A3
                             ADMINISTRATIVE REPORT

                                           Date: July 4, 1995

   TO:       Vancouver City Council

   FROM:     Manager of Real Estate

   SUBJECT:  Maritime Museum Lease Modification


   RECOMMENDATION

        That  Council approve  the modification  of the  exisiting Maritime
        Museum Society Lease  for the  purpose of extending  the term  from
        June 1,  1995, to May 31, 2000,  at a nominal rent  of $1.00 and to
        permit the  lessee to sublet a  portion of the premises  for a gift
        shop.

   GENERAL MANAGER'S COMMENTS

        The General  Manager of  Corporate Services RECOMMENDS  approval of
        the foregoing.

   COUNCIL POLICY

   The  nominal rent  over  the term  represents a  grant which  requires 8
   affirmative votes of Council for approval.


   BACKGROUND

   The City of Vancouver has for  many years leased for a nominal  rate the
   Maritime  Museum premises to the  Maritime Museum Society.   The present
   lease was from January 1, 1988 for a  term of two years and has been  in
   holdover since December 31, 1990.

   PRESENT SITUATION

   The Maritime  Museum has been  operating a gift  shop (at  a loss) in  a
   portion  of the leased  premises as one  of its activities.   An outside
   operator has approached the Museum Society  with an offer to operate the
   gift shop  and pay  rent and  thus turn  a losing  operation into  a net
   revenue producer.

   The  outside  operator requires  a term  certain  lease as  the operator
   intends  to spend  money on  tenant improvements.   The  proposal is  to
   extend  the  present lease  for  a further  term  of five  years  with a
   modification  permitting the subletting of a portion of the premises for
   a gift shop.
   As the  staff are  presently  reviewing a  number  of leases  for  civic
   facilities  such  as  the  Maritime Museum,  Planetarium  and  Vancouver
   Museum,  with the  intention of  rewriting the  leases to  better define
   relationships and responsibilities, the 90 day terminating clause in the
   Maritime  Museum lease  will  remain. This  will allow  Council/Maritime
   Museum to  terminate the present lease  and replace it with  a new lease
   once  the terms  and conditions of  a new  lease are  agreed between the
   parties. 

   The Maritime  Museum cannot  wait  for the  new lease  as  it wishes  to
   immediately retain an outside operator for the gift shop for the tourist
   season.


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