Loading...
HomeMy WebLinkAboutCAO-06-022 - Assignment of Lease for the Victoria Park Boathouse Restaurant Entertainment Establishment+A iiryry TCJ NL ChiefAdministratar`s Office ~ ~ . ~ Report To: Finance and Corporate Services Committee Date of Meeting: March 27, 2006 Submitted By: Kathy Weiss, Director Business Development Prepared By: Patricia Bacon, Sr. Business Development Officer 741-2668 Ward(s) Involved: West-Victoria Park Ward Date of Report: March 22, 2006 Report No.: CAO-06-022 Subject: ASSIGNMENT OF LEASE FOR THE VICTORIA PARK BOATHOUSE RESTAURANT ENTERTAINMENT ESTABLISHMENT RECOMMENDATION: "That Council support the release of the existing Licence Agreement for the Boathouse in Victoria Park with Cindy Ward and that a new Licence Agreement be entered into with 1639885 Ontario Limited for the remainder of the lease term generally in accordance with the terms of the existing agreement and the revised terms and Fee Schedule as generally noted in this report and; That the Mayor and Clerk be hereby authorized to execute any necessary documentation required by the City Solicitor to complete the change to the agreement and Fee Schedule." EXECUTIVE SUMMARY: The purpose of this report is to request the support of an assignment of lease for the Boathouse in Victoria Park. There will be little visible change in the day to day use of the Boathouse as a result of the assignment of the lease. Kevin Doyle is currently managing the Boathouse and will continue. BACKGROUND: The Boathouse in Victoria Park opened in June 2004 following a competition where Cindy Ward was awarded the right to operate the Boathouse as a restaurant and concession. The purpose of the occupancy of the Boathouse is to provide conveniences to the patrons of the park and to aid in the efforts to revitalize the downtown core by drawing people to the park, the restaurant and to the downtown. Cindy Ward's efforts to establish and run a restaurant year round with a summer concession has been very successful. Cindy Ward ran the boathouse with two partners one of which is Kevin Doyle. Kevin Doyle has been involved in the operation of the Boathouse for over a year. Kevin initially brought to the table experience and contacts in the music industry. Kevin is currently a radio show host for ckms here in Kitchener. He has an impressive background and knowledge in music, particularly "Blues". Kevin's involvement in the business has been a positive one and his responsibilities in running the Boathouse grew with Cindy Wards' new family responsibilities. The numbered company noted in the recommendation has been financially responsible for the Boathouse since November 2005. There are two Directors of the Corporation, Lisa Morell (Kevin Doyle's wife) and Bruce Kelly, Lisa Morell's business associate of Morell Kelly p.c. lawyers in a professional corporation. The existing agreement allows Cindy Ward the opportunity to assign the business or sell the business. Cindy Ward has requested that the assignment be to 1639885 Ontario Limited with the understanding that Kevin Doyle will be the Manager of the Business. The new proponent has requested that Cindy Ward be released of her obligation and Cindy Ward has agreed to the release subject to the lease not extending beyond the existing term. REPORT: The Boathouse has not been without its challenges and the City of Kitchener needs to review in amore global context the future of the Boathouse. For the interim, to manage and mitigate noise, a condition requiring air-conditioning will be included in the new agreement. For the long term, a strategy for the future use of the Boathouse is necessary to determine how this asset will be managed following the term of this agreement which is May 2009. It is unclear if, how and when the City of Kitchener may want to utilize the Boathouse over the long term. In this regard, Laurier Proulx will take the lead on this file with my departure. Mr. Proulx will organize a task force to establish a long term strategy of this City asset prior to the close of this term. Staff have been monitoring the success of the Boathouse relative to its goal to serve the patrons of the park during the spring, summer and fall as well as the bigger picture issue to aid in the revitalization of the downtown. In this regard, it is staff's opinion that the Operator is successful in her efforts. The Boathouse attracts artists all across Canada contributing to the City's efforts to support and grow the Arts and Culture Cluster in the Downtown. It is staffs opinion that Kevin Doyle is a natural successor given his musical background. The proposed terms of agreement has been discussed with the Operator. The Operator supports the proposed terms and the proposed Fee Schedule. FINANCIAL IMPLICATIONS: Fee Schedule: Present to May 2006 $1,450/month June 2006 to May 2007 $1,600/month June 2007 to May 2008 $1,750/month June 2008 to May 2009 $1,925/month The Fee Schedule was originally established to cover the cost of utilities and to establish a fund for the Boathouse from the licence fee that would be used for maintenance of the boathouse and long- term capital cost expenditures. The proposed Fee Schedule will continue to support this goal. As collateral Kevin Doyle and one of the Directors will be guarantors of the business to provide addition financial security. The Financial Services Department has confirmed that all fees are up to date. COMMUNICATIONS: No public consultation has been undertaken. CONCLUSION: Staff supports the proposed change for the term of the agreement based on the terms and Fee Schedule noted in this report. ~- Patricia Bacon, B.E.S., MCIP Kathy Weiss Senior Business Development Officer Director Business Development cc: Carla Ladd, CAO Rod Regier, Executive Director, Economic Development Fiona McCrea, City Solicitor Rob Browning, Acting General Manager Development and Technical Services Anne Pappert, General Manger Community Services Larry Gordon, Director of Purchasing Laurier Proulx, Director Facilities Management Dave Grasman, Financial Services Department