May 26, 1998
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:Proposed Leasing of Parking Spaces in McCowan Road
"RT" Lot to Adason Properties Ltd.
(Ward 15 - Scarborough City Centre)
Purpose:
The owners of 55 Town Centre Court, an office building in the Scarborough City Centre, have requested that the City
lease 100 parking spaces in the City's "RT" parking lot at McCowan Road and Bushby Drive.
Funding:
If approved, revenues in the amount of $4000.00 per month will be credited to Account No. 37900-70500-75540-868,
"McCowan RT Parking Lot Fees."
Recommendations:
It is recommended that:
1)the City enter into an agreement to lease 100 parking spaces in the "R.T." parking lot at Grangeway and Bushby to
Adason Properties Ltd. under the terms and conditions shown in Schedule "A"; and
(2)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Background:
The City operates a 370 car parking lot adjacent to the McCowan Road "RT" station. Approximately 120 of these spaces
are utilized by the day to day commuters and employees in the nearby offices. One hundred spaces are rented on a monthly
basis to London Life Insurance, a tenant in one of the nearby office buildings. A.G. Simpson Limited, a large industrial
employer located in the area, rents a spaces on an intermittent basis, depending on its employment at the time. Daily
parkers pay $3.00 per day. The companies renting on a monthly basis pay $40 per space, per month.
Adason Properties, manages the Canada Life Centre, an office building at Borough Drive and Town Centre Court. Adason
has experienced difficulties leasing space in the building due to a lack of available on-site parking. They have asked to
lease 100 spaces in the City lot on an annual basis, and have agreed to pay $40 per space, per month which is the same as
the other monthly users. They would sublet the leased spaces in this lot to the new tenants, as required.
Comments:
The use of the parking lot by daily users has not fluctuated greatly in the past few years. The operating costs of the parking
lot increase only marginally with increased usage. The additional revenue can be used in other areas.
While the other parking arrangements have been on a monthly basis, it is imperative that the spaces required by Adason
Properties be leased annually, in order that they can assure prospective tenants that the additional parking will be available
for at least a year.
Conclusion:
Leasing the space requested to Adason Properties would not only generate direct revenue for the City, but would also
increase the likelihood of increased tax revenue from the currently vacant office space at 55 Town Centre Court, and
approval is therefore recommended.
Contact Name:
R. Mayr, AACI, Director of Real Estate, Telephone (416) 396-4930, Fax Number (416) 396-4241
mayr@city.scarborough.on.ca (cs98081.wpd)
Margaret Rodrigues
Commissioner, Corporate Services
