2015-037 Lease Agreement with 2401971 Ontario Inc.The Corporation of the Township of'Oro- Medonte
By -Law No. 2015 -037
A By -law to Authorize the Execution of a Lease Agreement
Between The Corporation of the Township of Oro - Medonte and
2401971 Ontario Inc.
And Repeal By -law No. 2014 -193
Whereas Section 5(3) of the Municipal Act, 2001, S.O. 2001, c.25, as amended,
provides that a municipal power, including a municipalitiy's capacity, rights, powers
and privileges under Section 9, shall be exercised by by -law unless the municipality
is specifically authorized to do otherwise.
And Whereas Section 9 of the Municipal Act, 2001, S.O. 2001, c.25, as amended,
provides that a municipality has the capacity, rights, powers and privileges of a
natural person for the purpose of exercising its authority under this or any other Act.
And Whereas Section 224 of the Municipal Act, 2001, S.O. 2001, c.25, as
amended, provides that it is the role of Council to ensure that administrative
practices and procedures are in place to implement the decisions of Council.
And Whereas Council deems expedient to enter into a lease per Motion No.
C140716 -27 at its July 16, 2014 Council meeting.
Now Therefore the Council of the Township of Oro - Medonte hereby enacts as
follows:
1. That the Mayor and Clerk be authorized to execute the Lease, attached hereto
as Schedule "A" and forming part of this by -law;
2. That By -law No. 2014 -193 is hereby repealed in its entirety.
3. And That this by -law shall come into force and take effect on the final passing
thereof.
By -Law Read a First, Second and Third time, and Passed this 11th day of
February, 2015.
of Oro - Medonte
Lease Agreement
This Agreement made this 11 day of February, 2015
Between:
2401971 Ontario Inc.
(hereinafter referred to as
"2401971 Ontario Inc. ")
- and -
The Corporation of the Township Of Oro - Medonte
(hereinafter referred to as "the
Township ")
Whereas 2401971 Ontario Inc. is the owner of the property legally described as Part
West Half Lot 20, Concession 1, (South Orillia), Township of Oro - Medonte,
designated as Part 1 on Plan 51 R -39542 (hereinafter referred to as "the Parking
Facility ");
And Whereas the Township has agreed to lease from 2401971 Ontario Inc. the
lands designated as Part 1 on Plan 51 R -39542 and construct a public parking facility
thereon so as to provide increased parking for the existing boat launch and winter
recreation, with the parking revenue derived therefrom by the Township to pay for
the capital cost of construction of the parking facility including the cost of relocation
of the existing overhead utility lines running across the property.
Now Therefore in consideration of the sum of Two Dollars ($2.00), receipt of which
is hereby acknowledged, and the covenants herein contained, and other good and
valuable consideration, the Parties hereto covenant and agree as follows:
1. The Township shall lease from 2401971 Ontario Inc. the lands designated as
Part 1 on Plan 51 R- 39542 for a term of ten (10) years, commencing
November 1, 2014 and ending November 1, 2024.
2. Upon execution of this Agreement, the Township will commence construction of
a parking area upon the leased lands at a capital cost estimated by the
Township to be Twenty -One Thousand, Five Hundred Dollars ($21,500.00)
including the cost of relocating the existing utility lines owned and operated by
Hydro -One Networks and Bell Canada presently crossing the lands ( "the capital
cost ").
3. Once completed and operational, a day -use fee will be charged by the
Township to the users, and all parking revenue derived from the day -use of the
parking facility will be applied to the capital cost of the construction of the
parking facility incurred by the Township. Upon recovery from those revenues
of an amount equal to the capital cost of relocating the utility lines in the amount
of $12,000.00, the parking revenues will be thereafter divided equally between
the Township and 2401971 Ontario Inc. for the balance of the term hereof. The
Township shall see to an amendment to its parking By- Law(s) to expand the
non - resident permit parking to include non - resident day -use fees for this facility.
The day -use fee would be collected, administered and enforced through the
Township Municipal Law Enforcement division and the Township Recreation
and Community Services Department shall provide 2401971 Ontario Inc. an
accounting thereof annually.
4. It is agreed that during the term of this lease, the Parking Facility shall not be
used for any purpose other than public parking facilities.
5. The Township shall throughout the term of the lease be responsible for the
maintenance, grading and snow removal of the parking facility.
-2-
6. The Township covenants to keep 2401971 Ontario Inc. indemnified against all
claims and demands whatsoever by any person, whether in respect of damage
to person or property, arising out of or occasioned by the maintenance, use or
occupancy of the lands and shall carry public liability insurance in its own name
to providing coverage in the amount of at least Five Million Dollars
($5,000,000.00) with 2401971 Ontario Inc. to be shown as an additional
insured.
7. In the event of default of this Lease Agreement by 2401971 Ontario Inc., or the
sale of the Parking Facility property, 2401971 Ontario Inc. shall pay back the
Township the Capital Cost expended by the Township pursuant to section 2
herein, less any parking revenue received by the Township pursuant to section
3 herein.
8. This Agreement shall enure to the benefit of 2401971 Ontario Inc. and the
Township and be binding upon the Parties and their respective heirs, executors,
administrators, successors and assigns.
In Witness Whereof the Parties hereto have executed this Agreement at the
Township of Oro - Medonte, County of Simcoe, this it day of February, 2015.
2401971 Ontario Inc.
Per:
Senti a, President
I have the authority to bind the
Corporation
The Corporation of the
Township Of Oro - Medonte
M-
rate Services /Clerk
We have the authority to bind the
Corporation.