Wellington North is currently in negotiations to renew the lease for the OPP training centre in Kenilworth.
CAO Mike Givens updated council on July 24 on an upcoming five-year lease renewal of the former Sacred Heart School.
The township bought the property in 2010 for $193,000 and has rented the facility to the OPP, through the Ministry of Infrastructure, for about $19,900 annually.
In 2013, the OPP provided $75,000 for roof repairs and was given a five-year lease agreement. That agreement is set to expire in February.
In his report, Givens said he negotiated with CBRE Ltd., the organization responsible for lease agreements in the province. In June, CBRE submitted a non-binding proposal for the township’s consideration.
“I asked them to provide comparables to other OPP facilities in the province and they basically ranged from around $4 a square foot to $5 a square foot, so we negotiated to this amount, which is significantly more than we had previously, for the next five years of the lease,” explained Givens.
“They seem agreeable to that.”
The new rent would be $4.75 per square foot, a large increase from the current $1 per square foot. The rent would increase from the current $19,900 annually to $57,000 annually.
This would be a new five-year lease agreement ending in 2023.
Givens said the building is aging.
“I have indicated to both the OPP and to CBRE, that we think the useful life of this building is nearing its end, without significant capital works specifically as it relates to the plumbing,” he said.
“I’ve basically encouraged them to start considering other locations unless they want to contribute more dollars to the capital.”
Mayor Andy Lennox said the increase in rent was a good start. Lennox asked council back in 2013 to consider selling the property.
“At the time that we signed this agreement, I was not in favour of it,” he said.
“The additional dollars make it a lot more attractive than it was five years ago.”
Council directed staff to authorize the offer presented by CBRE. Councillor Steve McCabe was absent.
