Item - 2020.CC24.14

Tracking Status

  • City Council adopted this item on September 30, 2020 without amendments and without debate.

CC24.14 - 80-82 Bloor Street West - Zoning By-law Amendment Application - Request for Direction

Decision Type:
ACTION
Status:
Adopted on Consent
Ward:
11 - University - Rosedale

City Council Decision

City Council on September 30, October 1 and 2, 2020, adopted the following:

 

1.  City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the (September 22, 2020) report from the City Solicitor.

 

2.  City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendices A and B to the report (September 22, 2020) from the City Solicitor at the sole discretion of the City Solicitor.

 

The confidential instructions to staff in Confidential Attachment 1 to the report (September 22, 2020) from the City Solicitor were adopted by City Council and are now public as follows, the City Solicitor having exercised the City Solicitor's discretion to make them public:

 

1. City Council accept the settlement offer by the appellants dated July 27, 2020, as set out in Confidential Appendix A to Confidential Attachment 1 to the report September 22, 2020) from the City Solicitor, subject to the Parts set out below.

2.  City Council approve a development charge credit against the Parks and Recreation component of the Development Charges for the design and construction by the appellants of the Above Base Park Improvements on the City parkland, to the satisfaction of the General Manager, Parks, Forestry and Recreation; the development charge credit shall be in an amount that is the lesser of the cost to the appellants of designing and constructing the Above Base Park Improvements, as approved by the General Manager, Parks, Forestry and Recreation and the Parks and Recreation component of development charges payable for the appellants’ development in accordance with the City's Development Charges By-law, as may be amended from time to time.

3. City Council direct that the owner be required to enter into an Agreement pursuant to Section 37 of the Planning Act, and any other necessary agreements, satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor, with such Agreement to be registered on title to the lands at 80-82 Bloor Street West in a manner satisfactory to the City Solicitor to secure the delivery by the appellant of a new park in base condition at City-owned 1240 Bay Street, having a minimum area of approximately 1,760 square metres minus the area required for TTC entrances and infrastructure; which include:

a.  the appellant should unencumber City-owned 1240 Bay Street by purchasing the existing ground lease interest and building from Transmetro Properties (1977) Limited, City's current ground lease tenant ("Transmetro");

b. the appellant should pay directly to Transmetro, the Nine Million Dollars ($9,000,000) deposit pursuant to a Leasehold Agreement or Purchase and Sale ("Leasehold APS") made as of July 18, 2020 between the appellant and Transmetro;

c. the appellant should assign the Leasehold APS to the City, on terms and conditions acceptable to the Executive Director, Corporate Real Estate Management;

d. the appellant should register a collateral mortgage in favour of the City in the principal amount of Forty Million Dollars ($40,000,000.00), for the City to secure funds payable under the Leasehold APS once assigned to the City; such funds payable by the City include the sum of Thirty-six Million ($36,000,000.00) Dollars payable to Transmetro on July 20, 2025, land transfer tax (if applicable), cost of any required environmental studies, other planning and parks obligations, any other reasonable costs associated with terminating the ground lease and Transmetro's sub-leases, and any other claims and encumbrances;  the collateral mortgage, to be supported by a title opinion from the appellants' solicitors in the form required by the City Solicitor, shall be registered as a first collateral charge on 80 Bloor Street West, and registered as a second collateral charge on 82 Bloor Street West, behind an existing Seventeen Million Dollars ($17,000,000.00) first charge in favor of The Great West Life Assurance Company;

e. the appellant should replace the collateral mortgage by providing the City with either cash or an irrevocable and unconditional Letter of Credit in the form required by the Chief Financial Officer and Treasurer in the amount of Forty Million Dollars ($40,000,000.00), the earlier of: (i) 18 months before July 20, 2025; and (ii) any demolition permit at 80-82 Bloor Street West; and

f. the appellant should pay for all costs to demolish the existing office building on 1240 Bay Street and construct a base condition City Park to the satisfaction of the General Manager, Parks, Forestry and Recreation, the Chief Executive Officer, Toronto Transit Commission, the Executive Director, Corporate Real Estate Management and the Chief Planner and Executive Director, City Planning.

4. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the General Manager, Parks, Forestry and Recreation, to enter into an assignment and assumption agreement with the affiliated corporation owned and controlled by the appellants, to assume the Leasehold APS, on such terms and conditions as may be acceptable to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

5. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the General Manager, Transportation Services and the Chief Executive Officer, Toronto Transit Commission, to enter into the City's standard form agreements with the appellants, with insurance, release and indemnity in favor of the City, for access, tieback and shoring, and crane swing, at nominal value, for a term not exceeding 18 months, on the City lands municipally described as 1240 Bay Street, and on such other terms and conditions as may be acceptable to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

Confidential Appendices A and B to the report (September 22, 2020) from the City Solicitor are now public and can be accessed under Background Information (City Council), the City Solicitor having exercised the City Solicitor's discretion to make them public.

 

The balance of Confidential Attachment 1 to the report (September 22, 2020) from the City Solicitor remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to litigation or potential litigation that affects the City or one of its agencies or corporations and it contains advice or communications that are subject to solicitor-client privilege.

Confidential Attachment - Litigation or potential litigation that affects the City or one of its agencies or corporations and advice or communications that are subject to solicitor-client privilege.

Background Information (City Council)

(September 22, 2020) Report from the City Solicitor on 80-82 Bloor Street West - Zoning By-law Amendment Application - Request for Direction (CC24.14)
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-157020.pdf
Confidential Attachment 1
Confidential Appendix A - made public on October 13, 2020
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-157003.pdf
Confidential Appendix B - made public on October 13, 2020
https://www.toronto.ca/legdocs/mmis/2020/cc/bgrd/backgroundfile-157004.pdf
Source: Toronto City Clerk at www.toronto.ca/council