Item - 2025.EC25.2

The Executive Director, Social Development, and the Executive Director, Corporate Real Estate Management, recommend that:

1. City Council authorize Executive Director, Corporate Real Estate Management and in consultation with the Executive Director, Social Development to negotiate, enter and execute a lease agreement (the “Lease”) with Family Service Toronto for the premises located at 355 Church Street, on terms and conditions set out in Appendix “C” and on such other or amended terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Social Development, and in a form satisfactory to the City Solicitor. 

2. City Council authorize the Executive Director, Social Development, to negotiate, enter into, and amend any required agreements, including funding agreements, with Family Service Toronto for up to a total of $2.5 million for the construction and fit-out of the premises located at 355 Church Street, to make the space fully functional for occupancy and use, on the terms and conditions acceptable to the Executive Director, Social Development and in a form satisfactory to the City Solicitor.

3. City Council authorize the Executive Director, Social Development, to negotiate, enter into, and amend any service and funding agreements with Gerstein Crisis Centre, TAIBU Community Health Centre, Canadian Mental Health Association Toronto Branch, and 2 Spirited People of the 1st Nations for the provision of the Toronto Community Crisis Service training services, on the terms and conditions acceptable to the Executive Director, Social Development and in a form satisfactory to the City Solicitor, subject to all related expenditures being funded within the Social Development operating budget.

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 Family Service Toronto, the landlord, which will lease approximately 7,500 square feet of space on the fourth floor at 355 Church Street (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 Agreement is entered into; and

3. the date the Municipal Capital Facility 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 MonAvenir.

Toronto is advancing its commitment to non-police-led mental health crisis response by establishing a dedicated Toronto Community Crisis Service (TCCS) Training Centre.

This investment marks a critical step in expanding the City’s emergency response system and advances SafeTO, Toronto’s ten-year community safety plan’s vision to prioritize prevention, equity, and community wellbeing.

The establishment of the TCCS Training Centre marks a critical step in embedding TCCS as a permanent and professionalized component of the City’s emergency response system, alongside the Toronto Police Service, Toronto Fire Services, and Toronto Paramedics Services, each of which operates its own dedicated training facility.

The TCCS Training Centre establishes Toronto as a national leader in equity-focused crisis response, reducing reliance on enforcement-led models and addressing the disproportionate impacts of traditional emergency services on Indigenous, Black, racialized, and other equity-deserving communities. To be operated by Gerstein Crisis Centre in partnership with TAIBU Community Health Centre, 2-Spirited People of the 1st Nations, Canadian Mental Health Association Toronto Branch, and Findhelp 211, the Centre will build sector-wide capacity by extending training to City staff, community partners and residents and embedding equity, collaboration, and consistency at the heart of Toronto’s emergency response system.

This report seeks City Council authority to:

- negotiate and execute a nominal, long-term lease agreement (the “Lease”) with Family Service Toronto, as landlord, for the fourth floor at 355 Church Street (the “Leased Premises”) to establish the TCCS Training Centre; 

- negotiate and execute a funding agreement with Family Service Toronto, as owner and landlord, for the construction and fit-out of the Leased Premises to make the space fully functional for occupancy and use as the TCCS Training Centre;

- negotiate and execute funding agreements with the Toronto Community Crisis Service training delivery partners for the provision of services for the TCCS Training Centre;

- designate the Leased Premises as a Municipal Capital Facility; and,

-  negotiate and enter into a service agreement with Gerstein Crisis Centre and other partners to lead the training delivery and provide operational oversight of the TCCS Training Centre.

These measures will enable immediate construction and support a Q4 2026 launch of a dedicated TCCS Training Centre that embeds excellence and strengthens Toronto’s emergency response system.

The establishment of the Toronto Community Crisis Service (TCCS) Training Centre will follow a phased financial approach to support both the development of the training space and the delivery of ongoing programming. The City will provide up to a total of $2.5 million in funding to Family Service Toronto, with up to $1.5 million in 2025 and up to $1.0 million in 2026, to support the construction and interior fit-out required for the fourth floor of 355 Church St., as outlined in Appendix “B”.

In 2025, up to $1.5 million will be repurposed from within the existing TCCS operating budget in the 2025 Operating Budget for Social Development to initiate the transformation of the fourth floor, including design development, permitting, and early-stage construction. This will continue in 2026, where up to $1.0 million will be allocated from within the existing budget to complete the fit-out and commissioning of the space, pending council budget approval. The funds will be transferred to Family Service Toronto, the property owner, under a formal agreement that may outline, among other things, reporting requirements, performance standards, and accountability measures.

The proposed Lease will provide the City with the Leased Premises for nominal rent during the initial 10 year term and in accordance with the terms of the Lease. The City will be responsible for all operating costs for the Leased Premises, including utilities, maintenance, and shared building costs, which will be managed through the Lease Agreement with Family Service Toronto. There will be incremental operating expenses of using the leased premises as the TCCS Training Centre. Any financial impacts arising from operating the Training Centre will be submitted through future budget processes for Social Development, as required, for consideration along with other City priorities, subject to the City's financial and resource capacity.

The Training Centre will be operated by Gerstein Crisis Centre, in partnership with TAIBU Community Health Centre, Canadian Mental Health Association Toronto Branch and 2 Spirited People of the 1st Nations under a Service Agreement with the City. The Agreement will define roles in training delivery, staffing, program integration with TCCS operations, and governance.

The property is already exempt from taxation under section 3(1)(12)(iii) of the Assessment Act. The leased premises will be designated as a Municipal Capital Facility under the City of Toronto Act, 2006, resulting in no net impact to the City in property tax revenue.  

The Chief Financial Officer and Treasurer have reviewed this report and agree with the information as presented in the Financial Impact section.