FINANCE AND ADMINISTATIVE COMMITTEE
	TO:	Mayor and Members of Council
	FROM:	Catherine M. Conrad, Town Solicitor
	PREPARED BY:	Brian G. Varner, Manager of Real Property
	DATE OF MEETING:	2004-Apr-05
	SUBJECT:	8100 Warden Avenue Sublease Agreement Markham Hydro Distribution Inc. and Markham District Energy Inc.

RECOMMENDATION:

That Council enact a by-law authorizing the Mayor and Clerk to execute a Sublease Agreement between Markham Hydro Distribution Inc. and Markham District Energy Inc. and the Town of Markham for 505 square feet of office space at 8100 Warden Avenue, Markham, for the period January 1, 2004 to December 31, 2004, in a form satisfactory to the Town Solicitor.

PURPOSE:

The purpose of this report is to request Council’s approval for the renewal of a Sublease Agreement between Markham Hydro Distribution Inc. (“MHDI”) and Markham District Energy Inc. (“MDEI”) and the Town of Markham, for property at 8100 Warden Avenue, Markham.

EXECUTIVE SUMMARY:

At its meeting held on August 26, 2003 Council approved a Sublease Agreement between Markham Hydro Distribution Inc. and Markham District Energy Inc. for 505 square feet of office space on the second floor of 8100 Warden Avenue, for the period of January 1, 2003 to December 31, 2003 and paying to MHDI a gross annual rent of $8,585.00. MHDI and MDEI want to extend the agreement for a further term of one year and have executed a Sublease Agreement under the same terms and conditions for the period January 1, 2004 to December 31, 2004.

BACKGROUND:

The Town acquired 8100 Warden Avenue from Markham Hydro-Electric Commission in 2000. Since that time MHDI has remained on the property as a tenant. In 2003, MHDI entered into a ten-year lease agreement with the Town for the office/warehouse building and surrounding lands, paying $602,000 annually, on a net rental basis.

Markham District Energy Inc. also operates their business from 8100 Warden Avenue and occupies two offices on the second level, comprised of 505 square feet. In conjunction with entering into a long-term lease with the Town, MHDI wanted to formalize the office arrangement with Markham District Energy Inc.

A gross lease with a one-year term was developed but it expired on December 31, 2003. The annual gross rent is $8,585.00, based on a rate of $17.00 per square foot.

A new Sublease has been executed by MHDI and MDEI under the same terms and conditions as the original Sublease for the period January 1, 2004 to December 31, 2004. The Town as Owner of the property is also required to execute the Sublease Agreement.

OPTIONS/DISCUSSION:

None.

FINANCIAL CONSIDERATIONS:

The Sublease has no direct financial consideration to the Town.

ENVIRONMENTAL CONSIDERATIONS:

Not applicable.

ACCESSIBILITY CONSIDERATIONS:

None

ENGAGE 21^ST CONSIDERATIONS:

None.

ATTACHMENTS:

None.

Brian G. Varner, Manager of Real Property

Catherine M. Conrad, Town Solicitor

Q:\ Exec Office\Legal\VARNER\Reports 2004\8100 Warden – Sublease Renewal