HomeMy WebLinkAboutCAO-16-028 - 220 King St W
REPORT TO: Committee of the Whole
DATE OF MEETING: September 26, 2016
SUBMITTED BY: Rod Regier, Executive Director of Economic Development
(519) 741-2200 ext. 7506
PREPARED BY: Cory Bluhm, Manager of Downtown Development
(519) 741-2200 ext. 7065
WARD (S) INVOLVED: 10
DATE OF REPORT: September 16, 2016
REPORT NO.: CAO-16-028
SUBJECT:
220 King Street West
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RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a lease extension with the owner of
Open Sesame: Art, Books and Objects, for space at City Hall municipally known as 220
King Street West, with said agreement to be satisfactory to the City Solicitor.
BACKGROUND:
In 2015, the City entered into a 12-month lease agreement for the City Hall retail space with
the current tenant – Open Sesame. The lease expires at the end of October 2016. Staff have
launched a request for proposals (RFP) process seeking a long term tenant for the space. If a
successful applicant is found, staff anticipate bringing a recommendation forward to Council by
late October.
REPORT:
The current lease does not include any provisions for an extension. The current tenant has
st
requested an extension until December 31, to allow the business to operate during the
holiday season. Based on the current timing of the RFP, one of two scenarios could occur:
a) The current tenant is the successful applicant. A month-to-month extension would allow
staff and the tenant time to negotiate a long-term lease without causing the owner to
interrupt operations; or
b) A new tenant is selected. Under this scenario, it is unlikely that a long term lease could
be negotiated in time for the new tenant to take possession and commence operations
before January 2017.
As such, staff recommend extending the current lease on a month-to-month basis until such
time as a lease is signed with a long term tenant.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the City’s Strategic Vision for
a strong and resilient economy.
FINANCIAL IMPLICATIONS:
The lease extension will provide additional revenue until such time as a long term tenant/lease
is determined.
COMMUNITY ENGAGEMENT:
–
INFORMThis report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
CONCLUSION:
A month-to-month extension is appropriate and provides flexibility to both the City and the
current tenant.
ACKNOWLEDGED BY:
Jeff Willmer, CAO
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