DocumentsStaff ReportFeb 19, 2018Pages 29–30
Staff Report: Rugby Canada Agreements (Administration / Parks)
Staff report recommending Council approve partnership, lease and loan agreements with Rugby Canada for the Rugby Canada National Training Centre located at/near 3019 Glen Lake Road.
Key facts
- City contribution to capital cost: $1,500,000
- Loan to Rugby Canada: $1,000,000 repayable within 2 years
- Lease term: 15 years with $100,000 annual base rent
- Property/facility address referenced: 3019 Glen Lake Road
- Partnership and lease terms advertised per Community Charter sections 24 and 26
Staff Report: Rugby Canada Agreements (Administration / Parks)
2nd Floor · 877 Goldstream Avenue · Langford, BC Canada · V9B 2X8
T · 250-478-7882 F · 250-478-7864
Date:
February 5, 2018
Department:
Administration
Subject:
Rugby Canada Agreements
Background
Over the past two years, the City has been working with Rugby Canada to finalize the partnership agreement, lease agreement and loan agreement with Rugby Canada. The partnership agreement details the terms of the relationship between the two parties. The lease agreement provides for Rugby Canada’s use of the Rugby Canada National Training Centre at 3019 Glen Lake Road for 15 years, allows the City to be made whole for its capital contributions to the construction of the Training Centre, and allows Rugby Canada to purchase the Training Centre at the end of the lease. The loan agreement provides for a $1 million loan to Rugby Canada with a repayment period of two years.
Commentary
The partnership agreement, lease agreement and loan agreement have been drafted and thoroughly reviewed by the City’s lawyers and by Rugby Canada. Together, the documents ensure that the City is made whole for its financial contributions, that the appropriate governance structures are in place, that the City is indemnified from risks, that the necessary insurance is in place, and that local high performance teams and athletes will have the opportunity to use the Training Centre when not in use by Rugby Canada.
Financial and Legal Implications
Under the partnership agreement, the City is agreeing to provide a $1.5 million contribution to the capital cost of constructing the Rugby Canada National Training Centre at 3019 Glen Lake Road and provide a loan of $1 million to Rugby Canada which will be repaid within 2 years. The partnership agreement was advertised in accordance with section 24 of the Community Charter.
Under the lease agreement, the City is agreeing to lease the premises consisting of approximately 20,000 square feet of the land and improvements located at 3019 Glen Lake Road to Rugby Canada for a term of fifteen (15) years for $100,000 annual base rent (with the City fully recouping its $1.5 million contribution to the capital cost of construction). Also under the lease agreement, the City is agreeing to provide Rugby Canada with an option to purchase 3019 Glen Lake Road for $1 million at the end of the lease. The terms of the lease have been advertised in accordance with section 26 of the Community Charter.
The loan agreement provides the detailed terms of the $1 million loan and the repayment of the loan by Rugby Canada over two years.
Options
That Council:
- Approve the partnership agreement, lease agreement and loan agreement with Rugby Canada;
OR
- Directs staff to negotiate further with Rugby Canada regarding particular aspects of the agreements.
Respectfully submitted,
Submitted by:
Braden Hutchins, Director of Corporate Services
Concurrence:
Cory Manton, Manager of Parks and Recreation
Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance
Concurrence:
Darren Kiedyk, Chief Administrative Officer
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