HomeMy WebLinkAboutCAO-12-042 - Lease for Charles & Benton Parking Garage Retail SREPORT TO:
Finance & Corporate Services Committee
DATE OF MEETING:
October 15, 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:
September 27, 2012
REPORT NO.:
CAO-12-042
SUBJECT: Lease for Charles & Benton Parking Garage Retail Space,
Unit #2
RECOMMENDATION:
That the Mayor and Clerk be authorized to enter into a lease agreement with the Downtown
Crepe Café, for the Retail Unit #2, located at 4 Charles Street E. (future address will be
28 Benton St), subject to the satisfaction of the City Solicitor.
REPORT:
The Downtown Crepe Café will provide fresh and healthy crepes, with locally sourced
ingredients that are versatile and can be served anytime of the day. They will be accompanied
by gourmet espresso coffees and unique espresso drinks. The Café will appeal to the artistic
community with rotating art exhibits, creating a concept that is unique to the Downtown and will
undoubtedly appeal to a wide range of clientele. A large percentage of their clientele will come
from the Downtown during office hours, however once established, they hope to appeal to the
evening crowd. The City sidewalk in front of this unit could potentially provide for an outdoor
patio during the warm weather season.
This business is new, but the owners have previous business experience in retail.
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 two (2) universal washrooms, an overall design using modern finishes such as stainless
steel counters accented with glass 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 Downtown Crepe Café ensures that a City-
owned space has been occupied by a desirable business with a potential to add vibrancy to
Benton Street. The proposed tenant hopes to provide a venue for art appreciation by displaying
local and international art exhibits in the café on a rotating basis. They hope to support the
artistic community and in the process, enhance the Downtown experience.
FINANCIAL IMPLICATIONS:
The term of the lease would be for 10 years, at market rate, with annual rent increases. The
City may see additional parking revenues from customers of the Downtown Crepe Café. The
Tenant will be responsible for his 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, Executive Director of Economic Development
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