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REPORT DEC 16 1974.

Mayor and Council December 13, 1974

FROM: L.D. Pollock,
City Administrator

‘RE: Rental of Justice Building to the Provincial Government

Council will recall that at a regular meeting of the Council held June 10, 1974
Council accepted a report on the lease of a portion of the Justice Building to

the Provincial Court. iI have now received a communication from Mr. LeClair the
Municipal Manager of the District of Coquitlam inquiring as to the credit that
will be applied for the rental received from the lease of these premises. The
present agreement between the City and the District of Coquitlam does not provide
for any revenues that might be derived from the rental of the Justice Building,
perhaps because rental was not really contemplated when this building was erected.
The amount of revenue anticipated with this lease to the Provincial Government

is for the first year, to the end of March 1975, $43,000.00; for the second year,
to the end of March 1976, $46,000.00.

We can look to two alternatives in apportioning this rental income:

1. An apportionment based on the present cost sharing formula for operation and
2. An apportionment based on the capital investment that each municipality has
made in the cost of the building.

I can only recommend to Council the use of the second alternative above in that it
returms an amount to the City in direct proportion to ovr capital investment in the
building. In my view the operation of this building (for example the use of the
premises by the R.C.M.P.) has no bearing on the apportionment of rentals that might
be received from the premises.

If the suggested formula is applied the apportionment of the first years rental

of $43,000.00 would be credited $12,545.00 to the City, $30,455.00 to the District
of Coquitlam. You might be interested to know that working it out on the basis of
our present cost sharing agreement returns the City approximately $1,000.00 less

than working it out on the basis recommended above. I would recommend to Councii
that we ask the District of Coquitlam to share the anticipated revenue on the basis
of the contributions made by each municipality to the capital cost of the building.

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