Item - 2020.PA18.6

The Board of Directors of Toronto Parking Authority:

1.  Authorized the public release of Confidential Attachment 1 to the report (October 20, 2020) from the Acting President, Toronto Parking Authority following the closing of the sale of the Subject Properties to the Developer, or as otherwise determined by City Council.

2.  Authorized the submission of a joint report to City Council through the appropriate standing committee from the Acting President, Toronto Parking Authority and the Deputy City Manager, Corporate Services together with or in consultation with CreateTO, Corporate Real Estate Management and Parks, Forestry and Recreation, in respect of the Subject Properties including the major business terms and conditions set out in Appendix B to the report (October 20, 2020) from the Acting President, Toronto Parking Authority - Summary of Major Business Terms pertaining to the parking being acquired by the City for Toronto Parking Authority's operation, and on the financial terms set out in Confidential Attachment 1 to the report (October 20, 2020) from the Acting President, Toronto Parking Authority, together with such other terms and conditions deemed acceptable to the Acting President, Toronto Parking Authority and that City Council direct that the lands acquired for the underground public parking be designated by by-law for municipal parking purposes and managed by Toronto Parking Authority.

The Board of Directors, Toronto Parking Authority recessed its public session to meet in closed session to consider this item, as it pertains to the terms of a proposed or pending acquisition or disposition of land by the City of Toronto.

CreateTO is negotiating major business terms of a property transaction with DevGreat Inc. (Developer, DevGreat) involving the City-owned property located at 105 Spadina Avenue and 363 Adelaide Street West, also known as Municipal Car Park 227 and Municipal Car Park 212 (Subject Properties), and the adjacent lands at 101 Spadina Avenue (Developer Lands) (collectively referred to as Development Lands, refer to Appendix A - Site Location Map).

The proposed transaction contemplates the disposition of all or portions of the Subject Properties to DevGreat, as the Developer of the Development Lands. The combined properties are proposed to be redeveloped by DevGreat into a mixed-use high-rise development and a 1,000 square metre stratified public park. Public and private parking will be constructed below-grade under both the proposed development site and the new public park.

On completion of the project, the City of Toronto (the City) will own a stratified1,000 square metre rectangular public park at the corner of Spadina Avenue and Adelaide Street West and a minimum of 70 below-grade parking spaces to be constructed in accordance with Toronto Parking Authority (TPA) specifications and operated by TPA as a municipal parking facility.

The proposal for this redevelopment would result in remaining proceeds being available to the Housing Secretariat and CreateTO to acquire an estimated 25-30 new affordable housing units in the area, with specific focus on potential affordable housing opportunities at the City-owned properties, 35 Bellevue Avenue and 15 Denison Avenue, both of which are under the operational jurisdiction of TPA.

CreateTO has conducted prior analysis and due diligence, and considered a range of options for unlocking the value of City assets at 105 Spadina Avenue and 363 Adelaide Street West. Given the financial and city-building merits of the proposal (including additional public parking spaces and public parkland in areas of significant deficiency), it is recommended by staff that the current proposal best meets the City's interest.

The proposed transaction has been assessed in accordance with Corporate Real Estate Management's (CREM) due diligence procedures.  The local Councillor and City Planning have been consulted through the process and are both supportive of the proposed transaction.

The Board of Directors of TPA is requested to receive the information contained in the body of this report (October 20, 2020), Confidential Attachment 1, and approve the submission of a joint report presented by CreateTO, CREM, TPA and Parks, Forestry and Recreation (PFR), to City Council on the property transaction including the major business terms and conditions set out in Appendix B - Summary of Major Business Terms.

At its meeting on July 23, 2020, CreateTO considered Item RA14.6, Opportunity to Create New City Park at 105 Spadina Avenue and 363 Adelaide Street West.