GENERAL COMMITTEE - FINANCE AND ADMINISTRATIVE COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Catherine M. Conrad, Town Solicitor
	PREPARED BY:	Brian Varner, Manager of Real Property
	DATE OF MEETING:	May 16, 2005
	SUBJECT:	Markham Little Theatre Backstage Facility and Site Use Agreement Markham Museum and Historic Village 9350 Main Street Markham North, Markham

RECOMMENDATION:

THAT the report dated May 16, 2005, entitled “Markham Little Theatre, Backstage Facility and Site Use Agreement” be received;

AND THAT the Mayor and Clerk be authorized to execute a Backstage Facility and Site Use Agreement with Markham Little Theatre for the former “Implement Building” situated on the Markham Museum and Historic Village lands located at 9350 Main Street Markham North, in a form that is satisfactory to the Town Solicitor;

AND THAT staff will report back to Council on the final loan amount to Markham Little Theatre as well as the source of funding of the loan and the loan agreement.

PURPOSE:

The purpose of this report is to request Council’s permission to enter into a Backstage Facility and Site Use Agreement with Markham Little Theatre (“MLT”) for the former “Implement Building” situated on the Markham Museum and Historic Village lands located at 9350 Main Street Markham North, Markham.

EXECUTIVE SUMMARY:

On July 11^th, 2000 Council approved in principle the concept of entering into an agreement permitting the Markham Little Theatre to construct a Backstage Facility on the Markham Museum property, subject to approval of the Markham Museum Board. During the course of this time MLT raised considerable funding toward the cost of a new building and in 2003 secured a $258,830 (upset amount) interest free loan from the Town of Markham, to bridge the gap between the funds raised and the funds required to construct a new Backstage Facility. Staff was authorized to negotiate the terms of an agreement with Markham Little Theatre for a new Backstage Facility on the Markham Museum Property. An agreement in principle has been reached.

BACKGROUND:

The Markham Little Theatre has been in existence since 1967. Over the years MLT occupied various facilities, including the former Hydro Building at 98 Church Street, a building previously owned by the Town. The MLT currently rents space in an industrial warehouse building.

The MLT has been fund raising for several years with the objective of building a new facility for rehearsal, set construction and storage purposes. On July 11^th, 2000 Council approved in principle the concept of entering into an agreement permitting the Markham Little Theatre to construct a Backstage Facility on the Markham Museum property, subject to approval of the Markham Museum Board. Originally, the intent was to construct a new building at the south east corner of the site but the recent development of a new reception centre in that vicinity along with the completion of the Museum Master Study, suggested the facility would be more compatible with the service-utility buildings situated along the northern part of the Museum site. Last year, it was determined that the existing Implement Building, comprised of 9,600 square feet, could be vacated by the Museum and the Markham Little Theatre agreed to renovate this structure for a Backstage Facility. During the course of the past several months the MLT has engaged an architect to prepare a set of plans and has made an application for a building permit. The original plans are being revised and once they are finalized, the MLT will meet with the Markham Museum Board for their final approval.

DISCUSSION:

The MLT has been raising funds for the cost of building a new Backstage Facility. In order to bridge the funding gap, Council approved at its September 22, 2003 meeting, an interest free loan to Markham Little Theatre in the upset amount of $200,000, to be repaid in equal annual installments over a period of fifteen (15) years, and authorized the Mayor and Clerk to execute a loan agreement with MLT. To date, the Town has not advanced any of these funds to MLT but it is anticipated that Markham Little Theatre will call on these funds when building construction commences. Subsequent to the loan approval, Council further approved funds in the amount of $58,830 to cover the costs of moving the collections housed within the Implement Building to other locations. The amortization period of the entire loan to an upset amount of $258,830 was extended to eighteen (18) years. Staff will report back to Council on the final loan amount, source of funding and loan agreement.

The Town will provide the basic structure to MLT and install services to the foundation. The Markham Little Theatre will convert the Implement Building for rehearsal, set construction and storage purposes. The interior of the building will be substantially renovated while the exterior will have minimal changes. The total cost of the renovations to be completed by MLT is projected to be $425,000.

Markham Little Theatre is responsible for all costs of construction, development and use of the proposed facility, including taxes, utilities and maintenance costs. The facility will be leased back to MLT for no additional rent for twenty five (25) years. The MLT will have the right to renew the Agreement for two consecutive terms of ten (10) years each, under the same terms and conditions, save and except rent, which shall be negotiated between the parties. In the event the parties cannot agree on a rental rate the matter will be submitted to a sole arbitrator.

FINANCIAL CONSIDERATIONS:

Markham Little Theatre will be responsible for all costs of construction, development and use of the proposed facility, including taxes, utilities and maintenance costs.

BUSINESS UNITS CONSULTED AND AFFECTED:

The Manager of the Markham Museum and the Capital Works and Facilities staff have been involved in the negotiations with respect to the Backstage Facility and Site Use Agreement.

ATTACHMENTS:

Appendix 1 Site Plan – Implement Building

______________________________________ ___________________________________

Catherine M. Conrad Brian G. Varner

Town Solicitor Manager of Real Property

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