Item - 2015.EX9.6

The Executive Committee recommends that:

1.  City Council endorse the project scope for the George Street Revitalization as outlined in Attachment 1 to the report (October 5, 2015) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, and the Seaton House transition plan Option Two as outlined in Attachment 3 to the report (October 5, 2015) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, and forward them to the City Manager for consideration with other City priorities as part of the 2016 budget process.

2.  City Council authorize the Chief Corporate Officer to retain procurement option consultants at an estimated cost of $100,000 (net of all taxes and charges) to conduct an analysis of project procurement and delivery options.

3.  City Council direct the Chief Corporate Officer to report back by June 2016 on the recommended delivery model, the implementation funding needed and the resulting refined capital cost estimates for the George Street Revitalization as outlined in Attachment 1 and the Seaton House transition plan Option Two as outlined in Attachment 3 to the report (October 5, 2015) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer.

4.  City Council authorize the Chief Corporate Officer to enter into an amending agreement with PRISM Partners Incorporated, to extend the term and add additional services for Project Stage One (i.e. due diligence stage) to the current agreement, subject to the following conditions:

a.  that the agreement include an extension term of October 1, 2015 to February 29, 2016;

b.  that those additional services as generally set out in Attachment 2 to the report (October 5, 2015) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, which can be performed within the timeframe indicated in Recommendation 4a above, be added to the current agreement upon such other terms and conditions as satisfactory to the Chief Corporate Officer;

c.  that the total cost of the additional services for October 1, 2015 to February 29, 2016 is $244,444 (net of all taxes and charges), increasing the value of the contract from $618,000 (net of all taxes and charges) to $862,444 (net of all taxes and charges); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Office and in a form satisfactory to the City Solicitor.

5.  City Council authorize the Chief Corporate Officer to enter into an amending agreement with Montgomery Sisam Architects Inc., to extend the term and add additional services for Project Stage One (i.e. due diligence stage) to the current agreement, subject to the following conditions:

a.  that the agreement include an extension term of October 1, 2015 to February 29, 2016;

b.  that those additional services as generally set out in Attachment 2 to the report (October 5, 2015) from the Deputy City Manager, Cluster A and the Deputy City Manager and Chief Financial Officer, which can be performed within the timeframe indicated in Recommendation 5a above, be added to the current agreement upon such other terms and conditions as satisfactory to the Chief Corporate Officer;

c.  that the total cost of the additional services for October 1, 2015 to February 29, 2016 is $500,000 (net of all taxes and charges), increasing the total value of the contract from $1,095,650 (net of all taxes and charges) to $1,595,650 (net of all taxes and charges); and

d.  that the agreement be on terms and conditions satisfactory to the Chief Corporate Office and in a form satisfactory to the City Solicitor.

6.  Subject to approval of the project as part of the City's annual budget processes, City Council authorize the General Manager, Long-Term Care Homes and Services to enter into an agreement with the Ministry of Health and Long-Term Care for the development of a long-term care home as part of the George Street Revitalization.

7.  Subject to approval of the project as part of the City's annual budget processes, City Council authorize the General Manager, Long-Term Care Homes and Services to reduce the number of preferred accommodation beds at the George Street Revitalization long-term care home and apply for the provincial basic accommodation premium.

8.  City Council authorize the Chief Corporate Officer to negotiate with the Province of Ontario for the terms of possible rights to acquire the property and buildings at 311 Jarvis Street and 354 George Street ("Family Court Buildings and Detention Centre") for the construction of affordable housing and other uses, to report back on negotiations, and to explore with Infrastructure Ontario a partnership for project management services under an Alternative Financing and Procurement delivery model for those lands.

9.  City Council direct the General Manager, Long-Term Care Homes and Services and the General Manager, Shelter, Support and Housing Administration to continue working with both the Ministry of Municipal Affairs and Housing (MMAH) and the Ministry of Health and Long-Term Care (MOHLTC) to enable the George Street Revitalization model to be implemented and to maximize opportunities for increased funding and coordination of services for vulnerable people with complex health care needs.

In July 2013, City Council approved in principle the revitalization of George Street through the co-location of long-term care, shelter services and a community service hub in a new facility to replace Seaton House. Staff were authorized to undertake the necessary due diligence required to proceed with the recommended option and to report back in 2015 with more detailed design, related costs and financing plans, and a transition plan for Seaton House clients.

This report outlines the due diligence and stakeholder and community engagement that has been completed during the past two years. That work has culminated in the proposed project outlined in this report: development of a 600,000 square foot multi-purpose facility that will provide a continuum of care for vulnerable men and women, with strong links to the local community. The project, which is intended to be a catalyst to the revitalization of George Street and the adjacent Garden District neighbourhood, includes:

- Demolition of the existing Seaton House;

- New construction, integrating the adjacent designated heritage buildings, to accommodate:

  - a 100 bed emergency shelter program;

  - a 378 bed long-term care home program;

  - a 130 bed transitional assisted living program;

  - 21 units of affordable housing with supports; and

  - a community service hub;

- Transition plan for Seaton House residents that includes the acquisition of properties offsite for the temporary accommodation of capacity that will be replaced in the new George Street facility, and permanent replacement of the remaining capacity in new facilities and supportive housing units.

It is recommended that City Council endorse the project and refer it to the 2016 Capital Budget process.  It is further recommended that City Council authorize staff to retain consultants to conduct an analysis of project procurement and delivery options and report back to Council through Executive Committee by June 2016 with a recommended delivery model.  

The recommended project supports several Council priorities and strategic directions including those set out in the Strategic Plan, Housing Opportunities Toronto (HOT) 10 year plan, Toronto Poverty Reduction Strategy, Toronto Seniors Strategy, Housing Stability Service Plan, Downtown East Revitalization Strategy and Toronto Green Standard. It also provides an opportunity to address three concurrent needs:

- Seaton House, with its aging physical plant and an environment that does not meet the needs of vulnerable men experiencing homelessness, is in critical need of redevelopment;

- The City must redevelop designated long-term care homes to ensure compliance with the provincial government's updated mandatory design standards; and

- The combination of abandoned buildings and illicit activities on George Street has resulted in an air of neglect and has raised concerns for community safety.