared/Approved/Endorsed By: Original Signed By: Sarah Douglas-Murray Director, Community Services SDM:sdm Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer CORP0227-07/01 revised Attachment 1 Lease Agreement This Lease is made as of the 1st day of February, 2022. 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 February 1, 2022; (b) "Lease" means this lease as it may be amended from time to time; (c) "Premises" means that portion of the East Shore Community Centre composed of the second floor meeting room, office and two storage rooms as shown on Schedule “A” attached hereto, located at 910 Liverpool Road South, in the City of Pickering, Regional Municipality of Durham; (d) "Rent" means the rent payable pursuant to Section 22; and (e) "Term" means the term of this Lease as set out in Section 19. 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 “B” (City’s Conditions of Agreement) are incorporated into and form part of this Lease. Severability 4. 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 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 corporation 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 administrative and program functions of the Squadron at its expense and for no other purpose without the prior written consent of the City. 3 10. The Squadron’s use of the Premises shall be in accordance with the City’s Conditions of Agreement (Schedule “B”). Nuisance 11. 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 City acknowledges that the drilling, exercise and program activities normally carried on by the Squadron on the Premises do not constitute a nuisance. City Use of Premises 12. Subject to section 11, the City shall have right of first refusal to use the Premises. The Squadron shall not be entitled t o any rental fees remuneration or any other compensation associated with the use of the Premises by the City. 13. Provided it is not required by the City for any other use, the City shall provide the Squadron with the use of the East Shore Community Centre Gymnasium, Community Room, Meeting Rooms 2 and 4 on W ednesdays from 6:00 pm to 10:00 pm and the Community Room on Fridays from 7:00 pm to 9:30 pm for Squadron activities from September to June annually at no cost to the Club. Requests by the Squadron for additional facility space and/or time is subject to facility availability and applicable permit user fees. Assignment and Subletting 14. 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 15. The Squadron may not grant licences to use the Premises. 16. The Squadron shall submit their annual financial statement to the City by October 31st of each year. 17. The Squadron shall submit an annual permit request to the City by June 30th of the previous year. 18. 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. 4 Article III Term Term 19. The term of this Lease shall be five (5) years from the Commencement Date to January 31, 2027. 20. The City may terminate this Lease at any time for any reason provided it has given the Squadron six (6) months prior notice. Overholding 21. 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 22. 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 23. 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 24. 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. 25. The Squadron shall be responsible to supply, maintain, repair and/or replace furniture, appliances and equipment at its expense in order to operate Squadron activities. 5 26. The City shall provide snow removal services for the parking lot, sidewalks, walkways and all other areas of pedestrian passage on the Premises. 27. (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. 28. The Squadron shall immediately notify the City of any unsafe conditions on the Premises. Security 29. The City shall be responsible for the security of the Premises. The Squadron is not permitted to use the premises without City personnel on site to perform this function. Alterations/Improvements to Premises 30. 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 31. 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 (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 6 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. 32. 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. 33. 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 34. 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 35. 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 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. 7 Article VII 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 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 37. 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 38. 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 39. 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 8 40. 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 41. 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 42. 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. 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. Schedules “A” and “B” attached hereto form part of this Agreement. In Witness Whereof the parties have executed this Lease. 9 The Corporation of the City of Pickering ________________________________ David Ryan, 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 NOTE: LOCATIONS OF WALLS AND FIXTURES MAY VARY Appendix A NORTH EAST SHORE COMMUNITY CENTRE GROUND FLOOR PLAN 50 10 METERS GYMNASIUM SENIOR'S ROOM ACTIVITY ROOM MULTI- PURPOSE MULTI- PURPOSE LAWN BOWLING ROOM MULTI- PURPOSE GAME ROOM MECH MECH UPPER FLOOR PLAN AIR CADETS LIVERPOOL ROAD STORAGE STORAGE SHED MAIN PARKING LOT & LAWN BOWLING GREENS Appendix B Conditions of Use 1. The City reserves the right to cancel any permit temporarily or permanently, should accommodation be required for special events, or in an emergency. 2. 50% of payment is due at time of booking. This is a non-refundable deposit. The remaining 50% is due in full, 90 days prior to the permit date of the event. 3. Applicants must be members of authority in the organization seeking accommodation. 4. The facility is to be used only on the date(s) and time(s) specified, and only for the purpose named. No teen dances/parties, stags or stagettes are permitted in our halls. This permit is not transferrable. 5. The City will not be responsible for personal injury or damage or for the loss or theft of clothing or equipment of the applicants, or anyone attending on the invitation of the applicant or any persons contracted by the applicant. 6. The applicant shall be responsible for the conduct and supervision of all persons admitted to the building(s) and grounds and shall see that all regulations contained herein are strictly observed. 7. Unnecessary noise which disturbs the peace, quiet, or comfort of any person in any type of residence, place of business, etc., in proximity to the facility shall not be permitted. 8. The exits must be kept free from obstruction in case of fire. 9. The applicant must pay all damages arising from the use of the property. 10.A damage/security deposit will be charged for all rentals, to be refunded at a later date, if no damage, excessive maintenance costs are incurred as a result of the facility rental. 11.The applicant must pay such fees for extra work by custodians, etc., as the City may determine. 12.Games of chance, lottery, or gambling in any forms, contrary to law is strictly forbidden. 13.It shall be the responsibility of the applicant to see that all persons admitted to the function being held, have vacated the premises promptly by 2:00 am. 14.If liquor of any type is to be served, sold or available at the function, the applicant must obtain all necessary permits and licenses and must adhere to the City of Pickering ‘Alcohol Management Policy’. A copy of the liquor license must be posted on the wall during the function. 15.The City of Pickering requires every event have a minimum of $2,000,000 third party general liability insurance coverage. This insurance must be purchased as part of the rental process. 16.For all special occasion permits, only monitors and servers that possess a server intervention program certificate will be permitted to use the designated facility. Information is available at www.smartserve.org. 17.The licensor reserves the right to provide security personnel or Pay- Duty Police at the expense of the licensee, should the Supervisor, Facility Programs deem it necessary. 18.Hall cancellations are subject to a $48.00 administration fee. 19.All cancellations must be received in writing ninety days prior to the function, or the entire rental fee will be forfeited. 20.All rental rates are subject to increase. Post-dated cheques will not be accepted. 21.This contract is not valid unless it is signed and dated by the person renting the facility and returned as soon as possible to the Facility Booking Clerk. 22.Recreation Complex Staff will set-up the tables and chairs ‘provided’ a diagram of the layout is submitted one week preceding the function. You may obtain the diagrams at the Complex Information Desk. Any materials/articles dropped off prior to the function, or left after the function, must have prior approval from the Maintenance Department or designate. 23.If Complex Banquet Halls are rented, please use the outside entrance to Banquet Hall, do not use main Complex doors.