Item - 2020.GL14.2

The General Government and Licensing Committee recommends that:  

1. City Council pass a By-law pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to:

a.  enter into a Municipal Capital Facility Agreement with I.G. Investment Management Limited, which leases approximately 544,382 square feet of space at 2233 Sheppard Avenue West (the "Leased Premises") to the Toronto Transit Commission (TTC), related to the provision of telecommunications, transit and transportation systems; and

b.  exempt the Leased Premises from taxation for municipal and school purposes, with the tax exemption being effective from the latest of:

1. the commencement date of the Lease;

2. the date the Municipal Capital Facility Agreement is entered into; and

3. the date the Tax Exemption By-law is enacted.

2. City Council direct the City Clerk to give written notice of the By-law to the Minister of Finance, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, le Conseil scolaire Viamonde, and le Conseil scolaire catholique MonAvenir.

This report seeks Council's authority for the adoption of the necessary by-law to designate a portion of the property owned by I.G. Investment Management Limited and leased by the Toronto Transit Commission (TTC) as a Municipal Capital Facility, and to provide an exemption for the municipal taxes and education taxes. The Municipal Capital Facility agreement authorized by the by-law will provide an exemption for approximately 544,382 square feet of space.

The newly constructed privately owned space at 2233 Sheppard Avenue West was selected to consolidate and modernize the TTC's existing warehouse needs as well as to provide additional space to accommodate future growth.  The property will be used to centrally receive, test and store inventory such as parts, oil and lubricants needed for the maintenance of buses, streetcars, service vehicles and rolling stock owned by the TTC.  Ancillary offices and employee space in support of the ordering, storage, and distribution of inventory to TTC maintenance facilities form part of the leased facility as do loading docks and parking for delivery vehicles, employees, visitors and outdoor storage.