Item - 2015.EX10.8

The Executive Committee recommends that:

1.  City Council approve the proposed change of use for Block 3 of Dockside in the East Bayfront, from a student residence to an academic building and child care facility.

2.  City Council direct the Deputy City Manager, Cluster B to review the Block 3 proposal by George Brown College, submitted through Waterfront Toronto, and report back to Executive Committee and Council with recommendations on terms for either a long-term ground lease or fee simple conveyance.

George Brown College (GBC) has, for the past five years, held an option to lease Block 3 of Dockside in the East Bayfront, a 0.23 ha (0.6 acre) City-owned land parcel immediately north of the College's existing academic building (see Attachment 1). The option will expire on December 31, 2015.  The option, if exercised, would allow GBC to construct and operate a student residence building on Block 3 under a 99 year ground lease. 

At this time, the College is no longer interested in pursuing a student residence on the lands; instead, GBC is interested in developing a second academic building focused on innovation and technology. A child care centre, operated as a training facility for GBC's Early Childhood Education students, would also be accommodated. The proposed changes of use are considered acceptable to City staff and to Waterfront Toronto (WT), the City's development partner in the East Bayfront.  

In the absence of Provincial government funding for capital expansion, GBC recently decided to use its own financial resources to develop Block 3.  GBC has concerns with proceeding on the basis of a ground lease and has advised that a fee simple conveyance is needed in order to make the proposed academic building viable.  Council's approved principles for the management of City-owned waterfront lands include making every reasonable effort to retain City ownership of non-residential developments where market conditions permit; however, in an effort to make sure that GBC is successful in developing Block 3, staff are of the view that GBC's request for fee simple conveyance should be considered as an option.

This report seeks authorization for City staff to review the Block 3 academic building proposal brought forward by GBC through WT, including the College's request for fee simple conveyance.  Once this review has been concluded, staff would report back to Executive Committee and Council with a recommendation for either a long-term ground lease or sale, with the associated terms. The report would come forward in Q2 of 2016.