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4. Lease Renewal -
370 Catherine Street, Ottawa Renouvellement de bail - 370, rue
Catherine, Ottawa |
Committee Recommendation
That Council approve the
renewal of a lease with Three Seventy Catherine Limited for 29,700 square feet
of office space at 370 Catherine Street for 5 years and two weeks, commencing
18 October 2001 and terminating on 31 October 2006, at an annualized cost of
$678,579.00, plus GST.
Recommandation du comité
Que le Conseil municipal approuve le renouvellement d’un bail conclu
avec la Three Seventy Catherine Limitée, concernant 29 700 pieds carrés de
locaux de bureau au 370, rue Catherine pour une période de 5 ans et deux
semaines, débutant le 18 octobre 2001 et se terminant le 31 octobre 2006, à un
loyer annualisé de 678 579 $, la TPS en sus.
Documentation
1. Corporate Services Department General Manager’s report dated 04 March 2002 is immediately attached (ACS2002-CRS-RPR-0011).
Report to/Rapport au :
Corporate Services and Economic
Development Committee
Comité des services organisationnels
et du développement économique
and Council/et au Conseil
Submitted by/Soumis par : Kent Kirkpatrick, General Manager/Directeur général,
Corporate Services
Department/Services généraux
Contact/Personne ressource : D. H.
McCaslin, Manager, Real Estate Services/
Gestionnaire, Services immobiliers
580-2424, ext. 22595,
Douglas.McCaslin@city.ottawa.on.ca
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Ref N°:
ACS2002-CRS-RPR-0011 |
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SUBJECT: OBJET : |
LEASE RENEWAL – 370 CATHERINE STREET, OTTAWA RENOUVELLEMENT DE
BAIL – 370, RUE CATHERINE, OTTAWA |
RECOMMANDATION DU RAPPORT
In 1995, the former Region of Ottawa-Carleton approved a 5-year lease with Three Seventy Catherine Limited for the upper two levels of a four level office building at 370 Catherine Street. The Social Services Department operated its Central District Office from this location. That lease expired on 17 October 2001.
Regional
Council, at its meeting of 14 June 2000, received a confidential report dealing
with the strategy for Social Services Delivery Sites. A subsequent report
approved by Council on
9 August 2000 dealt with the recommendation for the Central District office at
370 Catherine. The Department’s strategic direction as stated in the June
report was to create Social Service Centres located on or near the Transitway
across the region, incorporating both Financial Assistance Programs and
Employment Support Services. Where
possible and appropriate, there would be partnerships with service
organizations such as Human Resources Development Canada or other community
agencies.
The Transition Board supported this
strategic direction in its approval of the new service delivery structure for
People Services. The proposed service delivery model, which recommends
restructuring from 9 sites to 4 sites over a three-year period, is critical in
achieving the amalgamation savings identified by the Employment and Financial
Assistance (EFA) branch of People Services.
The Social Services Department also operated its Employment Resource Centre at 880 Wellington Street (City Centre). The lease at that location was due for renewal on 30 September 2000. When the remaining two floors at 370 Catherine became vacant, it was viewed by Social Services as an opportunity to consolidate its operations within the Central area. As a first step in establishing a strategic direction, it was determined that operations would be moved from 880 Wellington to 370 Catherine, and that 370 Catherine would become the Service Delivery site for the Central core. On 18 August 2000, Regional Council approved the lease of the remaining two floors at 370 Catherine Street for a term of six years and one month, terminating on 31 October 2006. Council also authorized staff to exercise and negotiate a five-year renewal option for the existing, upper two levels of floor space.
The term for the lease renewal is five years and two weeks, commencing 18 October 2001 and terminating on 31 October 2006. This proposed renewal period would allow the lease for the upper two levels of the building to be co-terminus with the lease for the lower two floors. The rentable area on the upper two levels of the building involves a total of 29,700 square feet of floor space.
The base rent for the rentable area will escalate incrementally over the term of the lease from $12.00 per square foot to $14.00 per square foot, resulting in an average rent of $13.22 per square foot. Operating costs are estimated at $9.05 per square foot. The lease provides an additional 22 on-site parking spaces at a cost of $65.00 per space, per month.
The initial, annual rent for the floor space, including parking, will be $642,345.00 plus GST or $53,528.75 per month. The lease will include an option to renew for a further term of five years. With this renewal option, the People Services Department will have the opportunity to occupy the entire building, and to operate its Central District Office from this location until 31 October 2011.
There are no known environmental
implications related to the building.
CONSULTATION
As this is an internal administrative matter only, public consultation on this lease was not considered necessary.
FINANCIAL IMPLICATIONS
Funds for the lease of 370 Catherine Street have been identified in People Services 2002 operating estimates within cost center 157124.
DISPOSITION
Corporate Services Department - Legal Services Branch to finalize the lease renewal.