HomeMy WebLinkAboutCAO-13-024 - Lease Reduction - City Owned Land - 546 Belmont Ave W Staff Report
ITC:HFI ? .R CA0 Office www.kitchenerca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: February 3, 2014
SUBMITTED BY: Brian Bennett, Manager, Business Development
PREPARED BY: Rob Morgan, Capital Investment Advisor, 519-741-2200 X
7734
WARD(S) INVOLVED: Ward 8
DATE OF REPORT: January 6, 2014
REPORT NO.: CAO-13-024
SUBJECT: Lease Reduction —City Owned Land, 546 Belmont Avenue
West
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute an agreement with Grace Mennonite
Brethren Church, pertaining to the City lands adjacent to their property at 546 Belmont Ave.
West to amend the lease in accordance with the CAO-13-024 Report; said agreement to be
satisfactory to the City Solicitor.
BACKGROUND/REPORT:
The subject property is located on Belmont Avenue north of Gage Avenue and backs on to the
Iron Horse Trail. The property was previously occupied by an Engineering firm and now is the
home of Grace Mennonite Brethren Church.
The lands subject to the lease are a portion of the land deeded to the City from the Grand River
Railway for the creation of the Iron Horse Trail. Some of the lands deeded to the City were
subject to existing leases between the rail line and the property owners and used for parking.
When the lands were transferred to the City it was with the understanding that the City could not
sell any portion of them.
Grace Mennonite Brethren Church does not require all of the current parking and would like to
reduce the lease amount by half. The leased parcel is 34 feet by 223.6 feet and they would like
to reduce it to 17 feet by 223.6 feet. The lease rate for 2012 was $3939.19.
The existing lease also contains an escalation clause of 5% per year. This rate is considered
quite high by today's standards and in this regard the Church would like to reduce the escalation
rate to the more common approach utilizing the cost of living increase as determined using the
Consumer Price Index.
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The leasing of surplus land relates to the foundation of Efficient and Effective Government as defined in
the City's Strategic Plan. The proceeds from the leasing of this parcel is placed in the Park Land
Purchases account. Thereby supporting the goal contained in the Financial Management section relating
to the investment and management of assets strategically.
FINANCIAL IMPLICATIONS:
The reduction in the size of the leased parcel will result in a loss of revenue of approximately
$1969.00 per year.
COMMUNITY ENGAGEMENT:
N/A
ACKNOWLEDGED BY: Jeff Willmer, CAO
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