Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director, Office of Cultural Affairs, Social Planning, in consultation with the Director of Legal Services and Manager of Real Estate

SUBJECT:

1270 Chestnut Street (Vancouver Academy of Music) - Lease

 

RECOMMENDATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

In May 1993, Council directed that City-owned properties occupied by non-profit organizations be held as assets in the Capital Fund, and be charged a nominal rental rate.

PURPOSE

This report seeks Council's approval to grant a lease and license of the City-owned building in Vanier Park to the Vancouver Academy of Music for a term of twenty years, their previous lease having expired December 1997.

BACKGROUND

The Vancouver Academy of Music is a non-profit institution founded in 1969 as the Community Music School of Greater Vancouver. The Academy provides classical training for music and ballet students in two programs - the Preparatory and Special Student Division for pre-school, school-age students and adults, and the College Division for students working towards a Bachelor of Music degree and a professional career in music performance.

The Vancouver Academy of Music occupies the City-owned building in Vanier Park. The facility contains teaching studios, classrooms, and rehearsal rooms as well as the Koerner Recital Hall.

The initial lease expired on December 31, 1997. The Academy has requested a new lease and license. A list of terms and conditions proposed by staff is attached to this report as Appendix A.

Staff are recommending terms and conditions similar to other leases to non-profit organizations occupying City-owned premises. This model differs from the initial Academy lease in three areas:

Storage Area

The Vancouver Museum and Vancouver Maritime Museum currently control 9,600 sq. ft. of storage space within Building 14. Staff have been working with the museums to identify alternative storage locations in order to free up this area for use by the Academy of Music. They feel that they can put the area to use for additional classrooms and teaching studios. While the museums are not yet in a position to vacate the storage area, the Academy has asked for a right of first refusal to incorporate the area into their leased premises at such time as it can be made available. Staff believe that this is a reasonable request and notes that under the proposed lease terms all renovations or alterations are to be at the tenant's expense.

Cultural Mandate and Policies

As part of the lease agreement, staff have proposed that the Vancouver Academy of Music articulate and include as part of the lease, its mandate, mission, objectives, and rental policies to ensure that the public benefits continue over the term of the lease (See Appendix B).

Maintenance and Repairs

This lease proposes to clarify areas of responsibility for utilities, maintenance and minor repairs (the tenants) and major structural repairs including roof, foundations, infrastructure services (water, sewage, power) and building systems.

CONCLUSION

The Vancouver Academy of Music continues to provide training to more than 1,000 Vancouver students and play an important role in medic education dn audience development. Staff support a renewal of their lease in the City-owned building in Vanier Park.

Agreement between the City of Vancouver (City)
and
the Vancouver Academy of Music (Music School)

DRAFT TERMS

Term: Twenty years commencing January 1, 1997

Rent: $1.00 payable in advance

Premises: 1270 Chestnut Street (Bldg 14, Vanier Park)

Grant:
The City to grant:
· a lease to use those areas of the Building as outlined in the plan attached as Schedule __ for purposes connected with the Music School operation (the "Premises");
· the right of first refusal to renovate and occupy the 10,000 sq.ft. storage area currently used by the Vancouver Museum and Vancouver Maritime Musuem when the museums vacate;
· a non-exclusive licence to use the Grounds generally for the purposes connected with the Music School operation.

Use:
Permitted use of the Premises and Grounds include:
· operation of a Music School within the Mandate and Cultural Objectives (see below) attached as Schedule __ and approved by the City;
· purposes necessarily incidental to the operations of a performance venue, rentals and fund raising activities in accordance with a Rental Policy (see rentals section).

Cultural Objectives:
As part of the lease agreement the Music School's Mandate and Cultural Objectives (draft to be provided by the Music School for City approval) will be included and used as annual and periodic performance measures.

Rentals:
The Music School may rent the rehearsal rooms and performance venue (Koerner Recital Hall) periodically as set out in a Rental Policy. The Music School will draft a Rental Policy permitting third party use of the Premises and the Grounds for the City's approval. Rentals will be required to be appropriate to, and support the Mandate of the Music School. The Music School agrees to abide by any rules or regulations imposed by the City.

The Music School may not assign or sublet any space within the building without the City's permission.

Public Access:
The agreement will set a standard for equitable access for Vancouver residents to programs and rental opportunities.

Reporting to the City:
On or before December 31 of each year, or at any time requested by the City, the Music School will provide to the City the following:
· audited financial statements for the previous year, prepared at the Music School's expense by a firm of chartered accountants and to include all operating, capital and special purpose funds;
· a balanced annual budget including an estimate of all revenues and expenditures;
· a summary of activities for the past year demonstrating how they have fulfilled their Cultural Objectives; and
· a summary of activities for the coming year.

Further, if requested by the City, the Music School will submit minutes of all committee and Board meetings.

Grant:
There is no obligation by the City to provide operating, project or capital funds.

Insurance:
The Music School will maintain comprehensive public liability insurance to the premises to the satisfaction of the City's Director of Risk Management.

The City will insure the building against fire, vandalism, etc., as determined by the City's Director of Risk Management.

Utilities, Maintenance and Repairs:
Music School to be responsible.

Major Capital Repairs:
City to be responsible for major structural repairs including roof, foundations, infrastructure services (water, sewage, power) and building systems and will repair within the resources available.

Improvements:
Consent is required to alter, erect, or modify the Premises or Grounds. In the event consent is given, the City may attach conditions or deadlines as it sees fit and the Music School will be responsible for the cost of improvements, claims or liabilities of any kind arising from the improvements.

Indemnification:
The Music School will indemnify the City for any costs, losses, suits, expenses etc. arising as a result of the Commission's use and occupation of the Premises, grounds and related City property.

Termination:
On Breach of Covenants where:
· the Music School is in default on any payments owed to the City following ___ days notice;
· the Music School defaults in performing any other provision of this agreement;
· the Premises are closed to the public for 30 days without the City's consent;
· the Premises are not used in the operation of a Music School to the satisfaction of the City;
· the Music School becomes bankrupt, is wound up or dissolved.

And all of the other usual lease provisions to the satisfaction of the Director of Legal Services.

January 13, 1999

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