BY-LAW NUMBER Iq;J.. OF 1997 OF THE CITY OF SARNIA. "A By-Law to Authorize a Lease Agreement with Truscan Property Corporation"
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1 BY-LAW NUMBER Iq;J.. OF 1997 OF THE CITY OF SARNIA "A By-Law to Authorize a Lease Agreement with Truscan Property Corporation" WHEREAS it is deemed expedient that The Corporation of the City of Sarnia enter into a Lease Agreement with Truscan Property Corporation. NOW THEREFORE the Municipal Council of The Corporation of the City of Sarnia enacts as follows: 1. The Corporation of the City of Sarnia is authorized to enter into a Lease Agreement with Truscan Property Corporation, in the form of the Lease Agreement a copy of which is annexed to this By-Law. 2. The Mayor and Clerk are authorized to execute such Lease Agreement and to affix to it the Corporate Seal of The corporation of the City of Sarnia. 3. This By-Law comes into force and effect upon being finally passed. FINALLY PASSED this dayof~~, [
2 LEASE EXTENSION AGREEMENT BETWEEN: TRUSCAN PROPERTY CORPORATION -AND- THE CORPORATION OF THE CITY OF SARNIA made the 22nd day of September, 1997.
3 LEASE EXTENSION AGREEMENT THIS AGREEMENT made the 22nd day of September, BETWEEN: TRUSCAN PROPERTY CORPORATION (hereinafter referred to as the "Landlord" OF THE FIRST PART -AND- THE CORPORATION OF THE CITY OF SARNIA (hereinafter referred to as the "Tenant" OF THE SECOND PART WHEREAS pursuant to a lease dated the 11th day of October, 1990 (the "Lease" made between Truscan Realty Limited, as Landlord and The Corporation of the Town of Clearwater, as Tenant, the Truscan Realty Limited leased to The Corporation of the Town of Clearwater those certain premises (the "Premises" having an area of approximately 2,525 square feet and outlined in RED on Schedules "B" and "C" to the Lease, for a term (the "Term" of Five (5 years expiring on the 31st day of December, 1995 and located in a building in Lambton Mall Road Shopping Centre (the "Shopping Centre", 1362 Lambton Mall Road, in the City of Samia, in the Province of Ontario; AND WHEREAS The Corporation of the City of Sarnia is the legal successor to The Corporation of the Town of Clearwater; AND WHEREAS by Lease Extension Agreement (the "Lease Extension Agreemenf' made as of the 19th day of October, 1995 Truscan Realty Limited and the Tenant agreed to extend the term of the Lease for a further term of two (2 years expiring on the 31st day of December, 1997 (the "First Extended Term";
4 2. AND WHEREAS the Lease and the Lease Extension Agreement are hereinafter referred to as the "Lease"; AND WHEREAS Truscan Property Corporation is the successor to Truscan Realty Limited; AND WHEREAS pursuant to the terms of the Lease, the Tenant has the right to extend the Lease and the Term on those terms and conditions more particularly set out under the Lease; AND WHEREAS the Tenant has confirmed its intention to extend the Lease and the Landlord and the Tenant have agreed to extend the Lease all on the terms as hereinafter set out. NOW THEREFORE WITNESSETH THAT in consideration of the mutual covenants and obligations herein set forth and of the payment of Five Dollars ($5.00 the one to the other (the sufficiency and receipt of which is hereby acknowledged the parties hereto covenant and agree as follows: l. The recitals as hereinbefore set out are true in substance and in fact. 2. The Lease is extended as of the 1st day of January; 1998 (the "Effective Date" for a further Term of five (5 years expiring on the 31st day of December, 2002 (the "Second Extended Term". 3. Minimum Annual Rent payable pursuant to section 3.03 of the Lease is amended so that as of the Effective Date the Tenant shall pay, in accordance with the Lease, the following: (i For the period commencing the 1st day of January, 1998 to December 31, 1998 Minimum Rent will be based on an annual rate of Eight Dollars ($8.00 per square foot of the Rentable Area of the Premises, being Twenty Thousand, Two Hundred Dollars ($20, per annum, payable in advance in equal consecutive monthly instalments of One Thousand, Six Hundred and Eighty-Three Dollars and Thirty-Three Cents $1, on the first day of each month; (ii For the period commencing the 1st day of January, 1999 to December 31, 1999 Minimum Rent will be based on an annual rate of Eight Dollars
5 3. ($8.00 per square foot of the Rentable Area of the Premises plus the increase in the Canadian Consumer Price Index (All Items for 1998; (iii For the period commencing the 1st day of January, 2000 to December 31, 2000 Minimum Rent will be based on the annual Minimum Rent rate for the period from January I, 1999 to December 31, 1999 plus the increase in the Canadian Consumer Price Index (All Items for 1999; (iv For the period commencing the 1st day of January, 2001 to December 31, 2001 Minimum Rent will be based on the annual Minimum Rent rate for the period from January I, 2000 to December 31, 2000 plus the increase in the Canadian Consumer Price Index (All Items for 2000; (v For the period commencing the 1st day of January, 2002 to December 31, 2002 Minimum Rent will be based on the annual Minimum Rent rate for the period from January I, 2001 to December 31, 2001 plus the increase in the Canadian Consumer Price Index (All Items for For Example: 1998 Rent is $8.00 per square foot 1998 Consumer Price Index shows cost changes of 4% over Rent is $8.00 plus 4% or $8.32 net per square foot 1999 Consumer Price Index shows cost changes of 2% over Rent is $8.32 plus 2% or $ Additional Rent shall be payable by the Tenant in accordance with the terms of the Lease. 5. The Premises shall be provided to the Tenant in an "as is" condition on the Effective Date, subject to the payment of the Reimbursement described herein. 6. Provided the Tenant has executed the Lease Extension Agreement and is not in default under the Lease, the Landlord shall pay to the Tenant, sixty (60 days after the installation of new carpet in the Premises by the Tenant, an amount equal to the Tenant's cost for the purchase and installation of the new carpet ("Tenant's Work" up to a limit of Twenty-Five Dollars ($25.00 per square yard (which amount includes goods and services tax(the "Reimbursement". The Reimbursement shall be paid by the Landlord to the Tenant, pursuant to the following conditions.
6 4. (a Payment of the Reimbursement shall be payable upon the latest to occur of the following: (i (ii (A (B Execution of the Lease Extension Agreement by the Landlord and the Tenant; Completion of the Tenant's Work which shall be deemed to be completed only upon the receipt by the Landlord of the following items, namely: A statutory declaration by an officer of the Tenant stating that the Tenant's Work has been performed in accordance with the plans and specifications approved by the Landlord and that all deficiencies which the Landlord has identified have been corrected; and Proof of payment by the Tenant for the Tenant's Work. 7. The Tenant shall have the option to renew the Lease for one (1 additional term of five (5 years upon giving the Landlord not less than twelve (12 months and not more than eighteen (18 months written notice prior to the expiration of the then current term of the Lease of the Tenant's intention to extend, provided the Tenant: (a (b (c has complied with and performed all of the terms and covenants of the Lease and is not in default thereunder, is in possession of all of the Premises, has not sublet all or part of the Premises or assigned the Lease; and has not had a change in effective control. -The rene"wal will be on th@ Landlord's th@n curr@nt standard 18as8 form. The net rental rate of Minimum Rent during the renewal shall be the Market Rental rate. "Market Rent" means the rate of Minimum Rent per square foot per annum for similar premises in the Shopping Centre that a willing tenant renewing a lease would pay and a willing landlord would accept, in bona fide arms' length negotiations, without taking into consideration any inducements, or the value of existing leasehold improvements, for a five year term, provided that in no event
7 5. * either or both of shall Market Rent be less than the Minimum Rent per square foot payable during the last year of the then current term of the Lease. two 8. When the Landlord is made aware that the Ipremises which are adjacent to the Tenant's Premises as outlined in green on the plan attached hereto as Schedule "A" (the "Additional Premises" are becoming available for lease, provided that no other tenant of the Shopping Centre has an option to lease the Additional fremises, the Landlord shall, by notice, offer to lease, in an "as is" condition,/the Additional Premises to the Tenant. The Tenant shall have seven (7 days from receipt of the notice to exercise this one time right provided the Tenant: (a has complied with and performed all of the terms and covenants of the Lease and is not in default thereunder; (b (c is in possession of all of the Premises, has not sublet all or part of the Premises or assigned the Lease; has not had a change in effective control. If the Tenant accepts such offer, all the provisions of the Lease (except for the Minimum Rent per square foot, which shall be the Market Rent and except for any tenant inducements shall apply with respect to the Additional Premises throughout the remainder of the Term of the Lease, and the Landlord and the Tenant shall enter into a supplement to the Lease to include the Additional Premises. If the Tenant fails to accept such offer, the Landlord may lease the Additional Premises on whatever terms it may determine, without further offering such Additional Premises to the Tenant. 9. The Landlord may relocate the Premises elsewhere in the Shopping Centre (the "Relocated Premises", provided the Landlord complies with the provisions of Section of the Lease and provided that the Relocated Premises are, in all material respects, reasonably comparable to the Premises. 10. The parties confirm that in all other respects, the terms, covenants and conditions of the Lease remain unchanged and in full force and effect, except as modified by this Agreement. It is understood and agreed that all terms and expressions when used in this Agreement shall, unless a contrary intention is expressed herein, have the same meanings as ascribed to them in the Lease.
8 This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators and assigns as the case maybe. IN WITNESS WHEREOF each party has executed this Agreement as the date first written under its respective corporate seal duly attested to by the hands of its officers authorized in that regard, or by his common seal as the case may be. SIGNED, SEALED AND DELIVERED in the presence of. TRUSCAN PROPERTY CORPORATION By: (Authorized Officer By: (Authorized Officer I/We have authority to bind the Corporation THE CORPORATION OF THE CITY OF SARNIA BY: c/s (Authorized Officer l\.1ayor By: (Authorized Officer Clerk I/We have authority to bind the Corporation
9 - - -".', '"",":: -.-..:: -,-,., SCHEDULE "A" SITE PLAN C=dll T:-.. :.H Ce.:::.t.:"c 1362 L!I.:IlU:lr: Y...ill RQ:r.c, S::r.::.i:r., 0:11: Te:l~t Locatio::! wt - Ja.n=.ry 31, 1957 Ur.lt Ii 101 l. l..a::r.~c:: Cc=?:::!::- Sy-r.= (~~ ~.t: l Cz..:lsd.1 T lust "S nccll Ito (345 ~.!t IS 7 8 S.10 II C;ub Mod:. C1.!O -s-;.!l ~. Dc::;h.o? Pl:l;~ (3:--.A B :-...rd ~l,~71 "i~ lcj S. ~""t.""' Tt-~= &to C=;lc::::!= o.c!l.s ~ lc4 6. ICl pe:.:l (~,079 sq.n =\;= LIcrv' (2~:2j sq..e ~. Dr ~ K=! (l~l s,;.!, ;~;:. Tn.vcl (1,051 ~.: Vr.=t (1.10"3.<t.t.. Ie; 11. I Geuld"hpc:" Prod~~ (.,7SJ lq.lt!l. } 2:1 II! 13. me C;=pc-.<:: DlQ-Jlc:t:CI; Cr-.1 ~!l K A.lli= (S00' "i.. tt II 15.. V...:=t (I.1~9 ~_'t 12t> 16. S=:iJl...=:':oo SOC (2.212 s,;.!l b :zo 20,,- II' 17. OrigiAU Mc.::c~ &: MOf(. (2,46 sq. l 122! t. Alu. 8rowr., Boy<ri (1.9:0 $q_'1. 1' v=: (1.4iS S<t.fi V=t (2.C50 ;q.!\ :1';> I~.l~; $ fu!j.l= C:;Z"1 s,;.1\.. lis 20. Da- nn:lx::. -b S:..r:ii. (2,.S 5 6 Set.tl M..>.rl.::l; Wcrl: W?f'""""'"""'" (10,146 ~..il: I 124 n.. Co.::u.G.. Trust s:~. ~ (17'; S<\j'~ So-.J~ U:.ili.-y Rooc:l 2.(. Ho:~ Uti!ity Rcx=. 24 OXFORD SUSURSAN GROU? A OMSION OF Ol-FORO O VELOPM=NT GROuP 1240 COIII!.\lSSIONERS ROA: I/'JEST. SUITE :Oi. 1.0N:0,,",. ONTARiO N6K lc7 (~'Sl ~~ FfJ.Y.:. (:;' J6:l:3
10 BY-LAW NUMBER 19;;. OF 1997 OF THE CITY OF SARNIA "A By-Law to Authorize a Lease Agreement with Truscan Property Corporation" READINGS: FIRST:.[M...!..LnfuA 8; /99} SECOND: ::Jlu.Lm&u OJ IQC;7 THIRD: J'ttr.l/lJiwtJ ~I 1997 THE CORPORATION OF SARNIA Legal Services City Hall Sarnia, Ontario N7T 7N2 OF THE CITY (GFG:df
11 DEPARTMENT CORRESPONDENCE People serving People DATE: November 14, 1997 FILE: TO: Ron E. Brooks City Manager FROM: Gerald F. Gillespie Legal services SUBJECT: 1362 Lambton Mall Road - Library Lease with Truscan Property corporation Further to Council's resolution of July 21, 1997, please find attached, in duplicate, "A By-Law to Authorize a Lease Agreement with Truscan Property Corporation", together with four execution copies of the proposed Lease Agreement. Please note that a deletion has been made in the last paragraph on page 4, and two additions in paragraph 8 on page 5 of the Agreement which need to be initialled by the Mayor and Clerk. Council's approval is respectfully requested. After approval, please return to this office one certified copy of the Authorizing By-Law, along with all four copies of the Agreement to be forwarded to Truscan for execution. One fully executed copy of the Agreement will be returned in due course. /df Att. c.c. A. Tuplin B. Williams Mayor M. Bradley & Council Members C:\WPDOCS\NOV14-97.DMF-P6
12 DEPARTMENT CORRESPONDENCE People Serving People TO: FROM: DATE: Gerald F. Gillespie Legal Services Evelyn Laird Clerk's DepaI1ment December 9th l 1997 RE: 1362 Lambton Mall Road Library Lease with Tnlscan Propel1y COl'poration ========================== ================ Attached is a copy as well as a certified copy of By-law 192 of 1997, being "A By-Law to Authorize a Lease Agreement with Truscan Property Corporation", which was passed by Sarnia City Council at its meeting held December 8th, along with four copies of the Agreement to be executed by Truscan Corp. I understand a fully executed copy of the Agreement will be forwarded to our office in due course. c.c. B. 11l1ams W. Foster Legal Fik
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