Item - 2020.EC15.2

The Economic and Community Development Committee:

1.  Received the report (August 24, 2020) from the Executive Director, Social Development, Finance, and Administration, for information.

Cabbagetown Youth Centre informed the City in late fall 2019 that they were experiencing a funding crisis that would result in the closure of the organization in early 2020 and requested emergency operating funding to continue operations throughout the year. Council approved one-time funding of $160,900 gross and $0 net, fully funded from the Tax Rate Stabilization reserve. This report provides the Council-directed update on the organization's use of these funds and the result of funding-related conditions to complete a program and financial audit and a transition plan.

Cabbagetown Youth Centre worked to compile with all City funding requirements. The Neighbourhood Group provided trusteeship support and retained the services of a reputable consultant. The consultant's analyses confirmed that Cabbagetown Youth Centre's programming and finances are both precarious and unsustainable. Since receiving approval for emergency operational funding, an engineering assessment reported that Cabbagetown Youth Centre's main asset, their building on 2 Lancaster Ave., sustained significant structural damage due to termites and is currently uninhabitable. The impacts of COVID-19 further forced Cabbagetown Youth Centre to close and cease all programming since March 2020.

Cabbagetown Youth Centre is in the midst of finalizing a merger with the Toronto Kiwanis Boys and Girls Club in order to maximize resources and overall impact by December 2020. Furthermore, Cabbagetown Youth Centre is no longer reviewing the feasibility of a transfer of ownership to the City to establish an Association of Community Centres.