CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Director of Social Planning in Consultation with the Directors of Legal Services and Real Estate Services | |
Renewal of Sub Lease, Legal Services society, #300 - 1140 West Pender Street |
THAT City Council approve renewal of a sublease for a term of 5 years commencing June 15, 2003 on the site and improvements located at #300-1140 West Pender Street, to the Legal Services Society, at a nominal rent of $1.00 (one dollar) per annum plus the proportionate share of operating expenses, the sublease to be renewable for two further five year terms under the terms generally described in this report and on terms satisfactory to the Director of Legal Services in consultation with the Directors of Social Planning and Real Estate Services, it being noted that no rights or obligations hereby arise or take effect until the sublease indenture has been executed by both the City and the Society.
The General Manager of Community Services RECOMMENDS approval of the foregoing.
The change of use of three floors of the building at this location to office use was granted by Council in 1984, on the condition that the owner provides 1,750 sq.ft. on the ground floor and 10,289 sq. ft. on the third floor as amenity bonus space, rent free for the life of the building.
The Amenity Bonusing Program, as approved by Council in 1986, provides for the sublease of amenity bonus space to Vancouver-based non-profit social services and/or cultural organizations at nominal rates and includes a series of requirements and obligations of the subtenant with respect to public service and financial management.
The lease or sublease of City assets below market value constitutes a grant and as such requires eight affirmative votes.
The purpose of this report is to request Council approval the renewal of the sublease for an amenity facility at #300-1140 West Pender Street to the Legal Services Society.
Council policy and practice has been to seek non-profit uses for amenity spaces and facilities which encourage a diversity of cultural, social and recreational uses in the downtown with a focus on public participation including live theatres for the performing arts, film theatres, galleries for the display of art, public exhibition halls, public education and childcare facilities.
The Legal Services Society, incorporated in 1979, has been active as a society and brings legal services to the poor and otherwise disadvantaged people.
The Legal Services Society occupies about 35,000 sq.ft. of office space on five floors in the building located at 1140 West Pender Street. Suite 300 on the third floor, for which this sublease specifically refers, is comprised of 10,289 sq.ft. The space is currently used for general office purposes as per the terms and conditions of the present sublease agreement between the City of Vancouver and the Legal Services Society.
Staff have reviewed the Legal Services Society's past performance against the terms of the existing sublease and confirm that all of the public service terms have been met or exceeded. The programs provided by the Society include:
_ Legal Representation - Criminal services, Family Services, Child Protection Services, Immigrant Services.
_ Brydges Line - toll free telephone line for people arrested or detained or those who need emergency legal representation.
_ Duty Counsel Advice and Representation
_ Community and Poverty Services
_ Legal Information and Education
_ Law Line
_ Publications
_ The Internet - Support for four (4) web sites on information about the Society, family law, an electronic law library and a resource on issues affecting the rights of the poor and otherwise disadvantaged.
The terms of the new sublease with the Legal Services Society are as generally outlined on Appendix "A" of this report as well as other terms as are required by and satisfactory to the Director of Legal Services in consultation with the Directors of Social Planning and Real Estate Services.
All occupancy costs including maintenance are the responsibility of the subtenant. There are no financial implications for the City of Vancouver beyond inspection by Facilities Design and Management staff.
Staff recommend approval of a new sublease term to the Legal Services Society for the provision of legal services to those who otherwise would not be able to afford access.
BASIC SUBLEASE TERMS
Term: Five years commencing June 15, 2004 and renewable for two further five-year terms.
Rent: $15.00 payable in advance
Premises: #300-1140 West Pender Street
_ the sublease indenture will not be registered in the Land Title Office.
The permitted use of the Premises is restricted to:
_ the operation of a legal services facility; and
_ purposes necessarily incidental to the operation of a legal services facility and permitted within the applicable zoning.
_
Prior to the Society making any alterations, erections or modifications (hereinafter collectively referred to as "Improvements") to the Premises, the Society shall obtain the City's prior written consent which consent may be unreasonably withheld or be given subject to conditions. The Society shall be responsible for all cost of improvements, and claims or liabilities of any kind arising from the improvements.
On or before May 31 of each year, or at any time requested by the City, the Society will provide to the City the following:
_ Board-approved financial statements for the previous year, prepared at the Society's expense by an accounting professional. Such statements shall include all operating, capital, maintenance reserve and special purpose funds and shall itemize administrative and program costs;
_ a balanced annual budget including an estimate of all revenues and expenditures;
_ a summary of activities for the past year demonstrating how the Society has fulfilled its Public Service Objectives;
_ evidence of a functioning/governing Board of Directors; and
_ a summary of planned activities for the coming year. Further, if requested by the City, the Society shall submit to the City minutes of all Board meetings.
The Society shall indemnify the City for any costs, losses, suits, or expenses incurred by the City arising as a result of the Society's use and occupation of the Premises.
The City may terminate the Agreement prior to the end of the Term on the happening of any one or more of the following events:
_ the Society is in default on any payments owed to the City following 30 days notice;
_ termination of the head lease of the premises;
_ the Society defaults in performing any other provision of the sublease, including, without limiting the generality of the foregoing, failure to comply with any laws or regulations relating to its operation of a Legal Services facility;
_ the Premises are not operated as a legal services facility for more than 30 days without the City's prior written consent;
_ the Premises are not used in the operation of a legal services facility to the satisfaction of the City;
_ the Society becomes bankrupt, is wound up or dissolved;
_ mutual consent; or
_ substantial destruction of the Premises or the building in which the Premises are situated
The Society may only exercise its options to renew if it has not defaulted under the sublease.