Item - 2021.GL24.19

The General Government and Licensing Committee recommends that:  

1. City Council request the Executive Director, Corporate Real Estate Management, to further engage with individual boat clubs to negotiate semi-gross leases with those boat clubs expressing an interest in proceeding. 

2. City Council request the Executive Director, Corporate Real Estate Management to report back to the General Government and Licensing Committee in the fourth quarter of 2021 with an update, or an earlier meeting seeking any authorization for lease amendments as required.

This report responds to City Council's direction to engage with community sailing clubs and explore the opportunity to amend the existing lease agreements from fully net leases¹ to semi-gross leases².

It presents a proposed approach to implementing semi-gross leases and summarizes feedback from community sailing clubs on the proposed approach. Corporate Real Estate Management is prepared to engage with individual sailing clubs (referred to as "boat clubs") to explore and negotiate semi-gross leases with boat clubs expressing an interest in transitioning from fully net leases, and to report back as necessary to seek authority to execute new agreements.  

¹  In a fully net lease, the tenant is responsible for base rent and all additional costs such as maintenance, insurance, property taxes, utilities, etc. associated with the leased property.
²  In a semi-gross lease, the landlord is responsible for some of the additional costs such as maintenance, insurance, property taxes, utilities, etc. associated with the leased property.