HomeMy WebLinkAboutDSD-2022-487 - Strategic Lease Opportunity - 57 Jubilee Drive
Development Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: December 19, 2022
SUBMITTED BY: Cory Bluhm, Executive Director Economic Development, 519-741-
2200 ext 7065
PREPARED BY: Brian Bennett, Manager Business Development, 519-741-2200 ext
7230
WARD(S) INVOLVED: Ward 9
DATE OF REPORT: December 14, 2022
REPORT NO.: DSD-2022-487
SUBJECT: Strategic Lease Opportunity 57 Jubilee Drive
RECOMMENDATION:
That the Mayor and Clerk be authorized to execute a lease agreement with
Walkinshaw Holdings Inc for the building and space municipally known as 57 Jubilee
Drive under the terms and conditions outlined in DSD-2022-487, subject to all
necessary permits and approvals being received by Walkinshaw Holdings Inc prior
to the execution of the lease, with said agreements to be to the satisfaction of the City
Solicitor.
REPORT HIGHLIGHTS:
The purpose of this report is to authorize the execution of a lease agreement with
Walkinshaw Holdings Inc for operation of 57 Jubilee Drive.
The key finding of this report is Walkinshaw Holdings Inc was the successful proponent
of a competitive process to select a new operator for the Boathouse, and as such, a
lease may now be executed.
The financial implications are Walkinshaw Holdings Inc will cover the capital costs
associated with any renovations and will pay the City rent for a period of 10 years, with
an option for an additional 5 years.
Community engagement included advertising the request for proposals process to the
selection process.
This report supports a vibrant economy.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
BACKGROUND:
The Boathouse located at 57 Jubilee Drive has been a key asset of Victoria Park and
to establish a new operator. This process was delayed as a result of the pandemic and
uncertainty in the food and beverage sector with mandated Provincial lockdowns. An RFP
was issued in November of 2021, closing in January 2022. The intent of the RFP process
was to receive responses from experienced and qualified operators of a high-quality food
service business and/or live music and entertainment venue operators, conduct a process
to identify the highest rated proponent, and then enter into a partnership through a lease
agreement. The highest rated proponent was identified, and subject to further approvals, a
future lease agreement may be executed to enable their vision for the space to proceed.
REPORT:
Request for Proposals to operate the Boathouse was advertised publicly on the City of
Kitchener website. Documents were downloaded by nine (9) interested parties and by the
closing date of Monday January 10, 2022, two (2) proposals had been received. A listing of
the responding parties follows for your reference: Walkinshaw Holdings Inc. Kitchener ON,
Cultura Café Kitchener ON.
Proponents had to satisfy minimum requirements including:
;
; and,
um proposed lease rate of $18/sq ft.
The proposal submissions were rated on the following criteria:
;
;
;
Lease Rate;
; and,
.
Holdings Inc through Procurement Policy 2017-106, who met all of the minimum mandatory
requirements.
Proponents Vision
The proposal from Walkinshaw Holdings Inc. envisions transforming the Boathouse into an
iconic venue for live music and food with indoor and outdoor entertainment. To do so, the
outdoor patio would be expanded and improvements would be made to the washrooms,
windows and main entrance.
Figure 1 Rendering of the Proposed Vison
Terms of the Lease Agreement
Staff recommend entering into a lease agreement with Walkinshaw Holdings Inc. for a 10-
year term with an option to renew for an additional term of 5 years. The lease rate in year 1
would be $20/sq ft increasing annually to $21.65/sq ft by year 5. After year 5, the lease rate
would increase annually at the rate of inflation. Execution of the lease would be subject to
Walkinshaw Holdings Inc obtaining all of the necessary permits and approvals in advance.
On November 1, 2022 the Heritage Committee reviewed the proposed alterations and
unanimously approved the Heritage Permit.
Walkinshaw Holdings will also:
Provide community use of the dining room or patio one day per week;
Highlight local craft breweries;
Operate a take-out window;
Local paid music artists will perform a minimum of 2 days per week;
Establish a Boathouse local arts fund;
Establish a Community Advisory Committee representing the community make-up to
ensure programming is inclusive and diverse; and,
Be responsible for the maintenance and repair of the patio.
STRATEGIC PLAN ALIGNMENT:
This report supports A Vibrant Economy.
FINANCIAL IMPLICATIONS:
This is a revenue generating opportunity that will provide community benefit. A portion of
the rent revenues are transferred to the Economic Development Reserve annually to repay
the capital investment made to the building in 2014.
Capital Budget The recommendation has no impact on the Capital Budget.
Operating Budget The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-2022-412 - Strategic Lease Opportunity
HPA-2022-V-027 Victoria Park Boathouse Proposed Alterations
APPROVED BY: Justin Readman, General Manager, Development Services