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3. 2020 WALKLEY ROAD - SOUTH
DISTRICT 2020 CHEMIN WALKLEY - CENTRE D’EMPLOI ET |
Committee Recommendation
That Council approve and execute a Lease
(the “Lease”) between the City of Ottawa (the “City”) and GWL Realty Advisors
Inc. (“GWL”) to continue to occupy 38,390 square feet of space at 2020 Walkley
Road and operate the South District Employment and Financial Assistance Centre
(“EFAC”) for a period of three (3) years, to be computed retroactively from 1
May 2010 to 30 April 2013 (the “Term”).
The consideration for the Term is $1,343,650 in basic rent and an
estimated $1,040,753 in operating rent and an estimated $376,606 in realty
taxes plus applicable taxes for a total consideration of approximately
$2,761,009 for the Term.
Recommandation DU Comité
Que le Conseil approuve et exécute une entente sur le renouvellement de
bail (le « Bail ») entre la Ville d’Ottawa (la « Ville »)
et GWL Realty Advisors Inc (« GWL ») afin que la Ville puisse
continuer à occuper les locaux de 38 390 pieds carrés situés au 2020,
chemin Walkley et à exploiter le Centre d’emploi et d’aide financière du Sud
(le « CEAF ») pour une période de trois (3) ans, et que celle-ci doit
être calculée rétroactivement à partir du 1er mai 2010 au
30 avril 2013 (« Période de renouvellement »). La
contre-partie en argent pour la durée du bail est de 1 343 650 $
pour la location de base et une estimation de 1 040 753 $ pour
la location de fonctionnement, plus les taxes foncières estimées à
376 606 $, en plus des taxes applicables, ce qui donne un total de
2 761 009 $ pour le renouvellement du bail.
Documentation
1. City
Manager’s report dated 3 September 2010 (ACS2010-CMR-REP-0042).
Community and Protective Services Committee
Comité des services
communautaires et de protection
and Council / et au Conseil
3 September 2010 / le 3 septembre 2010
Submitted by/Soumis par : Kent
Kirkpatrick, City Manager/
Directeur des services municipaux
Contact Person/Personne ressource : Gordon MacNair, Director
Real
Estate Partnerships and Development Office/Directeur, Partenariats et
Développement en
immobilier
(613)
580-2424 x21217, Gordon.MacNair@ottawa.ca
SUBJECT:
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2020 Walkley road – south
district employment |
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OBJET :
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2020 chemin walkley
– Centre d’emploi et d’aide financière de l’est – RENOUVELLEMENT DE BAIL |
That the Community and Protective Services Committee recommend Council approve and execute a Lease (the “Lease”) between the City of Ottawa (the “City”) and GWL Realty Advisors Inc. (“GWL”) to continue to occupy 38,390 square feet of space at 2020 Walkley Road and operate the South District Employment and Financial Assistance Centre (“EFAC”) for a period of three (3) years, to be computed retroactively from 1 May 2010 to 30 April 2013 (the “Term”). The consideration for the Term is $1,343,650 in basic rent and an estimated $1,040,753 in operating rent and an estimated $376,606 in realty taxes plus applicable taxes for a total consideration of approximately $2,761,009 for the Term.
Que le Comité des
services communautaires et de protection recommande au Conseil d’approuver et
d’exécuter une entente sur le renouvellement de bail (le « Bail »)
entre la Ville d’Ottawa (la « Ville ») et GWL Realty Advisors Inc
(« GWL ») afin que la Ville puisse continuer à occuper les locaux de
38 390 pieds carrés situés au 2020, chemin Walkley et à exploiter le
Centre d’emploi et d’aide financière du Sud (le « CEAF ») pour une
période de trois (3) ans, et que celle-ci doit être calculée rétroactivement à
partir du 1er mai 2010 au 30 avril 2013
(« Période de renouvellement »). La contre-partie en argent pour la
durée du bail est de 1 343 650 $ pour la location de base et une
estimation de 1 040 753 $ pour la location de fonctionnement,
plus les taxes foncières estimées à 376 606 $, en plus des taxes
applicables, ce qui donne un total de 2 761 009 $ pour le
renouvellement du bail.
In June
2000 Council approved staff’s recommendation to implement a Service Delivery
Model (SDM) strategy to restructure city-wide employment
and financial assistance services into Employment and Financial Assistance
Centres (EFAC) that would offer one-stop delivery of employment resource and
financial assistance services in the city’s East, West, Central and South Districts. Council subsequently approved leases for EFAC
in the Central District at 370 Catherine Street in August 2000, the East
District at 2339 Ogilvie Road in February 2001 and the West District at 2
Constellation Crescent in December 2001.
In
September 2002 Council approved a sublease (the “Sublease”) with JDS Uniphase
Inc. for a period of seven years and two months, from 1 March 2003 to 30 April
2010 (the “Original Term”), to relocate the Financial Assistance office in the
city’s southeast from 24,878 square feet of leased space at 2505 St. Laurent
Boulevard to 38,390 square feet of space at 2020 Walkley Road, and with the
addition of an Employment Resource Area, established the South District’s EFAC.
The
City’s Sublease with JDS Uniphase Inc. ended on 30 April 2010.
In May
2009, before the completion of the Original Sublease Term in April 2010, Realty
Services, as directed by the Employment Services Unit, entered into
negotiations directly with GWL to continue to occupy 38,390 square feet of space
at 2020 Walkley Road and operate the South District EFAC.
Discussions with the Landlord resulted in a three-year renewal beginning 1 May 2010 and ending 30 April 2013. The table below indicates the rents to be paid for the Term.
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/sf rate |
Year 1 |
/sf rate |
Year 2 |
/sf rate |
Year 3 |
Total |
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Basic Rent |
$11.00 |
$422,290 |
$12.00 |
$460,680 |
$12.00 |
$460,680 |
$1,343,650 |
|
Operating Costs ** |
$ 8.60 |
$330,154 |
$ 9.03 |
$346,662 |
$ 9.48 |
$363,937 |
$1,040,753 |
|
Realty Taxes ** |
$ 3.11 |
$119,393 |
$ 3.27 |
$125,535 |
$ 3.43 |
$131,678 |
$ 376,606 |
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TOTAL *** |
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$2,761,009 |
** Years 2 and 3 are estimated, based on a five (5%) percent increase each year.
*** Plus applicable taxes
The terms negotiated are indicative of market rent, as researched using
independent market data.
The Lease requires the Landlord to make various
repairs and replacements to the unit including: replacing, repairing and
maintaining exit doors, paint all existing drywall walls in the unit, and
remove kitchen floor carpet and replace with VCT flooring. All costs associated with these items are
borne by the Landlord.
The Lease entitles the City
to the use of up to one hundred and thirty (130) designated parking spaces on
the lands, including four (4) accessible parking spaces.
The Lease also entitles the
City to a one-time right of first refusal over the unit adjacent to our Leased
space. The adjacent unit is
approximately 30,000 square feet in size.
The City has the option to
renew for further two one-year terms, with the base rent to be negotiated based
on market rent.
The property is zoned IL -
Light Industrial which allows the City’s office use.
There are no environmental implications associated with this Lease.
RURAL IMPLICATIONS
There are no rural implications associated with this Lease.
This is considered to be an internal administrative matter. Therefore, public consultation was not undertaken.
Councillor Diane Deans - Ward 10 - Gloucester-Southgate is aware of
this Lease.
COMMENTS BY WARD COUNCILLOR
N/A
There are no legal / risk management impediments to implementing any of the recommendations of this report.
There are no implications with regard to the City’s Strategic Plan associated with this Lease.
There are no technical implications associated with this Lease.
This Lease represents an estimated cost to the City of $2,761,009 for the Term. Rental payments will be processed through Internal Order Number 302047.
Following Council’s approval the City’s Real Estate Partnerships and Development Office and Legal Services Branch will finalize this Lease.