Item - 2023.GG2.22

The General Government Committee recommends that:

1. City Council authorize the City to enter into a lease agreement (the "Lease") at below market basic rent with Toronto Cat Rescue (the "Tenant") for the premises described as Unit 15, 705 Progress Avenue, Toronto as outlined in the attached Appendix B (the "Leased Premises") for a five year term, substantially on the terms and conditions set out in the attached Appendix A to the report (February 16, 2023) from the Executive Director, Corporate Real Estate Management and the Executive Director, Municipal Licensing and Standards, with such other terms and conditions as may be acceptable to the Executive Director, Corporate Real Estate Management, and in a form acceptable to the City Solicitor.

2. City Council authorize each of the Deputy City Manager, Corporate Services, and the Executive Director, Corporate Real Estate Management, severally to execute the Lease and any related documents on behalf of the City.

3. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Social Development, Finance and Administration, to administer and manage the Lease including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

4. City Council authorize the Executive Director, Municipal Licensing and Standards to negotiate, enter into, execute and administer a service agreement with the Tenant substantially on the terms and conditions set out in this report from the Executive Director, Corporate Real Estate Management Services and Executive Director, Municipal Licensing and Standards, for Toronto Cat Rescue's provision of feral/stray/abused cat protection and control services at 705 Progress Avenue, Unit 15.

5. 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 the Tenant, with respect to the Leased Premises, comprising approximately 2,031 square feet, used for the provision of protection, regulation and control of animals; and

b. exempt the Leased Premises from taxation for municipal and school purposes, with the tax exemption being effective from the latest of (1) the commencement date of the Lease, (2) the date the Municipal Capital Facility Agreement is entered into, and (3) the date the service agreement is entered into, and (4) the date the Tax Exemption By-law is enacted.

6. City Council direct the City Clerk to give written notice of the Municipal Capital Facility 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.

This report seeks to obtain Council authority for the City (the "Landlord") to enter into a lease agreement at below market basic rent (the "Lease") and a service agreement (the "Service Agreement") with Toronto Cat Rescue (the "Tenant"), for certain premises comprising approximately 2,031 square feet of space located at 705 Progress Avenue, Unit 15 (the "Leased Premises").

This report also seeks Council's authority for the adoption of the necessary by-law to designate the Leased Premises owned by the City and the Toronto District School Board as a Municipal Capital Facility, and to provide an exemption for municipal taxes and education taxes. The Municipal Capital Facility agreement authorized by the by-law will provide an exemption for the Leased Premises.

Municipal Licensing and Standards' Toronto Animal Services has been occupying the Leased Premises through an arrangement with Corporate Real Estate Management since October 1, 2012. The use of the Toronto Animal Services occupancy was to open the Feral Cat Recovery Centre as part of their Trap, Neuter and Return Program given its close proximity to Toronto Animal Services' East Spay-Neuter Clinic. Toronto Animal Services has worked with Toronto Cat Rescue to lead the operations of the Recovery Centre since March 2015.