Doc 9_Spec_RCP Sportsplex Management Ltd - Rental Agreement RTC

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    RCP Sportsplex Management Ltd Rental AgreementPage 2 . . .

    The proposed agreement provides an option to extend the agreement with modificato rate and term for an additional five years.

    Sportsplex ownership has provided financial information to support Contract Fee increases the term of the proposed agreement. Under the terms of the 10 year agreement receexpired, there has been no cost increase to the Township share of the overall facility rental cTownship user groups have taken on increases to their share of the cost. Staff feel that renrates for user groups cannot increase at this continued rate, and that rates need to be brougback to be more comparable to the fees charged for use of Aldergrove Community Arena George Preston Recreation Centre.

    The current budget for the Sportsplex agreement is $447,637 per year (2009).

    A new agreement would pay Sportsplex a revised annual Contract Fee based on the Townsminimum (guaranteed) rental payments of:

    2009 $460,685.80 requiring an additional $13,000 for the remaining 4 months of thfor the period of September 1, 2009 August 31, 2010. Staff will fuincrease utilizing available Divisional operating funds.

    2010 $507,514.72 requiring an additional $ 47,000 increase to the 2010 base budgethe period of September 1, 2010 August 31, 2011.

    2011 $519,379.14 requiring an additional $ 12,000 increase to the 2011 base budgethe period of September 1, 2011 August 31, 2012.

    2012 $538,456.99 requiring an additional $ 19,000 increase to the 2012 base budgethe period of September 1, 2012 August 31, 2013.

    2013 $559,995.27 requiring an additional $ 21,500 increase to the base budget foperiod of September 1, 2013 August 31, 2014.

    PURPOSE:

    The purpose of the report is to seek Councils authorization for the Township of Langley to einto a negotiated 5-year facility rental agreement with Sportsplex Management Ltd. September 1, 2009 until August 31, 2014 for the provision of subsidized ice and dry flooTownship of Langley community sport organizations, and to seek Councils authorization forequired budget increases.

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    RCP Sportsplex Management Ltd Rental AgreementPage 3 . . .

    BACKGROUND/HISTORY:

    The original Rental of Ice Time Agreement for the rental of ice time at the Northwest LaArenas was prepared for the Township in 1995. This agreement was between 443756 B.C. (a company whose principals were Grant and Deborah Gettling) and the Townshipcontemplated the completion of construction of the new facility on or before December 31, 1

    Due to construction and financial difficulties, construction was stalled for many years. The agreement did not provide for termination or default if the facility was not completed withtimelines as originally contemplated. The Township reviewed the Rental of Ice Time Agreeand determined it to remain in force and effect unless formally terminated. To deal with tdeficiencies and others, an Amendment Agreement was prepared based on revised principincluding the requirement that the Proponent diligently proceed with construction, and topenalties, if there were delays past the anticipated construction completion date of Septem1, 1999. During this period of time, the Township subsidized its ice user groups use ofacilities outside of the Township of Langley.

    On August 23, 1999, the Township of Langley entered into a 10-year amendment agreementhe Rental of Ice Time Agreement which authorized the purchase of weekly ice time

    assigned the agreement to the Sportsplexs new ownership 583852 B.C. Ltd. (a compknown as Westcoast Roller & Ice Hockey Ltd. and whose principals were Dennis and GeRossi). Council approved an increase of up to $150,000 in the year 2000 operating budgeaccommodate the Townships commitment under this new agreement and the additional horequired for community use. The amendment agreement corrected a number of deficienciethe original Rental of Ice Time Agreement including:

    Increased both the minimum (109) and the maximum (130) number of hours to rthe changes that occurred between 1995 and 1999

    Defined the ice season as a 25-week period for regular ice season Established off season hours and rates for pre-season, tournaments, and spring

    summer ice rentals, allowing for 330 hours per year Secured better ice times for Township user groups and revised ice allocation process Provided Township with the option to secure dry floor space within the first thr

    years of the agreement given Township capital work planned for Aldergrove CommArena and Langley Civic Centre (George Preston Recreation Centre)

    Clarified and improved public skating hours Required the Proponent to collect user group portion of fee for the first time Allowed fee increases for user groups based on annual Consumer Price I

    percentage increase

    The agreement was based on a 25 week ice season annually that included a minimum of:

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    RCP Sportsplex Management Ltd Rental AgreementPage 4 . . .

    DISCUSSION:

    The Township of Langley subsidizes ice and dry floor facility rental time for community groups by way of four separate agreements / arrangements:

    Canadian Recreation Excellence Corporation (Rec Ex)

    Recently Council approved an extension and modification agreement with Rec Ex fooperation of Aldergrove Community Arena and George Preston Recreation Centre from Ap2009 until June 30, 2013. This agreement assures community ice user groups, and Rec Ex trental of a minimum of 2,700 hours of Prime Time ice from September 1 March 31 at

    two Township owned arenas. In addition the agreement makes curling ice and additionaavailable during the ice season for community groups, as well as dry floor space avaiduring the period of April 1 July 31 at the two arenas.

    Sportsplex Management Limited (Sportsplex)

    The proposed agreement with Sportsplex supplements the ice / dry floor time availabcommunity groups at Township owned facilities. Should Council authorize this proagreement, this will assure Sportsplex the rental of a minimum of 3,035 hours of ice annually. (mix of 2,470 hours Prime Time, 260 hours Non Prime Time, 305 hours AddiHours). In addition, this will assure Sportsplex the rental of a minimum of 13 hours per wedry floor time for ten weeks for a total of 130 additional hours.

    National Training Rinks (NTR)

    In 1999, Council authorized an increase to the Parks and Recreation base budge$39,000/annum. This amount was used for the sole purpose of subsidizing the Langley M

    Hockey Association (LMHA) usage of ice at the National Training Rink (NTR). The amice time can not exceed more then 25 weeks per annum and 26 hours per week. In mrecent years, this budget amount was reduced to its current $35,000/annum which is a maccurate reflection of the actual ice time requirements of LMHA under this arrangement.

    Langley Events Centre

    This new arrangement will provide community sport organizations commencing in Septe2009 with ice time intended to supplement their current allocations at Aldergrove CommArena, George Preston Recreation Centre, Sportsplex and NTR. Although ice time will nallocated to these groups on a weekly or regular basis, the arrangement is based on a principthat each minor sport athlete will have one opportunity each ice season to participate in a gaor practice at the new facility.

    ANALYSIS:

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    RCP Sportsplex Management Ltd Rental AgreementPage 5 . . .

    Some of the highlights of the proposed agreement include:

    Re-titled document Facility Rental Agreement as the new agreement includerental of both ice and dry floor.

    The ice season has been re-defined to be 26 weeks in duration. This reflectactual requirements of the Townships minor sports organizations.

    The addition of dry floor time for the Townships ball hockey and lacrosse user ghas been successfully negotiated. There has been significant growth in these m

    sports over the past ten years and the Township has been under increasing pressureprovide more time for these sports. This same demand led to the development ocovered sports box at McLeod Athletic Park in 2007-2008. The most current agreewith Sportsplex had no annual provision for dry floor time. The proposed agreallocates a minimum of 13 Prime Time hours of dry floor time weekly for the 10period commencing April 1 each year of the agreement. User groups will be able ffirst time to purchase this floor time at a comparable (subsidized) rate to what theyto utilize both George Preston Recreation Centre and Aldergrove Community Arena

    The proposed agreement provides Sportsplex with a guarantee of a minimum ofhours of ice time per week, but retains the ability for the Township to increasallocation for our community sport organizations to a maximum of 115 hours of icper week if required. In the most current agreement, the Township has lacked certregarding the number of hours it is required to budget for on an annual basis. Undeterms of the new agreement, Sportsplex will only be pre-authorized to sell the min105 hours per week. The Township budget will be based on this number of hoursice time requirement by sports organizations in addition to this minimum num

    hours will be charged full rate by Sportsplex (non subsidized). Since the ice seasnow 26 weeks the total annual number of subsidized hours over the course of the has marginally increased. Should the demand for more than 105 hours per week ocCouncil could choose to subsidize the additional 10 hours per week that are availHowever, any budget increases that would be necessary are not included inrecommended budget increases for the five year term of this agreement.

    The number of Prime Time hours has been increased from 89 to 95 hours per weea portion of the total number of hours. The number of Non Prime hours hasreduced from the 20 required hours per week to 10 hours per week. This is a signifgain for the community sport organizations who are requiring fewer hours of icduring the shoulder times ie. early mornings, late evenings, weekday daytime, and mtime after 3:30 pm. Monday to Friday and all day on weekends.

    As a result of a significant disparity that exists between what our community g

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    RCP Sportsplex Management Ltd Rental AgreementPage 6 . . .

    Community Implications

    The Townships rental of ice time at Sportsplex has successfully bridged the demand fotime by community sport organizations over the past 10 years. Without these 3,035 hours otime, the Township would be placed in a position to either subsidize Langley sports groallocation of ice time at public or private rinks located in other municipalities (if it was available) or construct a new arena facility with at least two sheets of ice to meet the local neThis would represent a capital cost well in excess of $10 million. There is a high degrsatisfaction with our local community with respect to their use of Sportsplex. Thiagreement addresses the two most commonly heard concerns about the Townsh

    relationship with Sportsplex: a desire for increased prime time ice, and the lack of subsidallocated dry floor time for ball hockey and lacrosse groups.

    Financial Implications

    Staff have spent the past 3 months in discussions with Sportsplex, and have developethorough understanding of their financials. While Sportsplex has exceeded the contraobligations of the existing agreement, ownership is concerned about its dramatic cost increaover the past ten years as well as increased competition from Langley Events Centre.addition, Sportsplex is solely responsible for the capital costs of maintaining an aging faincluding the depreciation and eventual replacement of capital equipment. The Township byproposed agreement will further limit the ability of Sportsplex to pass along increased costhe Townships user groups since the agreement fixes allowable fee increases for commugroups.

    Sportsplex has provided some rationale for their negotiated contract increase commen

    September 1, 2009. This rationale statement is included as Attachment B. Although Sportshas been able to increase the User Group portion of its fees for the past ten years of thagreement with the Township, there has been no increase in the cost to the Township over tperiod. As a result, the cost to the User Groups has grown and is now significantly expensive than equivalent time at either Aldergrove Community Arena or George PrRecreation Centre. Staff did not feel that they could recommend the continuation of this and have negotiated fixed increases for the community through this proposed agreement. result is a larger Township share of the overall negotiated increase. The impact oagreements Year 1 increase will be felt in the Townships 2010 budget year sincenegotiated increase will only be applied to the Fall of 2009, but the entire year 2010.

    The current budget for the Sportsplex agreement is $447,637 per year (2009). Thagreement and recommended budget increases will leave the budget with no flexibility to beyond 105 hours per week during the ice season, 13 hours per week during the dry season and the 305 additional hours during the off season. Sportsplex will be requir

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    RCP Sportsplex Management Ltd Rental AgreementPage 7 . . .

    A new agreement would pay Sportsplex a revised annual Contract Fee based on the Townsminimum (guaranteed) rental payments of:

    2009 $460,685.80 requiring an additional $13,000 for the remaining 4 months year for the period of September 1, 2009 August 31, 2010. Staff will fuincrease utilizing available Divisional operating funds.

    2010 $507,514.72 requiring an additional $ 47,000 increase to the 2010 base bufor the period of September 1, 2010 August 31, 2011.

    2011 $519,379.14 requiring an additional $ 12,000 increase to the 2011 base bufor the period of September 1, 2011 August 31, 2012.

    2012 $538,456.99 requiring an additional $ 19,000 increase to the 2012 base bufor the period of September 1, 2012 August 31, 2013.

    2013 $559,995.27 requiring an additional $ 21,500 increase to the base budget foperiod of September 1, 2013 August 31, 2014.

    If this Agreement is approved by Council, staff will provision the above noted annual incrin the Sportsplex base budget account for the subject years.

    Should Council approve this agreement, coupled with the recently signed 4+ year agreemwith Rec Ex, and barring unexpected growth in traditional community minor sports, the icdry floor requirements of our community will be well provided for through June, 20addition, the cost requirements of these two key contractual agreements will be certain toTownship and can be built into base budgets accordingly.

    Respectfully submitted,

    David LeaversDIRECTOR RECREATION, CULTURE, AND PARKSforRECREATION, CULTURE, AND PARKS DIVISION

    This report has been prepared in consultation with the following listed departments.

    CONCURRENCESDivision / Department Name

    FINANCE DIVISION D SPARKS

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    ATTA

    Sportsplex Management Ltd.

    and the

    Township of Langley

    FACILITY RENTAL AGREEMENT

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    FOR THE RENTAL OF ICE TIMEAT THE SPORTSPLEX ARENAS

    THIS AGREEMENT MADE THE 20 DAY OF JULY, 2009

    BETWEEN:THE CORPORATION OF THE TOWNSHIP OF LANGLEY,

    20338 65 Avenue, Langley, British Columbia, V2Y 3J1

    (the Township)

    AND:SPORTSPLEX MANAGEMENT LTD.20165 91A Avenue, Langley, British Columbia, V1M 3A2

    (the Contractor)

    RECITALS:

    A. The Contractor operates an ice and dry floor arena facility within the boundariTownship;

    B. The Township wishes to enter into an agreement whereby the facility is availapublic for skating and dry floor activities, and to groups or organizations for uas minor hockey, figure skating, ringette and ball hockey;

    WHEREAS:

    A. The Township and Northwest Langley Arenas Ltd and 443756 B.C. Ltd. entered agreement (the Agreement) dated March 28, 1995, for the rental of ice time at aarena facility (the Facility) to be constructed.

    B. The Contractor has now purchased an interest in the Facility and is the assignee ointerest of 443756 B.C. Ltd. in the original Agreement pursuant to an assignment 17th day of August, 1999 (the Assignment); and

    C The Township and the Contractor entered into an agreement (the Amending

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    with an additional provision for dry floor rentals for community groups andorganizations.

    IN CONSIDERATION of the mutual promises contained in this Agreement, the parties agfollows:

    AGREEMENTS:

    For good and valuable consideration, the receipt and sufficiency of which the Township anContractor each acknowledge, the Township and the Contractor agree as follows:

    1.0 INTERPRETATION

    1.1 Definitions in this Agreement:

    (a) Agreement means this agreement as it may be amended or supplemfrom time to time;

    (b) Default has the meaning set out in paragraph 7.2 of this Agreement

    (c) Facility means an ice and dry floor arena which is owned and operaContractor at 201 Street and 91A Avenue in Langley, B.C. and which consists of:

    a) a minimum of two full standard-sized ice rinks;

    b)

    a minimum of two full standard- sized dry floor rinks;c) a minimum of eight adequately-sized dressing rooms (four per

    d) four locker areas four feet by six feet, one locker for speed skastorage of 230 square feet and one storage room of 160 squareskate storage, to be used for the exclusive use of the TownshipGroup, with no rent or other charges payable to the Contractor

    e) bleacher seating adjacent to the ice rinks for a minimum of 10for each rink; and;

    f) associated equipment including goal nets (two per rink), electrscoreboards and public address systems; with the exception of

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    a) Non Prime Hours has the meaning described in Schedule AAgreement;;

    b) Prime Hours has the meaning described in Schedule A to tAgreement;;

    c) Off-Season means those parts of the Season that are not Icand

    d) Season means the period of time between August 1 of one y July 31 of the next year, inclusive;.

    (e) Dry Floor Season will be generally a 10 week period between Aprigiven calendar year and continuing until August 1 st in a given cale

    (f) Public Skating means skating sessions in the Facility which are opgeneral public;

    (g) User Group Skating means skating sessions in the Facility for groorganizations as approved by the Township including, by way of illustgirls and boys minor hockey, figure skating and ringette. User Group Swill not, except with the consent of the Contractor, include mens leag

    (h) Dry Floor Use means sessions in the Facility for groups or organizapproved by the Township including, by way of illustration, girls and bhockey and lacrosse;

    (i) User Group Skating / Dry Floor Use Rate has the meaning set ouparagraph 5.2(a);

    (j) Initial Term means the first period of time as set out in paragraph

    (k) Term means the period of time as set out in paragraph 2.

    1.2 Headings . In this Agreement any headings are inserted for convenience reference and will not affect how this Agreement is interpreted.

    1.3 Severability . If any term of this Agreement is partially or wholly invalidunenforceable, then remainder of this Agreement will not be affected, and remaining term will be separately valid and enforceable.

    1.4 Governing Law . This Agreement will be governed by and construed in a

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    Schedule A: User Group Skating / Dry Floor Use - Rental Rates

    Schedule B: User Group Skating / Dry Floor Use Available Re

    Schedule C: Contract Fee Payment Schedule

    Schedule D: Right of First Refusal

    1.7 Entire Agreement and Amendment . This Agreement sets out the entirbetween the Township and the Contractor relating to the Facility. This Agmay be amended or supplemented only by written agreement signed by boTownship and the Contractor.

    1.8 Assignment . The Contractor shall not sell, assign, transfer, lease or otheup its interest in the Facility, to any person without first obtaining the Towwritten approval.

    The Contractor is currently controlled (as that concept is defined in the CoAct (B.C.) by David Ash (the Shareholders). In the event that the sharelonger control the contractor then this Agreement terminates, unless the Cobtains the Townships prior written consent to the change of control, not unreasonably withheld.

    2.0 TERM

    2.1 Term. The Term of the Agreement is as follows:

    (a) An initial term (the Initial Term) which shall commence on:

    September 1, 2009 (for the 2009/2010 Ice Season), and shall expirAugust 31, 2014 (at the end of 2014 Dry Floor Season);

    (b) If the Township gives the Contractor written notice between JanuaMarch 31, 2014, then the Term of the Agreement may, at the elect

    Township, be extended for an additional five years, commencingSeptember 1 of 2014 and continuing to August 31, 2019. In the eva five year extension, all of the terms of this Agreement shall applextended Term with the exception of the rates and hours of use whbe renegotiated upon agreement by both parties to extend the Agre

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    3.0 USE OF FACILITY BY TOWNSHIP

    3.1 Non-interference with Township Use . During the times of Public Skathe User Group Skating or Dry Floor Use the Contractor shall make the enfacility available for such use and shall not permit any use by others whichcompetes or conflicts with these Townships uses of the Facility.

    3.2 Public Skating Sessions . The Contractor shall make Public Skating avafollows:

    (a) The Contractor shall provide a minimum of 7.5 hours per week of time for Public Skating of which a minimum of 2.5 hours will be a(being Monday to Friday between 3 and 5 p.m.) and a minimum owill be on weekends between 10 a.m. and 6 p.m. The Contractor smaintain a regular Public Skating Schedule for each Ice Season wiSkating sessions of not less than one hour.

    (b) The Township may reduce the requirements of (a) should regular, Public Skating programs be offered at Langley Events Centre and Contractor is able to demonstrate a resultant reduction in revenues

    (c) No rent or other payment shall be payable by the Township on accPublic Skating. The Contractor may retain all revenue from the satickets for Public Skating.

    (d) The Contractor shall during the Public Skating sessions provide an

    available to the public adequate skate and helmet rentals, skate shaand related facilities, and provide proper and sufficient staff to opeservices.

    (e) During the Public Skating sessions the Contractor shall provide prstaff at levels which are reasonably required for a safe and enjoyabenvironment for participants. The Contractor shall ensure that all pskate staff are trained to industry standards and specifications.

    3.3 User Group Skating . The Contractor shall rent the Facility to the TownsUser Group Skating sessions as follows:

    (a) The Townships User Groups will be entitled to rent from the Conminimum of 105 hours and a maximum of 115 hours of ice rink tim

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    coordinate the facility allocation process with other arena operatorTownship in conjunction with Township staff

    (c) The parties will in good faith consider any request by one party tochanges to Schedule B.

    (d) If at any time the Township determines that the amount of time it hwith the Contractor to rent for User Group Skating is excessive theContractor shall use its best reasonable efforts to find other personuse, and pay for, the Facility during such excess times.

    (e) The Township may sublet any User Group Skating ice rink time thTownship has paid for on terms and rates as determined by the Tow

    (f) If the Contractor constructs any additional ice rink surfaces as partFacility, then the Township shall receive the first right of refusal toan additional 90 hours per week of ice rink time for User Group Sup to an additional 150 hours of Off-season time.

    3.4 Dry Floor Use . The Contractor shall rent the Facility to the Township forUse as follows:

    (a) The Townships User Groups will be entitled to rent from the Conminimum of 13 hours and a maximum of 26 hours of dry floor timweek of each Dry Floor Season during the Term of this Agreementhose hours of use listed on Schedule B. For all purposes of the

    Agreement, references to hours of dry floor time mean uninterruptof use and therefore exclude time required for ice cleaning and simmaintenance purposes.

    (b) The Contractor will follow the policies, procedures and timelines iin the Townships Facility Allocation Policy (see Appendix 1) andcoordinate the facility allocation process with other arena operatorTownship in conjunction with Township staff.

    (c) The parties will in good faith consider any request by one party tochanges to Schedule B.

    (d) If at any time the Township determines that the amount of time it hwith the Contractor to rent for Dry Floor Use is excessive the Con

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    (f) If the Contractor constructs any additional dry floor surfaces as paFacility, then the Township shall receive the first right of refusal toan additional 26 hours per week of ice rink time for Dry Floor Use

    4.0 OPERATION AND MAINTENANCE OF THE FACILITY

    4.1 Facilities . The Contractor shall, as necessary to permit the Public Skatingthe User Group Skating use and the Dry Floor Use, provide and maintain Facilities and related equipment in good and proper condition including, wlimitation, conditioned ice surfaces, dressing rooms, goal nets, electronicscoreboards, and public address systems.

    4.2 Operating Personnel . The Contractor shall provide the Facility for Publand User Group Skating and Dry Floor Use as provided by this Agreemenfully operating ice-skating / dry floor facility and shall, at its cost, provideand personnel required for such operation. The Contractor shall employ a ice arena manager for the Facility with experience in managing similar icethe satisfaction of the Director.

    4.3 Bleachers . The Contractor shall provide and maintain bleacher seating adthe ice rink surfaces as specified in section 1.1(d)e) above.

    4.4 Storage Room . The Contractor shall provide a storage room and office sspecified in section 1.1(d)d) above.

    4.5 Ice Cleaning . The Contractor shall provide all ice cleaning services requreasonable use of the ice surfaces by the public and the participants in the Group Skating sessions. The Contractor shall provide such cleaning priornot during, the User Group Skating times or in the Public Skating times asby this Agreement.

    5.0 RENTAL FEES

    5.1 Fees for Public Skating . No fees are payable by the Township for Publi

    use of the Facility.5.2 Fees for User Group Skating / Dry Floor Use . The Township shall pay

    User Group Skating / Dry Floor Use as follows:

    (a) The Contractor shall be entitled to charge and be paid (in the mann

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    Facility services.

    (c) The User Group Skating / Dry Floor Use Rate shall be paid to the as follows:

    (i) the User Groups using the Facility for such User Group SkDry Floor Use shall pay the applicable User Group Portion as listeSchedule A hereto. The Contractor is responsible for entering iagreements at such rates for each ice Season with the User Groupscollecting the required amounts directly from the User Groups; an

    (ii) the Township will pay the Township Portion to the Contraaccordance with Section 6.1) based on actual usage by User Groupfive business days of each month end the Contractor will provide aaccounting to the Township of the hours of actual use based on theDirector approved schedule (settled in accordance with section 3.3indicating the hours of use, User Groups and payments made by UGroups to the Contractor. The Township will be entitled to such oinformation from the Contractor as it requires to confirm the accouuse. The Townships payment under section 6.1 will be based on saccounting, as confirmed by the Township.

    (d) The Contactors rental agreement with User Groups shall be in a fapproved by the Director and shall permit User Groups to cancel ahour(s) of its ice or dry floor allocation on not less than 2 weeks nsuch notice is given then the User Group will receive a refund. If

    Group cancels in accordance with the agreement then the Contractuse reasonable efforts to find another Township User Group that wup the cancelled hours and if the Contractor is unable to do so thenContractor will promptly advise the Director and the Director will three business days (unless a longer period is mutually agreed) to retain the hours by paying the Contractor the applicable User GrouPortion, failing which the Contractor will be entitled to resell the hown account and the Township will pay the Township portion in a

    If a User Group does not cancel but does not use its time or cancelthan 2 weeks notice, then the User Group and the Township shall psame. If there is a payment on account of cancellation the Townshnotified at the time of invoicing.

    6.0 PAYMENT OF RENTAL RATES

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    In order to provide the Contractor with a dependable minimum annual renwhile retaining flexibility as to hours chosen by the Township, the Townshensure that the Contactor receives payments for each Season of not less thTownship Minimum from the aggregate of all User Group Portions andTownship Portion paid in each Season to be calculated at the end of each S(see Schedule C). The Township Minimum is based on a minimum for Season of 95 Prime Hours and 10 Non-Prime Hours per week during the Iand 305 hours of ice time during the Off Season and 13 Prime Hours durinFloor Season.

    7.0 OTHER ARENAS AND DEFAULT

    7.1 Township Arenas. The Township agrees not to construct any new Munidry floor arena facilities either alone or in joint venture, partnership or othdevelopment arrangement with any other party:

    (a) in the area North of the Langley Bypass/Highway No. 10 corridorTerm of the agreement and any renewals or extensions thereof;

    (b) in the area North of the No. 1 Highway for the term of the Agreemany renewals or extensions thereof;

    (c) if the Township requires additional ice time it will notify the Contrattempt to obtain the additional ice time at the Facility. If the Concannot provide the additional ice time, this Section 7.1 is cancelledthat following such cancellation the hours of ice time rented by theTownship at the Facility, for the remainder of the Term and any renprovided for in this Agreement, cannot be reduced to a level less thhours of ice time rented by the Township at the Facility in the Ice prior to the cancellation of Section 7.1.

    7.2 Default. The occurrence of any one or more of the following events consdefault (a Default) by the Contractor under this Agreement:

    (a)

    if an order is made or a resolution passed for the winding-up of theContractor or a petition is filed for the winding up of the Contractounless the same is being contested in good faith and, in connectiontherewith, dismissed, stayed, or withdrawn within 60 days of the Creceiving notice or otherwise having knowledge of the institution t

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    SCHEDULE A RATES*

    Definitions

    1. Prime Hours shall be defined as Ice Season and Dry Floor Season hours from:a) 3 pm to 11 pm Monday to Friday; and,b) 6am to 10pm Saturday and Sunday.

    2. Non-Prime Hours shall be defined as Ice Season and Dry Floor Season hours fra) 5am to 3pm Monday to Friday; and,b) 5am to 6am Saturday and Sunday

    3. Off-Season Hours shall be defined as those rental hours that are not during Ice SDry Floor Season as defined in Section 1.1

    Total Rental Rates

    2009/2010 2010/2011 2011/2012 2012/2013 2Ice Season Prime $295.00 $297.95 $306.89 $319.16 $Ice Season Non Prime $170.00 $171.70 $176.85 $183.93 $Off Season $210.00 $212.10 $218.46 $227.20 $2Dry Floor Prime $133.00 $134.33 $138.36 $143.90 $Dry Floor Non Prime $110.00 $111.10 $114.43 $119.01 $

    Township Portion

    2009/2010 2010/2011 2011/2012 2012/2013

    Ice Season Prime $176.28 $178.04 $183.38 $190.72 $1Ice Season Non Prime $ 99.25 $100.24 $103.25 $107.38 $1Off Season $100.00 $101.00 $104.03 $108.19 $1Dry Floor Prime $ 95.67 $ 96.63 $ 99.53 $103.51 $1Dry Floor Non Prime $ 84.83 $ 85.68 $ 88.25 $ 91.78 $

    User Group Portion

    2009/2010 2010/2011 2011/2012 2012/2013 20

    Ice Season Prime $118.72 $119.91 $123.50 $128.44 $1

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    SCHEDULE B HOURS OF USE

    Range of Dry Floor Hours of Use (as per Section 3.4):

    Minimum of 13 hours within:

    Monday to Friday 5:00 pm - 10:30 pmSaturday, Sunday 8:00 am 10:00 pm

    Note: The Dry Floor Season is a 10 week period of time as defined in Section 1.1(f)

    Range of Ice Season Hours of Use (as per Section 3.3):

    Minimum of 105 hours within:

    Total

    Monday to Friday 5:00 am 3:30 pm 10 hours Non-Prime3:30 pm 10:30 pm 50 hours Prime

    Saturday & Sunday 6:00 am 10:30 pm 45 hours Prime

    10 Non-Prime95 Prime

    105 Total

    Note: The Ice Season is a 26 week period of time as defined in Section 1.1(e).

    Range of Off-Season Hours of Use (as per Section 3.3):

    Monday to Friday 5:00 pm - 10:30 pmSaturday, Sunday 6:00 am 10:00 pm

    Note: Off-Season Hours are those parts of the Season that are not considered Ice Season ain Section 1.1(e)c).

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    SCHEDULE C CONTRACT FEE PAYMENT SCHEDULE

    Township Advance Payment Schedule:

    September 1, 2009 $168,051.23November 1, 2009 $168,051.23 January 21, 2010 $168,051.23

    September 1, 2010 $169,731.75November 1, 2010 $169,731.75 January 21, 2011 $169,731.75

    September 1, 2011 $174,823.70November 1, 2011 $174,823.70 January 21, 2012 $174,823.70

    September 1, 2012 $181,816.65November 1, 2012 $181,816.65 January 21, 2013 $181,816.65

    September 1, 2013 $189,089.31November 1, 2013 $189,089.31 January 1, 2014 $189,089.31

    Total Fee Payment MinimumIncludes Township Portion + Minimum User Group Portion

    2009 Budget Year: $810,722.102010 Budget Year: $861,051.392011 Budget Year: $883,521.90

    2012 Budget Year: $917,165.462013 Budget Year: $953,852.08

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    SCHEDULE D RIGHT OF FIRST REFUSAL

    THIS AGREEMENT is dated for reference the _____ day of _____________, 199_.

    BETWEEN: SPORTSPLEX MANAGEMENT LTD. 20165 91A Avenue, Langley, British Columbia, V1M 3A2

    [all registered and beneficial owners to be set out as separate parties this Agreement]

    (the Grantor)

    AND: THE CORPORATION OF THE TOWNSHIP OF LANGLEY,20338 65 Avenue, Langley, British Columbia, V2Y 3J1

    (the Grantee)

    WHEREAS the Grantor and the Grantee have entered into an agreement for a term of ___(the Term) regarding real property known as _____(the Lands) and, as part of that agthe Grantor has also agreed to grant to the Grantee this right of first refusal to purchase theon the conditions as set out below.

    WITNESS that in consideration of the mutual covenants herein contained and the sum of ($10.00) now paid by the Grantee to the Grantor and other good and valuable consideratioreceipt and sufficiency whereof is by the Grantor hereby acknowledged), the parties agreefollows:

    1. For the purposes of this Agreement the following definitions apply:

    (a) an Offer is a bona fide offer to purchase the Lands that is: in writing, sian Outside Offeror and in a form legally enforceable against the Outside Oand subject to no conditions other than a condition that any prior registereof first refusal not be exercised; and

    (b) an Outside Offeror is a prospective purchaser who deals at Arms Lengtterm is defined in the Income Tax Act (1999)) with the Grantor.

    2. If the Grantor receives an Offer which the Grantor is willing to accept, then the Grshall immediately deliver a written notice (the Notice) to the Grantee that such O

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    notice (the Acceptance) that the Grantee wishes to purchase the Lands on the terforth in the Offer.

    5. Upon delivery to the Grantor of the Acceptance, a binding contract of purchase anthe Lands shall be formed between the Grantee and the Grantor, which contract shcompleted in the manner provided in such Offer as if the Grantee were the Outsideprovided that if the closing date specified in the Offer is less than 30 days after theDate then the closing date for the contract between the Grantor and the Grantee wdays after the Expiry Date.

    6. If the Grantee does not deliver the Acceptance to the Grantor on or before the Expthen the Grantor shall be entitled to compete the sale to the Outside offeror for theand in accordance with the terms set forth in such Offer, and at the request of the Gthe Grantee shall execute and deliver to the Grantor a discharge of this Agreementclosing of such sale; provided, however, that if such sale to the Outside Offeror is completed, then any subsequent sale by the Grantor to any person may only be mathe requirements of this agreement shall survive and continue in full force and effe

    7. This agreement expires at the end of the Term. Time is of the essence of this Agre

    8. Any notice to be given by one party to the other party hereunder may be deliveredaddressee at the address listed above, or to such other address as either party maydesignate to the other by notice in writing; and any notice, direction or other instruaforesaid, shall be deemed to have been given or made on the date of which it wasdelivered. No notice may be given by mail.

    9. The Agreement shall be governed by the laws of the Province of British Columbia

    10. The Agreement shall run with the Lands and shall enure to the benefit of and be biupon the respective successors and assigns of the parties hereto.

    END OF DOCUMENT

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