Item - 2009.EX35.9
Tracking Status
- City Council adopted this item on October 26, 2009 without amendments and without debate.
- This item was considered by the Executive Committee on October 5, 2009 and adopted without amendment. It will be considered by City Council on October 26, 2009.
EX35.9 - Revised Ground Lease - George Brown College Waterfront Campus - East Bayfront
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Ward:
- 28 - Toronto Centre-Rosedale
City Council Decision
City Council on October 26 and 27, 2009, adopted the following:
1. City Council approve the revised major lease and option to lease terms (the “Revised Terms”) substantially as provided in Attachment 4 of the report (September 25, 2009) from the Deputy City Manager, Cluster B.
2. City Council grant authority for the City, as Landlord, to enter into a long term lease agreement (the “College Lease”) with The George Brown College of Applied Arts and Technology (the “Tenant”) for that part of the East Bayfront (EBF) Lands shown as Blocks 4 and 5 on Attachment 2 of the report (September 25, 2009) from the Deputy City Manager, Cluster B, (the “College Lease Lands”) on terms and conditions not materially inconsistent with the major terms and conditions described in the Revised Terms, contained in Attachment 4 of the report (September 25, 2009) from the Deputy City Manager, Cluster B., together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor, subject to Part 6 below.
3. City Council grant authority for the City, as Grantor, to enter into an option to lease agreement (the “Option Agreement”) with the Tenant for that part of the EBF Lands as shown as Block 3 on Attachment 2 of the report (September 25, 2009) from the Deputy City Manager, Cluster B. (the “Block 3 Lands”) on terms and conditions not materially inconsistent with the major terms and conditions described in the Revised Terms, together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
4. City Council grant authority for the City, as Licensor, to enter into a license agreement or agreements (the “License Agreements”) with the Tenant for any periods of time and for any consideration, including nominal consideration, with respect to the College Lease Lands, the Block 3 Lands, or, with Waterfront Toronto's approval, any other portion of the EBF Lands, for the purposes of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purposes deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization, subject to the condition that the Licence Agreement shall prohibit the Tenant from applying for a building permit for any above grade construction until the Tenant has executed and delivered the College Lease (which will be subject to the satisfaction of the requirements of Part 2. of Executive Committee Item No. EX26.15 “Staff Due Diligence Review of the Proposed George Brown College Campus - East Bayfront” previously adopted by Council), all to the satisfaction of the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
5. City Council grant authority for the City, as owner of the dockwall on the EBF Lands, to enter into a tie back and shoring agreement or agreements (the “Tie Back and Shoring Agreements”) with the Tenant, Waterfront Toronto, and TEDCO, or any of them, and to enter into any related or ancillary agreement pertaining to the excavation, shoring, or construction of the College Lease Lands or any EBF Lands and the protection of the dockwall, and to execute any consent or other document, all to the satisfaction of the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
6. All of Parts 2. 3. 4. 5. 7. 8. 9. 10. 11. 12. 15. 16 and 17. of Executive Committee Item No. EX26.15 “Staff Due Diligence Review of the Proposed George Brown College Campus – East Bayfront” previously adopted by Council at its meeting of December 1, 2, and 3, 2008, as shown in Attachment 3 of the report (September 25, 2009) from the Deputy City Manager, Cluster B., are confirmed by Council except that all references to “Lease” shall mean the “College Lease”, the “Leased Lands” shall mean the “College Lease Lands”, and the date of December 31, 2009 shall be extended to “December 31, 2010”.
7. City Council authorize the Deputy City Manager whose responsibilities include Waterfront Revitalization to extend the three year Option Period described in the Revised Terms from time to time as he deems appropriate, and on such terms and conditions as he deems appropriate, provided the total Option Period shall not exceed a period of 5 years.
8. If the Option under the Option Agreement is exercised, Council grant authority for the City, as Landlord, to enter into a long term lease agreement (the “Block 3 Lease”) with the Tenant substantially on terms and conditions not materially inconsistent with the Revised Terms and the College Lease, together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
9. If the Block 3 Lease is entered into, all of Parts 2. 3. 4. 5. 8. 9. 10. 11 and 12. of the Executive Committee Item No. EX26.15 “Staff Due Diligence Review of the Proposed George Brown College Campus – East Bayfront” previously adopted by Council at its meeting of December 1, 2, and 3, 2008 shall apply to the Block 3 Lease and the Block 3 Lands in the same manner as they apply to the College Lease and the College Lease Lands.
10 City Council authorize the public release of the confidential information in Attachment 1 of the report (September 25, 2009) from the Deputy City Manager, Cluster B., upon the completion of the development of the publicly-owned lands in EBF as determined by the Deputy City Manager whose responsibilities include Waterfront Revitalization.
11. City Council direct the Waterfront Project Director, in consultation with the General Manager of Parks, Forestry and Recreation and the Director of the Office of Partnerships, that following negotiations regarding a joint GBC/municipal recreation facility, a report be provided to Council on the results of the negotiations and any agreements deemed necessary at that time.
12. City Council authorize and direct the appropriate City officials to take the necessary action to give effect thereto.
Confidential Attachment 1 to the report (September 25, 2009) from Deputy City Manager Butts remains confidential in its entirety at this time, in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to the security of the property of the municipality or local board. The confidential information will be made public upon the completion of the development of the publicly-owned lands in EBF as determined by the Deputy City Manager whose responsibilities include Waterfront Revitalization.
Confidential Attachment - The security of the property of the municipality or local board
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2009/ex/bgrd/backgroundfile-23755.pdf
EX35.9 - Revised Ground Lease - George Brown College Waterfront Campus - East Bayfront
- Decision Type:
- ACTION
- Status:
- Adopted
- Ward:
- 28 - Toronto Centre-Rosedale
Confidential Attachment - The security of the property of the municipality or local board
Committee Recommendations
The Executive Committee recommends that:
1. Council approve the revised major lease and option to lease terms (the “Revised Terms”) substantially as provided in Attachment 4 of the report (September 25, 2009) from the Deputy City Manager, Cluster B.
2. Council grant authority for the City, as Landlord, to enter into a long term lease agreement (the “College Lease”) with The George Brown College of Applied Arts and Technology (the “Tenant”) for that part of the East Bayfront (EBF) Lands shown as Blocks 4 and 5 on Attachment 2 of the report (September 25, 2009) from the Deputy City Manager, Cluster B, (the “College Lease Lands”) on terms and conditions not materially inconsistent with the major terms and conditions described in the Revised Terms, contained in Attachment 4 of the report (September 25, 2009) from the Deputy City Manager, Cluster B., together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor, subject to Part 6 below.
3. Council grant authority for the City, as Grantor, to enter into an option to lease agreement (the “Option Agreement”) with the Tenant for that part of the EBF Lands as shown as Block 3 on Attachment 2 of the report (September 25, 2009) from the Deputy City Manager, Cluster B. (the “Block 3 Lands”) on terms and conditions not materially inconsistent with the major terms and conditions described in the Revised Terms, together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
4. Council grant authority for the City, as Licensor, to enter into a license agreement or agreements (the “License Agreements”) with the Tenant for any periods of time and for any consideration, including nominal consideration, with respect to the College Lease Lands, the Block 3 Lands, or, with Waterfront Toronto's approval, any other portion of the EBFLands, for the purposes of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purposes deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization, subject to the condition that the Licence Agreement shall prohibit the Tenant from applying for a building permit for any above grade construction until the Tenant has executed and delivered the College Lease (which will be subject to the satisfaction of the requirements of Part 2. of Executive Committee Item No. EX26.15 “Staff Due Diligence Review of the Proposed George Brown College Campus - East Bayfront” previously adopted by Council), all to the satisfaction of the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
5. Council grant authority for the City, as owner of the dockwall on the EBF Lands, to enter into a tie back and shoring agreement or agreements (the “Tie Back and Shoring Agreements”) with the Tenant, Waterfront Toronto, and TEDCO, or any of them, and to enter into any related or ancillary agreement pertaining to the excavation, shoring, or construction of the College Lease Lands or any EBF Lands and the protection of the dockwall, and to execute any consent or other document, all to the satisfaction of the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
6. All of Parts 2. 3. 4. 5. 7. 8. 9. 10. 11. 12. 15. 16 and 17. of Executive Committee Item No. EX26.15 “Staff Due Diligence Review of the Proposed George Brown College Campus – East Bayfront” previously adopted by Council at its meeting of December 1, 2, and 3, 2008, as shown in Attachment 3 of the report (September 25, 2009) from the Deputy City Manager, Cluster B., are confirmed by Council except that all references to “Lease” shall mean the “College Lease”, the “Leased Lands” shall mean the “College Lease Lands”, and the date of December 31, 2009 shall be extended to “December 31, 2010”.
7. Council authorize the Deputy City Manager whose responsibilities include Waterfront Revitalization to extend the three year Option Period described in the Revised Terms from time to time as he deems appropriate, and on such terms and conditions as he deems appropriate, provided the total Option Period shall not exceed a period of 5 years.
8. If the Option under the Option Agreement is exercised, Council grant authority for the City, as Landlord, to enter into a long term lease agreement (the “Block 3 Lease”) with the Tenant substantially on terms and conditions not materially inconsistent with the Revised Terms and the College Lease, together with such other terms and conditions as may be deemed appropriate by the Deputy City Manager whose responsibilities include Waterfront Revitalization in consultation with the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
9. If the Block 3 Lease is entered into, all of Parts 2. 3. 4. 5. 8. 9. 10. 11 and 12. of the Executive Committee Item No. EX26.15 “Staff Due Diligence Review of the Proposed George Brown College Campus – East Bayfront” previously adopted by Council at its meeting of December 1, 2, and 3, 2008 shall apply to the Block 3 Lease and the Block 3 Lands in the same manner as they apply to the College Lease and the College Lease Lands.
10 Council authorize the public release of the confidential information in Attachment 1 of the report (September 25, 2009) from the Deputy City Manager, Cluster B., upon the completion of the development of the publicly-owned lands in EBF as determined by the Deputy City Manager whose responsibilities include Waterfront Revitalization.
11. Council direct the Waterfront Project Director, in consultation with the General Manager of Parks, Forestry and Recreation and the Director of the Office of Partnerships, that following negotiations regarding a joint GBC/municipal recreation facility, a report be provided to Council on the results of the negotiations and any agreements deemed necessary at that time.
12. City Council authorize and direct the appropriate City officials to take the necessary action to give effect thereto.
Decision Advice and Other Information
Mr. John Campbell, President and Chief Executive Officer, Waterfront Toronto, and Ms. Anne Sado, President, George Brown College, gave a presentation to the Executive Committee regarding the Revised Ground Lease - George Brown College Waterfront Campus - East Bayfront.
Origin
Summary
This report recommends revisions to a proposed ground lease transaction between George Brown College (GBC) and the City of Toronto to accommodate development of GBC’s waterfront campus on 0.83 ha (2.04 acres) of City-owned land in the East Bayfront (EBF) in two phases. At its December 1, 2 and 3, 2008 meeting, Council authorized a 103-year lease to GBC for all of Blocks 3, 4 and 5 shown on Figure 1 (Attachment 2). Under the original proposal, Block 3 was intended to house the academic facilities; Block 5 would accommodate a student residence building and recreation centre and Block 4 was a below grade parcel for underground parking.
The revisions addressed in this report are largely prompted by GBC’s phasing and funding requirements. The College recently received an additional $30 M for its waterfront campus through the federal Knowledge Infrastructure Program (KIP) which must be invested by March 31, 20ll. Together with the $61.5 M provincial funding previously secured and its own funds, GBC advises that it has the necessary funds to proceed with construction of the academic facilities, estimated at $175 M, immediately. Whereas the academic building was initially proposed for Block 3, the College now wishes to locate the school on Block 5. Block 5 is larger than Block 3 and more public given its location at the water’s edge.
With the focus on meeting the aggressive timelines associated with the KIP funding, GBC’s priority of late has been on commencing excavation for the academic facility. This has delayed development of the plans for the student residence and recreation centre on Block 3 which will require the creation of a business case and recruitment of a private partner. Accordingly, the College has advised that it will not be proceeding with this phase immediately. Instead, it has requested a three-year option to lease Block 3 with the possibility of two one-year extensions. The College believes this will provide sufficient time to undertake an Alternative Financing Procurement (AFP) process.
Waterfront Toronto (WT) as development lead for EBF and the Waterfront has endorsed the proposed revisions to the ground lease as well as GBC’s revised concept.
Financial Impact
The proposed lease amendments will not have any financial impact on the City during the first twenty-four years of the lease. Waterfront Toronto has indicated that it will sell the rights to the rental revenues received over this initial period to a third party in order to realize an up-front payment that can be used to fund other revitalization activities. This is in accordance with the Memorandum of Understanding negotiated between the City, the Toronto Economic Development Corporation, and Waterfront Toronto, which directs that the revenues derived from the leasing of City lands in the revitalization zone be made available to Waterfront Toronto in order to fund revitalization activities.
The proposed amendments will also not result in any financial impact on the City during the remainder of the lease period as long as George Brown College exercises its option to develop the Block 3 lands. If the option is exercised, the land rents paid to the City by George Brown College for both Phases during this period are to be based on the market value for similar land being applied for a similar use, as per the original lease terms.
If, however, George Brown College chooses not to exercise the option to lease the Block 3 lands, the financial returns the City will experience for these lands, following dissolution of Waterfront Toronto, will depend on what alternative arrangements have been made for these lands.
The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.
Background Information
https://www.toronto.ca/legdocs/mmis/2009/ex/bgrd/backgroundfile-23755.pdf