HomeMy WebLinkAboutDSD-19-273 - Delegated Signing Authority for 44 Gaukel Licence AgreementsREPORT TO: Community & Infrastructure ServicesCommittee
DATE OF MEETING:December 9, 2019
SUBMITTED BY: Cory Bluhm, Executive Director, Economic Development
519-741-2200 ext. 7065
PREPARED BY:Emily Robson, Manager, Arts & Creative Industries
519-741-2200 ext. 7084
Eric Rumble, Coordinator, Arts & Creative Industries
519-741-2200 ext. 7424
WARD (S) INVOLVED:All
DATE OF REPORT:November 12, 2019
REPORT NO.: DSD-19-273
SUBJECT: DELEGATED SIGNING AUTHORITY FOR 44 GAUKEL LICENCE
AGREEMENTS
___________________________________________________________________________
RECOMMENDATION:
That the Executive Director of Economic Development or delegate be authorized to
execute licence agreements for a term of two years or less with Creative Hub licencees
at 44 Gaukel St., subject to the satisfaction of the City Solicitor.
BACKGROUND:
In partnership with sector stakeholders, City staff have developed and executed the concept of
a Creative Hub at 44 Gaukel St. As described in CAO-16-034 “Options for a Creative Industry
Hub”, this initiative aims to support creative practitioners by offering affordable shared office
spaces, workshops, studios, event space and specialized resources. The partnership
operational and financial model (described in DSD-18-019 “Creative Industry Hub Next Steps”)
is based on consultation data and best practices.
Ground floor renovations at 44 Gaukel have resulted in a range of rental options for potential
tenants of the building, including dedicated spaces that are available to artists, arts
organizations, non-profits and creative industry practitioners for one- or two-year terms. In
addition, individual desks are available for more temporary users, and an event space can be
rented for recurring programming or one-time gatherings and launches.
Arts & Creative Industries staff are actively seeking tenants for the newly created spaces. Staff
have worked with the City Solicitor to develop a licence agreement template, as well as creating
a framework within the ActiveNet platform, to facilitate rental terms, conditions and agreements
at 44 Gaukel.
RE
PORT:
City staff expect to annually generate and execute numerous contracts for uses of 44 Gaukel.
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These could include individuals and/or organizations, each requiring signatures and support
documentation (e.g. insurance coverage). While staff anticipate that about a third of those
contracts will be with tenants of dedicated spaces for annual terms, the individual desk and event
rentals will be for shorter terms and will require a quicker turnaround time from request to
execution. Staff anticipate most licences will be for two years or less. In response to
recommendations in DSD-18-019, Council resolved:
That the Mayor and Clerk be authorized to execute contractual and/or lease agreements, subject
to the satisfaction of the City Solicitor, for the first floor of 44 Gaukel, with third party organizations
to support the operations of the Creative hub, including the leasing of portions of the ground
floor;
To date, agreements related to the operations and leasing of the Creative Hub at 44 Gaukel
have been prepared by the City Solicitor and executed by the Mayor and Clerk.
Given that the Creative Hub operating partner, ArtsBuild Ontario, is managing tenant inquiries
and intake, staff are endeavouringto establish a fast, efficient process for producing and
executing licence agreements. Delegating the approval and signing authority for licenses with
terms of two years or less, and rental contracts to the Executive Director of Economic
Development will enable such a process. In addition, this process will relieve the Mayor and
Clerk of being asked to respond to the quick turnaround times requested by tenants and/or for
short-term rental users. This approach is consistent with that of The Kitchener Market, by which
the Market Manager executes licences on behalf of the City with vendors.
To ensure Council’s expectations are met, staff will approve all agreements in accordance with
the established goals of the Creative Hub as articulated in DSD-18-019 “Creative Hub Next
Steps”: offering affordable short-term bookable space for meetings, events, classes, rehearsals,
and performances; offering affordable co-working space for temporary use; offering affordable
dedicated space for tenants; and offering shared amenities such as internet, access to meeting
rooms, and secure access for those working in the creative industries. The definition of creative
industries is included in DSD-18-019 “Appendix 1 Creative Hub at 44 Gaukel Business Case”.
Furthermore, staff willuse two templates (short- and long-term) for licence agreements
developed by the City Solicitor. Any licence request in excess of a two-year term or licence
requests that extend beyond the Creative Hub pilot project (2023) will continue to be authorized
by the Mayor and Clerk. In the event that a contract negotiation with a tenant requires unique
consideration, staff will develop a unique contract with the City Solicitor.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
This report aligns with the 2019-2022 strategic plan goal of fostering the creation of a citywide
network of incubators, accelerators and co-working spaces by completing the buildout of 44
Gaukel in 2019 and advancing work on a Creative Hub. In addition, this approach supports the
City of Kitchener’s commitment to great customer service
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FINANCIAL IMPLICATIONS:
The revenue generated from these agreements is expected to be in-line with the estimations set
forth in DSD-18-019, which was endorsed by Council on June 11, 2018. The cost per-square
foot is below market rate and ranges from $16 to $24 per square foot (inclusive of common area
maintenance fees and amenities such as internet, security and cleaning). The variation in cost
is attributed to factors such as term and suite.The licence agreement payments aredeposited
into a capital account specifically for the Creative Hub at 44 Gaukel.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in advance of the
council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
DSD-18-019Creative Industry Hub Next Steps(May 28, 2018)
FCS-17-128,P17-024Lease of 44 Gaukel Street & the Creative Hub (June 19, 2017)
CAO-16-034Options for a Creative Industry Hub (December 5, 2016)
CAO-16-025CommunityEngagement for Creative Hub – Status Update (October 3, 2016)
CAO-16-015Community Engagement on Potential Arts Hub & Potential of 48 Ontario St. N
(May 19, 2016)
CAO-16-016Animating 44 Gaukel 2nd Floor for Start Ups and Arts & Culture (April 26, 2016)
ACKNOWLEDGED BY: Justin Readman, General Manager, Development Services
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