Lease of City-owned property situated at 1620-1630 Main Street to Marine Chrysler Dodge Jeep Ltd.

THAT Council authorize the Director of Real Estate Services to negotiate and execute a lease (the “Lease”) with Marine Chrysler Dodge Jeep Ltd. (the “Tenant”) for City-owned premises situated at 1620-1630 Main Street legally described as Lot 4 to 7, Block 3, District Lot 200A and Block A2 District Lot 2037, Plan 5703, on the following terms and conditions:

Term: Three (3) years, commencing January 1, 2013

Rent: The rent, inclusive of property taxes, is to be set as follows:

s. 17(1) (d) (e) & (f) and s. 21(1).

Fixturing Period: The Tenant shall receive s. 17(1) (d) (e) & (f) and s. 21(1) fixturing period to construct its tenant improvements. s. 17(1) (d) (e) & (f) and s. 21(1).

Option to Renew: Two-three (3) year options to renew on the same terms and conditions save and except rent, which rent payable by the Tenant during the renewal options shall be as follows:

First Option:
s. 17(1) (d) (e) & (f) and s. 21(1).

Second Option:
The rent will be negotiated at prevailing market rental rates s. 17(1) (d) (e) & (f) and s. 21(1).

Termination Clause: The City (the “Landlord”) shall have the right to terminate the Lease during the First and/or Second option period, upon providing the Tenant a one (1) year written notice of termination, provided that such right of termination shall only be exercised after December 31, 2017. The Landlord shall not pay the Tenant any compensation due to such termination.

Use: The premises are to be used as an automobile sales and service facility with ancillary business offices.

Other Terms and Conditions: The Lease is to be provided on the City’s Standard Lease Agreement, drawn to the satisfaction of the Directors of Legal and Real Estate Services, it being noted that no legal right or obligation will be created and none shall arise until the Lease document is fully executed by both parties.

All rents to be credited to the Property Endowment Fund (PEF).

The Administrative Report dated November 19, 2012, refers.

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