MAY 3 - 1976

Mayor and Council April 30th, 1976

L.D. Pollock
City Administrator

Council may recall that about a year ago I presented a proposed Lease document
to Council covering the lease of the Court area of the Justice Building to
the Provincial Government. At that time, Council approved the draft lease,
however, it was never executed as the District of Coquitlam wanted to pursue

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the question of a Grant in lieu of taxes on the Government portion of
the building. This lead to further negotiations with the Province which

‘resulted in certain changes to the Lease document and an agreement by the
Province to pay the District approximately $1,500.00 a year as a Grant in
lieu of taxes on the building.

Specific changes in the Lease document included; (1) a slight reduction in

the total leased area as there was an error of approx.mately 200 feet
discovered. (2) The extension of the lease term from a two-year lease to

a three-year lease, as the original document was to only cover the years

1974 and 1975 and will now include the year 1976. (3) Provision for increased
rentals on the following basis - 1974 rate: $6.92 per sq.ft. - 1975 rate:

$7.38 per sq. ft. - 1976 rate: $7.85 per sq. ft. These were the same lease
rente included in the original draft with the exception of the 1976 rate, which

is new.

With the adjustment for the new square footage, the annual rentals will be
as follows: 1974 - $43,256.88
1975 - $46,132.44
1976 - $49,070.40.
The City has been receiving a share of the rental in the past notwithstanding
the fact that a Lease document had not been signed. Our share of the 1976

Lease payments will be approximately $15,000.00.

Other than the foregoing changes, the basic Lease document is similar to the
one preiously presented to Council and I would recommend that Council approve
the Lease as presented and that the Mayor and Clerk be authorized to sign the

document.

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