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HomeMy WebLinkAboutCRPS-10-074 - Agreement - Kitchener FrameREPORT TO: Committee of The Whole DATE OF MEETING: May 17, 2010 SUBMITTED BY: Lesley MacDonald, Director of Legal Services and City Solicitor PREPARED BY: Lesley MacDonald, Direcor of Legal Services and City Solicitor WARD(S) INVOLVED: Ward 3 DATE OF REPORT: May 17, 2010 REPORT NO.: CRPS - 10-074 SUBJECT: EXECUTION OF AN ACKNOWLEDGEMENT AND AGREEMENT RESPECTING LEASE DATED AUGUST 29, 2000 LANDS DESCRIBED AS PARTS 1 AND 2 ON 58R-11898 RECOMMENDATION: That the Mayor and Clerk be authorized to execute an Acknowledgement and Agreement, satisfactory to the City Solicitor, with Kitchener Frame Limited, Martinrea International Inc. and the perspective purchaser pertaining to the lands described as Parts 1 and 2 on 58R- 11898, which is subject to a Lease, dated August 29, 2000 as amended, with the City of Kitchener. BACKGROUND: The City entered into a Lease on August 29, 2000 to use the lands described as Parts 1 and 2 on 58R-11898 for recreational purposes. REPORT: In accordance with the City's Right of First Refusal the City has been approached this spring to determine if it would be interested in purchasing the lands which are the subject of the lease. Staff do not support the acquisition of these lands at the proposed price and recommend that the City waive its right to purchase, and along with the other parties, acknowledge the continuation of the lease. FINANCIAL IMPLICATIONS: Status quo will continue under the Lease. CONCLUSION: In order to facilitate a smooth transition of the August 29, 2000 Lease, Staff has discussed the Right of First Refusal with Council in camera and support the waiver of the City's right to acquire the lands. The Acknowledgement and Agreement sets out the City's position and establishes the terms under which the City waives its rights to acquire. ACKNOWLEDGED BY: Pauline Houston, General Manager of Community Services