Item - 2019.GL1.7

The General Government and Licensing Committee recommends that:

1.  City Council authorize the City to enter into a Lease with RRVP Markington Incorporated for a 10-year term, substantially on the terms and conditions outlined in Appendix B to the report (December 28, 2018) from the Acting Director, Real Estate Services, and on such other or amended terms and conditions as may be acceptable to the Deputy City Manager, Corporate Services or his or her designate and in a form acceptable to the City Solicitor.

2.  City Council authorize the Deputy City Manager, Corporate Services or his or her designate to administer and manage the Lease, including the provision of any consents, approvals, waivers, notices, and notices of termination, provided the Deputy City Manager, Corporate Services, may, at any time, refer consideration of such matters to City Council for its determination and direction.

In May 2016, the City and RRVP Markington Incorporated (the "Landlord") entered into a conditional lease proposal dated February 22, 2016 (the "Lease Proposal") for space at 3660 Kingston Road, Unit K1 (the "Premises"), which was later authorized at the July 12, 13, 14, and 15, 2016 City Council meeting.

Subsequently, in the Lease Proposal, the City and the Landlord negotiated further amendments to the Lease, and the Landlord agreed to perform the leasehold improvement work at the City's cost, provided that the City pay the Landlord's supervision and overhead cost.

This report seeks approval to incorporate the new negotiated terms into the Lease, including the Landlord's agreement to construct the leasehold improvements, the Landlord's supervision and overhead cost, and the methodology for paying the cost of leasehold improvements, amongst other negotiated changes.