In-camera Council meeting released decisions and reports
May 16, 2013

Lease of City-owned property situated at 455 Industrial Avenue to 590275 B.C. Ltd. dba Recycling Alternative

THAT Council authorize the Director of Real Estate Services to negotiate and execute a lease (the “Lease”) with 590275 B.C. Ltd. dba Recycling Alternative for a portion of the City-owned premises situated at 455 Industrial Avenue, as shown on Appendix A, legally described as PID: 005-497-141, Lot A (Statutory Right of Way Plan 18236) Except: Part in Plan LMP33893; of Lot H, District Lot 2037, Group 1, Plan 7729 (the “Subject Property”), on the following terms and conditions:

Term: Ten (10) years commencing January 1, 2014.

Area: Rentable area of approximately 10,979 square feet (the “Premises”).

Gross Rent: Rent, inclusive of property taxes as if levied:
Years 1-5: s.17(1) per annum, plus GST; and
Years 6-10: s.17(1)per annum, plus GST.
(Total rent may be adjusted based on confirmation of square footage of the Premises).

Free Rent: Tenant shall be granted Free Gross Rent the s.17(1) of the Term commencing on the 2nd year of the Term.

Improvement Allowance: Tenant shall be provided a Tenant Improvement Allowance of Nine Dollars () per square foot, which the Tenant shall utilize to offset their cost of improving the Premises, in the form of reduced Gross Rent during the 1st year of the Term.

Fixturing Period: Tenant shall be granted a Fixturing Period commencing s.17(1) in which to undertake its Tenant Improvements. Tenant is not responsible for payment of Gross Rent during the Fixturing Period but is responsible for payment of all utilities.

Operating Costs and Utilities: Tenant is responsible for paying its proportionate share of all operating costs and utilities.

Option to Renew: Two - five (5) year options to renew on the same terms and conditions except rent, which is to be negotiated at market rates, and the Landlord shall have no obligation to pay or provide the Tenant any free rent or inducement of any nature.

Use: The Premises are to be used for a multi-level recycling depot, and any related or associated functions.

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 Report dated April 18, 2013, refers.

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