Vancouver City Council |
ADMINISTRATIVE REPORT
Date: November 25, 2002
Author/Local: F Jamal/7431
RTS No. 3105
CC File No. 1203/8109Council: December 10, 2002
TO:
Vancouver City Council
FROM:
Director of Real Estate Services
SUBJECT:
Lease and Licence Agreements of volumetric air space parcels and access to boat moorage for the Vancouver Police Department from the Vancouver Port Authority, situated at the north end of Main Street at 209 West Waterfront Road
RECOMMENDATION
THAT Council approve the Lease and Licence Agreements negotiated with the Vancouver Port Authority for the volumetric air space parcels and access to boat moorage at the Main Street dock, located at 209 West Waterfront Road, as follows:
1. Lease
Parcels "A" & "B", volumetric air space parcels, 299 square metres and 33 square metres base measuring, more or less, respectively, extending from the plane 6.47 metres above hydrographic zero to the plane 14.7 metres above hydrographic zero; all located on Main Street dock, fronting Block 1, District Lot 196, Plan 184, Group 1, New Westminster District.
2. Licence
Water Lot area measuring of 250 square metres, with a berth length of 25 metres, more or less ("Exclusive Area") together with a common right and licence to use the Water Lot ("Common Area"), both located on the portion of the bed of the Public Harbour of Burrard Inlet fronting Lot 6 (Reference Plan 10341), Block 1, District Lot 196, Plan184, Group 1, New Westminster District;
it being the intent of these agreements to accommodate (i) the office building used for the Police Department's Marine Squad; (ii) mooring the Police and Fire Departments' boats; and (iii) parking for 2 vehicles on the dock. The term for both Lease and Licence Agreements is from February 24, 2002 to February 23, 2012, with a clause in the Lease acknowledging occupation for five years prior to February 2002 on an unsigned agreement. Funding for these lease payments are included in the Vancouver Police Department and Fire and Rescue Services Operating Budgets.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of the foregoing.
COUNCIL POLICY
The Director of Real Estate Services is authorized to approve leases and lease renewals if the term, including renewal terms, is no more than ten years and if the total value is no more than $250,000.
PURPOSE
This report serves to formalize the tenure and occupancy of the volumetric air space parcels located at the Main Street dock, and access to moorage which accommodates the office building used for the Police Department's Marine Squad, allows moorage of the Police and Fire Departments' boats, and facilitates parking for two vehicles on the dock. The term for both Lease and Licence Agreements is from February 24, 2002 to February 23, 2012.
BACKGROUND
In February 1997, the Police Marine Squad relocated from the HMCS Discovery on Deadman's Island in Stanley Park to its current location on the Vancouver Port Authority-owned dock at the north end of Main Street. On January 15, 1997, Council approved the purchase of the office building on the dock, at a cost of $175,000, from the then owner, Malibu Yacht Charters. The tenure was in the form of lease of the air space parcels A & B comprising 299 square metres and 33 square metres, respectively (the "Lease"). Further, there was a Licence agreement granting exclusive right to use and occupy a certain Water Lot area of some 250 square metres, more or less, (berth length of some 25 metres together with a common right and licence of access to the Common Area), both located on a portion of the bed of the Public Harbour of Burrard Inlet fronting Lot 6 (the "Licence"). Theseagreements permit the continued occupation of our newly-acquired office building, facilitate moorage for Police and Fire Department boats and allow vehicular parking for two vehicles on the dock. The Lease and Licence were to be for the period February 24,1997 to February 23, 2002. After extensive negotiations with the Vancouver Port Authority, subject to Council approval, staff have now tentatively agreed to a new ten year term Lease and Licence, commencing February 24, 2002.
CURRENT SITUATION
As the original Lease term proposed is now time-barred, the Vancouver Port Authority has agreed to sign a new ten year Lease and Licence, both commencing on February 24, 2002 and expiring on February 23, 2012. The Lease and Licence Agreements recognize that the City has been in occupation of the volumetric air space parcels since 1997. "Annual Rent" is set at $6,824.00 plus GST, payable fully net of operating expenses, to the Vancouver Port Authority. This is the current rent. The Rent is to be reviewed at three year intervals, with full provision for arbitration. The first rent review is effective February 24, 2003, as the current rent was set in the year 2000.
CONCLUSION
In view of the foregoing, the Director of Real Estate Services recommends that Council approve the Lease and Licence Agreement for the new ten year term effective February 24, 2002.
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