Item - 2021.EX26.2

The Executive Committee recommends that:  

1.  City Council authorize the City to enter into a joint development agreement and any related agreement with the owner of 254 Adelaide Street West to jointly rezone and sell 254 Adelaide Street West and 260 Adelaide Street West substantially on the terms and conditions set out in Confidential Attachment 1 to the report (June 24, 2021) from the Executive Vice President, Development, CreateTO, and such other amended terms and conditions deemed appropriate by the Executive Director, Corporate Real Estate Management and in consultation with the Executive Vice President, Development, CreateTO, and in a form satisfactory to the City Solicitor.

2.  City Council direct the Executive Director, Corporate Real Estate Management and Chief Executive Officer, CreateTO to report back to Executive Committee in the first quarter of 2022 for approval of the business plan for the redevelopment of 229 Richmond Street and Metro Hall funded by the redevelopment and sale of 260 Adelaide.

3.  City Council direct the Executive Director, Corporate Real Estate Management and Chief Executive Officer, CreateTO to report back to Executive Committee detailing the sale of 260 Adelaide and any changes to the business plan, including costs and funding sources, when the joint sale of 254 Adelaide Street West and 260 Adelaide Street West is complete.

4.  City Council authorize the public release of Confidential Attachment 1 to the report (June 24, 2021) from the Executive Vice President, Development, CreateTO, following the closing of the sale of the transaction referenced in Recommendation 1 above, at the discretion of the City Solicitor.

The purpose of this report is to provide additional information requested by the Board of Directors of CreateTO (the “Board”) regarding the business plan related to the redevelopment of the City-owned property at 260 Adelaide Street West (“260 Adelaide”) and receive approval from the Board on the negotiated joint development agreement with the adjacent landowner based on the terms and conditions set out in Confidential Attachment 1.

The purpose of this report is to receive approval from City Council to authorize the Executive Director, Corporate Real Estate Management to enter into a negotiated joint development agreement with respect to the redevelopment of the City-owned property at 260 Adelaide Street West (“260 Adelaide”) with the owner of 254 Adelaide Street West ("254 Adelaide"), 254 Adelaide Investments Ltd., based on the terms and conditions approved by the CreateTO Board, subject to obtaining City Council approval, by adoption of Item RA23.2 at its meeting of July 7, 2021 (the "CreateTO Board Report"), and set out in this CreateTO Board Report's Confidential Attachment 1.

Unlocking the value at 260 Adelaide will result in significant city-building, including affordable housing, new local parkland, a new and improved fire station and the construction of other important City facilities across a number of City-owned properties. CreateTO, working with colleagues in Corporate Real Estate Management and City Planning, have developed a business case to strategically leverage the property value at 260 Adelaide and achieve significant City-building along with the adjacent privately-owned properties at 254 Adelaide and 229 Richmond Street West ("229 Richmond").

As the redevelopment of 260 Adelaide is a broader City-building strategic initiative, it is appropriate that this City companion report and the CreateTO Board Report be considered by Executive Committee.