SUNDRE — Alberta Health Services (AHS) will continue to have a home at the Sundre Fire Department fire hall following a council decision to support extending a lease agreement.
In July 2010, the municipality first entered into an agreement with AHS to lease 3,149 square feet of space at the Sundre Fire Hall, which is located at 112 - 1st Street NW, to accommodate the provision of Emergency Management Services operations in the community.
Since then, the lease has been extended three times, with the most recent expiry set to occur on July 31. AHS had submitted to the municipality a request to renew the lease agreement for an additional five-year term, reads a portion of the background information outlined in council’s agenda package for the June 13 meeting.
Chris Albert, director of corporate services, told council the arrangement makes available to AHS a couple of bays, some office and training space as well as a rest or nap room for crews.
“They (AHS) recognize that we do not have an obligation to extend the lease any further, but they did send a request asking us to extend it,” said Albert.
“They have been pretty good tenants. It’s a great working relationship that they seem to have with the fire department – it works quite well having them in that location. So, administration does believe that it is a worthwhile endeavour to extend the lease with them.”
The lease outlines that the municipality will charge market rates, he said, adding administration will determine what that amount is.
Coun. Chris Vardas asked how market value on rentals is determined.
Administration replied to say the municipality’s economic development officer gathers that kind of information for local realtors.
“And for the five-year term, we’ll set it with some sort of incremental increase to it,” said Albert.
Mayor Richard Warnock inquired more specifically what those increments might be.
“As we’ve done previously, we’ll build in either a two or three per cent increase – so, a cost of living increase into their lease rate,” said Albert.
The lease is all-included, he said, adding the tenant pays rent while the municipality tends to all other costs.
“Taxes, building fixes, heating – we are responsible for the entire building,” he said.
Council proceed to carry a motion supporting the lease agreement’s five-year extension from Aug. 1, 2022 to July 31, 2027.
