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10. LEASE AMENDING AGREEMENT - 738 GLADSTONE AVENUE -
ANGELO LORELLI - AMBULANCE POST Accord modificateur du bail de
location – 738, avenue Gladstone – Angelo Lorelli – Poste du service
paramédic |
That Council approve the Lease Amending Agreement between the City
(Tenant) and Angelo Lorelli (Landlord) for approximately 3,479ft2 of
space for an Ambulance Post located at 738 Gladstone Avenue in the City of
Ottawa for a term of five (5) years commencing 1 September 2009 and ending on
31 August 2015 for an estimated gross annual rent of $127,505.35 in year
one. Subsequent years will be adjusted
to reflect changes in operating costs and realty taxes.
Recommandation du Comité
Que le Conseil approuve l’accord
modificateur du bail de location entre la Ville (locataire) et Angelo Lorelli
(propriétaire) concernant une surface d’environ 3 479 pieds carrés
située au 738, avenue Gladstone, à Ottawa, qui servira de poste du Service
paramédic pour une durée de cinq (5) ans à partir du 1er
septembre 2009 jusqu’au 31 août 2015, en vue d’établir le loyer
annuel brut estimatif à 127 505,35 $ pour la première année. Le loyer des années suivantes sera ajusté en
vue de refléter les changements relatifs aux frais d’exploitation et aux taxes
foncières.
DOCUMENTATION
1. City
Manager’s report dated 4 June 2009 (ACS2008-CMR-REP-0034)
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, City Manager/directeur
municipal
Contact Person/Personne ressource: Gordon MacNair, Manager, Realty
Services,
Real
Estate Partnerships and Development Office / Gestionnaire, Services
immobiliers, Bureau de développement et de partenariats immobiliers
(613) 580-2424 x
21217, Gordon.MacNair@ottawa.ca
That the Corporate Services and Economic Development Committee recommend Council approve the Lease Amending Agreement between the City (Tenant) and Angelo Lorelli (Landlord) for approximately 3,479ft2 of space for an Ambulance Post located at 738 Gladstone Avenue in the City of Ottawa for a term of five (5) years commencing 1 September 2009 and ending on 31 August 2015 for an estimated gross annual rent of $127,505.35 in year one. Subsequent years will be adjusted to reflect changes in operating costs and realty taxes.
Que le
Comité des services organisationnels et du développement économique recommande
au Conseil d’approuver l’accord modificateur du bail de location entre la Ville
(locataire) et Angelo Lorelli (propriétaire) concernant une surface d’environ
3 479 pieds carrés située au 738, avenue Gladstone, à Ottawa, qui
servira de poste du Service paramédic pour une durée de cinq (5) ans à partir
du 1er septembre 2009 jusqu’au 31 août 2015, en vue
d’établir le loyer annuel brut estimatif à 127 505,35 $ pour la première
année. Le loyer des années suivantes
sera ajusté en vue de refléter les changements relatifs aux frais
d’exploitation et aux taxes foncières.
Effective 1 January 2001, the Province of Ontario downloaded the responsibility for Land Ambulance Services to the City of Ottawa. This transfer included transfer of any ambulance posts leased by the Province at that time. This ambulance post, located at 738 Gladstone Avenue, was built by the landlord for the Province in 1994 and was under lease to the Province at the time of the download. The building contains 3,479ft2 of floor space and three (3) ambulance bays.
The original Lease for this site expired 31 May 2004 and has been extended by two Lease Amending Agreements to our current end date of 31 August 2009.
The leased area consists of 3,479ft2 of floor space in a freestanding building located at 738 Gladstone Avenue in the City of Ottawa. A Lease Amending Agreement has been negotiated with the owner to renew the lease for five (5) years commencing 1 September 2009 and ending 31 August 2014.
The base rent agreed to in the renewal, fixed for the full term of lease, represents a zero per cent increase to the previous base rent. The additional rent is based on the year-end (actual) experience of operating expenses in the previous year (2007/08) and realty taxes assessed in 2008. The terms negotiated are commensurate with the previous lease agreement and the rates of $21.00/ft² for base rent and $10.45/ft² for operating rents and $5.20/ ft² for realty taxes rent are indicative of market rent.
The agreement provides for base rent of $6,088.25 per month, fixed for the full term of the lease. Operating rent in the first year is estimated at $3,029.63 per month and realty taxes rent estimated at $1,507.57 per month, both subject to an annual increase. The total gross rent is estimated at $10,625.45 per month, or $127,505.40 in the base year (1 September 2009-31 August 2010). The total consideration for the five (5) year term of the lease is estimated at $637,527 plus GST, and annual increases on operating rent and realty tax rent over the term.
The lease
includes an option for one (1) further term of five (5) years, subject to the
same terms and conditions save with respect to base rent, operating costs and
realty taxes.
No public consultation was required as this is an internal administrative matter. The Ward Councillor is aware of and approves this renewal.
There are no legal/risk management impediments to implementing any of the recommendations in this Report.
Funding of the lease is provided in Internal Order # 300122 to cover the amount of the lease costs to the end of 2010 provided that the Year 2 lease escalation does not exceed 5%. Beginning in 2011, escalations of the lease costs combined with the impact of the Harmonized Sales Tax (HST), which is being introduced on July 1, 2010, are not provided in the base Operating Budget and will result in annual budget pressures.
Realty Services will finalize the necessary Lease Amending Agreement.