June 26, 1998

To:Corporate Services Committee

From:Commissioner of Corporate Services

Subject:Renewal of Lease of City-owned property located at 4118 Sheppard Avenue East

(Ward 17 - Scarborough Agincourt)

Purpose:

To renew the lease with Alexander Benjamin & Associates Investments Limited for auto repair-use, as per attached location and site maps.

Funding Sources, Financial Implications and Impact Statement:

The lease agreement will generate a total income of $171,000.00 for the whole term of five (5) years.

Recommendations:

It is recommended that:

(1)authority be granted to renew the lease with Alexander Benjamin & Associates Investments Limited for the premises described herein, based on the same terms and conditions as the expiring lease and in a form acceptable to the City Solicitor; and

(2)the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

Metropolitan Council, by the adoption of Clause No. 9 of Report No. 38 of The Management Committee on September 29, 1993, approved the renewal of lease with Alexander Benjamin & Associates Investment Limited for auto-repair use of the property at 4118 Sheppard Avenue East in Scarborough. The subject property, acquired in connection with the proposed Sheppard Avenue East Grade Separation, is located on the east side of the CNR track and north side of Sheppard Avenue East between Kennedy Road and Midland Avenue and is being reserved still for that purpose. It comprises a site area of approximately 1,943.56 square metres (20,921 square feet) and a freestanding, garage-type building with a building area of approximately 372.53 square metres (4,010 square feet). The lease was renewed for a further term of five (5) years commencing November 1, 1993 and expiring October31, 1998 at an annual rent of $34,200.00 per annum, net, or $2,850.00 per month, plus all applicable taxes. The Landlord may terminate the lease at any time upon giving six months' prior written notice to the tenant.

Comments and/or Discussion and/or Justification:

Upon being advised by the Transportation Services Division of the Works and Emergency Services Department that it is interested in renewing the lease, negotiations were conducted with Ben Lam, President of Alexander Benjamin & Associates Investment Limited, at 4118 Sheppard Avenue East, Scarborough, Ontario, M1S 1T2. Agreement has been reached to renew the lease for a further term of five (5) years commencing November 1, 1998 and expiring October 31, 2003, subject to the same terms and conditions as the expiring lease including the rent, together with payment of an administrative fee for renewal of the lease. Either party may terminate the lease upon giving six months' prior written notice to the other.

Conclusion:

In my opinion, the above terms and conditions are fair and reasonable and they are acceptable to the Works and Emergency Services Department, Transportation Services Division.

Contact Name:

Mr. Tony Pittiglio, Manager of Property Services; Telephone No. (416)-392-8155; Fax No.: (416)392-4828; E-mail Address: anthony_pittiglio@metrodesk.metrotor.on.ca (cs98106.wpd)

Margaret Rodrigues

Commissioner of Corporate Services

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