Deputy Chief Administrative Officer of Public Services execute the 10-year lease agreement with Guelph Youth Music Centre from August 1, 2024 to July 31…

1:12:56we have three not-for-profit facility lease renewals.

1:13:02So we have the Guelph Youth Music Center

1:13:05and the Royal City Tennis Club

1:13:09and the Navy League Guelph Branch

1:13:11and we have two delegations

1:13:14on the Guelph Youth Music Center one.

1:13:16So I have Samantha Zimmerman and then Liz Sandals.

1:13:22Or are you coming up together?

1:13:30So you're doing your five minutes together, are you?

1:13:33Okay, and you know that five minutes

1:13:35and then 30 seconds beforehand,

1:13:37there'll be a beep of your warning.

1:13:40Thank you.

1:13:41And you'll be pleased to know

1:13:42that I don't plan to take nearly that long.

1:13:44Okay.

1:13:46So your worship chair, downer, counselors,

1:13:51thank you so much for the opportunity

1:13:53to speak to council

1:13:54on behalf of the Guelph Youth Music Center.

1:13:57I'm speaking to you with my chair of the board

1:14:02of the Guelph Youth Music Center hat on

1:14:04and I'd like to introduce Samantha Zimmerman,

1:14:08who is our executive director of the GYMC.

1:14:12And Dana has provided you with an excellent background note

1:14:18on what's been going on with the GYMC lease.

1:14:22So I'm not going to bore you by repeating that.

1:14:25What I wanted to do was specifically address the issue

1:14:30that is before you, which is the term of the lease.

1:14:34So the old lease that we have come out of during COVID

1:14:39is, was actually a 20 year lease.

1:14:44And in that 20 year lease,

1:14:47which, you know, it started off in clause 2.1,

1:14:52identifying that it was a 20 year lease.

1:14:55And then in clause two sub two,

1:14:57it went on to say,

1:14:59the tenant shall have a right to renew this lease

1:15:04for an additional 10 years

1:15:06on the same terms and conditions as the existing lease.

1:15:10And then in clause 2.3, it went on to say,

1:15:14the lease shall be terminated upon the tenant

1:15:17giving one year written notice.

1:15:21So the,

1:15:24that's how the, that's how the old lease started off.

1:15:27It then went on to become a very odd lease

1:15:31because it turns out that the old lease began

1:15:36before the renovations and rehabilitation

1:15:39of the old building that we're in

1:15:41had actually been completed.

1:15:43So the old lease spends a lot of time talking

1:15:46about the responsibilities of the GYMC

1:15:49to do things like exterior cladding,

1:15:53provide windows, provide a roof,

1:15:58a whole electrical wiring system, plumbing the building.

1:16:02It is not your standard lease.

1:16:04So when the city and GYMC looked down at renewing it

1:16:09for the new lease,

1:16:12we both agreed that the old terms

1:16:15are totally inappropriate.

1:16:17So we've been doing a lot of work to come up

1:16:20with new wording that makes more sense for a,

1:16:24you know, a normal lease.

1:16:25Cause what we used to have was not a normal lease.

1:16:28And I think we're getting down to, you know,

1:16:31the final adjustments to the wording for a new lease.

1:16:36But what has happened in the meantime is I think council

1:16:39has indicated a preference for no more than five year renewals.

1:16:44And we have a clause that says you can renew for 10 years.

1:16:48So quite simply, we are here to ask you

1:16:51to please approve 10 year renewal

1:16:54that we had agreed to 20 or so years ago.

1:16:58So that's what we are here for.

1:17:01If any of you are interested in knowing what we're up to,

1:17:06this is sort of some hot off the press postcards

1:17:09telling you what we do.

1:17:11I'll leave them here if it's okay with councillor Downer.

1:17:15I can get the clerk or somebody to distribute

1:17:18to anyone who is interested,

1:17:20but that gives you a bit of an idea what we do.

1:17:22But Sam and I would be happy to answer

1:17:25any questions you might have.

1:17:27Okay, thank you.

1:17:28Are there any questions of the delegations?

1:17:31Councillor Halt.

1:17:33Thank you very much chair downer.

1:17:34Just a quick question for Ms. Sandals.

1:17:38What I'm getting from what you're saying is

1:17:41that it's new wording, but essentially

1:17:44the substance is the same.

1:17:46You're just having problems with the old wording

1:17:48because it was a fairly convoluted or confusing

1:17:51lease structure, is that correct?

1:17:53I wouldn't even say that the substance is exactly the same

1:17:57because I think it would be fair to say

1:18:00that the city would like to see this read more

1:18:03than like a lease that you have as a standard lease

1:18:07for other properties that you're renting out

1:18:09to nonprofits.

1:18:10So I think the wording will be,

1:18:16it isn't going to look like the old wording,

1:18:19but I think the intent of the wording stays the same.

1:18:23We will continue to operate the building

1:18:26as the Guelph use music center for the sorts of purposes

1:18:30that are covered in this and we'll sort out

1:18:35in the lease who is responsible for what

1:18:37and that's being updated to reflect the current language

1:18:42that you would have for other properties

1:18:47in terms of who's responsible for what.

1:18:49Is it the landlord, that's you or the tenant, that's us.

1:18:52Okay.

1:18:53And if the city staff wants to jump in at some point

1:18:57and correct me, that's fine,

1:18:58but that would be my interpretation.

1:19:01I think I saw Ms. Clark Bush nodding her head.

1:19:04Yes or no?

1:19:05Truth or consequences?

1:19:10Why don't I wait till the,

1:19:13and then the other question, my understanding is,

1:19:16is that you do not wish a five year lease,

1:19:18but if I'm correct, the recommendation in front of us

1:19:20is for a 10 year lease.

1:19:22It is for a 10 year lease, yes.

1:19:24That's why we're here is because we do not want

1:19:27a five year lease, we do want a 10 year lease,

1:19:30very definitely.

1:19:31If for no other reason, aside from the fact that,

1:19:34the old lease says you can renew for 10 years,

1:19:39from a planning point of view as a non-profit

1:19:43and wanting to do some upgrades,

1:19:46it makes much more sense from a business longevity

1:19:50organizational point of view to be able to do that

1:19:53for 10 years.

1:19:55Then seeing that, I'll be happy to move the motion.

1:19:58We're just gonna wait till we have delegations.

1:20:01Are there any other questions of the delegation?

1:20:03Okay, thank you.

1:20:05Thank you very much, Chair.

1:20:08Okay, so Councillor Allt, you wanna put the motions,

1:20:11all three of them on the floor?

1:20:13Okay, seconded by Councillor Goller.

1:20:16Are there any questions of staff?

1:20:18Did you wanna confirm?

1:20:20Shall we ask, you wanna ask a question?

1:20:24And we'll have Deputy CEO,

1:20:26Clark Bush first answer Councillor Allt's question

1:20:30from the delegate.

1:20:31Is that your understanding as well?

1:20:34Through the chair and Ms Evans is coming down,

1:20:35yes, that nothing stated was incorrect,

1:20:37just for clarification.

1:20:39What is before you is a 10 year lease,

1:20:41that does not need to be stated.

1:20:43It is before you because we only have delegated authority

1:20:45to do five years, and so it is before you,

1:20:49so notwithstanding the delegation,

1:20:52it is before you recommended by staff to be a 10 year lease

1:20:54for the Guelph Youth Music Centre.

1:20:55Great, thank you.

1:20:57Okay, Mirka, through you, you had a question?

1:20:58Yeah, thank you, and through you, Chair.

1:21:00Can I just ask through you to Deputy CEO,

1:21:03Clark Bush, that does this mean that the delegated authority

1:21:07is still in place and that this is just a one off,

1:21:11or applying to 10 year renewal of this,

1:21:14you would still have to come back again to council?

1:21:17Through the chair, we have delegated authority

1:21:19for five years for all lease renewals,

1:21:21and that is remaining the same.

1:21:22And so we are before you today with three lease renewals,

1:21:26two that are at 10 years, one that is at 20,

1:21:30which is a bit of a difference

1:21:31because they're not for profit organization,

1:21:33they're not for asset market rent.

1:21:34And so the delegated authority is remaining the same,

1:21:38which is the five year.

1:21:40We bundled all three of these together

1:21:42because they're the only ones that we knew were coming up.

1:21:45And so hopefully we're one and done for this year,

1:21:48and this is the only time that you will see us,

1:21:50but we have left the,

1:21:52we have not brought forward a recommended change

1:21:54to the delegated authority at this time.

1:21:57Okay, and you answered the next part of my question,

1:21:59so thank you very much.

1:22:01Great.

1:22:02Are there any other questions?

1:22:04Any comments?

1:22:05Great, thank you.

1:22:06So I'll go to the vote.

1:22:09Is there anyone opposed to the motions?

1:22:13That passes.

1:22:14Thank you.

1:22:17So we're gonna go on to 7.3,