To: From: Resource Staff: City of Kingston Report to Council Report Number 17-090 Mayor and Members of Council Lanie Hurdle, Commissioner, Community Services Peter Huigenbos, Director, Real Estate & Environmental Initiatives Date of Meeting: Subject: Executive Summary: Boy Scouts Land Lease Extension 245 Elmwood Drive The City s Revenue Leasing and Licensing Policy, as amended, was approved by Council in 2011. Staff have been working towards ensuring that all new agreements comply with the policy and that older leases are brought into compliance upon expiry. The agreement for the Provincial Council for Ontario: Boy Scouts of Ontario ( Boy Scouts ) has expired and requires updating. The Boy Scouts have leased a small piece of land in Elmwood Park, at the end of Elmwood Street, since 1956 for their club house which was originally an army hut moved to the site. Staff are recommending that the lease be extended for (5) years at the current rental rate of $1.00 per year to be effective retroactively to January 1, 2016. The Boy Scouts will continue to be responsible for all costs related to the building and will be responsible for its removal at the end of the agreement. The shorter term nature of the lease will allow the Boy Scouts to consider their long term plans for the facility to meet their programming needs in the community. Recommendation: That Council direct the Mayor and Clerk to execute an Extension and Amending Agreement with the Provincial Council for Ontario: Boy Scouts of Canada for a land lease at 245 Elmwood Street for a term of five (5) years commencing on January 1, 2016 for the Annual Rent of $1.00 plus all maintenance, utility and capital repairs; and That the Extension and Amending Agreement be executed in a form satisfactory to the Director of Legal Services. Council Meeting 17 14
Page 2 of 4 Authorizing Signatures: Lanie Hurdle, Commissioner, Community Services Gerard Hunt, Chief Administrative Officer Consultation with the following Members of the Corporate Management Team: Denis Leger, Commissioner, Corporate & Emergency Services Not required Jim Keech, President and CEO, Utilities Kingston Desiree Kennedy, Chief Financial Officer & City Treasurer Not required Council Meeting 17 15
Options/Discussion: Page 3 of 4 The Boy Scouts of Canada have been operating in Kingston since the 1940s. The clubhouse in Elmwood Park, 245 Elmwood Street, is a 1,500 square foot former army hut and has been the subject of a succession of land leases with the City since 1956. Elmwood Park is also the subject of a joint use agreement under review with Conseil des écoles publiques de l'est de l'ontario for the abutting school, École Madeleine-de-Roybon. The Boy Scouts also have a second clubhouse under a lease agreement with Kingston Hydro at 642 MacDonnell Street, adjacent to Third Avenue Park, on similar terms and conditions. The Boy Scouts are responsible for all costs related to the building in Elmwood Park which includes electricity and building maintenance. While in the past the Boy Scouts have asked to buy the land the building sits on, the City has chosen to maintain the park in public ownership and continue with the land lease. The most recent lease for the Boy Scouts, approved by Council in 2006, expired on December 31, 2015. The Boy Scouts are prepared to extend their land lease for a further five (5) years at the current rental rate of $1.00 per year to be effective retroactively to January 1, 2016. The property will continue to be tax exempt, as property occupied by the Boy Scouts or Girl Guides is tax exempt under the provisions of the Assessment Act. The Boy Scouts will continue to be responsible for all costs related to the building itself. Updates to the agreement to reflect current City leasing standards include a condition which requires the tenant to be responsible for the cost of the removal of the building at the end of the agreement, as well as updated insurance coverage of $5,000,000 per occurrence for general commercial liability. Either party may terminate the agreement with six (6) months notice. Existing Policy/By-Law: The Revenue Leasing and Licensing Policy, as amended, requires all leases and licenses to be assessed at market rates unless the tenant or the licensee qualifies for a community lease or license under the policies guidelines. The Boy Scouts are a national not-for-profit registered charity and have been a strong community partner in Kingston for decades delivering programs for youth. However, they are not specifically aligned with the delivery of services with a sponsoring city department in accordance with the requirements for a Community Lease under the Policy. In lieu of a market rate, the recommendation is to continue the lease for $1 per year in keeping with the previous commitment of Council to lease the land for a nominal amount. Notice Provisions: Not applicable Accessibility Considerations: Not applicable Council Meeting 17 16
Financial Considerations: Page 4 of 4 The City has no operating or capital expenses associated with the land lease. The Boy Scouts pay for their own operating costs and in the new lease they will have the obligation to remove the building should the lease be terminated for any reason. Contacts: Peter Huigenbos, Director, Real Estate & Environmental Initiatives 613-546-4291 extension 3148 Other City of Kingston Staff Consulted: Damon Wells, Director, Public Works Exhibits Attached: Exhibit A Location Map: 245 Elmwood Street Council Meeting 17 17
Exhibit A Location Map & Photo 245 Elmwood Street Council Meeting 17 18