Item - 2023.RA4.5

The Board of Directors of CreateTO:

1.  Approved the Term Sheet and Memorandum of Understanding for 2444 Eglinton Avenue East (the "Term Sheet") based substantially on the terms and conditions set out in Confidential Attachment 1 to the report (March 31, 2023) from the Chief Executive Officer, CreateTO, and such other terms and conditions deemed appropriate by the Chief Development Officer and Executive Vice President Asset Management and the Chief Legal Counsel and Corporate Secretary, subject to the necessary City of Toronto approvals.

2.  Authorized the Chief Executive Officer and the Chief Legal Counsel and Corporate Secretary to execute the Memorandum of Understanding based substantially on the terms and conditions set out in Confidential Attachment 1 to the report (March 31, 2023) from the Chief Executive Officer, CreateTO, and such other terms and conditions deemed appropriate by the Chief Development Officer and Executive Vice President Asset Management and the Chief Legal Counsel and Corporate Secretary.

3.  Directed the Chief Executive Officer to report back to the Board of Directors for approval when management has finalized the outstanding portions of the business case as identified under the heading ‘Project Affordability’ in Confidential Attachment 1 to the report (April 6, 2023) from the Chief Executive Officer, CreateTO.

4.  Directed the Chief Executive Officer, CreateTO, in collaboration with the Executive Director, Housing Secretariat and the City Solicitor, to negotiate and, subject to approval by the Board of Directors of the outstanding portions of the business case, to recommend to the City for execution the transaction agreements, including a ground lease, purchase and sale agreement, and contribution agreement, and such other documents as may be necessary to finalize the arrangements with the proponent for 2444 Eglinton Avenue East (the "Agreements"), substantially on the terms set out in Confidential Attachment 1 to the report (March 31, 2023) from the Chief Executive Officer, CreateTO and the approved business case, and such other terms and conditions deemed appropriate by the Chief Executive Officer, CreateTO and the City Solicitor, subject to the necessary City of Toronto approvals.

5.  Directed that the names of the developer partners be made public at the discretion of the Chief Executive Officer following execution of the Agreements and that the remainder of the information in Confidential Attachment 1 to the report (March 31, 2023) from the Chief Executive Officer, CreateTO remain confidential in its entirety as it contains information that relates to and deals with a pending disposition of land by the Board of Directors of CreateTO and/or the City.

The Board of Directors of CreateTO recessed its public session to meet in closed session to consider the item as it pertains to pending disposition of land by the Board of Directors of CreateTO and/or the City.

This report recommends that the CreateTO Board of Directors approve the negotiated Term Sheet for 2444 Eglinton Avenue East (the "Term Sheet").

The report also recommends that the CreateTO Board of Directors direct the Chief Executive Officer, CreateTO to request the necessary City of Toronto authorities to advance entering into a Ground Lease, Purchase Agreement and Contribution Agreement (the "Agreements") and such other documents as may be necessary in order to finalize the arrangement with the developer partners for 2444 Eglinton Avenue East as described in Confidential Attachment 1.

Upon approval of the Term Sheet, the developer partners will advance their due diligence of the site with a target to submit a re-zoning application in Q4 2023.

This site was selected by the CreateTO Board on December 4, 2020 to proceed as the pilot site to test going to market prior to zoning being in place and approved. 

A reference concept plan was prepared by CreateTO and endorsed by City staff prior to the market offering process and the developer partners' proposed development concept is generally in keeping with this original reference concept plan.

Subject to approval of this report, the proponent, CreateTO and the Housing Secretariat will work on further advancing discussions with CMHC on funding opportunities available to support this Housing Now development along with commencing with drafting of the Agreements based substantially on the approved Term Sheets.