Item - 2023.GG1.11

The General Government Committee recommends that:

1. City Council grant authority to the Executive Director, Corporate Real Estate Management, to enter into an agreement to transfer the lands identified in Confidential Attachment 1 to the report (January 6, 2023) from the Executive Director, Corporate Real Estate, including agreements related thereto, to CreateTO’s corporate entity known as Build Toronto Inc., or an affiliate of Build Toronto Inc., substantially on the terms and conditions set out in Confidential Attachment 1 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.

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

3. City Council authorize the Executive Director, Corporate Real Estate Management to enter into a fully net lease with nominal base rent for those parts of the lands identified in Confidential Attachment 1 to the report (January 6, 2023) from the Executive Director, Corporate Real Estate,, with Build Toronto Inc. or the subsequent owner of the lands, substantially on the terms summarized in Confidential Attachment 1.

4. 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 Build Toronto Inc. or the subsequent owner of the lands, for the lands identified in Confidential Attachment 1 to the report (January 6, 2023) from the Executive Director, Corporate Real Estate, comprised of approximately 16,361 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.

5. 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.

6. City Council approve, as the approving authority under the provisions of the Expropriations Act, the disposal to Build Toronto Inc. of any property, that forms part of the transactions contemplated by this report, that was acquired by expropriation without giving the original owner from whom the property was expropriated the first chance to repurchase the property.

7. City Council authorize the public release of Confidential Attachment 1 to the report (January 6, 2023) from the Executive Director, Corporate Real Estate, following the closing of the transactions contemplated in Confidential  Attachment 1 to the report (January 6, 2023) from the Executive Director, Corporate Real Estate, at the discretion of the Executive Director, Corporate Real Estate Management.

8. City Council authorize the public release of Confidential Attachments 1 and 2 to the report (November 3, 2022) from the Chief Executive Officer, CreateTO following the closing of any agreement of purchase and sale transaction.

9. City Council request the Deputy City Manager, Corporate Services, in consultation with CreateTO, to report to the General Government Committee in the second quarter of 2023, on guidelines and principles for achieving "City Building Objectives" when properties are transferred to CreateTo or sold to the private sector.

The purpose of this report is to seek City Council authority for the transfer of the City-owned properties identified in Confidential Attachment 1 (“the Properties”) from the City to CreateTO’s corporate entity, Build Toronto Inc. This report is in response to direction received in Item EX31.10 "ModernTO: Unlocking Eight City-Owned Properties" to report back to City Council with an update on the ModernTO properties to be unlocked in the short-term and specifically to report back on proposed terms for an upcoming transaction on the Properties identified in Confidential Attachment 1.

The General Government Committee recommends that:

1. City Council authorize the transfer of the City-owned properties identified in Confidential Attachment 1 to the report (November 3, 2022) from the Chief Executive Officer, CreateTO (the “Properties”) to Build Toronto Inc. or an affiliate of Build Toronto Inc.

2. City Council authorize the Executive Director, Corporate Real Estate Management to execute a lease, as tenant, with the entity identified and substantially on the terms summarized in Confidential Attachment 1 to the report (November 3, 2022) from the Chief Executive Officer, CreateTO.

3. City Council authorize the public release of Confidential Attachments 1 and 2 to the report (November 3, 2022) from the Chief Executive Officer, CreateTO following the closing of any agreement of purchase and sale transaction, at the discretion of the Chief Executive Officer, CreateTO.

At its meeting on November 18, 2022, the Board of Directors of CreateTO considered item
RA1.4 and made recommendations to City Council.

Summary from the report (November 3, 2022) from the Chief Executive Officer,
CreateTO:

The purpose of this report is to respond to direction received in Item EX31.10 (ModernTO:
Unlocking Eight City-Owned Properties) to report back to the CreateTO Board and City
Council with an update on the ModernTO properties to be unlocked in the short-term and
specifically to report back on proposed terms for an upcoming transaction on the City-owned
properties identified in Confidential Attachment 1 (the “Properties”). Following review and
input from the CreateTO Board, this report will be forwarded to the appropriate committee for
consideration.

Details of the proposed transaction and proposed negotiated terms are summarized in
Confidential Attachment 1.