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7. 110 Laurier Avenue West- Government Service Counters-
Ontario Realty Corporation- Revenue Lease Extension Comptoirs des services
gouvernementaux au 110, avenue Laurier ouest : proloNgation du bail, société
immobilière de l’ontario |
That Council approve the
first Lease Extension and Amending Agreement between Ontario Realty Corporation
acting as agent on behalf of Her Majesty the Queen in Right of Ontario as
Represented by the Minister of Energy and Infrastructure and the City of Ottawa
for the government counter space (10,163 square feet) at City Hall for a term
of five (5) years from 1 September 2010 to 31 August 2015. The space consists of Federal - Provincial
service counters and electronic service kiosk on the main floor and a
telecommunications room on the third floor at City Hall.
Recommandation du ComitÉ
Que le Conseil approuve
l’acquisition en fief simple d’une parcelle d’une superficie approximative de 4,76 hectares (11,75 acres)
appartenant à Ronald Earl et Ruth Lee Gamble, dont l’adresse municipale est le
3396, chemin Jockvale. La propriété est décrite comme étant la partie du lot
13, concession 2, façade rivière Rideau, numéro CR434494, et la partie du lot
12, concession 2, façade rivière Rideau, numéro NP61269, canton géographique de
Nepean, Ville d’Ottawa, illustrée comme étant les parcelles 1 et 2 sur le
document « 1 » ci-joint, moyennant une contrepartie de
1 650 000 $ plus TPS/TVH, le cas échéant.
DOCUMENTATION
1.
City Manager’s report dated 29 June 2010 (ACS2010-CMR-CMR-REP-0012).
Corporate Services and
Economic Development Committee
Comité des services organisationnels et du développement économique
29 June 2010/ le 29 juin 2010
Submitted by/Soumis par:
Kent Kirkpatrick, City Manager / Directeur
municipal
Contact
Person/Personne ressource : Gordon MacNair, Director
Real
Estate Partnerships and Development Office/
Directeur,
Partenariats et Développement en immobilier
(613)
580-2424 x21217, Gordon.MacNair@ottawa.ca
SUBJECT:
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110 Laurier Avenue West- Government Service Counters- Ontario
Realty Corporation- Revenue Lease Extension |
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OBJET : Comptoirs des services gouvernementaux au 110,
avenue Laurier ouest : proloNgation du bail, société immobilière de l’ontario
That the Corporate Services and Economic Development
Committee recommend that Council approve the first Lease Extension and Amending
Agreement between Ontario Realty Corporation acting as agent on behalf of Her
Majesty the Queen in Right of Ontario as Represented by the Minister of Energy
and Infrastructure and the City of Ottawa for the government counter space
(10,163 square feet) at City Hall for a term of five (5) years from 1 September
2010 to 31 August 2015. The space
consists of Federal - Provincial service counters and electronic service kiosk
on the main floor and a telecommunications room on the third floor at City
Hall.
Que le Conseil
approuve la première prolongation de bail et l’entente de modification pour la
location de comptoirs d’une surface totale de 10 163 pieds carrés à l’hôtel de
ville d’Ottawa, entre celle-ci, d’une part, et la Société immobilière de
l’Ontario, agissant au nom de Sa Majesté la Reine du chef de la province de
l’Ontario par le biais du ministre ontarien de l’Énergie et des
Infrastructures, d’autre part, pour une période de 5 ans : du 1er
septembre 2010 au 31 août 2015.
L’espace sujet à bail
est occupé par des comptoirs de services provinciaux et fédéraux, et un kiosque
de services électroniques, situés au rez-de-chaussée de l’hôtel de ville
d’Ottawa, ainsi que par une salle de télécommunication sise au 3e étage.
In 2004, Corporate Services recommended staff be given approval to discuss the Ottawa Counters Project and that the City Manager be authorized to finalize and execute all agreements for the Ottawa Counters Project. The Report ACS2004-CRS-OGM-0005 recommended that the City of Ottawa with Ontario Realty Corporation (ORC) open a government service counter at City Hall, 110 Laurier Avenue West. In 2006, the Manager of Realty Services signed a gross lease at $36 per square foot for 10,163 square feet resulting in revenue of $365,148 per annum from 1 September 2005 to 31 August 2010 for total revenue of $1,825,740 for the first five-year term. The lease included two five year extension options. The Client Services area at City Hall was re-designed and the service counter, kiosk, and a telecommunications room were built.
The original lease expires on 31 August 2010 and on 15 January 2010 the tenant’s agent, Ontario Realty Corporation (ORC) provided written notice to the City exercising its right to extend the lease for another five-year term. As part of the lease extension, it is necessary to obtain both Committee and Council approval before the lease can be extended or amended. Client Services staff and the Building Manager of City Hall were consulted and agree to the five (5) year extension. The government counters use at Ottawa City Hall is considered to be a complimentary use.
To establish market value rent, an office market rent search of comparable office space was conducted by Real Estate Partnerships and Development Office and ORC obtained an independent appraisal.
Negotiations between ORC and the City resulted in the proposed lease to be extended at a gross rent of $39 per square foot. When the rate is applied to the area of 10,163 square feet, the lease revenue will yield $1,977,885 for the five-year term.
No environmental implications.
No rural implications.
Public consultation was not required. The Organizational Development and Performance Department (Client Services Branch) and the Public Works Department have been consulted regarding the Lease Extension and Amending Agreement.
Councillor Holmes (Ward 14) has been made aware, by way of this report of the proposed Lease Extension and Amending Agreement.
There are no Legal/Risk Management impediments to implementing the recommendation in this report.
N/A
N/A
The proposed Lease extension and Amending Agreement will generate $395,577 per annum, which represents an increase of $30,429 per annum over the annual revenue of the original lease. The Revenue will be deposited in Account #117135.
N/A
Following Council’s approval, ORC and Real Estate Partnerships and Development Office will finalize the Lease Extension and Amending Agreement.