Item - 2020.GL15.20

The General Government and Licensing Committee recommends that:  

1. City Council authorize the City of Toronto (the "City") to enter into a lease (the "Lease") with Dufferin Mall Holdings Incorporated (the "Landlord") or its duly authorized property manager, for approximately 27,894 square feet of space, to a maximum of 28,699 square feet at 900 Dufferin Street, Toronto (the "Premises") for a fifteen (15) year term (the "Term") expected to commence approximately on December 1, 2021 and expire on November 30, 2036, 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, 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 lease agreement with Dufferin Mall Holdings Incorporated, as landlord, for approximately 27,894 square feet of space at 900 Dufferin Street, Suite 219, Toronto (the "Leased Premises"), for use by Toronto Employment and Social Services for a term of fifteen (15) years.

The Leased Premises will replace and consolidate three (3) of Toronto Employment and Social Services' existing leased sites in downtown, which will result in a significant reduction of total leased square footage by approximately 26,000 square feet or 47 percent, as compared to the existing leased sites, which are located at 2340 Dundas Street West, 1900 Dundas Street West, and 55 John Street.

The relocations from 2340 Dundas Street West and 1900 Dundas Street West are due to the pending expiry of the leases at these sites. The relocation from 55 John Street is necessitated by the City's strategic acquisition of 229 Richmond Street West and the disposition of 260 Adelaide Street West, requiring Toronto Employment and Social Services and other City Divisions to move to alternative locations to accommodate the anticipated Fire Hall at Metro Hall.

The rent and other terms and conditions of the lease 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.