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Sicamous council approved of the lease agreement for new childcare operator

Kids Kingdom Childcare to operate at 502 Cedar St. at $1 annual rent until renovations complete
Kids Kingdom Childcare Society will sign a lease with the District of Sicamous to take over the childcare facility at 502 Cedar St., beginning April 1, 2023. (Black Press file photo)

The District of Sicamous (DOS) is moving forward with a lease to be able to provide families with childcare starting in the spring.

Following the decision to grant the lease for the childcare facility located at 502 Cedar St. to Amar and Kiran Kallu from the Lower Mainland, the DOS has finalized a lease agreement which takes effect April 1, 2023.

READ MORE: New operators awarded lease for Sicamous childcare centre

Kids Kingdom Childcare Society will be the organization operating the facility. The terms of the lease are similar to the agreement between the DOS and Eagle Valley Community Support Society, which was the previous operator, said chief administrative officer Kelly Bennett.

The lease has an initial term of five years, with two additional five-year renewal terms, for 15 years total.

The facility will have an annual rental fee of one dollar until 18 months past the facility’s renovation, at which point the district can charge an annual rent of $18,480.

Rent will also be renegotiable once each renewal term is up.

The rent and utilities are low for the first two years to ensure the community has a successful childcare centre, reads Bennett’s report to council.

District staff will look at the business’ financial records before raising the rent, giving it time to generate income and be sustainable because the district wants it to be a viable, successful business, said Bennett.

Either party, the DOS or Kids Kingdom Childcare, can end the tenancy with 90 days’ written notice, and the tenant has the first right of refusal on the building if the district decided to sell it during the lease.

The district has never received rent from the facility and so there will be no financial implications to start with, and in future years the DOS could receive rent and have utilities paid for, ultimately reducing taxpayers’ funding of the facility.

Deputy corporate officer Sarah Kyllo also mentioned Amar grew up in Sicamous and went to school with her, and Mayor Colleen Anderson noted the local connection was great to see.

The lease agreement was unanimously approved by council.

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Rebecca Willson

About the Author: Rebecca Willson

I took my first step into the journalism industry in November 2022 when I moved to Salmon Arm to work for the Observer and Eagle Valley News. I graduated with a journalism degree in December 2021 from MacEwan University in Edmonton.
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