A6
ADMINISTRATIVE REPORT
Date: September 11, 1995
TO: Vancouver City Council
FROM: Manager of Real Estate
SUBJECT: Lease of 2215 Commissioner Street: Rivtow Marine Ltd.
RECOMMENDATION
THAT Council approve a lease for the land and waterlot situated at
2215 Commissioner Street legally described as Parcel "D" Reference
Plan 2347, Lying in front of Lots 1 and 2, Block 1, District Lot
184, Plan 178 on the following terms and conditions:
Term: Five years commencing September 1, 1995
Rent: September 1, 1995 to February 28, 1997 $38,712 per
annum or $3,226 per month plus an amount in lieu of taxes if
levied.
Rent reduction in the amount of $642 per month for the five
years of the lease to reflect a 35% contribution by the City
for the new electrical service required to bring power to the
site.
Rent Review: After 2´ years.
Cancellation: The Lessor and Lessee both have the right to
terminate the lease on 12 months written notice of
cancellation.
Documentation Fee: $50.00 payable by Lessee
Other: Such other terms and conditions of the lease to be
drawn to the satisfaction of the Director of Legal Services
and the Manager of Real Estate it being noted that no legal
obligation shall arise 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.
PURPOSE
The purpose of this report is to seek Council approval to lease 2215
Commissioner Street to Rivtow Marine Ltd. for a term of 5 years
commencing September 1, 1995 on the terms and conditions outlined in the
offer to lease dated July 12, 1995.
BACKGROUND
The lease for the subject property which consists of a 2 storey office
building and water lot was renewed for a period of 5 years on April 1,
1992. Because of the unsafe condition of the office building the City
exercised its right of termination in 1994 and the building was
demolished. With the demolition of this building a new electrical
service was required to supply power to the property at a cost of
$110,000 and Rivtow has requested that the City pay 35% of these costs
through a rent reduction since any improvements or structures placed
upon the land will revert to the City upon the expiration of the lease.
CURRENT SITUATION
Following negotiations, Rivtow Marine Ltd. have agreed to a five year
lease of the waterlot and upland area commencing September 1, 1995 on
the terms and conditions 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 new rent
is representative of current market rental value.
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