Gananoque council has extended the Thousand Islands Youth Boxing Club's lease for a portion of Kinsmen Community Hall for another year.
Town council unanimously passed a bylaw to authorize the mayor and clerk to sign the agreement at its regular meeting Tuesday, held virtually.
The lease allows the town to provide 90 days notice to end the lease under certain conditions,
In 2019, at the direction of council, staff issued an expression of interest for lease space at the Kinsmen building, at 400 Stone Street North.
In July 2019, council approved a bylaw to enter into a lease agreement with the Thousand Islands Youth Boxing Club for a portion of the building. At the time, the long-term future of the facility was unknown. The agreement was for a one-year period at a rate of $5 per square foot, or $1,500 a month.
In 2020, council passed an amending lease agreement to extend the term of the lease to June 30, 2021 at the same rate, and last year council extended the term to June 30, 2022.
As this agreement will soon expire, Pat Funnell from the boxing club reached out to staff regarding the extension. The boxing club requested a one-year extension with the same rental rates.
With the continuing uncertainty over the town's use of the building, council could have provided a month-to-month lease term. However, Funnell noted that it is difficult to honour memberships on a month-to-month basis and the club sought something more concrete
The amending lease provides that the boxing club can notify the town that it wishes to leave the facility by providing the town 30 days advanced notice. If the premises are subject to an agreement of purchase and sale, or if the landlord serves a notice to the tenant requiring the premises for a municipal purpose, the landlord can terminate this lease by giving 90 days notice in writing to the tenant.
The boxing club is currently paying $5 per square foot plus a CPI increase, or $18,648 per year. The rent includes all utilities (heat, hydro, water, etc.) The costs for the town to break even on this building is $15 per square foot (including operating and capital contributions).
Other leases of town premises that council has recently approved (110 Kate Street and 2 King Street) are $15 per square foot plus CPI. In addition, the tenant of 110 Kate Street pays its own utilities, while the utilities for 2 King Street are included in the rent.
(Keith Dempsey is a Local Journalism Initiative reporter who works out of the Brockville Recorder and Times. The Local Journalism Initiative is funded by the Government of Canada.)
Keith Dempsey, Local Journalism Initiative Reporter, Brockville Recorder and Times