Gibraltar Point Centre for the Arts

Lease Agreement, Ward 24 - Downtown

The Economic Development and Parks Committee recommends the adoption of the following report (June 24, 1999) from the Commissioner of Economic Development, Culture and Tourism:

Purpose:

The purpose of this report is to obtain Council approval to enter into a lease with Toronto Artscape Inc. for the use of the former Toronto Island School site which will be used as the Gibraltar Point Centre for the Arts.

Source of Funds:

There are no direct funding implications of this report.

Recommendations:

It is recommended that:

(1)authority be granted to enter into a nominal sum lease with Toronto Artscape Inc. for a term of 20 years in a form satisfactory to the Commissioner and the City Solicitor; and

1. appropriate City officials be authorized and directed to take all actions necessary to give effect thereto.

Background:

Council, by adoption of Clause No.3 of Report No. 6 of The Economic Development Committee, at its meeting of April 13, 14 and 15, 1999, authorized the City to negotiate a lease of the former Toronto Island Natural Science School to Toronto Artscape Inc. It is Artscape's intention to develop this facility to become the new Gibraltar Point Centre for the Arts.

Negotiations have proceeded between staff and Toronto Artscape Inc. and we are requesting authority to enter into a lease on the following terms and conditions:

(1)a 20-year term, with an option to renew for a further 10 years, at the sole discretion of the landlord, on terms and conditions to be mutually agreed upon;

(2)$1.00 net, per year nominal sum lease, with the Tenant being responsible for the cost of all taxes, operating costs, maintenance and improvements to the Leased Property;

(3)the Tenant warrants its organization shall remain as a non-profit organization during the term of the Lease any renewal thereof;

(4)the Tenant, at its sole expense, shall provide to the Landlord the following prior to the execution of the lease:

(a) a revolving letter of credit as may be required from time to time, in an amount or amounts sufficient to secure lienable contracts entered into from time to time for the supply of services and materials to the property, in a form and content satisfactory to the Commissioner of Economic Development, Culture and Tourism and/or the City Solicitor; it is understood that the revolving letter of credit will be designed to provide the security as aforesaid throughout such phases of renovations as may be reasonably agreed between the Commissioner of Economic Development, Culture and Tourism and the Tenant provided, however, that subsequent phases of the renovation shall not be commenced until the Commissioner of Economic Development, Culture and Tourism is satisfied that the previous phase has been satisfactorily completed and all lienable contracts have been paid in full; in any event, an amount equal to 10 percent of the initial amount of the letter of credit of each respective phase shall be held back for not less than 45 days following the completion of each construction and/or renovation phase; the landlord then shall examine title of the property and upon satisfying itself of no registered lien(s) relative to the renovation and/or construction shall release the held back funds forthwith; and

(b)evidence of insurance coverage in an amount to be determined by the Finance Department, acting reasonably and in a form and content satisfactory to the City Solicitor;

(5)in the event that any other party(ies) donate labour and/or materials for the renovation, the Tenant shall, prior to commencement of work, obtain letter(s) signed by the Tenant and the donating party(ies) under seal in a form and content satisfactory to the City Solicitor, confirming that the labour and/or materials are being donated at no charge to either the Tenant or the City of Toronto;

(6)the Tenant shall not enter into any lienable contracts for the supply of services and/or materials to the property without the consent of the Commissioner of Economic Development, Culture and Tourism;

(7)the Tenant shall comply with the City's Fair Wage Policy in relation to all improvements made to the Building;

(8)permission to renovate or upgrade the Building shall be subject to all plans and specifications being approved by the Commissioner;

(9)two ex officio, non-voting seats on the Tenant's Advisory Board shall be reserved for City representatives;

(10)the Tenant may assign individual units for short-term rental without the landlord's consent, but may not assign or sub-lease the entire property, or the Lease Agreement;

(11)the Tenant shall use the leased property only as a non profit arts facility;

(12)if the Tenant ceases to be a non profit organization, or uses the leased property for any purpose other than as authorized herein, the Landlord may, at its sole option, terminate the lease immediately; and

(13)the Lease Agreement shall be in the Landlord's standard form and, notwithstanding any terms and conditions contained or not contained in the proposal, shall be in a form and content satisfactory to the City Solicitor.

Conclusion:

This agreement is in keeping with the intent of Council's direction in this matter and authority is required to complete and execute the agreement in conjunction with the City Solicitor. The City Solicitor has been consulted in this matter.

Contact Name:

John A. Macintyre, 397-4451.