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HomeMy WebLinkAboutINS-15-052 - Licence at 25 Joseph Street REPORT TO: Council DATE OF MEETING: June 29, 2015 SUBMITTED BY: Justin Readman, Director of Transportation Services, (519) 741-2200 x7038 PREPARED BY: Paul A. McCormick, Manager Parking Enterprise, (519) 741-2200 x 7155 WARD(S) INVOLVED: Ward 9 DATE OF REPORT: May 25, 2015 REPORT NO.: INS-15-052 SUBJECT:Surrendering 40 year licence at 25 Joseph Street ___________________________________________________________________________ RECOMMENDATION: That the Mayor and Clerk be authorized to execute the following: 1. a surrender of the City’s 40 year licence in favour of Kitchener Housing Inc. at 25 Joseph Street effective August 31, 2015; and, 2. a lease agreement effective September 1, 2015 in favour of the Centre for Family Medicine for a ten year term for parking at 2 David Street, in a form and upon terms satisfactory to the City Solicitor. BACKGROUND: The City of Kitchener has a 40 year licence to lease space at 25 Joseph. The licence expires on December 31, 2032, but only authorizes the City to use the premises as a community centre. The City formerly used the licenced premises as a community centre but this service was relocated in 2003 to the Downtown Community Centre located at St. Mary’s High School. Despite the restriction on the use of the premises for community centre purposes, Kitchener Housing agreed to allow the City to sublicence the premises to the University of Waterloo and allowed a further sublicence of those premises from the University to the Centre for Family Medicine. The Centre for Family Medicine would like to continue at the premises, but not the University of Waterloo, and the opportunity has now presented itself for the Centre for Family Medicine to contract for its space directly with Kitchener Housing when the current arrangements expire on August 31, 2015. This would allow the City to extricate itself from the licence agreement and also offers an opportunity to better secure the presence of the Centre for Family Medicine within the downtown. Part of the proposed *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 2. - 1 arrangements would also see the City enter into a parking agreement with the Centre for Family Medicine that would deal with their needs for a 10 year period. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Completing a new agreement balances our goal of being an Efficient and Effective Government while enabling CFFM to continue their work for the betterment of the community. This will advance our goal of creating a Dynamic Downtown. FINANCIAL IMPLICATIONS: The proposed parking agreement will provide an average annual net income of approximately $65,000 derived from the parking fee payment and the anticipated token revenue from patient use of the lot. This proposed fee structure will result in the Parking Enterprise meeting its 2015 budget forecasts. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. COLLABORATE – Representatives from KHI and CFFM were contacted to gain insight on their requirements. ACKNOWLEDGED BY: Dev Tyagi, Deputy CAO of Infrastructure Services 2. - 2