AFFECTS WARD 14
CITY OF HAMILTON
PUBLIC WORKS DEPARTMENT Operations and Maintenance Division PLANNING AND DEVELOPMENT DEPARTMENT Development and Real Estate Division Report to: Chair and Members Public Works, Infrastructure & Environment Committee Submitted by: Peter M. Crockett, P.Eng. General Manager Lee Ann Coveyduck General Manager Prepared by: Michael C. J. Watson Ext. 7045
Date: File: SUBJECT:
April2, 2004 2003-094
Lease with Enbridge Pipelines Inc. and Termination of Lease with Interprovincial Pipe Line Inc., Part of Lot 29, Concession 5, Beverly, Flamborough (PW04039/PD04109) - (Ward 14)
RECOMMENDATION: (a) That the City of Hamilton, as the Tenant, enter into a new lease with Enbridge Pipelines Inc., being described as four acres of Part of Lot 29, Concession 5, Beverly, Flamborough, subject to the following terms: (i) Term: (ii) Property: Ten (10) years commencing May 1, 2004, terminating April 30, 2014. The subject lands, being four (4) acres of a 100 acre parcel owned by Enbridge Pipelines Inc., are used as a park named "Westover Park". The lands are described as Part of Lot 29, Concession 5, Beverly, Flamborough. $1 per annum, plus G.S.T., is to be charged to Account #55322-444005. The City is responsible for all costs associated with operating a park on the subject lands.
(iii) Rent: (iv) Operating Costs: (b)
That the current Lease Agreement with Interprovincial Pipe Lines Inc., for the subject lands which runs until March 31, 2007, be terminated.
SUBJECT:
Lease with Enbridge Pipelines Inc. and Termination of Lease with Interprovincial Pipe Line Inc., Part of Lot 29, Concession 5, Beverly, Flamborough (PW04039/PD04109) - (Ward 14) - Page 2 of 4
(c)
That the Mayor, General Manager, Finance and Corporate Services and Municipal Clerk be authorized and directed to execute the Licence Agreement, in a form satisfactory to Corporate Counsel.
______________________________ Peter M. Crockett, P.Eng. General Manager Public Works EXECUTIVE SUMMARY:
_______________________________ Lee Ann Coveyduck General Manager Planning and Development Department
It is the recommendation of the Public Works and Planning and Development Departments that the recommendations contained in this report be approved and the Director of Development and Real Estate and the City Solicitor be directed and authorized to finalize the lease arrangement on the basis of the terms and conditions outlined in this report. BACKGROUND: In 1992, the former Municipality of Flamborough entered into a five-year Lease Agreement with Interprovincial Pipe Line Inc. for use of four (4) acres of their 100 acre parcel of land for park purposes. The Agreement was subsequently renewed on April 1, 1997 for an additional ten years, terminating on March 31, 2007 for a rental rate of $1 per annum. Interprovincial is now owned by Enbridge Pipelines Inc. and we have been advised that this firm would like to terminate the old agreement with Interprovincial and the Town of Flamborough and enter into a new ten-year lease with Enbridge Pipelines Inc. and the City of Hamilton at the same rental rate of $1 per annum. ANALYSIS OF ALTERNATIVES: If we do not proceed to enter into a new lease with Enbridge Pipelines Inc. in the name of the City of Hamilton, then we run the risk that Enbridge may terminate our existing lease upon six months’ notice. Park staff within the Public Works Department want to proceed to finalize this lease as soon as possible. FINANCIAL/STAFFING/LEGAL IMPLICATIONS: Financial: The approval of this lease for a term of ten (10) years, at a rate of $1 per annum, will not have a financial impact on the City.
SUBJECT:
Lease with Enbridge Pipelines Inc. and Termination of Lease with Interprovincial Pipe Line Inc., Part of Lot 29, Concession 5, Beverly, Flamborough (PW04039/PD04109) - (Ward 14) - Page 3 of 4 No impact. The eventual lease will be drafted by Legal Services, in accordance with the terms approved by City Council.
Staffing: Legal:
POLICIES AFFECTING PROPOSAL: Effective January 1, 1995, the Municipal Act was amended by Bill 163, requiring municipalities to enact a By-law to establish procedures for the sale of real property owned by a municipality. Subsequently, the former Corporation of the Town of Flamborough adopted and enacted By-law No. 95-15-P, being a By-law to establish Procedures, including the giving of Notice to the Public, Governing the Sale of Real Property by the Town of Flamborough. This By-law, and in accordance with Item 21 of Report 01-029 of the Committee of the Whole, approved by City Council on September 18, 2001, approving the Consolidation of Routine Real Estate Matters that authority to approve the lease of land by or to the City, including any renewal of existing or expired leases, be delegated to the City Manager, General Manager of the relevant department or their designates, within the time limit set out and subject to the following: “(1) (2) (3) The rent shall be at, or below, fair market rent for leases to the City and at, or above, fair market rent for lease by the City; Fair market rent shall be determined by appraisal (in-house, outside, verbal or written); Lease value shall not exceed: (aa) (bb) (4) (5) $60,000 annual rent for the General Manager or designate; $150,000 annual rental for the City Manager or designate;
The lease shall be on terms and conditions that are satisfactory to Legal Services and Corporate Counsel Division; The term of the lease, or any renewal, shall not exceed five (5) years.”
As the new ten-year lease with Enbridge Pipelines Inc. and the City of Hamilton, at a rental of $1 per annum, exceeds the authority delegated to the City Manager, or the General Manager of the relevant department or their designates, Council’s approval is therefore required. This lease with Enbridge Pipelines Inc. falls within the guidelines set by the City's Real Property Sale Procedural By-law.
SUBJECT:
Lease with Enbridge Pipelines Inc. and Termination of Lease with Interprovincial Pipe Line Inc., Part of Lot 29, Concession 5, Beverly, Flamborough (PW04039/PD04109) - (Ward 14) - Page 4 of 4
CONSULTATION WITH RELEVANT DEPARTMENTS/AGENCIES: Discussions were held with the Manager of Parks Operations, who recommended that the City proceed with the above recommendations. CITY STRATEGIC COMMITMENT: In supporting the recommendation, the City will be directly accomplishing the goals of Vision 2020 regarding environmental, social, and financial costs to the residents of the City of Hamilton. M.C.J.W Attach. (1)
APPENDIX “A” PW04039/PD04109
KEY MAP
LOCATION PLAN
Part of Lot 29,Concession 5
Beverly, Flamborough
Westover Park
CITY OF HAMILTON
LEGEND
SUBJECT LAND
SCALE DATE
NOT TO SCALE
REFERENCE FILE NO:
2004-04-13
2003-094