Item - 2022.GL32.35

The General Government and Licensing Committee recommends that:

 1. City Council approve the Project Agreement and income participation model governance approach set out in Confidential Attachment 1 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, and the proposed Project Term Sheet set out in Confidential Attachment 2 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, for the Enwave Geothermal District Energy System - Bloor Kipling; and

a.  Authorize the Executive Director, Corporate Real Estate Management, or designate, to negotiate and enter into a Customer Term Sheet and a Customer Agreement between the City of Toronto and Enwave Energy Corporation or its affiliate to provide heating and cooling to the Etobicoke Civic Center, based on the terms and conditions in Schedule “B” of the Project Term Sheet in Confidential Attachment 2 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, that are acceptable to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor;

b. Authorize the Executive Director, Corporate Real Estate Management to provide all City payments required by the Customer Agreement and the Project Agreement, once executed, including without limitation the Upfront Payment for Hot and Chilled Water, the Fixed Charge for Hot and Chilled Water, and the Consumption Charge for Hot and Chilled Water, all as further described in Confidential Attachment 1 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, with subsequent payments to be made to Enwave Energy Corporation on a payment schedule agreed upon by the City and Enwave Energy Corporation;

c. Authorize the Deputy City Manager, Corporate Services, or designate to negotiate and enter into such leases, licenses, easements and other agreements as may be required to convey to Build Toronto Incorporated or its subsidiary such lease, license, easement or other interests as may be required to give effect to the transactions contemplated in the Project Term Sheet in Confidential Attachment 2 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, and the Project Agreement in Confidential Attachment 1 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, on terms and conditions acceptable to Deputy City Manager, Corporate Services, in consultation with the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor; and

d. Authorize the Deputy City Manager, Corporate Services to transfer at nominal value the lease, license, easement and other interests described in Recommendation 1c above to Build Toronto Inc. or its subsidiary.

2. City Council authorize the public release of Confidential Attachments 1 and 2 to the report (June 13, 2022) from the Chief Executive Officer, CreateTO, after the expiry of the Project Agreement, at the discretion of the Chief Executive Officer, CreateTO.

At its meeting on June 20, 2022, the Board of Directors of CreateTO considered item RA32.1 and RA32.1a and made recommendations to City Council.

Summary from CreateTO report (June 6, 2022):

The City of Toronto signed a joint development agreement with Enwave Energy Corporation on April 4, 2018 at the direction of City Council after selecting Enwave in a competitive process aimed at finding a revenue partner to deliver district energy systems across Toronto at little risk to the City. The joint development agreement provided Enwave certain preferred rights in respect of opportunities for a joint development and operation of district energy systems with the City of Toronto. Such systems include a central heating and cooling plant including geothermal or other renewable energy sources that services a group of buildings through a distributed pipe network.

At its meeting on June 20, 2022 the Built Toronto Inc. Board of Directors will be considering a Project Term Sheet (the "Term Sheet") which Management has negotiated with the Enwave.

The purpose of this report is to advise the Board that, subject to the decision of the Build Toronto Inc. Board of Directors, the Chief Executive Officer will provide a further report to the June 20, 2022 CreateTO Board meeting with additional information, and a recommendation to City Council on the proposed Term Sheet.