Item - 2025.GG19.19

The General Government Committee recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management to enter into a nominal sublease agreement (the “Sublease”) with Macaulay Centres for Children, as subtenant, (the “Subtenant”) for a term of ten years (the "Term") with an option to renew for a further ten years in respect of premises at the property municipally known as 486 Front Street West, as set out in Appendix A (the “Subleased Premises”) to the report (February 10, 2025) from the Executive Director, Corporate Real Estate Management, and the General Manager, Children's Services, as illustrated on the Location Map and Floor Plan of the Subleased Premises set out in Appendix B  to the report (February 10, 2025) from the Executive Director, Corporate Real Estate Management, and the General Manager, Children's Services, and Appendix C to the report (February 10, 2025) from the Executive Director, Corporate Real Estate Management, and the General Manager, Children's Services, respectively and including such other or amended terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor. 

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

This report seeks authority to enter into a ten-year year nominal sublease (the “Sublease”) with Macaulay Centres for Children (the “Subtenant”) for the purpose of delivering child care services at a newly constructed child-care centre located on the upper ground floor at 486 Front Street West (the “Subleased Premises”). The Subtenant, selected by the General Manager, Children's Services, pursuant to an Expression of Interest ("E.O.I.") process conducted by Children's Services, is expected to operate the child care program at the Subleased Premises with occupancy anticipated in the third quarter of 2025.

By way of a head lease, currently being negotiated, between the City, as tenant, and the developer, as landlord, the developer will lease to the City the lands and improvements on the upper ground floor at 486 Front Street West for a child care facility. The head lease will have a cumulative term of 99-years and was secured as a community benefit under a Section 37 agreement of the Planning Act.