3884 To authorize a Lease Agreement between the Town and Tillsonburg Flying School for office space in the Air Terminal BuildingTHE CORPORATION OF THE TOWN OF TIUSONBURG
BY-LAW NUMBER 3884
A BY-LAWtoAuthorize a Lease Agreement Between the Corporation of the
Town ofTillsonburg and Tillsonburg Flying School, for office space in the Air
Terminal Building from January 1, 2015 to December 31, 2015 at the price of
$260.00 per month plus Harmonised Sales Tax (H.S.T), subject to the terms
and conditions contained in the lease agreement.
WHEREAS the Corporation of the Town of Tillson burg deems it necessary and
expedient to enter into an agreement with Danny Richer;
THEREFORE the Council of the Town of Tillson burg enacts as follows:
1. THAT the Lease Agreement attached hereto as Schedule "A" forms part of this
by-law;
2. THAT the Mayor and Clerk be hereby authorized to execute the
attached Lease Agreement marked as Schedule "A" on behalf of the
Corporation of the Town of Tillsonburg.
This by-law shall come into force and take effect immediately after the final
passing hereof.
READAFIRSTANDSECONDTIMETHIS261hDAYOFFEBRUARY, 2015.
READATHIRDAND FINAL TIME AND PASSEDTHIS261h DAYOF~of5.Jo-r'-j
~Clerk, D:nna Wilson
THIS AGREEMENT made in quadruplicate this .ikL day of February, 2015.
BETWEEN:
THE CORPORATION OF THE TOWN OF TILLSON BURG,
Here in after called the Lessor, of the First Part,
-and-
David Brandon, operating as the Tillsonburg Flying School,
Here in after called the Lessee, of the Second Part,
AND WHEREAS the Lessor owns the Tillson burg Regional Airport, including the Air Terminal Building,
AND WHEREAS the Lessor is desirous of renting office space in the Air Terminal Building basement to
enable the ongoing operation and expansion of a flight school at the Tillsonburg Regional Airport;
NOW THEREFORE THE PARTIES, in consideration of the mutual covenants and agreements hereinafter
set out, hereby agree as follows:
1. DEFINITIONS
a. "Premises" shall mean the Tillson burg Municipal Airport auxiliary office space to which
this Agreement applies.
b. "Facility" shall mean the Air Terminal Building in its entirety.
2. PREMISES
The " Premises" consists of approximately 200 square feet, more or less, on the basement floor of the
Facility, known municipally as 244411 Airport Road, in the Township of South-West Oxford, Province of
Ontario, as shown outlined on the plan attached as Schedule A. The lease also includes the occasional
use of the boardroom and common area for training purposes subject to approval in advance by the
Airport Administrator, acting reasonably.
3. LEASE TERM
The Lease Term is effective beginning January 1, 2015 and ending December 31, 2019, unless
terminated under the provisions of Paragraphs 22 or 23, as applicable.
The Lease Term can be extended for an additional one (1) year, subject to approval by the Lessor, in
their sole and absolute discretion, upon receipt by the Lessor of written notice thirty (30) days prior to
the expiration date (December 31, 2019). If accepted by the Lessor within forty-five days, the same
rates and terms shall apply except that the contract shall be amended to extend the termination date.
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4. RENT
The Lessee covenants to pay annual rent to the Lessor of $3,120 ($260 per month) plus H.S.T. and any
other applicable services tax that may accrue on account of the Lessor collecting rent during the Term of
this Lease. The rent shall be payable monthly on the last day of each month during the term of the
lease.
The Lessor and the Lessee agree that this rental rate is similar in form to a gross lease and includes costs
related to electricity and heating/cooling but not costs, including connection fees, for other utility
services such as phone/internet. Notwithstanding this, the Lessee agrees to pay as Additional Rent:
business taxes, real estate taxes and licenses if applicable. Additional Rent shall be payable as per the
terms containing upon notice provided by the Lessor in writing.
All payments to be made by the Lessee pursuant to this Lease are to be in Canadian funds by bank draft,
money order or cheque payable to the Lessor and shall be delivered to the Lessor at the Lessor's address
for service or to such other place as the Lessor may from time to time direct in writing.
Rent in arrears and all sums paid by the Lessor for expenses incurred which should have been paid by
the Lessee shall bear interest from the date payment was due, or made, or expense incurred at a rate
per annum equal to the prime commercial lending rate of the Lessor's bank plus two (2) per cent.
The Lessee acknowledges and agrees that the payments of Rent and Additional Rent provided for in this
Lease shall be made without any deduction for any reason whatsoever unless expressly allowed by the
terms of this Lease or agreed to by the Lessor in writing and no partial payment by the Lessee which is
accepted by the Lessor shall be considered as other than a partial payment on account of Rent owing
and shall not prejudice the Lessor's right to recover any Rent owing.
5. ESCALATION
The gross lease amount shall be fixed, save and except an instance where the Lessor experiences a
significant increase in the costs related to the provision of the space. In this instance, the Lessor may, in
their sole and absolute discretion, pass the whole or a portion of these costs on to the Lessee by
providing sixty {60) days notice of the increases in writing.
6. OFFICE MAINTENANCE (CLEANING)
The Lessee is responsible for the day to day maintenance and cleaning of the Premises to the
satisfaction of the Lessor, acting reasonably. If the Premises are not maintained to the satisfaction of
the Lessor, acting reasonably, the Lessor will have the right to have the premises cleaned with the
Lessee responsible for the costs, which will be charged at a rate of $50 per hour plus H.S.T.
7. TELEPHONE
The Lessee may install a business line and point of sale machine at his/her expense. An existing system
has been installed in terminal and any connections will be made through this system.
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The Airport telephone is for airport usage with only limited usage allowed.
8. WALLS
Walls are for airport usage. No advertising or paraphernalia are to be put on walls or hung from ceiling
without approval by the Airport Administrator, in their sole and absolute discretion.
9. FACILITY CHANGES
No changes, installation of signage, renovations or capital improvements shall be made by the Lessee to
the office, including walls and furniture, without the written consent of the Lessor.
10. LEASEHOLD IMPROVEMENTS
The Lessee acknowledges and agrees that they are responsible for any costs associated with the
leasehold improvements to be made to the Facility, including, but not limited to, the walls required in
order to separate the Premises from the basement common area and to separate the boardroom from
the reception area for the Premises. The Leasehold Improvements shall be managed by the Lessor and
coordinated with the Lessee.
11. OTHER BUSINESSES
No other businesses are to be operated in conjunction with the flight school without prior approval by
the Lessor in their sole and absolute discretion.
12. REGULATION COMPLIANCE AND LEGISLATION
The Lessee shall ensure all services and products provided in respect to this Contract are in accordance
with and under authorization of all applicable authorities (Municipal, Provincial and Federal); including
but not limited to:
• The Occupational Health and Safety Act and its regulations
• The Workplace Safety & Insurance Act
• The Environmental Protection Act (Ontario) and its Regulations
• The Ontario Fire Protection & Prevention Act
The Lessor reserves the right to request authentic copies from the Lessee of any documentation
relevant to the aforementioned compliance requirements. Failure to provide may result in the
termination of the lease.
13. WORKPLACE SAFETY AND INSURANCE BOARD (WSIB)
If applicable, the Lessee shall be required to supply a Certificate from the Workplace Safety and
Insurance Board prior to the start of the contract and upon fourteen (14) days notice, if requested in
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writing, during the life of the contract. The Certificate shall indicate that all of the assessments the
Contractor or any Subcontractor is liable to pay under the Worker's Safety Insurance Board Act or
successor legislation have been paid and that they are in good standing with the Board.
14. W.H.M.I.S. REQUIREMENTS
The Lessee must supply a supplier label and appropriate Material Safety Data Sheet under the
W.H.M.I.S. legislation and Hazardous Material Protection Act for all controlled products to be used in
conjunction with the lease and operation of the concession. Any controlled goods supplied without
appropriate data sheet and proper labeling will not be allowed on site and will be immediately removed
by the Lessee from the premises.
15. INSURANCE
The Lessee will maintain and pay for Commercial General Liability Insurance, which coverage shall
include premises and all operations to be performed by the Lessee, his/her employees, and/or agents.
This insurance coverage shall be subject to limits of not less than One Million Dollars ($1,000,000.00)
inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof for
any one occurrence.
The policy shall include The Corporation of the Town of Tillsonburg named as an additional insured in
respect of all operations performed by or on behalf of the lessee and the lessee shall provide a copy of
any and all policies of insurance, including renewals and terms of such policies, to the lessor.
The Insurance Policy shall not be altered, cancelled or allowed to expire or lapse, without thirty (30)
days prior written notice to the Lessor.
The Lessee shall be entirely responsible for the cost of any deductible.
16. LOSS OR DAMAGES
It is the lessee's responsibility to maintain appropriate controls over the storage and safekeeping of
property belonging to the lessee and/or their staff; including, but not limited to, all inventory and
monies maintained on the premises. The lessor will not be liable for any loss or damage to the lessee's
property stored on the premises, for any reason.
17. DAMAGE CLAIMS
The Lessee shall be responsible for all damages caused by it, its employees, agents, any workers or
persons employed by it, or under its control, or arising from the execution of the Work, or by reason of
the existence, location, or condition of Work, or of any materials, plant or machinery used thereon or
therein, or goods supplied in execution of the Contract, or which may happen by reason of their failure
or the failure of those for whom they are responsible, to do or perform any or all of the several acts or
things required to be done by them under the Contract.
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18. INDEMNIFICATION
The Lessee shall indemnify and save harmless the Lessor from and against all claims, demands, loss,
cost, damages, actions, suits or other proceedings by whomsoever made, brought or prosecuted by, or
attributed to any such damages, injury or infringement as a result of activities under this Contract.
19. EMERGENCY TELEPHONE NUMBER
The Lessee shall provide the Lessor with the name{s) and telephone number{s) of his/her
representative{s) who can be contacted on a 24-hour basis in case of an emergency during the term of
the Agreement.
20. TOWN NOT EMPLOYER
The Lessee agrees that the Corporation of the Town of Tillson burg or the Tillson burg Regional Airport
are not to be understood as the employer to any flying school operator nor to such operators personnel
or staff for any work, services, or supply of any products or materials that may be part of this contract.
21. NON-TRANSFERRABLE
This contract is not assignable, in whole or in part, except by written permission provided by the Town
of Tillson burg in their sole and absolute discretion. Execution of Office Rental Agreement is not to be
deemed as reason for provision of preferential treatment to the Lessee ir\ his/her use of the airport, nor
is there to be any inference, that the Lessor is under an obligation to enter into any other agreements
with the Lessee related to the airport. The Lessor will give equal consideration to all public users of the
facility including the Lessee.
22. TERMINATION OF THE CONTRACT FOR CAUSE
In the event of any material default in this agreement by the Lessee that is within the reasonable control
of the Lessee, the Lessor shall have the right to provide written notice of such default and demand that
the deficiency of program be rectified within five {5) working days or such longer period as may be
agreed upon by the Lessor. If the said default is not rectified or steps are not take to rectify the
situation according to the agreed upon plan, the Lessor shall be entitled to issue a written notice of
termination for cause with no less than thirty {30) days notice and all commissions outstanding shall be
payable to the Lessor within thirty {30) days from termination.
If the Agreement is terminated immediately, all outstanding monies shall be payable to the Lessor
within ten {10) business days following termination.
23. TERMINATION FOR CONVENIENCE
This agreement can be terminated by either party after twelve {12) months by giving notice, in writing,
sixty {60) days prior to the termination date or the expiration of the lease term. If this clause is invoked,
all outstanding monies shall be payable within thirty {30) days of termination .
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24. INTERPRETATION
The terms and provisions of the Agreement shall be in accordance with the laws of the Province of
Ontario.
25. FORCE MAJEURE
Neither party shall be held liable for non-performance or damages if caused by events of Force Majeure,
which, without limiting the generality thereof, includes fires, floods, unusually severe weather or Acts of
God, and are beyond the reasonable control of a party, provided same shall not apply to delay or excuse
any financial obligation.
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•
IN WITNESS WHEREOF the parties hereto have hereunto set their hands and seals.
SIGNED, SEALED AND )
DELIVERED in the )
Presence of
STEPHEN MOLNAR
MAYOR
DONNA WILSON
CLERK
THE LESSEE(S):
DAVID BRANDON
OWNER
DATE
DATE
r~t« 6 -to ''J
DATE
I have the authority to bind the corporation
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