Item - 2023.EX4.8

The Executive Committee recommends that:

1. City Council transfer 260 Adelaide Street West to CreateTO or to Build Toronto Inc. or an affiliate of Build Toronto Inc. as determined by the Chief Legal Counsel and Corporate Secretary, CreateTO at nominal value.

2. City Council approve the business case and sale of 260 Adelaide Street West based on the terms and conditions set out in Confidential Attachment 1 to the report (March 9, 2023) from the Chief Executive Officer, CreateTO.

3. City Council grant authority to the Executive Director, Corporate Real Estate Management, to enter into an agreement to transfer 260 Adelaide Street West, including agreements related thereto, to a CreateTO managed corporation known as Build Toronto Inc., or an affiliate of Build Toronto Inc., substantially on the terms and conditions set out in Confidential Attachment 1 to the report (April 18, 2023) from the Executive Director, Corporate Real Estate Management and such other and amended terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor.

4. City Council authorize severally each of the Executive Director, Corporate Real Estate Management and the Director, Transaction Services to execute the documents required to complete the transfer transaction. 

5. City Council direct $5,775,000 in future Section 37/Community Benefits Charge payments in Ward 10 - Spadina-Fort York to Build Toronto Inc. or an affiliate of Build Toronto Inc. for affordable housing at 260 Adelaide Street West before closing of the subsequent sale of 260 Adelaide Street West.

6. City Council authorize the public release of Confidential Attachment 1 to the report (March 9, 2023) from the Chief Executive Officer, CreateTO following the closing of all the transactions contemplated in the Agreements and at the discretion of the Chief Executive Officer, CreateTO.

7. City Council authorize the public release of Confidential Attachment 1 to the report (April 18, 2023) from the Executive Director, Corporate Real Estate Management following the closing of the transactions contemplated in Confidential Attachment 1 to the report (April 18, 2023) from the Executive Director, Corporate Real Estate Management.

The purpose of this report is to seek City Council authority for the transfer of the City-owned property at 260 Adelaide Street West ("260 Adelaide") from the City to a CreateTO managed corporation, Build Toronto Inc., or an affiliate of Build Toronto Inc. 260 Adelaide was declared surplus by City Council on October 29, 2019 through Item EX9.6 - "Property Acquisition for Strategic City Building." This report is also in response to direction received in Item EX26.2 - "Redevelopment of 260 Adelaide Street West" to report back to Executive Committee for approval of the business plan for the redevelopment of 229 Richmond Street and Metro Hall funded by the redevelopment and sale of 260 Adelaide Street West.

Given the strategic and City-building objectives, it is recommended that this report and the transmitted CreateTO Board report RA3.7 - "Sale and Redevelopment of 254 and 260 Adelaide Street West" be considered jointly by City Council.

At its meeting on March 27, 2023 the Board of Directors of CreateTO considered item RA3.7  and made recommendations to City Council.

Summary from the report March 9, 2023 from the Chief Executive Officer, CreateTO:

The purpose of this report is to receive Board approval to sell 260 Adelaide Street West (the "Site") with an option to enter into a joint venture to redevelop the Site based on the negotiated terms and conditions set out in Confidential Attachment 1. Management is further seeking approval on the updated business case to achieve significant city building including a new at-grade public park at 229 Richmond Street West and the construction of other important City facilities across several City-owned properties.

The business case will fund the relocation of Fire Station 332 from 260 Adelaide Street West to Metro Hall. It will also repay approximately half of the City's acquisition costs of the adjacent property at 229 Richmond Street West and pay for the relocation of existing City tenants to free up space for the new Fire Station at Metro Hall.

The redevelopment of 260 Adelaide and the resulting revenue generated will contribute to other significant city building benefits including a minimum of 20 per cent affordable housing, a new Toronto Paramedic Services post and new community space.