Download 2008PW1519 - City of Edmonton

Lease of Office Space
Scotia Place
Recommendation:
That a lease between the City of
Edmonton and Morguard Real Estate
Investment Trust, WR Equities Inc., and
CPP Investment Board Real Estate
Holdings Inc., for office space at Scotia
Place outlined in Attachment 1 of the
March 10, 2008, Asset Management and
Public Works Department report
2008PW1519, be approved.
Report Summary
The action recommended in this
report is for the City of Edmonton to
lease office space in Scotia Place for
a five-year term.
Policy
A1407A – Provision of Office and
Special Purpose Accommodation
Focus Area
Environmental – Balanced Infrastructure
Management
Justification of Recommendation
The City of Edmonton currently leases
space in Scotia Place; the proposed
additional space will take advantage of
the existing computer network system
and will provide an opportunity to share
meeting and boardroom spaces. The
proposed rental rate reflects current
market rent.
Attachments
1. Essential Terms and Conditions of
the Proposed Lease
Report
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Asset Management and Public
Works Department is currently
attempting to acquire leased space
to accommodate growth within
Administration.
The demand for space in the
downtown precinct cannot be
satisfied within the existing City
owned or leased space and current
market conditions place a premium
on a diminishing supply of large
blocks of space that are suitable for
the City’s use. As such, the space
offered in Scotia Place represents an
opportunity that exists only for a
limited period and that will support
the implementation of the corporate
reorganization.
This lease will be funded from the
City Council approved Space
Management Program.
ROUTING – Transportation and Public Works Committee | DELEGATION – W. D. Burn/R. Daviss
WRITTEN BY – L. Smith | March 10, 2008 – Asset Management and Public Works Department 2008PW1519
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Attachment 1
Essential Terms and Conditions of the Proposed Lease
1.
Premises
34,800 rentable square feet (more or less) located on the 8th, 9th and 10th floor, Scotia
Place, Tower Two.
2.
Municipal Address
10060 – Jasper Avenue
Legal Description
Plan 8221723
Lot A
3.
Building Owner/Landlord
Morguard Real Estate Investment Trust, WR Equities Inc, and CPP Investment Board
Real Estate Holdings Inc.
4.
Term of Lease and Base Rent
Five-year term to commence October 1, 2008 or such other mutually agreeable date, at
a rental rate of $27.00 per square foot.
5.
Renewal Option
The City has the option to renew the lease for a period of up to five (5) years. The
annual base rent for the renewal term would be based on the then existing market rate.
6.
Operating Costs
The City is responsible for annual operating costs, which are approximately $10.50 per
square foot for 2008.
7.
Tenant Improvements
The premises will require tenant improvements, which are estimated at $40.00 per
square foot.
8.
Parking
The Landlord will provide up to 13 unassigned parking stalls within the building parking
facility at a monthly rate of $275 per month per stall, subject to market increases during
the term of the lease.
9.
Form and Content of the Lease
That the agreement be acceptable in form to the Corporate Services, Law Branch and in
content to the General Manager of Asset Management and Public Works. Approval of
the proposed lease shall include the provision for amendments that the City Manager
may deem necessary in order to carry out the intent and parameters of the
recommendation.
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Report: 2008PW1519 Attachment 1