Item - 2022.PH31.4

The Planning and Housing Committee recommends that:  

1. City Council authorize the Executive Director, Corporate Real Estate Management to negotiate and enter into a sublease extension agreement (the "Agreement") with WoodGreen Community Housing Inc. ("WoodGreen"), as subtenant, for that part of the lands and premises municipally known as 1430 Gerrard Street East (the "Property"), to extend the two (2) year nominal rent sublease for an additional three (3) years, on terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor.

2. City Council repeal By-law 1091-2016 and terminate the Municipal Capital Facility Agreement dated December 1, 2016 between the City and the owner of the Property.

3. City Council 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 WoodGreen, with whom the City has a sublease, for the subleased portion of the Property comprised of approximately 28,751 square feet of community space, for the purposes of providing a Municipal Capital Facility related to the provision of social and health services and ancillary parking; and exempt that part of the Property presently leased by the City from taxation for municipal and school purposes, with the tax exemption being effective from the latest of:

a. the commencement date of the sublease;

b. the date the Municipal Capital Facility is entered into; and

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

4. 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 MonAvenir.

5. City Council authorize the Executive Director, Housing Secretariat to amend the operating agreement between the City and WoodGreen in respect of the subtenancy at the Property, to extend the two (2) year initial term of the operating agreement for an additional three (3) years, on terms and conditions acceptable to the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor.

6. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, in consultation with the Executive Director, Housing Secretariat, to continue negotiations for the acquisition of the fee simple interest in the Property and authorize the initiation of expropriation proceedings for the Property for the purposes of affordable housing.

7. City Council grant authority to serve and publish the Notices of Application for Approval to Expropriate the Property, to forward to the Ontario Land Tribunal any requests for inquiries received, to attend the hearing(s) to present the City of Toronto's position, and to report the Ontario Land Tribunal's recommendations to City Council for its consideration.

This report recommends City Council approval for staff to create 23 new transitional and supportive housing opportunities at 1430 Gerrard Street East (the "Property") for a minimum period of five years, by way of extending the current two-year nominal rent sublease agreement with WoodGreen Community Housing Inc. ("WoodGreen") for an additional three years. In addition, this report recommends City Council approval to exempt property taxes for the duration of the sublease term which will help deepen affordability for future residents.

The Property is currently leased by the City and was previously operated as a temporary shelter location for the Red Door Shelter which moved into its new permanent location in June 2021. WoodGreen will operate the Property as part of its Homeward Bound program which provides transitional housing for single mothers who are experiencing or at-risk of homelessness and also supports them to earn college diplomas, start careers and achieve financial self-sufficiency. Additionally, some of the new homes will be allocated specifically for Indigenous single mothers reflecting the City's commitment to justice, truth and reconciliation.

Concurrent to the above, staff are seeking Council's authority to commence expropriation proceedings to acquire the Property for the purpose of creating permanent affordable rental housing. Through expropriation, the Property can be retained and secured as part of the City's affordable housing stock in perpetuity, protecting the homes for current and future residents.

Creating 23 new affordable and supportive homes at 1430 Gerrard Street East will support the City in delivering its 24-Month COVID-19 Housing and Homelessness Recovery Response Plan ("24-Month Plan") in response to the ongoing COVID-19 pandemic which has disproportionately impacted vulnerable and marginalized residents, including people experiencing homelessness, Indigenous Peoples and women.