HomeMy WebLinkAboutCRPS-08-016 - Lease of Premises at 79 Joseph Street to the Waterloo Regional Tourism Marketing CorporationILREPORT
Report To:
Finance and Corporate Services Committee
Date of Meeting:
January 28, 2007
Submitted By:
L. Proulx, Director of Facilities Management
Prepared By:
L. Proulx, Director of Facilities Management
Ward(s) Involved:
Date • Report: January 21, 2008
Report No.: CRPS-08-016
Subject: LICENCE OF PREMISES AT 79 JOSEPH STREET TO THE
WATERLOO REGIONAL TOURISM MARKETING
CORPORATION
That the City enter into licence agreement for a three year term, including options to extend,
with the Waterloo Regional Tourism Marketing Corporation, for the use of 1461 square feet of
space at 79 Joseph Street, the former KOR building,
AND FURTHER that staff be authorized to undertake improvements on behalf of the Waterloo
Regional Tourism Marketing Corporation, to an upset limit of $45,000, to be funded as part of
any licence payments over a three-year period from the Waterloo Regional Tourism Marketing
Corporation,
AND THAT the Mayor and Clerk be authorized to execute a licence agreement, satisfactory to
the City Solicitor.
EXECUTIVE SUMMARY:
N/A
The Waterloo Regional Tourism Marketing Corporation is a non-profit destination marketing
organization primarily funded by the municipalities within the Region. With a mission to provide
marketing opportunities to member businesses in the Region, the Corporation will be highly
accessible to Tourism Industry businesses from such a central location. The Waterloo Regional
Tourism Marketing Corporation is also highly compatible with our downtown uses and it's
location adjacent to the new entrance to Victoria Park provides a setting which bodes well for
the image of tourism in the Region.
1014
Staff has dealt with several issues to consider a proposal to allow Waterloo Regional Tourism
Marketing Corporation to use space at 79 Joseph Street. As such, staff have treated this offer in
a fashion similar to what the Region of Waterloo did for CTT, on a 3 year term.
We propose to allow such use at cost, and to provide funding to a maximum of $45,000 for
leasehold improvements, with a view to recover these costs within the first three years of the
licence by adding the cost of the renovations into the licence rate over the length of the licence.
The base licence rate includes energy, basic custodial, security, and basic maintenance costs.
We have determined our CAM cost to be $2.40 / sq. ft. for an annual licence rate of $3,506.40.
The City would add $11.40 / sq. ft. to recover $45,000 to be spent on improvements under the
licence, during the three-year term or portion thereof, starting January 1, 2008. Should the
number of Waterloo Regional Tourism Marketing Corporation staff using the building increase
significantly (e.g., to more than 5 staff), costs for custodial services will be reviewed.
FINANCIAL IMPLICATIONS:
As part of the licence agreement with the Waterloo Regional Tourism Marketing Corporation,
the City of Kitchener will undertake the improvements to the facility, valued at approximately
$455000.
In the long term, improvements to the KOR building are a beneficial investment to one of our
key downtown assets, as it will increase the attractiveness and useability of this building for
future tenants.
I'*
L 161N UTH Z I Njatuelm
N/A
Staff recommend that this licence agreement be approved. We seek Council approval to
proceed in this direction.
L. Proulx, CET CMM III
Director of Facilities Management
11191