Lease Renewal for the West Point Grey Branch Library located at 4480 West 10th Avenue

THAT Council authorize staff to enter into a new lease for the West Point Grey Branch Library located at 4480 West 10th Avenue, legally known as PID 012-930-911; 012-930-946; 012-930-962; 012-930-989; Lots 1, 2, 3 & 4 of Lot 1, Block 154 District Lot 540 Plan 3409 NWD on the following general terms and conditions:

Term: Five Years, commencing December 1, 2011.

Rent:
Years 1-3: December 1, 2011 to November 30, 2014
[ … ] per annum [ … ] or [ … ] per month plus applicable taxes (HST), a pro rata portion of property taxes and operating costs;

Years 4-5: December 1, 2014 to November 30, 2016
[ … ] per annum [ … ] or [ … ] per month plus applicable taxes (HST), a pro rata portion of property taxes and operating costs.

Free Rent:
The tenant (Vancouver Public Library) will receive one month free net rent
[ … ] to offset costs incurred by the tenant for the renovation of bathroom facilities within the Premises (renovation costs estimated at [ … ].

The Library plans to complete the renovation before the end of 2011.

Parking:
Landlord will provide eight (8) parking stalls for the exclusive use of the tenant at no additional charge.

Option to Renew:
Three – five (5) year options to renew on the same terms and conditions save and except rent which is to be set as follows:

Option 1: Years 6 - 10
Years 6-8: [ … ] per annum [ … ] plus applicable taxes
Years 9-10: [ … ] per annum [ … ] plus applicable taxes

Option 2: Years 11 – 15
Years 11-13: [ … ] per annum [ … ] plus applicable taxes
Years 14-15: [ … ] per annum [ … ] plus applicable taxes

Option 3: Years 16 – 20
Years 16-18: [ … ] per annum [ … ] plus applicable taxes
Years 19-20: [ … ] per annum [ … ] plus applicable taxes

In addition to basic rent, the tenant (Library), shall pay a pro rata portion of property taxes and operating costs. The actual 2010 taxes and operating costs were [ … ] per square foot and it is anticipated that they will increase over the term of the lease.

Demolition Clause:
There is a demolition clause in favour of the Landlord. In the event the Landlord decides to redevelop the site, the Landlord will have the right to terminate the Lease at anytime after the expiration of ten years of the term of the Lease, by giving twenty (20) months notice in writing to the Tenant.

Other Terms:
The terms and conditions of the Lease are to be drawn to the satisfaction of the Directors of Legal and Real Estate Services, it being noted that no legal right or obligation shall arise or be created until execution of the Lease.

Demolition Clause:
There is a demolition clause in favour of the Landlord. In the event the Landlord decides to redevelop the site, the Landlord will have the right to terminate the Lease at anytime after the expiration of ten years of the term of the Lease, by giving twenty (20) months notice in writing to the Tenant.

Other Terms:
The terms and conditions of the Lease are to be drawn to the satisfaction of the Directors of Legal and Real Estate Services, it being noted that no legal right or obligation shall arise or be created until execution of the Lease.

The attached Administrative Report dated February 14, 2011 , refers.

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