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HomeMy WebLinkAboutINS-16-071- Parking Lot Lease Agreement - 194 King Street East REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: September 12, 2016 SUBMITTED BY: Ken Carmichael, Interim Director, Transportation Services, (519) 741-2200 x7372 PREPARED BY: Paul McCormick, Manager, Parking Enterprise, (519) 741-2200 x7155 WARD(S) INVOLVED: 10 DATE OF REPORT: August 2, 2016 REPORT NO.: INS-16-071 SUBJECT: Parking Lot Lease Agreement - 194 King Street E. ___________________________________________________________________________ RECOMMENDATION: That Council enter into an agreement to operate public parking at 194 King Street Eastwith the new owner, 2425754 Ontario Ltd., subject to the satisfaction of the City Solicitor. BACKGROUND: The City of Kitchener has managed the parking lot located at the back of the property st known municipally as 194 King Street East since May 1, 1987. The property ownership has changed a couple of times since 1987 and the previous owner, 6894631 Canada Inc. sold its interests to 2425754 Ontario Ltd. on August 6, 2014. REPORT: The new lease terms are similar to the previous agreement with net revenues being split 50:50. Net revenue includes all gross revenue generated by the eight (8) metered parking spots less operating expenses including but not limited to maintenance, snow removal and property taxes for the parking apportionment of the property. The initial term expires December 31, 2016 and thereafter the agreement will automatically renew on a yearly basis. Either party may terminate the agreement upon 180 days written notice. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: vision through the delivery of core service. FINANCIAL IMPLICATIONS: The annual net revenue for this facility is approximately $9,000. Under the proposed lease agreement, both parties will share in a 50:50 split of the net revenue. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 1 - 1 COMMUNITY ENGAGEMENT: INFORM advance of the council / committee meeting. ACKNOWLEDGED BY: Justin Readman, Interim Executive Director of Infrastructure Services 1 - 2