The Moose Jaw & District Chamber of Commerce will likely continue to pay $1 per year in rent to the municipality based on a new lease agreement proposal.
The chamber of commerce owns its office building at 88 Saskatchewan Street East, but leases the land from the City of Moose Jaw. The most recent lease agreement between the two organizations ran from June 1, 2001 and expired on May 31, 2020.
During its June 15 executive committee meeting, city council unanimously approved a recommendation to approve a new lease agreement between the chamber and municipality for a 20-year term starting June 1, 2020 to May 31, 2040. Council also authorized the mayor and city clerk to execute the agreement on behalf of the City of Moose Jaw.
The recommendation will have to come to a future regular council meeting for official approval.
Agreement highlights
Some of the notable terms and conditions within the lease include:
- Either party may terminate the agreement with a one-year notice
- Rent will remain the same at $1 per year
- The chamber will be responsible for all utilities and maintenance of the building and grounds
- It will be required to carry property and liability insurance
- The chamber cannot sublet its building without municipal approval
- It cannot use the property except as a general office, as permitted in the C2 high-density commercial district guidelines
- The chamber cannot display any sign or advertisement on the property without municipal approval
- It cannot make any changes to the property without municipal consent
- The building remains the property of the chamber and the organization is responsible for removing it upon termination of the agreement. Alternatively, the municipality is also entitled to purchase it at fair market value
Council discussion
There is an assessed value on the property, although in the past, the municipality has dealt with that assessment through tax exemptions, finance director Brian Acker explained. While he was unsure of the exact assessed value on the building, he thought it could be around $1,000 or $1,500 per year.
The original lease agreement was for 10 years, but this latest one is for 20 years, noted Coun. Scott McMann. He wondered if that would lead to any legal issues.
The parks and recreation department decided to go with a new 20-year lease this time instead of a 10-year agreement based on the existing terms, explained Derek Blais, director of parks and rec. The department made some minor amendments while drafting this new lease agreement.
The next executive committee meeting is Monday, June 29.
