HomeMy WebLinkAboutCAO-12-036 - Lease for Charles and Benton Parking Garage Retail SpaceREPORT TO: Finance & Corporate Services Committee
DATE OF MEETING: September 17, 2012
SUBMITTED BY:
Rod Regier, Executive Director of Economic Development
PREPARED BY: Cory Bluhm, Manager of Downtown Community Development
519-741-3400 ext 3375
WARD(S) INVOLVED:
9
DATE OF REPORT:
August 31, 2012
REPORT NO.:
CAO-12-036
SUBJECT:
Lease for Charles & Benton Parking Garage Retail Space,
Unit #1
RECOMMENDATION:
That the Mayor and Clerk be authorized to enter into a lease agreement with The Tannery
School of Music, for the Retail Unit #1, located at 4 Charles Street E. (future address will be
26 Benton St), subject to the satisfaction of the City Solicitor.
REPORT:
The Tannery School of Music provides private music instruction, parent group workshops and
social events. They have been in business since 2006 and have an established clientele. A
large percentage of their clients drive in from the surrounding subdivisions. They hold four
concerts a year and have recently participated in the “Downtown Live” event at the Kitchener
Farmer’s Market. The City sidewalk in front of this unit could potentially host informal musical
performances.
They currently operate out of The Tannery building, in the Innovation District in Downtown
Kitchener.
The unit in question is currently vacant and has never been leased. The improvements will take
the unit from its present unfinished shell state to a finished space. The improvements proposed
include a universal washroom, room partitions with extensive sound proofing and exterior
signage etc.
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
‘Dynamic Downtown’ is one of the five areas of focus in the Kitchener Economic Development
Strategy (KEDS.11). Leasing the space to The Tannery School of Music ensures that a City-
owned space has been occupied by a reputable business with a consistent record of growth.
The proposed tenant will bring musical activity and culture to Downtown Kitchener, attracting
different sectors of our population into the downtown on evenings and weekends. Other
downtown businesses would benefit by the potential income spin-off created by the school’s
clients (e.g. Parents shopping while their children are attending classes).
FINANCIAL IMPLICATIONS:
The term of the lease would be for 10 years, at market rate, with annual rent increases. The
City can anticipate additional parking revenues from customers of the Tannery School of Music.
The Tenant will be responsible for their own utility costs as well as the extensive leasehold
improvements. As such, the proposed lease arrangements present little risk to the Corporation.
COMMUNITY ENGAGEMENT:
An open RFP was conducted in 2011 for both retail units. No successful applications were
received.
ACKNOWLEDGED BY: Rod Regier
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