Item - 2021.RA21.5

The Board of Directors of CreateTO:

1.  Approved the negotiated agreements for 705 Warden Avenue which include the Ground Lease and Project Agreement (the "Agreements") based substantially on the terms and conditions set out in Confidential Attachment 1 to the report (February 22, 2021) from the Vice President, Development, CreateTO, and such other terms and conditions deemed appropriate by the Executive Vice President, Development and the Chief Legal Counsel and Corporate Secretary, subject to the necessary City of Toronto approvals.

2.  Directed the Interim Chief Executive Officer, CreateTO to request the necessary City of Toronto authorities required to execute the Agreements and such other documents as may be necessary in order to finalize the arrangement with the developer partners for 705 Warden Avenue as described in Confidential Attachment 1 to the report (February 22, 2021) from the Vice President, Development, CreateTO.

3.  Directed that the names of the developer partners be made public at the discretion of the Interim Chief Executive Officer following execution of the Agreements and that the remainder of the information in Confidential Attachment 1 to the report (February 22, 2021) from the Vice President, Development, CreateTO remain confidential as it deals with a pending disposition of land by the Board of Directors of CreateTO and the City; and is about a position, plan, or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO.

The Board of Directors of CreateTO recessed its public session to meet in closed session to consider the item as it pertains to a pending disposition of land by the Board of Directors of CreateTO and the City and a position, plan, or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO.

This report recommends that the CreateTO Board of Directors approve the negotiated agreements for 705 Warden Avenue ("705 Warden") which include the Ground Lease, and the Project Agreement (the "Agreements").

The report also recommends that the CreateTO Board of Directors direct the Interim Chief Executive Officer, CreateTO to request the necessary City of Toronto authorities to execute the Agreements and such other documents as may be necessary in order to finalize the arrangement with the developer partners for 705 Warden as described in Confidential Attachment 1.

Following completion of the market offering process in October 2020, the successful developer executed the term sheet on November 30, 2020. On December 4, 2020 the CreateTO Board adopted Item RA 19.6 - "Housing Now - Selection of Proponent for 705 Warden", approving the selection of the successful developer and the term sheet, subject to approval by senior City management.

On January 5, 2021, the Executive Director, Housing Secretariat, the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer confirmed their approval of the selection of the successful developer and of the Housing Now Ground Lease Term Sheet for 705 Warden.

On April 12, 2021 the due diligence period for the transaction will expire and as such, staff are seeking the required approvals from the CreateTO Board at this time to meet in order to be able to waive conditions and finalize the deal. 

Subject to approval of this report, CreateTO management will obtain the approval of the Executive Director, Housing Secretariat, the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer for execution of agreements, and work with the developer partners on obtaining the deposits as outlined in the agreements.

The developer partners are diligently working on their planning submissions (plan of subdivision and site plan applications) with a current timeline to have formal submissions made to City Planning by Q2, 2021.  

Pending planning approvals, the current schedule is to start site servicing construction by late Q4, 2021.