County council has approved a five year lease term with the the Ontario Realty Corporation for office and court space at 74 Woolwich Street.
The rent is based on $18.50 per square foot, and will be used for court and space for Crown Attorney operation.
The lease comes with a six-month notice of cancellation and a five year renewal option.
Councillors from the 1980s would be astounded at the new annual rent, considering they seriously considered selling the property back then.
Former Wardens Bill Adsett and the late Archie MacRobbie led the fight to keep those buildings owned by the county, which had been offered about $1-million for the land, levelled. MacRobbie remarked a few years ago that the complex, which also houses the county administration, could not be built for $40-million today.
The complex was saved by a single vote in 1981.
In his report to the county administration, finance, and personnel committee, manager of purchasing and risk management services mark Bolzon stated, “The current lease agreement expires Dec. 31, 2007. The lease is for approximately 22,496 rentable square feet of space for the courts and approximately 8,123 of rentable square feet of space for the Crown Attorney’s offices. The current rental rate is $13.08 for the court space, and $12.96 per square foot for the Crown Attorney’s location, for an annual total of $399,521.”
Bolzon said the “significant” increase will allow the county to implement improvements requested by the Ontario Realty Corporation, which negotiates on behalf of the province.
Bolzon said the rent now covers the costs for renovations next year and in 2009.
He also noted that “the third floor of the Ivory Tower, which was recently vacated by social services when they moved to the Dominion Public Building, has also been offered to the ORC to expand their Crown Attorney’s offices.”
He added that if the ORC accepts that offer, the rent will be the same as it is for the space in the next year.
The lease will expire on June 30, 2011, with a five year renewal option.
The terms call for monthly payments.
Council unanimously accepted the lease agreement.
The six months notice was put in place because Guelph is in line for a new courthouse, and the county could be involved in that with the city.
