June 23, 1998

  To:Corporate Services Committee

 From:Commissioner of Corporate Services

 Subject:Renewal of Lease from Ontario Realty Corporation

Highland Creek Parkette

Ward 16 - Scarborough Highland Creek

 Purpose:

 Ontario Realty Corporation, on behalf of the Ministry of Transportation, advise that the above noted lease may be renewed for a further term of five (5) years at the same terms and conditions including the annual rent at $250.00 plus GST. This report summarizes the tentative agreement.

 Funding Sources, Financial Implications and Impact Statement:

 The cost of annual rental to be charged to Account Number 20000-40300-65011-539.

 Recommendations:

 It is recommended that:

1)Council authorize the renewal of the above lease agreement for a five year term commencing May 1, 1995 on the same terms and conditions as per the existing agreement including the annual rental at $250.00 plus G.S.T.; and

 (2)the appropriate City Officials be authorized to execute the relevant renewal document.

 Council Reference/Background/History:

 Since October 1, 1979, the former City of Scarborough has leased 0.292 acres of land from the Ministry of Transportation at the south east corner of Old Kingston Road and Lawson Road for a Parkette. The lease expired on September 30, 1995 but was not renewed due to the reorganization of the Provincial Ministries. The City has been an overholding tenant since then.

Ontario Realty Corporation, in a letter dated September 11, 1997, advised that the Ministry of Transportation has approved renewal of the lease for another 5 years at the same terms and conditions including the annual fee of $250.00 plus GST, subject to the execution of the new lease documents by or on behalf of the chair of the Management Board of Cabinet.

 Comments and/or Discussion and/or Justification:

 The City has been maintaining the Parkette and paid the annual rental of $250.00 plus GST since the expiry of the lease. The proposed renewal is to formalise the lease agreement for another five years retroactive to October 1, 1995. The Recreation Department advise that the Parkette is needed for the area and that they are in agreement with the renewal proposal.

 Conclusions:

 The Parkette provides the neighbourhood with a landscaped open space which enhances the aesthetic appearance of the area and forms part of the parks inventory. The proposed annual rental is favourable to the City as it reflects a nominal unit rate of less than two (2) cents per sq. ft.

 Contact Name:

 R. Mayr, AACI, Director of Real Estate, Telephone (416) 396-4930, Fax (416) 396-4241

mayr@city.scarborough.on.ca

 Margaret Rodrigues

Commissioner, Corporate Services