Item - 2021.GL23.19

The General Government and Licensing Committee recommends that:  

1. City Council authorize the Food Incubator Tenancy Program to encourage the establishment and initial growth of small food service businesses pursuant to section 84 of the City of Toronto Act, 2006, as described in Appendix C to the report (May 26, 2021) from the Interim General Manager, Economic Development and Culture, and the Executive Director, Corporate Real Estate Management.

2. City Council authorize the Executive Director, Corporate Real Estate Management, to approve and execute below market rent lease agreements with:

a. eligible owners of small food businesses, to be selected by the Tenant Selection Committee, to lease the four (4) food stations located on the ground floor of the condominium building located at 5200 Yonge Street within the Food Incubator Tenancy Space, substantially based on the terms and conditions listed in Appendix D to the report (May 26, 2021) from the Interim General Manager, Economic Development and Culture, and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, or their designate and in a form acceptable to the City Solicitor; or

b. a not-for-profit organization or a public post-secondary educational institution, to be selected by the Tenant Selection Committee, as the head tenant to lease the four (4) food stations at the Food Incubator Tenancy Space to eligible owners of small food business, substantially based on the terms and conditions listed on Appendix E to the report (May 26, 2021) from the Interim General Manager, Economic Development and Culture, and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, or their designate and in a form acceptable to the City Solicitor; and

c. a not-for-profit organization or a public post-secondary educational institution, to be selected by the Tenant Selection Committee, to lease the Food Learning Innovation Place space, substantially based on the terms and conditions listed on Appendix F to the report (May 26, 2021) from the Interim General Manager, Economic Development and Culture, and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, or their designate and in a form acceptable to the City Solicitor.

This report seeks City Council authority to create a food incubator tenancy program (the "Food Incubator Tenancy Program") that will encourage the establishment and initial growth of small food businesses in the city.

Through the Food Incubator Tenancy Program, the City of Toronto (the "City") will enter into lease agreements with eligible start-up food entrepreneurs at below market rent for four (4) food stations equipped with commercial-grade kitchen appliances in a space of approximately 7,235 square feet (the "Food Incubator Tenancy Space"), located on the ground floor and second floor of the condominium building at 5200 Yonge Street. Alternatively, the City can enter in a lease agreement with a head tenant, who would subsequently enter into sub-leases with eligible start-up food entrepreneurs at below market rent.

The City will also enter into a lease agreement with a not-for-profit organization or a public post-secondary educational institution at below market rent for an approximately 425 square feet space adjacent to the food stations, equipped with a full kitchen plus a large pizza and hearth oven. This space is known as the Food Learning Innovation Place.

Food vendors and the Food Learning Innovation Place operator will be chosen by a Tenant Selection Committee comprised of the local Councillor, City staff and members from academia. The Food Incubator Tenancy Program will help selected eligible start-up food entrepreneurs reduce their investment and business risk and support the revitalization of the food retail industry during and after the COVID-19 pandemic.