Item - 2024.GG18.27

The General Government Committee recommends that:

1. 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 Aura Hotel Group Inc., which leases approximately 26,500 square feet at 26 Gerrard Street East (the "Leased Premises") to the City of Toronto used for the provision of social and health services; 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 is entered into, and (3) the date the Tax Exemption By-law is enacted.

2. 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.

This report seeks Council's authority for the adoption of the necessary by-law to designate the property owned by Aura Hotel Group Inc. at 26 Gerrard Street East and leased to the City of Toronto as a Municipal Capital Facility, and to provide an exemption for the municipal property taxes and education taxes. The Municipal Capital Facility agreement authorized by the by-law will provide and exemption for approximately 26,500 square feet being leased to Toronto Shelter and Support Services.

Since the COVID-19 pandemic, the City of Toronto has continued to experience an unprecedented demand for shelter and 24-hour respite services. The Leased Premises at 26 Gerrard Street East, known as the Saint James Hotel, consists of 36 hotel units with 3 meeting rooms and is being used for the purposes of a temporary shelter to help meet shelter demand. The COVID-19 Shelter Transition and Relocation Plan was approved by City Council on April 6, 2022, and recommended a thoughtful, phased approach to support a gradual transition out of temporary COVID-19 shelter sites, including the continued use of most sites, where possible. In February 2024 City Council authorized staff to negotiate and approve lease extensions at shelter hotels including the Saint James Hotel until permanent solutions are available through the Homelessness Services Capital Infrastructure Strategy.