HomeMy WebLinkAboutCAO-12-028 - Lease for Victoria Park Lake BoathouseKITC~HENEI~
Staff Repari~
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REPORT TO: Committee of the Whole
DATE OF MEETING: June 11, 2012
SUBMITTED BY: Jeff Willmer, CAO
PREPARED BY: Rod Regier, Executive Director of Economic Development
ext. 2506
WARD(S) INVOLVED: 9
DATE OF REPORT: June 7, 2012
REPORT NO.: CAO-12- 028
SUBJECT: LEASE FOR THE VICTORIA PARK LAKE BOATHOUSE
RECOMMENDATION:
That the Mayor and Clerk be authorized to sign an agreement, satisfactory with the City
Solicitor, with 1639885 Ontario Limited and Kevin Doyle, regarding the leasing of the Victoria
Park Lake Boathouse as outlined in Chief Administrator's Office report CAO-12-028, dated June
7, 2012.
BACKGROUND:
The Victoria Park Boathouse was constructed in 1929. For many years its primary function was
to serve as a rental facility for the boats provided on Victoria Lake during the summer and as a
skating change room during the winter. In the 1990's there were attempts by tenants to operate
a food/concession or music venue, however; these particular uses struggled financially and the
rental agreement was assigned to Mr. Kevin Doyle. The building has operated successfully
since that time as an independent music venue and licensed restaurant facility.
In 2011, the City of Kitchener initiated rehabilitation of Victoria Lake. This work involved
significant heavy construction around the boathouse and the removal and reconstruction of all of
the landscaping around the building. The business was required to be closed for the winter of
2011-12. During this process, Council directed staff to negotiate a lease with Mr. Doyle and
make provisions for the upgrading of the building interior to commercial standards. It also
recognized the need for additional improvements to the kitchen facilities and the cessation of
public access to the boathouse washrooms.
REPORT:
Since late 2011, City of Kitchener staff and Mr. Doyle have been in discussion around the
structure of a lease for the building. The parties have come to agreement on all the major issues
and the lease is now available for ratification.
In summary, the lease provides for Mr. Doyle and his corporation to operate the Boathouse as a
live music and entertainment venue for 10 years. It establishes the base lease rate for the
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facility at $8.00 per sq ft, adjusted annually, with a provision for additional rent above the base
calculated as 5% of gross sales. In addition, the operator will cover all of the utility costs for the
building once shared use of the washrooms is eliminated.
The lease anticipates that the parties will enter into a construction agreement to upgrade the
interior of the building by mid-2014. These works generally include the establishment of
accessibility measures, the reconstruction of the washrooms, upgrading of interior insulation,
the construction of a new kitchen, the demolition of the existing kitchen and the establishment of
anew customer door on to the west patio. The City of Kitchener has established an upset limit
of $234,000 to cover the cost of its portion of the renovations.
The lease also provides for the expansion of the patio to include the walkway along Victoria
Lake during periods of peak use.
Together, the financial terms of this agreement will result in a significant increase to City of
Kitchener revenue from the building (on the lower end of current commercial rents in the
downtown), while protecting the viability of an important cultural business in the downtown and
the greater community.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The evolution of the Boathouse as one of the region's premier live music venues under the
direction of Kevin Doyle is aligned with the objectives of the Downtown Action Plan and the
Kitchener Economic Development Strategy.
FINANCIAL IMPLICATIONS:
City of Kitchener revenue will increase by approximately $20,000 annually. The City's portion of
the capital upgrades has been allocated in the 2012 City budget.
COMMUNITY ENGAGEMENT:
During the process of establishing the plan for the upgrading of the landscaping around the
Boathouse and the interior renovations, several public meetings were held, over 200 people
responded to an on-line survey and submitted written submissions. Council also heard
numerous public delegations. Both the Victoria Park Neighborhood Association and the Victoria
Park Working Group were consulted.
CONCLUSION:
In 2010/11, the operator of the Boathouse organized over 700 live music performances on 300
days. This makes it one of the most dynamic music venues in the Waterloo Region and a key
venue for the development of young musicians in Kitchener's growing music cluster. The
proposed lease sets the stage for continued development of this important cultural resource and
supports its symbiotic relationship with the City's most important public park.
ACKNOWLEDGED BY: Jeff Wllmer, Chief Administrative Officer
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