By Pepper Parr
October 14th, 2015
BURLINGTON, ON
You sometimes wonder how they think.
Geraldos at LaSalle Park asked to have their lease agreement amended to allow them to do outside catering. The building sits on land that is leased from the city of Hamilton – that lease is due for renewal in 2017.
Two leasing situations were before the Development and Infrastructure committee – Geraldos at LaSalle Park wanted to be able to move into the outside catering business and were asking to have their lease agreement revised.
Spencer’s on the Waterfront wanted the lease they have extended for an additional 15 years.
Staff provided comment on each situation – Gerlados has been in a contract relationship with the city since 1997: a Staff report recommended amending the agreement to allow them to expand into the catering business.
Geraldo’s provides residents and visitors the opportunity to experience part of the city’s history while enjoying the park, trails and surrounding facility where they have been operating the LaSalle Pavilion since 1997.
Revenues received from the tenant offsets the direct operating expenses of this particular facility and provides a contribution to the reserve account for on-going capital requirements.
The current agreement, contains a provision that excludes Geraldo’s from performing any outside catering – it expires in December 2016.
Council supported a six year extension agreement (2017 – 2022) which aligns with the land lease for the LaSalle Park with the City of Hamilton.
Under the current agreement, rent is paid as a percentage of gross sales. By allowing Geraldo’s to expand the catering business, all revenues generated from any offsite catering could result in a positive impact on the reserve account for on-going capital improvements. The current Reserve Fund balance as of June 30, 2015 is $637,786.
This was a no brainer and was approved and will go to Council on November 2nd for approval.
Perhaps the finest restaurant in the city – with a balcony overlooking the lake that is THE place to be on a summer evening. If you don’t reserve for Sunday Brunch – you don;t get a seat.
The Spencers on the Waterfront lease extension for 15 years was approved – it shouldn’t have been – there is a serious flaw in the proposed agreement – Councillor Meed Ward pointed out the flaw and was the only one to object to the lease extension.
The problem is with the parking. Spencers has exclusive use of 40 parking spaces to the west of the restaurant; given the consistent flux with parking issues Meed Ward felt being locked in for 15 years was not a wise move and wanted to see a clause that would allow the city to renegotiate that particular part of the agreement.
• A restaurant (Spencer’s at the Waterfront)
• Café/concession (the Bite – operated by Spencer’s)
• An Observatory (shared – both public and exclusive to Spencer’s for functions/events)
• Public washrooms
• A public lobby/gathering space on the lower and upper levels
• Mechanical and storage rooms
• Outdoor amenities including an ice rink in the winter, pond in the summer, along with splash pad and playground.
The Waterfront Centre operating budget is made up of operating costs to maintain the facility, outdoor amenities and the parking lot which are partially offset by the revenue received from the tenant and parking revenues.
Other indirect costs associated with Spencer Smith Park (e.g. landscaping services by Roads & Parks Maintenance) are outside of the Parks and Recreation Waterfront Centre operating budget. The Waterfront Centre operating budget is structured to transfer the net budget (profit) into the Waterfront Centre Capital Reserve Fund. These funds are used to stabilize and replace existing building components and maintain the outdoor amenities as well as to maintain the parking lot surface and machines.
Moving into a long term agreement with Spencer’s for years 2016 through 2031 there are some guiding principles for the financial commitment to ensure the facility is maintained to the high standard it is today.
Staff recommended continuing with the current tenant for a longer term agreement to ensure financial sustainability for the facility and continued service to the community. And Meed Ward wasn’t on for that.
Councillor Meed Ward didn’t think the city should get locked into a 15 year agreement that gave Spencer’s the exclusive use of 40 parking spots – she wanted the city to have the right to re-open and re-negotiate that part of the lease agreement.
She had concerns over extending the exclusive use of 40 parking spaces from 4:00 pm to midnight to the west of the restaurant and wanted a provision that gave the city the right to re-negotiate the parking spaces part of the agreement. Meed Ward made the point that parking is a critical issues in the downtown and wanted the city to have some flexibility.
Her colleagues didn’t see it that way – the five that were present voted to accept the Staff report. Councillor Sharman, chair of the committee was not present.
Reserving the right to renegotiate the parking was a good, commonly used business practice – that concept seemed to evade the Mayor and Councillors Craven, Taylor, Lancaster and Dennison.
You sometimes wonder how they think.
Unless the parking was a deal breaker for the lease extension there is no reason for the city to give up the flexibility.
When I wonder how they think it usually turns out they don’t.
wink wink nudge nudge depends on who you know.