Item - 2025.GG23.22

The General Government Committee recommends that:

1. City Council authorize the City to enter into a lease agreement (the “Lease”) at below market rent with The Neighbourhood Group Community Services (“the Tenant”) for the City premises located at 5220 Yonge St, Toronto as outlined and illustrated in the attached Appendix A and Appendix B to the report (June 27, 2025) from the General Manager, Economic Development and Culture, the Interim Executive Director, Social Development, and the Executive Director, Corporate Real Estate Management, respectively (the “Leased Premises”) for a five-year term with an option to extend for further five-year period, in accordance with the City's Community Space Tenancy Policy and substantially on the terms and conditions set out in the attached Appendix C to the report (June 27, 2025) from the General Manager, Economic Development and Culture, the Interim Executive Director, Social Development, and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, and in a form acceptable to the City Solicitor.

2. City Council authorize each of the Deputy City Manager, Corporate Services, and the Executive Director, Corporate Real Estate Management, severally to execute the Lease, and any related or required documents on behalf of the City to give effect to the Lease.

3. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the General Manager, Economic Development and Culture, and the Executive Director, Social Development, to administer and manage the Lease including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

4. City Council authorize the Executive Director, Social Development, in consultation with the General Manager, Economic Development and Culture, to enter into, execute and administer a Service Level Agreement in respect of the tenancy at the Leased Premises, including the provision for any amendments, eligibility assessment, and annual reporting from the Tenant.

5. 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 The Neighbourhood Group Community Services, the landlord, which will lease approximately 3,494 square feet of community space at 5220 Yonge Street (the “Leased Premises”), for the purposes of the provision of Municipal Capital Facility related to social and cultural 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;

3. and the date the Tax Exemption By-law is enacted.

6. City Council direct the City Clerk to give written notice of the Municipal Capital Facility 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 authority for the City, as landlord, to enter into a five-year nominal lease agreement (the “Lease”) with The Neighbourhood Group Community Services, as a tenant, for approximately 3,494 square feet of space located at 5220 Yonge Street (the “Leased Premises”) for the purposes of providing non-profit social, cultural, and community support services.

The Neighbourhood Group Community Services will deliver a community hub offering integrated social and cultural programs and services, including newcomer services, language classes, settlement services, employment, and peer support services. The space will also be activated by community programming partners (North York Arts, North York Women’s Centre, Toronto Fringe Festival, and North York Seniors) who will provide on-site programs, including arts and culture, seniors' programs, and education and employment support services for women.

This report also seeks authority for the adoption of the necessary by-law to designate the Leased Premises owned by the City as a Municipal Capital Facility and to provide an exemption for municipal taxes and education taxes. The Municipal Capital Facility agreement authorized by the by-law will provide an exemption for the Leased Premises.