HomeMy WebLinkAboutCAO-13-007 - Amending Agreement to Lease - Charles & Benton Parking Garage Retail Space, Unit #2
REPORT TO: Finance & Corporate Services Committee
DATE OF MEETING: February 25, 2013
SUBMITTED BY:
Cory Bluhm, Manager, Business Development
519-741-2200 ext 7065
PREPARED BY:
Monika Grau, Downtown Business Development Officer
519-741-2200 ext 7066
WARD(S) INVOLVED:
9
DATE OF REPORT:
February 20, 2013
REPORT NO.:
CAO-13-007
SUBJECT:
Amending Agreement to Lease for Charles & Benton Parking
Garage Retail Space, Unit #2
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute on behalf of the City an amending
agreement for the Lease Agreement with the Downtown Crepe Café, for the Retail Unit #2,
located at 28 Benton St; said agreement to be satisfactory to the City Solicitor.
REPORT:
That as part of the Lease Agreement for Unit #2 at the Charles & Benton Parking Garage, City
staff recommend providing the tenant, The Downtown Crepe Café with an improvement
allowance in the form of a repayable loan, subject to a market value interest rate, to the
satisfaction of the City Treasurer and the City Solicitor. This will assist the tenant in completing
the numerous leasehold improvements that will become a permanent part of the City-owned
retail space. It represents less than one-third of the estimated improvement costs, which must
be paid upfront by the tenant.
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 has ensured 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.
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FINANCIAL IMPLICATIONS:
The improvement allowance will be recovered through an adjustment to the monthly lease rate
over the ten year term of the lease. The tenant will have the option to pay the commuted value
of the improvement allowance in full at any point during the term. The value of the allowance is
anticipated to be no more than $15,000. which, coupled with the fact that it will result in
improvements to a City-owned asset, results in minimal risk to the corporation.
COMMUNITY ENGAGEMENT:
A lease agreement was secured with the Downtown Crepe Café, creating a unique café concept
with community appeal as a Downtown destination.
ACKNOWLEDGED BY:
Rod Regier, Executive Director of Economic Development
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