HomeMy WebLinkAboutINS-13-110 - Lease for Charles & Benton Parking Garage Retail Space, Unit 1 Staff Rep►�►r
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REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: November 18, 2013
SUBMITTED BY: Justin Readman, Director, Transportation Services,
(519) 741-2200 x7038
PREPARED BY: Paul A. McCormick, Manager, Parking Enterprise,
(519) 741-2200 x7155
Monika Grau, Downtown Business Development Officer,
Downtown Community Development ,
(519) 741-2200 x7066
WARD(S) INVOLVED: 9
DATE OF REPORT: November 6, 2013
REPORT NO.: INS-13-110
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 R'chyees
Frozen Yogurt Shoppe for the Retail Unit #1, located at 4 Charles Street East (future
address will be 26 Benton Street), subject to the satisfaction of the City Solicitor.
BACKGROUND:
The retail space (Unit #1) is presently vacant and has not been leased since the completion of
the Charles & Benton Street garage in 2010. The exiting unit is in a shell condition and includes
concrete floor, lighting, HVAC and electrical services. There are presently no washroom
facilities for this space. Some additional capital improvement work is required prior to
completion of leasehold improvements by a tenant.
REPORT:
The self-serve Frozen Yogurt Shoppe (non-franchise business) will provide unique, all natural
frozen yogurt products, including specialty, lactose free and sugar free yogurts. They will be
manufacturing their products on-site, sourcing local producers for the best ingredients such as
fresh milk, yogurt and in-season fresh fruit for toppings. The local owners are passionate about
making a desirable treat and providing a healthy alternative that will draw a variety of groups
into the Downtown core throughout the entire week. The City sidewalk in front of this unit could
potentially provide for an outdoor patio during the warm weather season. The tenant will have
the option of applying for a patio licence agreement.
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The tenant's leasehold improvements will take the unit from its present unfinished shell state to
a finished space. The improvements proposed include two (2) universal washrooms and an
overall retail design using quality finishes and exterior signage etc.
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 R'chyees Frozen Yogurt Shoppe 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 unique destination for a healthy frozen
yogurt treat, unique to Downtown, enhancing the Downtown experience.
FINANCIAL IMPLICATIONS:
The term of the lease would be for 4 years, at market rate, with annual rent increases. The
Parking Enterprise may see additional parking revenues from customers of R'chyees Frozen
Yogurt Shoppe. The Tenant will be responsible for their own property taxes, utility costs as well
as 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.
CKNOWLEDGED BY: Pauline Houston, Deputy CAO
Infrastructure Services Department
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