Item - 2025.GG23.23

The General Government Committee recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management, on behalf of the City, as tenant, to enter into a lease extension and amending agreement (the “Lease Extension”) with RioCan Holdings Inc., as landlord, for a further term of 10 years (the "Extended Term") with an option to extend for a further five years in respect of certain premises located at 700 Lawrence Avenue West, Unit 330 (the "Leased Premises"), more particularly as shown in Appendix B and Appendix C to the report (June 27, 2025) from the Executive Director, Corporate Real Estate Management, and the General Manager, Toronto Employment and Social Services hereto, substantially on the terms and conditions set out in Appendix A to the report (June 27, 2025) from the Executive Director, Corporate Real Estate Management, and the General Manager, Toronto Employment and Social Services, and on such other or amended terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management, or their designate, 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, Real Estate Services, to negotiate and execute the Lease Extension, and any related documents on behalf of the City.

The purpose of this report is to obtain City Council authority for the City, as tenant, to enter into a lease extension and amending agreement (the "Lease Extension") with RioCan Holdings Inc. (the "Landlord"), with respect to approximately 43,681 square feet of office space located at Lawrence Allen Centre, 700 Lawrence Avenue West, Unit 330 (the "Leased Premises") operated by Toronto Employment and Social Services, as Lawrence Square Employment and Social Services, for Toronto Employment and Social Services' client-based program administration.

Toronto Employment and Social Services has operated at the Lawrence Allen Centre since 2009, providing services to approximately 6,700 Ontario Works cases through the support of 125 staff. This location serves the Lawrence - Allen neighbourhood by providing financial supports, social supports, and referrals to employment supports for people receiving Ontario Works in Toronto. The existing lease for the Leased Premises is set to expire in the fall of 2025. Following a comprehensive review of the City-owned properties within Toronto Employment and Social Services' catchment area completed by Corporate Real Estate Management and CreateTO, in consultation with Toronto Employment and Social Services, staff have determined there is no suitable City-owned property that meets Toronto Employment and Social Services' operational requirements. The Lease Extension will allow continuity in Toronto Employment and Social Services' service delivery while also providing a sufficient term length to rationalize significant planned capital investments in the Leased Premises.

The rent and other terms and conditions of the Lease Extension reflect current market value according to market research and valuation conducted by Corporate Real Estate Management staff. The Leased Premises will continue to be designated as a Municipal Capital Facility and exempt from realty taxation for municipal and school purposes.