Item - 2021.GL26.7

The General Government and Licensing Committee recommends that:

1. City Council authorize the City to enter into a lease (the "Lease") of the property municipally known as 705 Progress Avenue, Unit 36-37, Toronto, Ontario (the "Leased Premises") pursuant to the Community Space Tenancy Policy with Carefirst Seniors and Community Services Association (“the Tenant") for a five year term based substantially on the terms and conditions set out Appendix A to the report (October 5, 2021) from the Executive Director, Social Development, Finance and Administration and the Executive Director, Corporate Real Estate Management, with such revisions thereto and on such other or amended terms and conditions acceptable to the Deputy City Manager, Corporate Services, or their designate, and in a form acceptable to the City Solicitor.

2. City Council authorize each of the Deputy City Manager, Corporate Services, and the Executive Director, Corporate Real Estate Management severally to execute the Lease, and any related documents on behalf of the City.

3. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, in consultation with the Executive Director, Social Development, Finance and Administration, to administer and manage the Lease including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

4. City Council authorize the Executive Director, Social Development, Finance and Administration, or their designate, to enter into, execute and administer a service agreement in respect of the tenancy at the Leased Premises, including the provision of any amendments, eligibility assessment, and annual reporting with the Tenant.

5. City Council pass a By-law pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to:

a. enter into a Municipal Capital Facility Agreement with Carefirst Seniors and Community Services Association for 705 Progress Avenue, Unit 36-37, Toronto, Ontario, comprised of approximately 6,615 square feet of community space (the "Leased Premises"), for the purposes of providing a Municipal Capital Facility related to the provision of social and health services and ancillary parking; and

b. exempt the Leased Premises and ancillary parking, if any, from taxation for municipal and school purposes, with the tax exemption being effective from the latest of:

i. the commencement date of the Lease; 

ii. the date the Municipal Capital Facility Agreement is entered into; and

iii. the date the Tax Exemption By-law is enacted.

6. City Council direct the City Clerk to give written notice of the By-law to the Minister of Finance, the Municipal Property Assessment Corporation, the Toronto District School Board, the Toronto Catholic District School Board, le Conseil Scolaire Viamonde, and le Conseil Scolaire Catholique Mon Avenir.

7. City Council authorize the Executive Director, Corporate Real Estate Management to enter into a lease (the "Lease") of the property municipally known as 705 Progress Avenue, Toronto, Ontario (the "Leased Premises") with: 

a.  5N2 Food For All;

b.  Council of Agencies Serving South Asians; and

c.  South Asian Autism Awareness Centre;

respectively and in sequence (“the Tenants"), on the condition each is determined to be eligible for a community space tenancy under the Community Space Tenancy policy (“the Policy”), for a five year term, as vacant space becomes available, based substantially on the terms and conditions set out in Appendix A to the report (October 5, 2021) from the Executive Director, Social Development, Finance and Administration and the Executive Director, Corporate Real Estate Management, with such revisions thereto and on such other or amended terms and conditions acceptable to the Deputy City Manager, Corporate Services, or their designate, and in a form acceptable to the City Solicitor.

8. City Council authorize each of the Deputy City Manager, Corporate Services, and the Executive Director, Corporate Real Estate Management severally to execute the Leases, and any related documents on behalf of the City, pursuant to Part 7 above. 
 

9. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, in consultation with the Executive Director, Social Development, Finance and Administration, to administer and manage the Leases including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction, pursuant to Part 7 above. 
 

10. City Council authorize the Executive Director, Social Development, Finance and Administration, or their designate, to enter into, execute and administer service agreements in respect of the tenancies at the Leased Premises, including the provision of any amendments, eligibility assessment, and annual reporting with the Tenants, pursuant to Part 7 above. 
 

11. City Council request the Executive Director, Corporate Real Estate Management to report back to City Council with the specific details necessary to seek authority to pass a By-law pursuant to Section 252 of the City of Toronto Act, 2006, providing authority to enter into a Municipal Capital Facility Agreement with the Tenants at 705 Progress Avenue, Toronto, Ontario (the "Leased Premises”), pursuant to Part 7 above. 

12. City Council direct the Executive Director, Social Development, Finance and Administration to grant an allocation of $450,000 to 5N2 Food for All to undertake renovations and create a proper food preparation area at 705 Progress Avenue should tenancy be secured with funding coming from Reserve Account XR2007, pursuant to Part 7 above.

13. City Council direct the Executive Director, Corporate Real Estate Management to request the co-owner of 705 Progress, the Toronto District School Board, to waive their portion of rental fees applied to the charities at 705 Progress Avenue that are part of the City’s below-market-rent program, pursuant to Part 7 above.

14. City Council direct the Chief Planner and Executive Director, City Planning, in consultation with the Chief Executive Officer, CreateTO, the Executive Director, Corporate Real Estate Management, the Executive Director, Social Development, Finance and Administration, and the Executive Director, Housing Secretariat, to request the Toronto District School Board to work together with the City of Toronto to create a master development plan for 705 Progress Avenue, along with any Official Plan and / or Zoning amendments which may be necessary, that would allow a mixed-use development to take place at the site, including a new school, a permanent community hub for local charities, at least two new condominium towers that would include an affordable housing component, and a large park area, and to report back to the Scarborough Community Council in the second quarter of 2022.

15. City Council direct the General Manager, Parks, Forestry and Recreation to build an accessible playground at 705 Progress Avenue, with funding in the amount of $400,000 to come from unallocated funds from Reserve Account XR2007.
 

16. City Council direct the Executive Director, Social Development, Finance and Administration, in consultation with the Executive Director, Corporate Real Estate Management to follow-up on the May 24, 2017, City Council request (2017.CD20.8) to report on the feasibility of establishing a community hub at 705 Progress Avenue to the General Government and Licensing in the first quarter of 2022.

The Community Space Tenancy Policy provides a process for the City of Toronto to lease City-owned or City-managed space at below-market rent to not-for-profit organizations that deliver community and cultural services to residents to further the City's strategic objectives.

The purpose of this report is to obtain City Council authority to enter into a Community Space Tenancy lease with the Carefirst Seniors and Community Services Association for 6,615 square feet of a City of Toronto and Toronto District School Board co-owned space located at 705 Progress Avenue, Unit 36-37 (the "Leased Premises") in Ward 24 – Scarborough Guildwood.

Carefirst Seniors and Community Services Association is a not-for-profit organization that delivers a range of health, social, and community support services to vulnerable seniors, older adults, and residents in need. A Community Space Tenancy lease at 705 Progress Avenue, Unit 36-37 will enable Carefirst Seniors and Community Services Association to extend its services in Scarborough to target the neighbourhoods of Woburn, Bendale, Eglinton East, Morningside, and Agincourt-South Malvern West. Many services and programs offered by Carefirst Seniors and Community Services Association focus on the needs of vulnerable older adults and seniors which align with several City of Toronto strategies, including the Toronto Seniors Strategy, Newcomer Strategy, and Toronto Strong Neighbourhoods Strategy.

This report also seeks City Council's authority for the adoption of the necessary by-law to designate a portion of the Leased Premises as a Municipal Capital Facility, and to provide an exemption from municipal and education property taxes.