DocumentsStaff ReportNov 22, 2022Pages 45–46
Staff Report to Special Council: Knockout Fitness Lease at City Centre Park
Recommendation to approve a lease with Knockout Fitness BC Ltd for approximately 2,200 sq ft of space in the Eagle Ridge Centre for fitness/boxing classes, with rent consistent with market rates and advertisement completed per the Community Charter.
Key facts
- Premises size: approximately 2,200 square feet
- Proposed rent: $26.00 per square foot per year (market-consistent)
- Proposed term/availability: lease to commence January 1, 2023 (proposed)
- Disposition requires two-week advertising under the Community Charter; City to receive a portion of revenue per Operating Agreement
Staff Report to Special Council: Knockout Fitness Lease at City Centre Park
DATE: Monday, November 21, 2022
DEPARTMENT: Administration
SUBJECT: Knockout Fitness Lease at City Centre Park
BACKGROUND
The City leases out a portion of Eagle Ridge Centre at City Centre Park for related business and office space use. Knockout Fitness would like to lease a portion of the new space constructed in the Eagle Ridge Centre for community fitness classes, specifically boxing classes.
COMMENTARY
The City rents out space within the City Centre Park for use by sport and fitness related businesses. Knockout Fitness BC Ltd. is interested in a lease with the City for an area of the newly constructed additions at Eagle Ridge Centre for the purpose of operating a boxing gym. The proposed term of the lease is for 5 years, commencing January 1, 2023. The size of the space under the lease is approximately 2200 square feet at a rental cost of $26.00 per square foot per year which is consistent with current market rates. The City will receive a portion of the revenue in accordance with Dry Floor Arena Addition Operating and Management Agreement dated August 15, 2022 (the “Operating Agreement”).
Pursuant to the Community Charter, a council may dispose of an interest in land, including by entering into a lease. Prior to the disposition, advertisements must be placed for two consecutive weeks in a local newspaper.
FINANCIAL IMPLICATIONS
The City will receive a portion of the revenue as calculated in the Operating Agreement.
LEGAL IMPLICATIONS
Advertisements have been placed as required by the Community Charter.
OPTIONS
Option 1
THAT Council approve the lease on the terms substantially as attached and authorize the Mayor and CAO or Director of Corporate Services to execute the documents subject to such minor amendments as may be required.
OR Option 2
THAT Council
Not approve the lease at this time.
SUBMITTED BY
Marie Watmough, Deputy Director of Corporate Services
Concurrence:
Donna Petrie, Senior Manager of Business Development and Events
Concurrence:
Will Ying-udomrat, Manager of Legislative Services
Concurrence:
Matthew Baldwin, MCIP, RPP, Director of Planning and Subdivision
Concurrence:
Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering and Public Works
Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance
Concurrence:
Marie Watmough, Deputy Director of Corporate Services
Concurrence: Braden Hutchins, Director of Corporate Services
Concurrence:
Darren Kiedyk, Chief Administrative Officer
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