Chief of Police
Armand P. La Barge
York Regional Police
17250 Yonge Street, Newmarket, Ontario, Canada L3Y 4W5
1866-8POLICE TTY 1-800-668-0398 Fax 905-853-5810 www.yrp.ca


THE REGIONAL MUNICIPALITY OF YORK
POLICE SERVICES BOARD

REPORT OF THE CHIEF OF POLICE

23 JANUARY 2008

__________________________________________

Re: Renewal of Lease
__________________________________________


RECOMMENDATIONS
  1. That the Board authorize an extension of the lease between the Board and JOCHRI Investments Limited for the Support Services building located at 200 Industrial Parkway South, Aurora, for a period of two years effective June 1, 2008; and

  2. That the Chief of Police be authorized to execute the lease extension agreement with JOCHRI Investments Limited, subject to approval of the Region's Legal Services as to form and content; and

  3. Pending approval of the above recommendations, the Board provides notice of the lease to the Region's Treasurer for reporting purposes under the Region's Financing and Debt Policy; and

  4. That the Chief of Police be authorized to exercise the one year renewal option on the same terms and conditions of the original lease and renewal lease save that the minimum rent shall be $8.20 per square foot and there shall be no further right to renew, unless the parties otherwise agree.
SYNOPSIS

The lease at the Support Services facility at 200 Industrial Parkway South in Aurora expires on May 31, 2008. With the new Investigative Services and Support Services facility anticipated for occupancy between April and June 2010, it is necessary to renew the lease at our Industrial Parkway location until that time.

The Support Services facility lease herein referred to has an annual payment obligation of less than $250,000 and accordingly is considered "non-material lease" under the Region's Capital Financing and Debt Policy. Therefore, the Board does not require Regional Council's prior authority to enter into the lease, but the Board must give notice of it to the Region's Treasurer for reporting purposes under that Policy.

FINANCIAL IMPLICATIONS

Sufficient funds exist in the 2008 Operating Budget to cover the June 1 to December 31, 2008 lease payments.
  1. The Lease is renewed for a period of two years, commencing June 1, 2008, and ending on May 31, 2010.

  2. The minimum rent for the building during the two year renewal term shall be $7.95 per square foot, for an annual minimum rent of $119,250.00, payable at the monthly rate of $9,937.50, plus GST.

  3. The minimum rent for the vacant land shall remain at $24,000.00 per year, payable in equal consecutive monthly payments of $2,000.00, plus GST.
BACKGROUND

The Board entered into a lease agreement for the building at 200 Industrial Parkway South, Aurora, in 1983. The facility is currently occupied by our Support Services and houses such units as Emergency Response, Traffic, Canine and Operational Support. The building is 15,000 square feet with a combination of office and garage space. The building currently accommodates 91 staff. This staff will be re-located to the new Investigative Services and Support Services Facility upon completion.

The new Investigative Services and Support Services facility was originally anticipated to be completed by December 2008. With the delay in the construction of this facility to March 2010 and with staff occupancy planned for between April and June 2010, staff that was anticipated to move out of our leased locations into the new building will require additional short term accommodation at their existing facilities.

The lease on the Support Services facility expires May 31, 2008. The landlord is prepared to agree to a further lease renewal covering the two year period commencing on June 1, 2008, and ending on May 31, 2010. The renewal of the lease will cover two years with an option to renew for an additional year. For the two year term, the lease rates are one dollar more per square foot than we are currently paying. The minimum rent for the building during the two year renewal term shall be $7.95 per square foot, for an annual minimum rent of $119,250.00 per year plus GST and the minimum rent for the vacant land shall remain at $24,000.00 per year plus GST. The lease rates are comparable to rates currently being paid for comparable industrial areas in Aurora.

Given the capital investment made by York Regional Police in this building and the construction of the new Investigative Services and Support Services Facility anticipated for completion in March 2010, the most cost effective method of accommodating Support Services is to remain at their present location on Industrial Parkway South, Aurora.
Respectfully submitted,

Armand P. La Barge,
Chief of Police.