Item - 2011.EX9.16

The Executive Committee recommends that:

1.         City Council authorize the City to enter into an Offer to Sell with the Toronto District School Board to acquire approximately 5.2 acres of the northerly portion of the property municipally known as 1251 Bridletowne Circle at a purchase price of $5,742,000 plus applicable taxes and registration fees, estimated at $200,000.00 substantially on the terms outlined in Appendix "A" of the report (September 1, 2011) from the Executive Director, Social Development, Finance and Administration, and on such other terms and conditions as may be acceptable to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.

2.         City Council direct that the 2011 Approved Capital Budget for Real Estate Services be increased by $5.942 million gross, $0 net, funded from the Land Acquisition Reserve Fund (LARF) (XR-1012) for the acquisition of the Property.

3.         City Council severally authorize the Chief Corporate Officer and the Director of Real Estate Services, to execute the Offer to Sell on behalf of the City.

4.        City Council authorize the Chief Corporate Officer to (i) declare the Property as surplus to the City's needs, and (ii) take all necessary steps to comply with the City's real estate disposal process, as set out in Chapter 213 of the City of Toronto Municipal Code.

5.         City Council authorize the City Manager or his designate to negotiate and to execute on behalf of the City a servicing agreement and ancillary documentation (the Servicing Agreement) with the YMCA of Greater Toronto for the operation of the facility based substantially on the terms and conditions sent out in Appendix "C" of the report (September 1, 2011) from the Executive Director, Social Development, Finance and Administration, and on other terms and conditions deemed appropriate by the City Manager, in a form acceptable to the City Solicitor.

6.         City Council authorize the Chief Corporate Officer and/or Director of Real Estate Services to negotiate and execute on behalf of the City an agreement to transfer the Property to the YMCA, for no consideration, as a grant and ancillary documentation (The Grant Agreement) on execution of the Servicing Agreement, based substantially on the terms and conditions set out in Appendix "D" of the report (September 1, 2011) from the Executive Director, Social Development, Finance and Administration, and on other terms and conditions deemed appropriate by the Chief Corporate Officer and/or Director of Real Estate Services, in a form acceptable to the City Solicitor.

7.         City Council authorize the City Solicitor to complete the transactions contemplated in the Offer to Sell (as set out in Recommendation 1 above), Servicing Agreement (as set out in Recommendation 5 above) and Grant Agreement (as set out in Recommendation 6 above) on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as she considers reasonable.

8.         City Council confirm that the transaction contemplated by the Grant Agreement as set out in Recommendation 6 above is for the purposes of a community hub for the Steeles-L'Amoreaux neighbourhood, and deem this to be in the interest of the City of Toronto.

9.         City Council authorize and direct the appropriate City officials to take the necessary action to give effect thereto.

The Executive Committee requested the City Manager to report directly to Council on what terms and conditions will be in the Major Terms and Conditions of the Grant Agreement between the City of Toronto and the Y.M.C.A. to ensure that the Agency Rental Space and the Community Hub remain available for these agencies after the initial 20 year period at occupancy costs that will permit their continued used of this space.

The purpose of this report is to obtain authority to acquire the northerly portion of 1251 Bridletowne Circle (the Property) from the Toronto Lands Corporation (TLC) for the development of a multi-service community hub in the underserved neighbourhood of Steeles-L'Amoreaux in northern Scarborough. The subject Property is to the north of the Timothy Eaton Business and Technical Institute which the Toronto District School Board declared surplus to its needs in August 2010.

This report recommends that the City acquire 5.22 acres of land as part of a Public Sector-Community Sector Initiative between the City of Toronto, the YMCA of Greater Toronto (YMCA) and United Way Toronto. The City would then declare the Property surplus transfers the land to the YMCA as a grant to purpose-build an approximate 100,000 square foot multi-service facility that will house (1) the YMCA (2) rental space for community-based agencies that provide social services (Agency Rental Space), and (3) rental space to The Scarborough Hospital for health services. The YMCA will construct, own, and operate this new facility. In exchange for the land, as property owner and project manager for the new facility, the YMCA will direct $2 million (approximately one-third of the land value) towards construction of the Agency Rental Space.  The YMCA will recover this amount in rent from The Scarborough Hospital for the portion of the land the Hospital will occupy. As part of their Community Hub Strategy, United Way Toronto will contribute an additional $3 million towards the construction of the Agency Rental Space pending the United Way's final internal review and approval.

As the landlord, the YMCA will ensure that the the Agency Rental Space is available for 20 years. The square footage and build out of the Agency Rental Space will commensurate with the value of the City and United Way's combined contributions.

This new Public Sector-Community Sector collaboration will result in the creation of a large new community infrastructure in Scarborough. The cost of the Property is $5.942 million which was previously approved by City Council. Having the YMCA act as the project lead eliminates construction and operating costs for the City.