A7
ADMINISTRATIVE REPORT
Date: June 30, 1995
Dept. File No. 08377-005-8
TO: Vancouver City Council
FROM: Manager of Real Estate Services
SUBJECT: Lease of 875-925 Terminal Avenue:
Butler Box and Storage Inc.
RECOMMENDATION
THAT Council approve the lease of the land and buildings situated
on Lot A Amended Parcel E, DL 2037, Plan 8304 and Lot 5, Block E,
DL 2037, Plan 8122 known as 875-925 Terminal Avenue (see Appendix
A) to Butler Box and Storage Inc. on the following terms and
conditions:
Term: 5 years commencing July 1, 1995
Option to Renew: Option to renew for a further 5 years. If the
option to renew is exercised the lessor to have
the right to cancel the renewal lease with 3
years' written notice of cancellation.
Rent: July 1 to November 30, 1995 rent and tax free.
December 1, 1995 to May 31, 1996 at $11,677.42
per month including taxes as if levied.
June 1, 1996 to June 30, 1997 at $16,700.00 per
month plus taxes as if levied.
July 1, 1997 to June 30, 2000 at $20,875.00 per
month plus taxes as if levied.
Deposit: $28,377.42 comprising the sixth month's rent and
a security deposit of $16,700.00
Rent Review: At 2´ years of the renewal lease.
Use: Storage of documents and goods.
Documentation Fee: $50.00 payable by the lessee.
Other: Other terms and conditions of the lease
including an indemnity in favour of the City to
be drawn to the satisfaction of the Director of
Legal Services and the Manager of Real Estate,
it being noted that no legal right or obligation
shall arise or be created until execution of the
lease.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
The Director of Finance can approve leases and lease renewals
- if the total value is less than $150,000;
- if the term is no more than five years;
- Director of Legal Services to draw up the leases;
- larger or longer leases require Council approval.
The proposed lease exceeds the total value of $150,000 which can be
approved by the Director of Finance and is therefore submitted to
Council for approval.
PURPOSE
The purpose of this report is to seek Council approval to lease 875-925
Terminal Avenue to Butler Box and Storage Inc. for a term of 5 years
commencing July 1, 1995, with a 5-year option to renew on the terms and
conditions outlined in the offer to lease dated June 29, 1995.
BACKGROUND
On March 12, 1991, Council (In Camera) approved the request of the
Director of Housing and Properties for authority to purchase 875Ÿ925
Terminal Avenue. The site was leased back to the vendor Facs Records
Centre Ltd. until January 31, 1993, when they vacated. The building was
advertised for lease but besides short term tenants that have leased the
premises, no suitable long term tenants could be found.
The site comprises .6839 hectares (1.69 acres) and is improved with a
concrete block wall warehouse comprising approximately 50,100 square
feet.
PRESENT SITUATION
An offer to lease has been received from Butler Box and Storage Inc. and
following negotiations they have agreed to a 5-year lease of the
premises from July 1, 1995, with a 5-year option to renew at the rents,
terms and conditions contained in the recommendation of this report, as
well as those additional terms outlined in the Offer to Lease executed
by both parties.
The Manager of Real Estate is of the opinion that the proposed rent is
representative of current market rental value for this type of large
warehouse.
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