Commission du transport en commun par intérim
5 January 2011 / le 5 janvier 2011
Submitted by/Soumis par : Kent Kirkpatrick, City Manager / Directeur municipal
Contact Person/Personne ressource : Gordon MacNair, Director,
Real Estate Partnerships and Development Office/Directeur, Partenariats et Développement en immobilier
(613) 580-2424 x 21217, Gordon.MacNair@Ottawa.ca
SUBJECT: |
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OBJET : |
RENOUVELLEMENT DE BAIL – BILLETTERIE D'OC TRANSPO AU CENTRE RIDEAU |
That the Interim Transit Commission approve and execute a Lease Renewal (the “Renewal”) between the City of Ottawa (the “City”) and Viking Rideau Corporation (“Viking”) to continue to occupy 714 square feet of space at 50 Rideau Street, known as the Rideau Centre, and operate an OC Transpo Ticket Office (“Ticket Office) for a period of five (5) years, to be computed from 1 October 2010 to 30 September 2015 (the “Term”).
Que la Commission du transport en commun par intérim approuve et exécute le renouvellement de bail entre la Ville d'Ottawa (« la Ville» ) et Viking Rideau Corporation (« Viking ») en vue de continuer d'occuper un espace de 714 pieds carrés au 50, rue Rideau, appelé le Centre Rideau, et d'y exploiter la billetterie d'OC Transpo (« la billetterie ») pour une durée de cinq (5) ans, du 1er octobre 2010 au 30 septembre 2015 (« la durée »).
OC Transpo has maintained the Ticket Office at the Rideau Centre since 2000. The location provides transit sales and information including: selling transit fare media, selling photo identification for adults, selling and authorizing photo identification for all concession fares (i.e. students, seniors, community pass, Ecopass sign-up and renewals). It is also a distribution point for printed timetables, brochures and take-ones. There is also a walk up counter to provide
transit customers with information regarding transit programs, policies, and travel planning and service delivery issues.
The Renewal is required as the Rideau Centre is a major transit hub and high volume transfer point for Transitway and the downtown core. The OC Transpo related pedestrian traffic is reported at 33,000 per day and the average monthly sales for this location are estimated at $1,000,000+.
Discussions with the Landlord resulted in a five (5) year renewal beginning 1 October 2010 and ending 30 September 2015. The below table indicates the rents to be paid for the Term.
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Square Footage |
714 |
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Base rent/sf |
$130 |
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2010 Operating rent/sf |
$27.46 |
$28.83 |
$30.27 |
$31.79 |
$33.38 |
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2010 Taxes rent/sf |
$22.24 |
$22.91 |
$23.59 |
$24.30 |
$25.03 |
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Year |
1 |
2 |
3 |
4 |
5 |
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Base rent |
$92,820 |
$92,820 |
$92,820 |
$92,820 |
$92,820 |
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Operating rent |
$19,606 |
$20,587 |
$21,616 |
$22,697 |
$23,832 |
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Taxes rent |
$15,879 |
$16,356 |
$16,846 |
$17,352 |
$17,872 |
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$128,306 |
$129,763 |
$131,283 |
$132,869 |
$134,524 |
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TOTAL for 5 year term |
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$656,744 |
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NOTES - Operating costs for years 2 to 5 have been estimated using a 5% increase per annum - Taxes for years 2 to 5 have been estimated using a 3% increase per annum |
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The terms negotiated are indicative of market rent as researched using independent market data.
The Renewal is on the same terms and conditions as the original Lease except that the City will have no further option to renew.
The property is zoned MD - Mixed Use Downtown Zone which allows the City’s use.
There are no environmental implications associated with this Lease Renewal.
There are no rural implications associated with this Lease Renewal.
This is considered to be an internal administrative matter therefore public consultation was not undertaken.
The Ward Councillor has no objection to the renewal of this Lease.
There are no legal/risk management impediments to implementing any of the recommendations of this report.
This Lease Renewal supports the City’s Strategic Plan as it relates to the Transit Priority and its objective to achieve a 30% modal split by 2031 by allowing the continuation of transit services at this location.
There are no technical implications associated with this Lease Renewal.
The total 5 year cost of the lease is $656,744 and will be funded from the OC Transpo operating budget (Rideau Centre Sales).
N/A
Following Council’s approval the City’s Real Estate Partnerships and Development Office and Legal Services Branch will finalize this Lease Renewal.