Item - 2025.EX28.32

The Executive Committee recommends that:

1. City Council authorize the extension of the:

a. Sunset Date in the Land Development Agreement between the City and Hines (LDA) and the Undertaking Agreement between the City and Waterfront Toronto, each dated June 28, 2012, to April 30, 2026, solely in respect of the development site shown as Block C1 on Attachment 1 (Block C1), provided that the LDA is also amended to make the City’s obligation to grant a ground lease conditional on City Council’s acceptance of Hines’ proposal for Block C1; and

b. Term of the Master License Agreement between the City and Waterfront Toronto, dated March 31, 2012, to April 30, 2026;

conditional on the Development Agreement between Waterfront Toronto and Hines, dated June 28, 2012, being similarly extended, and on such other terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management, in consultation with the Chief Planner and Executive Director, City Planning, and the Executive Director, Housing Development Office, and in a form satisfactory to the City Solicitor.

2. City Council authorize the Executive Director, Corporate Real Estate Management or designate to execute the extension agreements and any related documents on behalf of the City.

3. City Council direct the Chief Planner and Executive Director, City Planning, the Executive Director, Housing Development Office and the Executive Director, Corporate Real Estate Management to report back in April 2026 on plans for Bayside Block C1, based on City and Waterfront Toronto due diligence and review of development options including, but not limited to, a commercial office proposal from Hines Canada.

This report seeks approval to extend the termination date (Sunset Date) set out in the existing Land Development Agreement, dated June 28, 2012, between the City and Hines Canada Management Company II ULC (Hines) for the development site designated as Block C1 (C1) within the Bayside community of the East Bayfront (see map in Attachment 1). The recommended Sunset Date extension would be to April 30, 2026 and only apply to the C1 site. The extension would be for the specific purpose of working with Hines to identify a viable commercial office development at the property and the preparation of a staff report. The extension of the City-Hines Land Development Agreement also requires extension of the Undertaking Agreement and Master Licence Agreement between the City and Waterfront Toronto for the coordination of Bayside, to April 30, 2026. 

The extension to April 30, 2026 will not commit the City to accepting an office proposal from Hines for C1. The extension will be conditional on the LDA being amended to make the City’s obligation to grant a ground lease conditional on City Council’s acceptance of Hines’ proposal. The City will have the opportunity to consider the proposal and determine the most appropriate course of action in consultation with Waterfront Toronto.

While Hines advances options for a viable commercial office development at C1, City and Waterfront Toronto staff will also consider alternative development options that could be pursued for the C1 site should an office option with Hines not advance. These may include options for affordable housing, a student housing pilot project or another opportunity informed by considerations of funding and investment on City land. City staff, in consultation with Waterfront Toronto, will complete due diligence to determine the most appropriate direction for C1 development and report back in April 2026.

The Executive Committee recommends that:

1. City Council authorize the extension of the:

a. Sunset Date in the Land Development Agreement between the City and Hines (LDA) and the Undertaking Agreement between the City and Waterfront Toronto, each dated June 28, 2012, to April 30, 2026, solely in respect of the development site shown as Block C1 on Attachment 1 (Block C1), provided that the LDA is also amended to make the City’s obligation to grant a ground lease conditional on City Council’s acceptance of Hines’ proposal for Block C1; and

b. Term of the Master License Agreement between the City and Waterfront Toronto, dated March 31, 2012, to April 30, 2026;

conditional on the Development Agreement between Waterfront Toronto and Hines, dated June 28, 2012, being similarly extended, and on such other terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management, in consultation with the Chief Planner and Executive Director, City Planning, and the Executive Director, Housing Development Office, and in a form satisfactory to the City Solicitor.

2. City Council authorize the Executive Director, Corporate Real Estate Management or designate to execute the extension agreements and any related documents on behalf of the City.

3. City Council direct the Chief Planner and Executive Director, City Planning, the Executive Director, Housing Development Office and the Executive Director, Corporate Real Estate Management to report back in April 2026 on plans for Bayside Block C1, based on City and Waterfront Toronto due diligence and review of development options including, but not limited to, a commercial office proposal from Hines Canada.

This report seeks approval to extend the termination date (Sunset Date) set out in the existing Land Development Agreement, dated June 28, 2012, between the City and Hines Canada Management Company II ULC (Hines) for the development site designated as Block C1 (C1) within the Bayside community of the East Bayfront (see map in Attachment 1). The recommended Sunset Date extension would be to April 30, 2026 and only apply to the C1 site. The extension would be for the specific purpose of working with Hines to identify a viable commercial office development at the property and the preparation of a staff report. The extension of the City-Hines Land Development Agreement also requires extension of the Undertaking Agreement and Master Licence Agreement between the City and Waterfront Toronto for the coordination of Bayside, to April 30, 2026. 

The extension to April 30, 2026 will not commit the City to accepting an office proposal from Hines for C1. The extension will be conditional on the LDA being amended to make the City’s obligation to grant a ground lease conditional on City Council’s acceptance of Hines’ proposal. The City will have the opportunity to consider the proposal and determine the most appropriate course of action in consultation with Waterfront Toronto.

While Hines advances options for a viable commercial office development at C1, City and Waterfront Toronto staff will also consider alternative development options that could be pursued for the C1 site should an office option with Hines not advance. These may include options for affordable housing, a student housing pilot project or another opportunity informed by considerations of funding and investment on City land. City staff, in consultation with Waterfront Toronto, will complete due diligence to determine the most appropriate direction for C1 development and report back in April 2026.