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HomeMy WebLinkAboutDSD-19-067 - 55 Bramm St. - Long Term Parking Agreement and Land LeaseREPORT TO:Committee of the Whole DATE OF MEETING:April 1, 2019 SUBMITTED BY:Brian Bennett, Manager Business Development 519-741-2200 ext 7230 PREPARED BY:Brian Bennett, Manager Business Development 519-741-2200 ext 7230 Paul McCormick, Manager Parking Enterprise 519-741-2200 ext 7155 WARD (S) INVOLVED:Ward 9 DATE OF REPORT:March 22, 2019 REPORT NO.:DSD-19-067 SUBJECT:55 Bramm Long Term Parking Agreement and Land Lease (295 Joseph) ___________________________________________________________________________ RECOMMENDATION: That the Mayor and Clerk be authorized to executea3 year land lease with a 1 year renewal option on a portion of the property municipally known as 55 BrammSt; anda 3 year Parking Agreement with a 1 year renewal option at the 55 Bramm St parking facility with 2184647 Ontario Limited & Breithaupt Block Inc,onthe terms outlined inStaff Report DSD-19-067,andsatisfactory to the City Solicitor. BACKGROUND: 2184647 Ontario Limited & Breithaupt Block Inc(Perimeter Development Corporation) will commence construction of Breithaupt Block 3 in the Fall of 2019, and accordingly will lose their onsite parking that supports the employees of Breithaupt Block 1 & 2. REPORT: To accommodate this loss of parking, Perimeter has requested that the City of Kitchenerenter into a land lease foritsunoccupied vacant property located at 55 Bramm St (295 Joseph St, Enclosure #1), where they will establish a temporary parking facility for 3 years with a 1 year renewal option, while Breithaupt Block 3 is under construction. Perimeter will be responsible for the full operation of the interim facility including all capital and operating costs, maintenance, property taxes, insurance and liability Perimeter will also enter into a 3 year Parking Agreement with a 1 year renewal option, with the Parking Enterprise for 126 parking spaces located at the 55 Bramm Stparking facility,at annual market rates,with the proceeds directed to the Parking Enterprise. ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 3 - 1 ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: strong and resilient economy and dynamic Downtown. FINANCIAL IMPLICATIONS: The land lease will be $115,920 per annum + HSTplus an annual increase representing the rate of inflation. The lease rate is the average rate for land leases executed by the City of Kitchener in the Downtown. It is recommended that the land lease proceeds be directed to the Economic Development Reserve (EDR) as this parcel is vacant, does not formpart of the Parking inventory, and a previous land sale at 55 Bramm St wasallocated to the EDR. Perimeter will enter into a 3 year Parking Agreement with a 1 year renewal option with the Parking Enterprise for 126 parking spaces located at 55 Bramm St at annual market rates, with the proceeds directed to the Parking Enterprise. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. ACKNOWLEDGED BY: Justin Readman, General Manager Development Services Enclosure #1 55 Bramm St Map 3 - 2 3 - 3