Item - 2015.GM7.5

Tracking Status

  • City Council adopted this item on November 3, 2015 without amendments.
  • This item was considered by Government Management Committee on October 5, 2015 and was adopted with amendments. It will be considered by City Council on November 3, 2015.

GM7.5 - Old City Hall - Future Tenant Options

Decision Type:
ACTION
Status:
Adopted
Ward:
27 - Toronto Centre-Rosedale

City Council Decision

City Council on November 3 and 4, 2015, adopted the following:

 

1.  City Council amend the Rental Rate in the Major Terms and Conditions for the Lease Extension, set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer by replacing "Base rent of $41.00 per square foot of rentable area" with "Base rent of up to $45.00 per square foot of rentable area."
 

2.  City Council authorize a Lease Extension and Amending Agreement with Infrastructure Ontario, acting on behalf of Her Majesty the Queen in Right of Ontario as represented by the Minister of Economic Development, Employment and Infrastructure (the "Tenant"), for the space currently leased at 60 Queen Street West, (the "Premises"),  for a five (5) year extension term commencing on January 1, 2017, and expiring on December 31, 2021, substantially on the terms and conditions as set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer, as amended by Part 1 above, and on such other or revised terms and conditions acceptable to the Chief Corporate Officer or designate, and in a form and content acceptable to the City Solicitor.

 

3.  City Council authorize the Chief Corporate Officer to administer and manage the Lease Extension Agreement, including the provision of any consents, approvals, notices and notices of termination, provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

 

4.  City Council direct that Notice be given to the Province of Ontario that the lease of Old City Hall will not be extended or renewed beyond December 31, 2021.

 

5.  City Council direct the Chief Corporate Officer, prior to discussions with future potential tenants and/or occupants of Old City Hall, and in consultation with Economic Development and Culture, Heritage Toronto and Heritage Preservation Services, to:

 

a.  undertake a feasibility study for museums and complementary ancillary public uses;

 

b.  undertake a public consultation process including a charrette to document feedback on potential public uses for Old City Hall including a museum;

 

c.  develop a proposed design process; and

 

d.  report back to the Government Management Committee within two years on the results of the process.

Background Information (Committee)

(September 21, 2015) Report and Appendix A from the Chief Corporate Officer on Old City Hall - Future Tenant Options
https://www.toronto.ca/legdocs/mmis/2015/gm/bgrd/backgroundfile-84009.pdf

Communications (Committee)

(October 4, 2015) Letter from Councillor Josh Matlow, Ward 22 - St Paul's (GM.New.GM7.5.1)
https://www.toronto.ca/legdocs/mmis/2015/gm/comm/communicationfile-56531.pdf
(October 4, 2015) E-mail from Linda Makarchuk (GM.New.GM7.5.2)
(October 5, 2015) Letter from Councillor Jim Karygiannis, Ward 39 Scarborough-Agincourt (GM.New.GM7.5.3)
https://www.toronto.ca/legdocs/mmis/2015/gm/comm/communicationfile-56544.pdf
(March 11, 1986) Submission from George Rust-D'Eye (GM.New.GM7.5.4)
https://www.toronto.ca/legdocs/mmis/2015/gm/comm/communicationfile-56570.pdf

Communications (City Council)

(October 5, 2015) E-mail from Joanne Stanton (CC.Main.GM7.5.5)

Motions (City Council)

1 - Motion to Amend Item moved by Councillor Giorgio Mammoliti (Withdrawn)

That City Council amend Government Management Committee Recommendation 5 by adding "- study the feasibility of utilizing Old City Hall to house City Councillors' offices", so that the recommendation now reads as follows:  

 

5.  City Council direct the Chief Corporate Officer, prior to discussions with future potential tenants and/or occupants of Old City Hall, and in consultation with Economic Development and Culture, Heritage Toronto and Heritage Preservation Services, to:

 

- undertake a feasibility study for museums and complementary ancillary public uses;

 

- study the feasibility of utilizing Old City Hall to house City Councillors' offices

 

- undertake a public consultation process including a charrette to document feedback on potential public  uses for Old City Hall including a museum;

 

- develop a proposed design process; and

 

- report back to the Government Management Committee within two years on the results of that process.


Motion to Withdraw a Motion moved by Councillor Giorgio Mammoliti (Carried)

That Councillor Mammoliti be permitted to withdraw his motion 1.


2 - Motion to Amend Item moved by Councillor James Pasternak (Lost)

That:

 

1. City Council amend Government Management Committee Recommendation 2 by deleting the words "five (5) year " and inserting the words "seven (7) year" and deleting the date "December 31, 2021" and inserting "December 31, 2023" and so that it now reads as follows:

 

2. City Council authorize a Lease Extension and Amending Agreement with Infrastructure Ontario, acting on behalf of Her Majesty the Queen in Right of Ontario as represented by the Minister of Economic Development, Employment and Infrastructure (the "Tenant"), for the space currently leased at 60 Queen Street West, (the "Premises"), for a seven (7) year extension term commencing on January 1, 2017, and expiring on December 31, 2023, substantially on the terms and conditions as set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer, as amended by Recommendation 1 above, and on such other or revised terms and conditions acceptable to the Chief Corporate Officer, or his or her designate, and in a form and content acceptable to the City Solicitor.

 

2.  City Council amend Government Management Committee Recommendation 4 by deleting the date "December 31, 2021" and inserting "December 31, 2023" and adding the words "not withstanding this direction, should the Province of Ontario wish to extend the lease beyond December 31, 2023, the Director, Real Estate Services report back on such an offer to Council through the Government Management Committee" so that it now reads as follows:

 

4. City Council direct that Notice be given to the Province of Ontario that the lease of Old City Hall will not be extended or renewed beyond December 31, 2023, not withstanding this direction, should the Province of Ontario wish to extend the lease beyond December 31, 2023, the Director, Real Estate Services report back on such an offer to Council through the Government Management Committee.

Vote (Amend Item) Nov-04-2015 7:11 PM

Result: Lost Majority Required - GM7.5 - Pasternak - motion 2
Total members that voted Yes: 4 Members that voted Yes are John Campbell, Frank Di Giorgio, James Pasternak, Jaye Robinson
Total members that voted No: 32 Members that voted No are Maria Augimeri, Ana Bail„o, Jon Burnside, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Sarah Doucette, John Filion, Paula Fletcher, Mary Fragedakis, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), Cesar Palacio, Gord Perks, Anthony Perruzza, David Shiner, John Tory, Kristyn Wong-Tam
Total members that were Absent: 9 Members that were absent are Paul Ainslie, Michelle Berardinetti, Christin Carmichael Greb, Justin J. Di Ciano, Rob Ford, Mark Grimes, Denzil Minnan-Wong, Ron Moeser, Michael Thompson

Motion to Adopt Item (Carried)

GM7.5 - Old City Hall - Future Tenant Options

Decision Type:
ACTION
Status:
Amended
Ward:
27 - Toronto Centre-Rosedale

Committee Recommendations

The Government Management Committee recommends that:

 

1.  City Council amend the Rental Rate in the Major Terms and Conditions for the Lease Extension, set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer by replacing "Base rent of $41.00 per square foot of rentable area" with "Base rent of up to $45.00 per square foot of rentable area."
 

2.  City Council authorize a Lease Extension and Amending Agreement with Infrastructure Ontario, acting on behalf of Her Majesty the Queen in Right of Ontario as represented by the Minister of Economic Development, Employment and Infrastructure (the "Tenant"), for the space currently leased at 60 Queen Street West, (the "Premises"),  for a five (5) year extension term commencing on January 1, 2017, and expiring on December 31, 2021, substantially on the terms and conditions as set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer, as amended by Recommendation 1 above, and on such other or revised terms and conditions acceptable to the Chief Corporate Officer, or his or her designate, and in a form and content acceptable to the City Solicitor.

 

2.  City Council authorize the Chief Corporate Officer to administer and manage the Lease Extension Agreement, including the provision of any consents, approvals, notices and notices of termination, provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

 

3.  City Council direct that Notice be given to the Province of Ontario that the lease of Old City Hall will not be extended or renewed beyond December 31, 2021.

 

4.  City Council direct the Chief Corporate Officer, prior to discussions with future potential tenants and/or occupants of Old City Hall, and in consultation with Economic Development and Culture, Heritage Toronto and Heritage Preservation Services, to:

 

- undertake a feasibility study for museums and complementary ancillary public uses;

 

- undertake a public consultation process including a charrette to document feedback on potential public  uses for Old City Hall including a museum;

 

- develop a proposed design process; and

 

- report back to the Government Management Committee within two years on the results of that process.

Origin

(September 21, 2015) Report from the Chief Corporate Officer

Summary

This report makes recommendations for a strategy to secure and manage new tenants for Old City Hall once the provincial and municipal courts vacate the building. Brokerage firm Avison Young was retained by Real Estate Services to analyze both the property and market which has resulted in recommendations for a long-term ground lease capital partner to be sought for tenanting the building. This report also provides analysis of potential uses and themes for tenanting the property with a ground lease capital partner. 

 

This report further recommends that the existing lease between the City and the Province be extended for a term of five-years to allow the existing provincial court facilities to remain in place until the Province completes a new court facility, no later than December 31, 2021. Any lease with a ground lease partner would commence after the provincial courts relocate to their new facility.

Background Information

(September 21, 2015) Report and Appendix A from the Chief Corporate Officer on Old City Hall - Future Tenant Options
https://www.toronto.ca/legdocs/mmis/2015/gm/bgrd/backgroundfile-84009.pdf

Communications

(October 4, 2015) Letter from Councillor Josh Matlow, Ward 22 - St Paul's (GM.New.GM7.5.1)
https://www.toronto.ca/legdocs/mmis/2015/gm/comm/communicationfile-56531.pdf
(October 4, 2015) E-mail from Linda Makarchuk (GM.New.GM7.5.2)
(October 5, 2015) Letter from Councillor Jim Karygiannis, Ward 39 Scarborough-Agincourt (GM.New.GM7.5.3)
https://www.toronto.ca/legdocs/mmis/2015/gm/comm/communicationfile-56544.pdf
(March 11, 1986) Submission from George Rust-D'Eye (GM.New.GM7.5.4)
https://www.toronto.ca/legdocs/mmis/2015/gm/comm/communicationfile-56570.pdf

Speakers

George Rust-D'Eye
Councillor Josh Matlow

Motions

1 - Motion to Amend Item moved by Councillor Paul Ainslie (Carried)

That Recommendations 4, 5 and 6 be deleted and replaced with the following:

 

4.  Prior to discussions with future potential tenants and/or occupants of Old City Hall, City Council direct the Chief Corporate Officer, in consultation with the Economic Development and Culture, Heritage Toronto and Heritage Preservation Services, to:

 

- undertake a feasibility study for museums and complementary ancillary public uses;

 

- undertake a public consultation process including a charrette to document feedback on potential public  uses for Old City Hall including a museum;

 

- develop a proposed design process; and

 

- report back to the Government Management Committee within two years on the results of that process.

 

Vote (Amend Item) Oct-05-2015

Result: Carried Majority Required
Total members that voted Yes: 6 Members that voted Yes are Paul Ainslie (Chair), Janet Davis, Rob Ford, Mark Grimes, Pam McConnell, Frances Nunziata
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 0 Members that were absent are

2 - Motion to Amend Item moved by Councillor Paul Ainslie (Carried)

That the rental rate in the Major Terms and Conditions for the Lease Extension, outlined in Appendix A, be amended from $41.00 per square foot of rentable area, to up to $45.00 per square foot of rentable area.

Vote (Amend Item) Oct-05-2015

Result: Carried Majority Required
Total members that voted Yes: 4 Members that voted Yes are Paul Ainslie (Chair), Janet Davis, Pam McConnell, Frances Nunziata
Total members that voted No: 2 Members that voted No are Rob Ford, Mark Grimes
Total members that were Absent: 0 Members that were absent are

3 - Motion to Adopt Item as Amended moved by Councillor Paul Ainslie (Carried)
Source: Toronto City Clerk at www.toronto.ca/council