Lease of City-owned property at 1630 West 5th Avenue to H2O Enterprises Ltd.

THAT Council authorize the Director of Real Estate Services to negotiate and execute a lease to H2O Enterprises Ltd. for the premises situated at 1630 West 5th Avenue, legally described as Lot 5 amended and Lot C, Block 269, District Lot 526, Plan 590, on the following terms and conditions:

Term: Five (5) years commencing June 1, 2012

Area: approximately 5,000 square feet

Rent: s. 17(1) (d) (e) & (f) and s. 21(1)
Inclusive of property taxes as if levied, and HST.

Use: swimming instruction facility

Renewal
Option: One – five (5) year option to renew on the same terms and conditions save and except rent, which is to be negotiated at market rates.

Cancellation: The Landlord may terminate the lease or any renewal lease upon providing the Tenant with twelve (12) months written notice of cancellation without penalty.

Other Terms: The lease will be provided on the City’s current standard form of Lease for commercial tenants. 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 the execution of the lease.

The rent to be credited to the Property Endowment Fund (“PEF”).

The Administrative Report dated May 25, 2012, refers.

Purchase of the Ramada Inn at 3484 Kingsway to Accommodate Displaced Residents of the Old Continental Hotel, a City Owned Non-Market Housing Facility at 1390 Granville Street

A. THAT Council authorize the Director of Real Estate Services to enter into negotiations with Mr Sport Hotel Ltd , the owner of the property situated at 3484 Kingsway, legally described as PID 007-629-346 Lot 1 Block 9 District Lot 49 Plan 15933, for the purchase of the site subject to the results of an Environmental and Building Assessment at a total acquisition cost not to exceed $16 million; which includes the negotiated purchase price and a provision for applicable taxes, assessment reports, minor upgrades and Old Continental tenant relocation expenses; the source of funds to be the Property Endowment Fund ($12.7 million) and the 2009, 2010 and 2011 Housing Capital Budgets ($3.3 million).

B. THAT if the Director of Real Estate can successfully conclude such negotiations, Council authorize the Directors of Real Estate Services and Legal Services to enter into a legally binding Purchase Contract to purchase the property on such terms and conditions that are satisfactory to the Directors of Real Estate and Legal Services: and that no legal right or obligation is hereby created, and none shall arise except upon execution of the documents.

C. THAT Council approve the increase in the deposit applied against the purchase price to Mr Sport Hotel Ltd the owner of the property from $1 to $200,000 payable to the owner’s solicitor upon the removal of the City’s precedent conditions for the sale.

D. THAT Council authorize the Director of Real Estate to proceed with decommissioning and deconstruction of the Old Continental Hotel at 1390 Granville Street as a key step toward implementation of the Granville Loops Policy Plan.

E. THAT other agreements as may be considered appropriate by the Director of Legal Services, be approved and entered into by the City, as represented by the Director of Legal Services or her nominee, on such other terms and conditions as the Director of Real Estate Services and the Managing Director of Social Development may negotiate and agree to with the respect to other matters described in the body of the Administrative Report dated June 8, 2012, entitled “Purchase of the Ramada Inn at 3484 Kingsway to Accommodate Displaced Residents of the Old Continental Hotel, a City Owned Non-Market Housing Facility at 1390 Granville Street”.

The Administrative Report dated June 8, 2012, refers.

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