Jake Morassut, Director, Community Services explained that Chittle Sports Academy currently holds a lease agreement with the Town of Essex and has done so since 2012 in different capacities. He noted that from 2012 to 2018, Chittle Sports Academy leased storage rooms as well as the hallway area and in 2018 Chittle Sports Academy focused more on ice training rather than off ice training and reduced their lease to two storage rooms. He explained that the current lease is set to expire in August 2024 and Administration reviewed previous agreements and consulted with the Fire Department and Building Department to determine if the proposal would be permitted. He noted that Chittle Sports Academy is seeking to build a wall with a door at the end of the hallway outside of the Essex 73's dressing room to prevent unauthorized access and safety to the Essex 73's.
Council asked Administration why a RFP was not sent out for the lease of the hallway as other user groups may be interested.
Kate Giurissevich, Director, Corporate Services, explained that Council can ultimately choose to issue an RFP for the subject area however there is no guarantee of bids, and could result in the space being unused or a loss of the proposed lease income presented. She explained that there are multiple user groups interested in the footprint, however each of them is requesting their own piece and their own specifications which makes it difficult to post a RFP as it is no longer for the entire footprint. She stated that Administration believes this to be the best use of the total square footage.
Council discussed the rental rate for the lease agreement and directed additional questions to Administration concerning the rate.
Director Malandruccolo stated that based on the Municipal Act, Administration is responsible for ensuring that the rental rate is at fair market value and since this is undesirable lease space, the rental rate is proportionate to the use that the Town would receive otherwise.
Council directed Administration to postpone this matter pending further review by Administration.