In-camera Council meeting released decisions and reports
October 3, 2017
Proposed Sub-Sublease of City-owned Premises situated at 667 East Broadway to Optaderm Products Inc.
THAT Council authorize the Director of Real Estate Services to execute a sub-sublease (the “Lease”) to Optaderm Products Inc. (“Optaderm” or the “Tenant”) for the City-owned premises having a civic address of 667 East Broadway outlined in red in Appendix A of the Administrative Report dated August 17, 2017, entitled “Proposed Sub-Sublease of City-owned Premises situated at 667 East Broadway to Optaderm Products Inc.”, and located within a building having a civic address of 651 – 691 East Broadway, legally described as PID: 028-721-942, Lot A, Block 119, District Lot 264A, Group 1, New Westminster District Plan BCP 49417 (the “Premises”) on the following general terms and conditions:
Term: Ten (10) years commencing June 1, 2018.
Option to Renew: One (1) option to renew in favour of Optaderm for an additional five (5) year term, on the same terms and conditions provided herein except rent, which is to be negotiated at the then market rates as a condition of the Lease renewal.
Lease area: 1,220 square feet.
Total Rent: Total rent, inclusive of common area maintenance, parking and building insurance costs (the “Rent”) is based on the following rates:
Year 1 & 2 s.17(1) + GST s.17(1) + GST s.17(1) Year 3 & 4 s.17(1) + GST s.17(1) + GST s.17(1) Year 5 s.17(1) + GST s.17(1) + GST s.17(1) Year 6 s.17(1) + GST s.17(1) + GST s.17(1) Year 7 s.17(1) + GST s.17(1) + GST s.17(1) Year 8 s.17(1) + GST s.17(1) + GST s.17(1) Year 9 s.17(1) + GST s.17(1) + GST s.17(1) Year 10 s.17(1) + GST s.17(1) + GST s.17(1) Total Rental value for the initial ten year term is s.17(1)
Tenant Inducements:Cash Allowance – The Landlord will provide the Tenant with an improvement allowance of s.17(1) psf s.17(1)inclusive of GST], to assist with tenant fixturing. The allowance will be paid upon receipt of completed work to the Landlord’s satisfaction. The funding source for the tenant improvements is the approved 2017 PEF Capital Budget.
Fixturing Allowance - The Landlord will provide the Tenant with a s.17(1) fixturing period to demise and construct its tenant improvements. The fixturing period commences on November 1, 2017. The Tenant will not pay any Rent during the fixturing period, but will be responsible for payment of all its utility costs.
Parking: The Rent will include the exclusive use of two (2) parking stalls for Optaderm’s use during the Lease.
Use: Cosmetics sales, aesthetics salon and laser clinic
Utilities: Optaderm will be responsible for the cost of all utilities located within the Premises. These expenses are not included in the Rent.
Other Terms: The Lease is to be provided on the City’s current standard form of lease for commercial tenants in this building. 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 until the Lease is fully executed by both parties. The Tenant is responsible for the costs of regular service, maintenance, repair and replacement of the HVAC units that exclusively serve the Premises.
The Report dated August 17, 2013, refers.
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