Item - 2020.GL15.19

The General Government and Licensing Committee recommends that:

1. City Council authorize the City to enter into an offer to sublease (the "Offer") and a sublease to be executed pursuant to the Offer (collectively the "Sublease") with  Bridlewood Mall Management Incorporated (the "Sublandlord"), for approximately 33,000 square feet of space, to a maximum of 34,650 square feet, at 2900 Warden Avenue, Scarborough (the "Premises") for a ten (10) year term (the "Term") commencing on approximately May 1, 2022 and expiring on approximately April 30, 2032, substantially on the major terms and conditions as set out in Appendix A to the report (August 28, 2020) from the Executive Director, Corporate Real Estate Management and the General Manager, Children's Services, including such other terms and conditions as may be deemed appropriate by the Executive Director, Corporate Real Estate Management, or designate, and in a form acceptable to the City Solicitor.

The purpose of this report is to obtain authority to enter into a new sublease agreement with Bridlewood Mall Management Incorporated, as sublandlord, for approximately 33,000 square feet of space at 2900 Warden Avenue, Suite 225, Scarborough (the "Leased Premises") situated in the Bridlewood Mall, for use by Toronto Employment and Social Services and other City of Toronto Divisions and Agencies that are identified in the planning and design of the Leased Premises. The sublease is for a term of ten (10) years.

The Leased Premises will replace Toronto Employment and Social Services's existing leased site at 100 Consilium Place in Scarborough (the "Existing Premises"), which services approximately 2,650 office visits per month, and will result in a reduction of approximately 14,480 square feet in total leased square footage as compared to the existing leased site. This relocation will ensure service continuity for clients in the underserviced north Scarborough area, and presents opportunities for space optimization and service co-location in collaboration with the Toronto Public Library. The Leased Premises may also be used to implement strategic initiatives focused on creating agile, flexible City space that can be used by multiple City Divisions and Agencies, customers and clients as the need and demand for space to deliver services evolve.

The rent and other terms and conditions of the sublease agreement reflect current market value according to market research and valuation conducted by Corporate Real Estate Management staff. Staff will also seek to designate the Leased Premises as a municipal capital facility in order to exempt the Leased Premises from realty taxation for municipal and school purposes.