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HomeMy WebLinkAboutCAO-15-025 - Boathouse Lease REPORT TO: Council, Committee of the Whole DATE OF MEETING: November 16, 2015 SUBMITTED BY: Rod Regier, Executive Director of Economic Development (519) 741-2200 ext. 7506 PREPARED BY: Rod Regier, Executive Director of Economic Development (519) 741-2200 ext. 7506 WARD (S) INVOLVED: All DATE OF REPORT: August 2015 REPORT NO.: CAO-15-025 SUBJECT:Boathouse Lease ___________________________________________________________________________ RECOMMENDATION: That the Mayor and Clerk be authorized to execute an lease amending agreement with Imbibe Entertainment Inc., William MacTavish and Mark Forwell, said agreement to be satisfactory to the City Solicitor. REPORT: The Boathouse is currently being operated by Imbibe Entertainment Inc., pursuant to a lease agreement dated February 12, 2014, being authorized by Council on February 3, 2014. Imbibe Entertainment Inc. is owned by William MacTavish and Mark Forwell. William MacTavish is also party to this lease as he has personally indemnified the lease. The two owners have come to amicable terms to separate their interests. Mark Forwell will be purchasing the shares of William MacTavish and William MacTavish will no longer be involved in the business. City approval Three changes to the lease require Council approval. First, the lease states that William MacTavish is to be the operator of the Boathouse. Second, there is a change of control of ownership of the tenant, Imbibe Entertainment Inc., and consent is required by the City or the lease would be in default. Third, William MacTavish wants to be released from his personal indemnification, and this indemnification will be transferred to Mark Forwell. Under the terms of the lease amending agreement, all the operating requirements for the Boathouse will remain the same. Mark Forwell is fully committed to the original vision of the *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 4. - 1 Boathouse as articulated in the lease. He has already taken over as operating head of the business and is proactively working to improve operations. As a result, staff are confident that this transaction and the required assignment are in the best interests of the City of Kitchener and the future of the Boathouse as a viable and strategic asset for our downtown and cultural industries. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: This initiative supports the Strategic Priority to develop and nurture a high quality of life and powerful identity for the City of Kitchener to attract investment and a talented creative workforce. FINANCIAL IMPLICATIONS: The recommendations will have no financial implications for The City of Kitchener. COMMUNITY ENGAGEMENT: The current direction for the Boathouse was determined by Council after extensive public consultation. ACKNOWLEDGED BY: J. Willmer, CAO 4. - 2