Item - 2020.PA14.3

The Board of Directors of Toronto Parking Authority:

1.  Authorized the additional expenditure of not more than $320,370.67 excluding Harmonized Sales Tax for the completion of construction build out costs, parking payment equipment, closing costs, and the acquisition of two additional parking spaces related to 11 Wellesley Street West for a total acquisition cost of $7,270,370.67 excluding Harmonized Sales Tax.

Toronto Parking Authority (TPA) entered into an Agreement of Purchase and Sale (Agreement) with Lanterra Developments (Bay Wellesley) Limited (referred to as the Vendor) for the acquisition of a municipal parking facility containing approximately 132 parking spaces at 11 Wellesley Street West (the Property, Car Park 304). The transaction involves the acquisition by the City of a stratified interest in a below-grade portion of the Property within which a municipal parking facility is to be located and form part of a mixed commercial/retail/

residential development.

At its meeting of January 19, 2017, TPA Board of Directors approved the acquisition of approximately 132 parking spaces at a cost of $50,000 excluding Harmonized Sales Tax (HST) per space for a total of $6,600,000 excluding HST. An additional $350,000 was also approved for closing costs (e.g., land transfer taxes, environmental studies, legal fees, and other transaction-related costs), as well as TPA's installation of parking equipment, for a total approved project cost of $6,950,000 excluding HST.

The Agreement with the Vendor allows for TPA's acquisition of additional parking spaces at a cost of $50,000 excluding HST per space in the event the design of the underground parking garage can be optimized to add more parking.

Construction of the development, including the municipal parking facility, is nearing completion. Turnover of the parking facility to TPA is scheduled for mid-2020. Operation of the facility would commence immediately thereafter.

TPA has recently been informed by the Vendor that the design of the parking garage can accommodate two (2) additional parking spaces for a total of 134 parking spaces. In addition, TPA is forecasting a shortfall in approved spending for construction build out costs, parking payment equipment and closing costs (collectively referred to as Additional Costs).

The purpose of this report is to request approval from TPA Board of Directors for the additional two (2) parking spaces at a cost of $100,000 excluding HST. In addition, TPA is requesting $220,370.67 excluding HST to cover additional expenditures exceeding the original estimate related to construction build out, parking equipment and closing costs.

The additional project costs will result in a total project cost of $7,270,370.67 excluding HST. Sufficient funding is available in the approved 2020 Capital Budget to cover the total project costs.