Desert Sun Counselling and Resource Centre (DSCRC) pay the Town $800/month for rent and pays
a portion of the natural gas and electrical utilities based on the square footage they occupy. The
proposed rate works out to $10.49 square foot and this includes use of the shared space with the Town
without additional charge. The rent charged to DSCRC is comparable to other rates charged by the
Town for public institutional use. Council just approved the intention to lease a portion of the Sonora
Community Centre to Okanagan Regional Library for $9.40 sq. ft. plus an additional rate of $6 sq. ft.
for the cost of utilities, maintenance and janitorial services. Staff recommend adding a 2% increase in
years two and three of the agreement. Staff have contacted DSCRC and they are in agreement with
the new terms of the lease.
2021 01 12 Desert Sun Counselling and Resource Centre Lease Agreement
The lease contains a termination clause of 90 days’ notice for either party. The agreement does not
permit DSCRC to sublet; however, the Town may rent the remaining three offices subject to Desert
Sun’s approval.
The lease agreement requires DSCRR to obtain $2,000,000 comprehensive general liability insurance,
with the Town named as additional insured in that policy, as well as content insurance. DSCRC is
responsible for the janitorial costs for the building. The Town is responsible for the building’s property insurance, maintenance of the plumbing, HVAC and electrical systems and provides snow removal.
The Town uses the rear portion of the building for records storage.
OPTIONS
1. That Council approves the lease with Desert Sun Counselling and Resource Centre for a
portion of the property legally described as Lots 5-7, Plan 5120, LD 54, District Lot 2450s, and
more commonly referred to as 8701 Main Street, Osoyoos, BC for a 3-year term commencing
on January 1, 2021 at an initial rental rate of $800 per month; AND That the Town’s signatories be authorized to sign the agreement.
2. That Council directs staff to make changes to lease.
3. That Council does not approve to lease a portion of the property at 8701 Main Street to Desert
Sun Counselling and Resource Centre.
Staff recommendation: Option 1