Item - 2020.GL12.11

The General Government and Licensing Committee withdrew Item GL12.11 from the agenda.

This report requests City Council's authority to approve a twenty-year lease agreement for a new, larger location for the Toronto Public Library (TPL) Maryvale branch. The associated capital project has been approved as part of TPL's 2020-2029 Capital Budget and Plan.

A supplementary report will be submitted to the General Government and Licensing Committee from the Controller, to facilitate City Council approval of a Municipal Capital Facility Agreement between the Toronto Public Library and FCHT Holdings (Ontario) Corporation.

The Maryvale branch currently occupies 4,998 sq. ft., and the proposed expansion will add 6,762 sq. ft. of new space for a total of 11,760 sq. ft. in a different and improved location within Parkway Mall located at 85 Ellesmere Road. The proposed lease, expected to start on December 1, 2020, has favourable terms as the size of the branch is being increased by 135 percent, but the gross annual cost of the lease is expected to increase by less than 70 percent. The lease proposal also includes a significant landlord contribution that will fund 30 percent of the capital costs.

A new capital project to renovate the larger space is estimated at $2.714 million that will be funded by development charges of $1.345 million, landlord contribution of $0.823 million and debt of $0.547 million and was approved as part of TPL's 2020-2029 Capital Budget and Plan.

The move to a larger space is an opportunity that arises very infrequently as the mall is undergoing a major renovation and will result in significantly improved library service for the community. The recommendation to invest in Maryvale has been validated by the Library's Facilities Master Plan.

The proposed Maryvale branch lease and capital project have both received Library Board endorsement and the branch lease requires Council approval.

This supplementary report seeks City Council's authority for the adoption of the necessary By-law to designate a portion of the property owned by FCHT Holdings (Ontario) Corporation proposed to be leased to the Toronto Public Library, Maryvale Branch as a Municipal Capital Facility, and to provide an exemption for municipal taxes and education taxes.  The Municipal Capital Facility agreement authorized by the By-law will provide an exemption for approximately 11,760 square feet at 85 Ellesmere Road. The proposed leased is expected to start on December 1, 2020.

A new Municipal Capital Facility agreement is required as the Maryvale Branch Library will be relocating from their existing space at Parkway Mall into a new expanded space within the mall at 85 Ellesmere Road. The current Municipal Capital Facility agreement will expire with the existing lease on August 31, 2020.