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HomeMy WebLinkAboutOES 21-09 REPORT TO 11111 ' EXECUTIVE COMMITTEE PICKERING Report Number: OES 21-09 Date: May 11, 2009 11 F? 7 _ From: Everett Buntsma Director, Operations & Emergency Services Subject: Horizon House, Where Heaven and Earth Meet - Lease Renewal Agreement - File: A-1440 Recommendation: 1. That Report OES 21-09 of the Director, Operations & Emergency Services be received; and 2. That the Mayor and the Clerk be authorized to execute a lease renewal agreement to which Horizon House will be permitted to continue to use the Greenriver Community Centre for the purposes of a church, church socials and religious education from April 1, 2009 to March 31, 2010, that is in the form and substance acceptable to the Director, Operations & Emergency Services and the Chief Administrative Officer. Executive Summary: The Horizon House have an existing lease at the Greenriver Community Centre for the purposes of a church, church socials and religious education. Horizon House have requested to renew this agreement for a further year. The Operations & Emergency Services Department recommends that a renewal agreement be initiated with Horizon House. Financial Implications: Revenues: 2009 9 months at $800 per month $7,200 2010 3 months at $800 per month 2,400 $9,600 Sustainability Implications: The use of the Greenriver Community Centre in a positive manner to provide a venue for religious activities within the community fits within the City's sustainable vision. Report OES 21-09 May 11, 2009 Subject. Horizon House, Where Heaven and Earth Meet 126 -Lease Renewal Agreement Page 2 Background: On March 19, 2007 Council enacted Resolution #65/07 to authorize the execution of a lease renewal agreement with Horizon House to permit the operation of church services, socials and religious education. The religious services and support offered by Horizon House enhances the role of the Greenriver Community Centre in providing positive community family values. Horizon House have a proven track record of good tenancy and a positive approach to good housekeeping of the facility. The Director, Operations & Emergency Services and Division Head, Facilities Operations recommends that a renewal lease agreement be initiated with Horizon House to ensure that their religious program can continue. The renewal lease agreement allows Horizon House to continue to provide church services, socials and religious education for a term of one year at a rental rate of $800 per month. Attachments: 1. Lease Renewal Agreement dated April 1, 2009 Prepared By: _ Approved/Endorse By: Tony revedel Everett 'untsrf4 Division Head, Facilities Operations Director, Operations & Emergency Services TP:mld Copy: Chief Administrative Officer Recommended for the consideration of Pickering City Council C4 Th mas J. uin , RDMR, MM III Chief Administrative Officer CORP0227-07/01 revised ATTACHMENT#;,- ® 0 REPORT# ES 1 " (~rl of LEASE AGREEMENT 127 THIS LEASE is dated April 1, 2009 BETWEEN: THE CORPORATION OF THE CITY OF PICKERING (the "City") - and - HORIZON HOUSE, WHERE HEAVEN AND EARTH MEET (the "Tenant") ARTICLE I - INTERPRETATION Definitions 1. In this Lease, (a) "Commencement Date" means April 1, 2009; (b) "Lease" means this lease as it may be amended from time to time; (c) "Leasehold Improvements" includes without limitation all fixtures, improvements, installations, alterations and additions from time to time made, erected or installed by or on behalf of the Tenant in or on the Premises; (d) "Premises" means the lands legally described as part of Lot 34, Concession 6, designated as Part 1 on Plan 40R-6910 in the City of Pickering, Regional Municipality of Durham and the building located thereon known as the Green River Community Centre; (e) "Property Taxes" means all real estate taxes, school taxes, levies, rates, duties, assessments and charges imposed against; (f) "Rent" means the rent payable pursuant to Section 13; (g) "Sales Taxes" means all sales taxes, value added taxes and any other taxes imposed on the City or the Tenant in respect of the Rent or the provision of any goods or services by the City to the Tenant under this Lease; and (h) "Term" means the term of this Lease as set out in Section 11. Horizon House Lease t~iEl~11 # / TO PORT#J~L~011/-0 7 Page 2 1 2 8 oZ of 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 individuals, firms or corporation where the context so requires. Governing Law 5. This Lease shall be governed by, and interpreted and enforced in accordance with, the laws in force in the Province of Ontario. Entire Agreement 6. This Lease constitutes the entire agreement between the parties concerning the Premises and may only be amended or supplemented by an agreement in writing signed by both parties. ARTICLE II - GRANT AND USE Grant 7. In consideration of the performance by the Tenant of its obligations under this Lease, the City leases to the Tenant the Premises for the Term and covenants to observe and perform all of the covenants and obligations to be observed and performed by the City under this Lease. In consideration of the performance by the City of its obligations under this Lease, the Tenant takes the Premises on lease from the City and covenants to pay the Rent and to observe and perform all other covenants to be observed and performed by the Tenant under this Lease. Horizon House Lease Pa e 3 c. rc 1L Use of Premises 8. The Premises shall be used only for the purposes of a church, church socials, religious education and for no other purpose without the prior written consent of the City. Nuisance 9. The Tenant shall not carry on any business or do or suffer any act or thing that constitutes a nuisance or which is offensive or an annoyance to the City. Shared Use 10. Notwithstanding anything in this Lease, the Tenant shall allow the Green River Residents Association to use the Premises for community meetings on Mondays, Tuesdays and Fridays and for other functions on an occasional basis on other days except Sundays, so long as there is sufficient time to appropriately clean the Premises prior to the Tenant's use. ARTICLE III - TERM Term 11. The term of this Lease shall be one (1) year from the Commencement Date to March 31, 2010. Overholding 12. If the Tenant 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 Tenant shall be deemed to be occupying the Premises as a tenant from month to month at a monthly rent double that set out in Section 13 and otherwise 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, TAXES AND OTHER CHARGES Rent 13. The Tenant shall pay to the City as rent during the Term in lawful money of Canada the sum of Nine Thousand and Six Hundred Dollars ($9,600.00) per annum in equal monthly instalments of Eight Hundred Dollars ($800.00) each on the first day of each calendar month during the Term, the first of such payments to be made on the Commencement Date. 14. The Tenant shall, at the request of the City, supply post-dated cheques for the Rent. r TO REPOFI ~S .2j-cam; Horizon House Lease Page 4 1 310 Sales Taxes 15. The Tenant shall pay to the City all applicable Sales Taxes at the same time as the amounts to which such Sales Taxes apply are payable to the City under the terms of this Lease. Property Taxes 16. The Tenant shall pay all Property Taxes and any taxes imposed as a result of any business carried on in the Premises by the Tenant. Utilities 17. The City shall pay all charges for electricity and for fuel for heating. The Tenant shall pay all charges for garbage removal and all other operating and maintenance costs and expenses except as otherwise provided in this Lease. ARTICLE V - MAINTENANCE, REPAIRS AND ALTERATIONS Maintenance and Repair of Premises 18. The Tenant, at its sole cost and expense, shall maintain the Premises in a good and substantial state of repair and keep the Premises clean and free from all refuse. Leasehold Improvements 19. The Tenant shall not make, erect, install or alter any Leasehold Improvements in or on the Premises without having first obtained the City's written approval. The Tenant's request for any approval shall be in writing and accompanied by an adequate description of the contemplated work and, where appropriate, working drawings and specifications. All work to be performed in the Premises shall be performed by competent contractors and subcontractors of whom the City shall have approved, such approval not to be unreasonably withheld. All such work shall be subject to inspection by and the reasonable supervision of the City, and shall be performed in accordance with any reasonable conditions or regulations imposed by the City and completed in a good and workmanlike manner in accordance with the description of work approved by the City. Removal 20. The Tenant shall remove from the Premises, at its expense, all Leasehold Improvements, furniture and equipment at the expiration or earlier termination of this Lease and shall repair any damage caused to the Premises by the installation and removal. Where required by the City, the Tenant shall restore Horizon House Lease Z, 2 i® REPORT# rL- `7 Page 5 r of 151 the Premises to the condition they were in prior to the installation of the Leasehold Improvements, furniture and equipment being removed. ARTICLE VI - INSURANCE AND INDEMNITY Tenant's Insurance 21. The Tenant, 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 Tenant's liability to others in respect of injury, death or damage to property occurring upon, in or about the Premises, 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. 22. Prior to the Commencement Date, the Tenant shall file with the City a Certificate of Insurance, in a form satisfactory to the City, verifying that the commercial general liability insurance policy is in effect and setting out the essential terms and conditions of the insurance. 23. The provision of any insurance policy required by this Lease shall not relieve the Tenant from liability for claims not covered by the policy or which exceed its limits, if any, for which the Tenant may be held responsible. Insurance Risks 24. The Tenant 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 occupancy of the Premises, the conduct of business in the Premises or any acts or omissions of the Tenant on the Premises causes or results in any increase in premiums for any of the City's insurance policies, the Tenant shall pay such increase to the City. Horizon House Lease 'FACHMENT 'TO REPORT of 132 Indemnification 25. Each of the City and the Tenant 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 Tenant, as the case may be, or any property by reason of any wrongful act, neglect or default on the part of the party so indemnifying or any of those persons for whom it is in law responsible. For greater certainty, the limitation of liability set out above in this section does not extend to claims, losses or damages resulting in whole or in part from the gross negligence or wilful misconduct of the party claiming indemnification, its employees or those for whom it is in law responsible. ARTICLE VII - REMEDIES ON DEFAULT City's Right to Re-Enter 26. If any amount payable to the City under this Lease shall remain unpaid for fifteen (15) days after the Tenant 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 27. In addition to all other remedies the City may have under this Lease and in law, if the Tenant 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 Tenant (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 Tenant shall be responsible for all such costs. Waiver 28. No condoning, excusing or overlooking by the City of any default, breach or non-observance by the Tenant 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 r O REPORT# CF Horizon House Lease - Page 7 of _14- 13 Z shall be inferred from or implied by anything done or omitted by the Tenant save only an express waiver in writing. ARTICLE VIII - MISCELLANEOUS Quiet Enjoyment 29. The City shall permit the Tenant 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 Tenant is not in default. Right of Entry 30. The Tenant shall permit the City and authorized representatives of the City to enter the Premises during normal business hours for the purpose of inspecting the same on prior notice to the Tenant (except in an emergency where no notice shall be required), and the Tenant shall arrange for such entry at a time convenient to both parties. The City shall use its best efforts to minimize the disruption to the Tenant's business operations during any such entry. Signs 31. The Tenant shall be permitted to -maintain an identification sign at or near the front of the Premises. Such sign shall only contain the name or style under which the Tenant is operating, the names of its leaders, and the times of its activities, unless otherwise approved in writing by the City. The Tenant shall not otherwise paint, display, inscribe, place or affix any sign, symbol, notice, lettering or display of any kind anywhere outside the Premises or within the Premises so as to be visible from the outside of the Premises without the prior written consent of the City. Any signs installed by the Tenant shall be removed from the Premises at the end of the Term. Compliance with Laws 32. The Tenant, 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 or occupation of the Premises by the Tenant or the making of any improvements to the Premises by the Tenant. Horizon House Lease i'0 REPORT# GtS r2/-Cc Page 8 4- Notice 33. Any notice required to be given by the Tenant 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 Tenant in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. 34. Any notice required to be given by the City to the Tenant under this Lease shall be in writing and shall be delivered to: Horizon House Where Heaven & Earth Meet 190 Phyllis Avenue Scarborough, ON M1M 1Y8 Attention: Walter Psotka, President or such other address of which the Tenant has notified the City in writing, and any such notice delivered shall be deemed good and sufficient notice under the terms of this Lease. Assignment and Subletting 35. The Tenant shall not assign this Lease or sublet all or any portion of the Premises without the prior written consent of the City. Successors and Assigns 36. 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. Horizon House Lease ,;-ENLN , , 4cc Page 9 135 IN WITNESS WHEREOF the parties have executed this Lease. THE CORPORATION OF THE CITY OF PICKERING David Ryan, Mayor Debi A. Wilcox, Clerk HORIZON HOUSE, WHERE HEAVEN AND EARTH MEET Walter Psotka, President Peter Lunde, Treasurer