Item - 2013.GM26.5
Tracking Status
- City Council adopted this item on December 16, 17 and 18, 2013 without amendments.
- This item was considered by Government Management Committee on November 21, 2013 and was adopted with amendments. It will be considered by City Council on December 16, 17 and 18, 2013.
GM26.5 - Union Station Revitalization Project - Status Update
- Decision Type:
- ACTION
- Status:
- Adopted
- Ward:
- 28 - Toronto Centre-Rosedale
City Council Decision
City Council on December 16, 17 and 18, 2013, adopted the following:
1. City Council authorize the Chief Corporate Officer to implement the ongoing and future construction work either though a continuation or combination of the current contractual arrangement of the retained Construction Manager/General Contractor or other available construction delivery mechanisms currently approved under current City Council procurement policies and procedures.
2. City Council authorize the Chief Corporate Officer to amend the following contracts, retainers and agreements (excluding all recoverable HST), in accordance with the details as specified below, subject to additional budget approval set out in Recommendation No. 1 of the reports (October 1, 2013 and October 31, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer:
a. NORR Limited, Architects and Engineers (Purchase Order No. 6030175), in the additional amount of up to $2,000,000.00 (net of all applicable taxes), revising the current contract value to $41,000,000.00 (net of all applicable taxes) to provide the required additional design and construction services associated with third party items;
b. Osler, Hoskin and Harcourt LLP in the additional amount of up to $150,000.00 (net of all applicable taxes), revising the current contract value to $950,000.00 (net of all applicable taxes) to continue to provide construction law services and expertise through the construction duration;
c. Davies Ward Phillips and Vineberg LLP (Purchase Order No. 6025203), in the additional amount of up to $500,000.00 (net of all applicable taxes), revising the current contract value to $2,870,000.00 (net of all applicable taxes) to provide real estate legal advice and expertise for the on-going agreement updates associated with the revitalization project, and
d. PWC (Purchase Order No. 6037971) in the additional amount of $600,000.00 (net of all applicable taxes), revising the current contract value to $1,128,000.00 (net of all applicable taxes) to provide on-going real estate support and financial advisory assistance associated with the revitalization project.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63324.pdf
(October 1, 2013) Appendix A - Project Financial Report
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63326.pdf
(October 1, 2013) Appendix B - Forecast Summary of Project Cost Changes
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63327.pdf
(October 1, 2013) Appendix C - Union Station Statement of Continuity
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63325.pdf
(October 1, 2013) Appendix C-1 - Union Station Cash Flow Forecast
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63328.pdf
(October 15, 2013) Presentation from the Chief Corporate Officer on the Union Station Revitalization Project Update
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63329.pdf
Communications (Committee)
https://www.toronto.ca/legdocs/mmis/2013/gm/comm/communicationfile-40826.pdf
Motions (City Council)
Vote (Adopt Item) Dec-16-2013 10:13 AM
| Result: Carried | Majority Required - GM26.5 - Adopt the item |
|---|---|
| Total members that voted Yes: 34 | Members that voted Yes are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Gloria Lindsay Luby, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, David Shiner, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 2 | Members that voted No are Rob Ford, Giorgio Mammoliti |
| Total members that were Absent: 9 | Members that were absent are Maria Augimeri, Vincent Crisanti, John Filion, Paula Fletcher, Doug Ford, Pam McConnell, Anthony Perruzza, Jaye Robinson, Karen Stintz |
5a - Union Station Revitalization Project - Supplementary Report - Alternative Financing Options
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63526.pdf
GM26.5 - Union Station Revitalization Project - Status Update
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 28 - Toronto Centre-Rosedale
Committee Recommendations
The Government Management Committee recommends that:
1. City Council authorize the Chief Corporate Officer to implement the ongoing and future construction work either though a continuation or combination of the current contractual arrangement of the retained Construction Manager/General Contractor or other available construction delivery mechanisms currently approved under current City Council procurement policies and procedures.
2. City Council authorize the Chief Corporate Officer to amend the following contracts, retainers and agreements (excluding all recoverable HST), in accordance with the details as specified below, subject to additional budget approval set out in Recommendation No. 1 of the reports (October 1, 2013 and October 31, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer:
a. NORR Limited, Architects and Engineers (Purchase Order No. 6030175), in the additional amount of up to $2,000,000.00 (net of all applicable taxes), revising the current contract value to $41,000,000.00 (net of all applicable taxes) to provide the required additional design and construction services associated with third party items;
b. Osler, Hoskin and Harcourt LLP in the additional amount of up to $150,000.00 (net of all applicable taxes), revising the current contract value to $950,000.00 (net of all applicable taxes) to continue to provide construction law services and expertise through the construction duration;
c. Davies Ward Phillips and Vineberg LLP (Purchase Order No. 6025203), in the additional amount of up to $500,000.00 (net of all applicable taxes), revising the current contract value to $2,870,000.00 (net of all applicable taxes) to provide real estate legal advice and expertise for the on-going agreement updates associated with the revitalization project, and
d. PWC (Purchase Order No. 6037971) in the additional amount of $600,000.00 (net of all applicable taxes), revising the current contract value to $1,128,000.00 (net of all applicable taxes) to provide on-going real estate support and financial advisory assistance associated with the revitalization project.
Decision Advice and Other Information
The Government Management Committee
1. Deferred consideration of the following recommendation in the reports (October 1, 2013 and October 31, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer until its January 6, 2014 meeting:
“1. City Council refer consideration of the proposed revised financial plan incorporating $60 million increase to recoverable debt and $20 million from the Union Station Reserve Fund (XR2501) to address the need for additional funding of $80 million to the Budget Committee as part of the 2014 Capital Budget Process.”
2. Deferred consideration of the following recommendation in the report (October 31, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer until its January 6, 2014 meeting:
“2. City Council authorize the Deputy City Manager and Chief Financial Officer to reduce the City's use of recoverable debt on the Union Station capital project if new sources of funding from Transport Canada and/or Metrolinx become available resulting from requests of these funding partners to share in the project cost increases."
3. Requested the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer to provide a report to the January 6, 2014 Government Management Committee meeting with an update on the responses from the provincial and federal governments.
Origin
Summary
The purpose of this report is to provide an update on the City of Toronto's Union Station Revitalization Project, including a status report on the construction progress and an update on the project's funding and revenue forecasts. Budget costs are forecasted to be higher by $80 million or about 11 percent. However, self-sustaining project revenues (i.e. recoverable debt) and contribution from the Union Station Reserve Fund will be sufficient to offset the additional costs with no new net impact on taxes.
Union Station is a National Historic site and one of the finest examples of Beaux – Art Architecture in Canada. As part of the sale in 2000 from the Toronto Terminals Railway Company Limited to the City of Toronto, the City was required to enter into a Heritage Easement Agreement with Parks Canada which governs all the restoration work at the station. Union Station opened in 1927 and has often been characterised as a grand urban gateway, and was intended to transform the town of York into a world class metropolis. Today the City of Toronto is setting an example of restoration and revitalization of this historic site, once completed the station will act as a gateway to the waterfront and the City.
The Union Station Revitalization Project is now in its fourth year of a 6 year construction schedule. It is one of the most complicated projects in the country, "wedged" into one of the most congested parts of the City and being undertaken while the TTC funded subway platform reconstruction is underway as well as two other major Metrolinx funded infrastructure projects: the GO Transit Atrium & Track Signalling/Repair, and the construction of the Union Pearson Express terminal station. The total re-investment and re-vitalization by all levels of government and organizations is estimated at approximately $1.5 billion.
The Union Station Revitalization Project is on time for completion in 2016. Union Station is the largest transportation hub in the country handling 65 million passengers per year which is expected to grow to 130 million passengers per year by 2021. This is by far the busiest transportation hub in the country. Without the revitalization of the Station and the capacity the City is adding through concourse construction, the City would not be able to handle these volumes and arguably would be limiting the City's overall potential to grow. This project paired with Metrolinx transit projects are an investment in the City's infrastructure that will promote transit oriented growth in the long term.
As the project has progressed, it is becoming evident from discussions with the Head Lessee that the Station will also act as a destination for culture, entertainment and dining experiences. Union Station will not just be a place that people pass through on their way to work or back, it will become a destination in itself. Union Station will also link the communities north of the station to communities now being developed to the south and will in essence act as a City/community gathering place where "the best of Toronto" can be experienced. Current forecasts indicate an additional $80 million is required to complete the project. This additional requirement can be funded from self-sustaining recoverable debt (primarily financed through rental income). It is recommended that work continue to deliver the essential scope of the project to implement the Council, Partners and Stakeholders envisioned iconic centrepiece of the downtown core and transit network.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63324.pdf
(October 1, 2013) Appendix A - Project Financial Report
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63326.pdf
(October 1, 2013) Appendix B - Forecast Summary of Project Cost Changes
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63327.pdf
(October 1, 2013) Appendix C - Union Station Statement of Continuity
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63325.pdf
(October 1, 2013) Appendix C-1 - Union Station Cash Flow Forecast
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63328.pdf
(October 15, 2013) Presentation from the Chief Corporate Officer on the Union Station Revitalization Project Update
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63329.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2013/gm/comm/communicationfile-40826.pdf
Motions
That the Government Management Committee
1. Defer consideration of the following recommendations contained in the staff reports until its January 6, 2014 meeting:
a. Recommendation 1 in the reports (October 1, 2013 and October 31, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer, which reads:
“1. City Council refer consideration of the proposed revised financial plan incorporating $60 million increase to recoverable debt and $20 million from the Union Station Reserve Fund (XR2501) to address the need for additional funding of $80 million to the Budget Committee as part of the 2014 Capital Budget Process.”; and
b. Recommendation 2 in the report (October 31, 2013) from the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer, which reads:
“2. City Council authorize the Deputy City Manager and Chief Financial Officer to reduce the City's use of recoverable debt on the Union Station capital project if new sources of funding from Transport Canada and/or Metrolinx become available resulting from requests of these funding partners to share in the project cost increases.
2. Request the Deputy City Manager and Chief Financial Officer and the Chief Corporate Officer to provide a report to the January 6, 2014 Government Management Committee meeting with an update on the responses from the provincial and federal governments.
5a - Union Station Revitalization Project - Supplementary Report - Alternative Financing Options
Origin
Summary
The purpose of this report is to outline additional incremental financing options to address the forecasted $80 million increase in Union Station capital project costs. To date proposed financing options have included increasing recoverable debt by $60 million based on a revised revenue forecast of commercial rents from the Head Lessee and drawing from the Union Station Reserve (XR2501) for the $20 million balance. The Union Station reserve fund consists of net rental revenues from operating Union Station that have accumulated over the years, with no tax funding contributions.
Alternative funding options include (1) seeking funding support from Transport Canada and Metrolinx, our funding partners, and (2) accessing funding from the recent development charge allocations for the Union Station location.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/gm/bgrd/backgroundfile-63526.pdf