Item - 2018.EX33.7

Tracking Status

  • City Council adopted this item on April 24, 2018 with amendments.
  • This item was considered by Executive Committee on April 17, 2018 and was adopted with amendments. It will be considered by City Council on April 24, 2018.
  • See also TE24.96
  • See also MM32.5

EX33.7 - Update on the Ground Lease Amendment for the Toronto Transit Commission Lands at Yonge-Eglinton (Canada Square)

Decision Type:
ACTION
Status:
Amended
Ward:
22 - St. Paul's

City Council Decision

City Council on April 24, 25, 26 and 27, 2018, adopted the following:

 

1.  City Council adopt the confidential instructions to staff in Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, with Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission amended by replacing page A3-3 with Confidential Attachment 1 to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services.

 

2.  City Council authorize the Toronto Transit Commission:   

 

a.  as Landlord, to enter into a lease amendment agreement with current tenants, which may include Cansquare (Canada 8) LP, CT Reit LP, and OPG Investment Holdings LP (which are subsidiaries of Northam Realty, CT Reit and Oxford Properties), or other related corporations satisfactory to the Chief Executive Officer, Toronto Transit Commission and the Deputy City Manager, Internal Corporate Services (the "Tenant"), on the property shown as parts 1-4 in Appendix A (the "Lands") to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, on terms and conditions not materially inconsistent with the major terms and conditions described in the Lease Terms, contained in Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, as amended, together with such other terms and conditions as may be deemed appropriate by the Chief Executive Officer, Toronto Transit Commission, in consultation with the Deputy City Manager, Internal Corporate Services, the Chief Financial Officer and CreateTO, and in a form satisfactory to the Toronto Transit Commission's General Counsel; and

 

b.  as Licensor, to enter into a license agreement or agreements (the "License Agreements") with the Tenant for any period of time and for any consideration, including nominal consideration, with respect to the Lease Lands for the purpose of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purpose deemed appropriate by the Deputy City Manager, Internal Corporate Services and the Chief Capital Officer, Toronto Transit Commission and in a form satisfactory to Toronto Transit Commission's General Counsel.

 

3.  City Council authorize the City to enter into any and all such ancillary and related agreements, including easement, license, tie back, or shoring agreements as may be necessary for any periods of time and for any consideration, including nominal consideration if appropriate, with respect to adjacent City-owned lands for the purposes of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purposes deemed appropriate by the Deputy City Manager, Internal Corporate Services, in a form satisfactory to the City Solicitor to effect the development of the Yonge-Eglinton Toronto Transit Commission lands, on the condition that such agreements are consistent with the intent of the development and the lease terms set out Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission.

 

4.  City Council direct that Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, as amended, remain confidential until all lease amendment agreements have been executed by the parties, as it relates to a proposed or pending acquisition or sale of land by the City or local board.

 

5. City Council direct that Confidential Attachment 1 to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services remain confidential until all lease amendment agreements have been executed by the parties, as the information relates to a proposed or pending acquisition or disposition of land by the City or local board.

 

Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, as amended, remains confidential in its entirety at this time in accordance with the provisions of the City of Toronto Act, 2006, as it relates to a proposed or pending acquisition or sale of land for municipal or local board purposes. Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, as amended, will be made public once all lease amendment agreements have been executed by the parties.

 

Confidential Attachment 1 to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services remains confidential in its entirety at this time in accordance with the provisions of the City of Toronto Act, 2006, as it relates to a proposed or pending acquisition or disposition of land by the City or local board.  Confidential Attachment 1 to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services will be made public once all lease amendment agreements have been executed by the parties.

 

May 5, 2021:

 

The City Solicitor has confirmed that the following documents can be publicly released.  These documents can be accessed under Background Information (City Council):

 

a. Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, as amended; and

 

b. Confidential Attachment 1 to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services. 

Confidential Attachment - A proposed or pending acquisition or sale of land for municipal or local board purposes

Background Information (Committee)

(April 9, 2018) Report and Appendix A from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission on Update on the Ground Lease Amendment for the Toronto Transit Commission Lands at Yonge-Eglinton (Canada Square)
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-113805.pdf
Appendix B - Report from the Chief Executive Officer, Toronto Transit Commission on Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-113936.pdf
Confidential Attachment 1 and Confidential Attachment 1 to Appendix B - Redevelopment of TTC Lands at Yonge-Eglinton

Background Information (City Council)

(April 24, 2018) Supplementary report from the Deputy City Manager, Internal Corporate Services on Amendment to Confidential Attachment 1 of the Update on the Ground Lease Amendment for the Toronto Transit Commission Lands at Yonge-Eglinton (Canada Square) (EX33.7b)
https://www.toronto.ca/legdocs/mmis/2018/cc/bgrd/backgroundfile-114580.pdf
Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, as amended - made public on May 5, 2021
https://www.toronto.ca/legdocs/mmis/2018/cc/bgrd/backgroundfile-166630.pdf
Confidential Attachment 1 to the supplementary report (April 24, 2018) from the Deputy City Manager, Internal Corporate Services - made public on May 5, 2021
https://www.toronto.ca/legdocs/mmis/2018/cc/bgrd/backgroundfile-114509.pdf

Communications (Committee)

(April 17, 2018) E-mail from Eileen Denny (EX.New.EX33.7.1)

Motions (City Council)

1 - Motion to Amend Item moved by Councillor Josh Matlow (Carried)

That City Council adopt the following recommendations contained in the supplementary report (April 24, 2018) from the Deputy City Manager, Internal Corporate Services [EX33.7b]:

 

1. City Council amend the Executive Committee recommendations by replacing page A3-3 of Confidential Attachment 1 to Appendix B to the report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission with Confidential Attachment 1 attached to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services.

 

2. City Council direct that the information in Confidential Attachment 1 to the supplementary report (April 24, 2018) from Deputy City Manager, Internal Corporate Services, remain confidential until all lease amendment agreements have been executed by the parties, as the information relates to a proposed or pending acquisition or disposition of land by the City or local board.


Motion to Adopt Item as Amended (Carried)

Vote (Adopt Item as Amended) Apr-26-2018 3:51 PM

Result: Carried Majority Required - EX33.7 - Adopt the item as amended
Total members that voted Yes: 35 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Gary Crawford, Joe Cressy, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Jim Hart, Stephen Holyday, Jim Karygiannis, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Neethan Shan, David Shiner, Michael Thompson, John Tory, Lucy Troisi
Total members that voted No: 1 Members that voted No are Giorgio Mammoliti
Total members that were Absent: 8 Members that were absent are Josh Colle, Vincent Crisanti, Justin J. Di Ciano, Mary Fragedakis, Michelle Holland, Denzil Minnan-Wong, Cesar Palacio, Kristyn Wong-Tam

7a - Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton

Background Information (Committee)
(April 16, 2018) Letter from the Toronto Transit Commission Board on Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-114073.pdf

EX33.7 - Update on the Ground Lease Amendment for the Toronto Transit Commission Lands at Yonge-Eglinton (Canada Square)

Decision Type:
ACTION
Status:
Amended
Ward:
22 - St. Paul's

Confidential Attachment - A proposed or pending acquisition or sale of land for municipal or local board purposes

Committee Recommendations

The Executive Committee recommends that:

 

1.  City Council approve the confidential instructions to staff in Confidential Attachment 1 of Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission.

 

2.  City Council authorize the Toronto Transit Commission:   

 

a.  as Landlord, to enter into a lease amendment agreement with current tenants, which may include Cansquare (Canada 8) LP, CT Reit LP, and OPG Investment Holdings LP (which are subsidiaries of Northam Realty, CT Reit and Oxford Properties), or other related corporations satisfactory to the Chief Executive Officer, Toronto Transit Commission and the City's Deputy City Manager, Internal Corporate Services (the "Tenant"), on the property shown as parts 1-4 in Appendix A (the "Lands") to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, on terms and conditions not materially inconsistent with the major terms and conditions described in the Lease Terms, contained in Confidential Attachment 1 of Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, together with such other terms and conditions as may be deemed appropriate by the Chief Executive Officer, Toronto Transit Commission, in consultation with the Deputy City Manager, Internal Corporate Services, the Chief Financial Officer and CreateTO, and in a form satisfactory to the Toronto Transit Commission's General Counsel; and

 

b.  as Licensor, to enter into a license agreement or agreements (the "License Agreements") with the Tenant for any period of time and for any consideration, including nominal consideration, with respect to the Lease Lands for the purpose of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purpose deemed appropriate by the Deputy City Manager, Internal Corporate Services and the Chief Capital Officer, Toronto Transit Commission and in a form satisfactory to Toronto Transit Commission's General Counsel.

 

3.  City Council grant authority for the City to enter into any and all such ancillary and related agreements, including easement, license, tie back, or shoring agreements as may be necessary for any periods of time and for any consideration, including nominal consideration if appropriate, with respect to adjacent City-owned lands for the purposes of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purposes deemed appropriate by the Deputy City Manager, Internal Corporate Services, in a form satisfactory to the City Solicitor to effect the development of the Yonge-Eglinton Toronto Transit Commission lands, on the condition that such agreements are consistent with the intent of the development and the lease terms set out Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission.

 

4.  City Council direct that the information in Confidential Attachment 1 of Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, remain confidential until all lease amendment agreements have been executed by the parties, as the information relates to a proposed or pending acquisition or disposition of land by the City or local board.

Origin

(April 9, 2018) Report from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission

Summary

On June 7, 2016 City Council requested Build Toronto, in consultation with the Toronto Transit Commission (TTC), Real Estate Services (RES) and City Planning (CP) to negotiate directly with the long term lessee(s) located at Yonge and Eglinton regarding amendments to the existing ground lease to facilitate the redevelopment of the lands, identified in Parts 1 to 4 in Appendix A (the "Lands").

 

Build Toronto (now CreateTO), in consultation with the Toronto Transit Commission, Real Estate Services and City Planning have negotiated a new business proposal with the long term lessees for a new ground lease relating to the redevelopment of the Lands, the details of which are outlined in Appendix B and Confidential Attachment 1. The proposed transaction has been developed within the new City real estate model to achieve key city building objectives, including unlocking the value of City assets through transit oriented development. This report follows a report on the same initiative submitted for consideration by the Toronto Transit Commission Board on April 11, 2018 entitled "Redevelopment of Toronto Transit Commission Lands at Yonge and Eglinton". The Toronto Transit Commission Board report is attached herein as Appendix B, with its confidential attachments contained within Confidential Attachment 1 to this report.

Background Information

(April 9, 2018) Report and Appendix A from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission on Update on the Ground Lease Amendment for the Toronto Transit Commission Lands at Yonge-Eglinton (Canada Square)
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-113805.pdf
Appendix B - Report from the Chief Executive Officer, Toronto Transit Commission on Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-113936.pdf
Confidential Attachment 1 and Confidential Attachment 1 to Appendix B - Redevelopment of TTC Lands at Yonge-Eglinton

Communications

(April 17, 2018) E-mail from Eileen Denny (EX.New.EX33.7.1)

Motions

Motion to Amend Item moved by Mayor John Tory (Carried)

That:

 

1.  The recommendations from the Toronto Transit Commission from its meeting of April 16, 2018 [Item EX33.7a] be adopted

 

2.  Recommendation 2 in the staff report [Item EX33.7] be adopted.

7a - Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton

Origin
(April 16, 2018) Letter from the Toronto Transit Commission Board
Summary

In accordance with City of Toronto Municipal Code Chapter 279 (Toronto Transit Commission), Section 6 (Delegate Real Estate Authority), Subsection 6(d), the Toronto Transit Commission wishes to proceed with a transaction that falls outside of the scope of authority delegated by Council pursuant to the Real Estate Approval Process.  The Toronto Transit Commission seeks Council approval for such transaction by way of a joint report to Council from the Toronto Transit Commission and the Deputy City Manager, Internal Corporate Services.

 

At a Special Meeting held on April 16, 2018 the Toronto Transit Commission Board had before it the attached report titled "Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton", recommending that:

 

1.  The Board approve the recommendation in Confidential Attachment 1.

 

2.  The Board approve that the major lease terms ("the Lease Terms") substantially as provided in Confidential Attachment 1.

 

3.  The Board recommend to City Council, by way of a joint report together with the Deputy City Manager, Internal Corporate Services ("DCM-ICS"), that the Toronto Transit Commission:

 

a.  as Landlord enter into a lease amendment agreement with current tenants, which may include Cansquare (Canada 8) LP, CT Reit LP, and OPG Investment Holdings LP (which are subsidiaries of Northam Realty, CT Reit and Oxford Properties), or other related corporations satisfactory to the Chief Executive Officer of Toronto Transit Commission and the City's Deputy City Manager, Internal Corporate Services (the "Tenant"), on the property shown as parts 1-4 in Appendix 1 (the "Lands"), on terms and conditions not materially inconsistent with the major terms and conditions described in the Lease Terms, contained in Confidential Attachment 1, together with such other terms and conditions as may be deemed appropriate by the Toronto Transit Commission's Chief Executive Officer in consultation with the Deputy City Manager, Internal Corporate Services, the City's Chief Financial Officer (CFO) and CreateTO and in a form satisfactory to the Toronto Transit Commission's General Counsel; and


b.  as Licensor, to enter into a license agreement or agreements (the "License Agreements") with the Tenant for any period of time and for any consideration, including nominal consideration, with respect to the Lease Lands for the purpose of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purpose deemed appropriate by the Deputy City Manager, Internal Corporate Services, Toronto Transit Commission's Chief Capital Officer and in a form satisfactory to Toronto Transit Commission's General Counsel.

 

4.  The Board grant authority to reimburse CreateTO (formerly Build Toronto) for expenses incurred related to negotiations of the proposed lease amendment contained within this report up to $2.0 million.

 

5.  The Board forward this report to the City of Toronto's Executive Committee along with the Board's decision for consideration with its report on the same subject; and

 

6.  The Board authorize that the information provided in the Confidential Attachment 1 is to remain confidential until all lease amendment agreements have been executed by the parties.

 
The foregoing is submitted to City Council, through Executive Committee, for approval.

Background Information
(April 16, 2018) Letter from the Toronto Transit Commission Board on Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton
https://www.toronto.ca/legdocs/mmis/2018/ex/bgrd/backgroundfile-114073.pdf
Source: Toronto City Clerk at www.toronto.ca/council