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COUN

MEUO JUN 10 1974

TO: Mayor and Council “DATE: June 7, 1974

FROM: L.D. Pollock,
City Administrator

1. Rental of Court Facilities

My report to Council dated May 10, 1974 contained a recommendation regarding
rental of the court area of the Justice Building to the Provincial Government.
Council asked me at that time to determine whether it was possible to negotiate
an additional rate over and above the rental figure for heat, light and janitor-

tal services.

I have discussed this matter further with Mr. LeClair and obtained information
regarding the makeup of the annual rental Figure and I can confirm that the cost
of utilities, janitor services and supplies, buildings and grounds maintenance
including garbage removal and snow removal, and building insurance has been cal~
culated in the annual rental figure. The rate per square foot for these costs
has been worked out at $2.25 per square foot and this rate was determined by
taking ovr actual 1973 costs and increasing them by 20%. With a further 20%
increase for the second year of the rental. We are therefore recovering the full
cost of these services for the portion of the building occupied by the Provincial
Government. ,

The annual rental figure of $44,000. for 1975 and $46,800. for 1976 therefore
includes the recovery of costs as mentioned above in addition to the economic
rent on the portion of the building itself.

2. Interim Rent Stabilization Act Bill 75

At the regular meeting of May 6, 1974 I was asked to examine the requirements
of Bill 75 with respect to obtaining exemption for the municipality from the
8% limitation on rental increases, *

Section 3(2) of the Act provides that upon application by the Council, the.
Lieutenant Governor, upon being satisfied that it is unreasonable to require that
residential rents be limited to an 8% increase, may order that the limitation does
not apply or that it does not apply subject to certain terms and conditions. I
have contacted the Attorney General's Department to determine what criteria they
will be applying in their review of applications from municipalities. I was ad-
vised by the Department that they have no definite criteria set up at the present
time and it was indicated that the Cabinet will deal with each applicatiou as re-
ceived, however, they are expecting that in making applications municipalities
will present:

(i) A reasonably well documented case in support of exemption in order to provide