Item 24 - North Shore Culinary Education Society of BC Lease
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1 Pg. 1 Item 24 - North Shore Culinary Education Society of BC Lease The Corporation of THE CITY OF NORTH VANCOUVER COMMUNITY DEVELOPMENT DEPARTMENT REPORT To: From: SUBJECT: Mayor Darrell R. Mussatto and Members of Council Ian Steward, Property Services Coordinator LEASE - NORTH SHORE CULINARY EDUCATION SOCIETY OF BC Date: June 05,2013 File No: RECOMMENDATION: PURSUANT to the June 05, 2013 report of the Property Services Coordinator entitled "Lease - North Shore Culinary Education Society of BC": THAT Mayor and Clerk be authorized to execute a Community Facility Lease for the North Shore Culinary Education Society of BC; AND THAT a Community Facilities Grant in the amount of $33,460 be applied towards annual rent owed under the Community Facility Lease; AND THAT notice of the Lease be given in accordance with the Community Charter. ATTACHMENTS: 1. Sketch Plan and Aerial photo showing former Horseshoe Pitch Clubhouse and concession at Mahon Park REPORT: Lease - North Shore Culinary Education Society of BC Page 1 Document: vl
2 Pg. 2 PURPOSE OF REPORT: The purpose of this report is to obtain Council approval to enter into a Community Facility Lease with North Shore Culinary Education Society of BC for two locations within Mahon Park (see Attachment #1). BACKGROUND: On February 25, 2002 Council adopted a Community Facilities Policy to provide for the leasing of City properties for community service uses. Community Facilities are land and premises owned by the City and held for community service uses at market or nominal rent under a lease, license to use or other contractual agreement. Community Services Uses are social service uses such as an outreach youth project, educational services, cultural services, heritage activities and programs, and recreational activities and programs that can be shown to provide a benefit to the residents of the City. The goals of the Community Facilities Policy are as follows: Ensure that community facilities are allocated in a fair, equitable and costeffective manner. Facilitate community services' use of appropriate City-owned community facilities through an application to lease process. Ensure that the community benefits of City-owned facilities are maximized. That in accordance with the City's Social Plan, services and programs which are part of the network of coordinated and integrated community services are given priority use of City-owned buildings and land. Ensure that the Community Facility Tenancy Agreement clarifies obligations concerning the maintenance of the physical structure. Determine which community facilities are suitable for single-purpose or multipurpose use and encourage where appropriate the multi-purpose facility use. In early 2011, the North Sore Culinary Education Society of BC (Culinary School) presented a proposal to operate a Culinary School in the former Horseshoe Club and Mahon Park Concession for homeless and unemployed people. Council received a delegation from the proponent and referred the matter to staff for comment. Staff responded with a report dated November 8, 2011 recommending that the City support this proposal and share in costs to renovate the Horseshoe Pitch and enter into a Community Facility Lease with the Culinary School. On November 14, 2011 Council resolved: REPORT: Lease - North Shore Culinary Education Society of BC Page 2 Document: v1
3 Pg. 3 I "PURSUANT to the report of the Manager, Lands and Business Services, dated November 8, 2011, entitled "Horseshoe Club Culinary School Proposal": THAT $50,000 for the renovation of the Horseshoe Club building, along with $50,000 for conversion of the Horseshoe pitch area to picnic and garden use be included as a project in the City's Financial Plan for consideration by Council for funding as part of that Plan; AND THAT staff be directed to accommodate the North Shore Culinary School, operated by the North Shore Culinary Education Society of BC in the renovation of the Horseshoe Club building subject to the proponent securing sufficient funding for all necessary equipment by July 1, 2012; AND THAT staff be directed to negotiate a Community Facilities Lease with the North Shore Culinary Education Society of British Columbia as per said report and subject to a business case; AND THAT a letter of support be provided for the North Shore Culinary Education Society of British Columbia to facilitate securing external funding to assist in the sustainability of the North Shore Culinary School training program. In early 2012 the Culinary School approached the City looking to locate in the Concession at Mahon Park as well as the Horseshoe Pitch location. On July 9, 2012, Council resolved: PURSUANT to the report of the Manager, Lands and Business Services, dated June 29, 2012, entitled "Culinary School Education Society of BC Proposal for Mahon Park Concession": THAT staff be authorised to spend up to $15,000 from the Facility Division's Capital budget for the purpose of upgrading services and a portion of equipment costs in support of the Culinary Education Society of BC proposal for Mahon Park concession; AND THAT staff be directed to finalise a Community Facility Lease with the Culinary Education Society of BC for the Mahon Park concession for the purposes of a establishing a culinary training program for youth and adults with employability challenges. The Culinary school is now in a position to commence with their operation at Mahon Park, initially starting with the Concession building and shortly thereafter commencing renovations within the former Horseshoe Club building. REPORT: Lease - North Shore Culinary Education Society of BC Page 3 Document: v1
4 Pg. 4 DISCUSSION: Both of the locations proposed for use by the Culinary School are currently vacant and suited well to the use as a Culinary School. The concession is a professional kitchen and the Horseshoe Club building has an existing kitchen and full washroom facilities. The Manager Lands and Business Services has reviewed the business case and believes that the proposal is viable. FINANCIAL AND STRATEGIC IMPLICATIONS: The provision of $50,000 for renovation cost of the Mahon Park facilities was included in the Project Plan and has been appropriated further to the November 8, 2011 resolution of Council. The Culinary School estimates that to date they have incurred costs of approximately $70,000 to retrofit the concession building only. The area for the Horseshoe Club building is approximately 1,890 sq.ft. and the area of the Concession is approximately 750 sq.ft. A combined annual rent of $33,460 is proposed for the Community Lease of which 100% is reimbursed through a matching Community Facility Grant resulting in a no net rental cost to the Culinary School for the two facilities. There are no new financial implications with the renewal of the lease of the two noted buildings within Mahon Park as funds have been provided in the 2012 financial plan. The Community Facility Funding Grants and rent reviews will be adjusted in equal parts for the life of the lease. Favourable consideration of this lease will provide an initiative that will directly benefit individuals with employability challenges that enhance the community's quality of life. INTER DEPARTMENTAL IMPLICATIONS: As part of the process leading up to this report, this initiative has had input from Engineering, Parks and Environment as well as Facilities staff. As well, this initiative was supported by the Civic Projects Team and the Major Projects Committee. SUSTAINABILITY COMMENTS:. As part of a larger social enterprise, this lease to the Culinary School is intended to be self-sustaining and not require any operating support from the City. The City's financial support to date has been capital costs relating to building renovations. REPORT: Lease - North Shore Culinary Education Society of BC Page 4 Document; v1
5 Pg. 5 CONCLUSION: This initiative is consistent with the City's Social Plan, OCP and Youth Policies that strive to achieve a complete community and to address social inequality. RESPECTFULLY SUBMITTED: Ian Steward Property Services Coordinator REPORT: Lease - North Shore Culinary Education Society of BC Page 5 Document: vl
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