Item - 2025.GG26.22

The General Government Committee recommend that:

1. City Council, in accordance with Section 195-8.5 of the City of Toronto Municipal Code Chapter 195, Procurement, grants authority to Corporate Real Estate Management and Purchasing and Materials Management Division to enter into a construction contract in the form of a CCDC-14 to the Kilmer Group and Tricon Residential (Kilmer-Tricon, the “Developer”) for a maximum upset amount of $40,976,589 net of all applicable taxes and charges ($41,697,777 net of Harmonized Sales Tax recoveries) in addition to the amount identified in Confidential Attachment 1 to the report (November 24, 2025) from the Executive Director, Corporate Real Estate Management, and the Chief Procurement Officer, based on the agreed upon class B cost estimate.

2. City Council grant authority to the Executive Director, Corporate Real Estate Management, in consultation with the Chief Procurement Officer and the Chief, Toronto Paramedic Services, to execute any necessary purchase order amendments with a value exceeding $500,000, or more than 10 percent of the original commitment, for which Committee or City Council approval would normally be required under City of Toronto Municipal Code Chapter 71, Financial Control and City of Toronto Municipal Code Chapter 195, Procurement provided that:

a. the purchase order amendment is necessary to enable the City to respond to the Developer’s request(s) for approval, consent, or agreement to any action, document or plan related to the design and construction of the Toronto Paramedic Services Multi-Function Station 03, and where such approval will impact the critical path of the delivery of mixed-income housing (the Residential Project), the City shall within seven working days after receipt of a request in writing for an approval, respond to the Developer in writing to ensure that the timelines are met for the construction of the Toronto Paramedic Services Multi-Function Station 03 at 610 Bay Street;

b. the appropriate additional funding will be requested in the annual Capital Budget submissions for Toronto Paramedic Services budget;

c. the terms and conditions of any amending agreements are acceptable to the Executive Director, Corporate Real Estate Management, the Chief Procurement Officer, and the Chief, Toronto Paramedic Services in a form satisfactory to the City Solicitor;

d. any amending agreements are completed in accordance with the City of Toronto Municipal Code Chapter 195, Procurement, and associated policies and procedures; and

e. a report summarizing any amendments made under this authority is submitted to the appropriate Committee and / or City Council for information on an annual basis.

3. City Council authorize the public release of Confidential Attachment 1 to the report (November 24, 2025) from the Executive Director, Corporate Real Estate Management, and the Chief Procurement Officer, following the project close out of the construction of Toronto Paramedic Services Multi-Function Station 03.

The purpose of this report is to seek authority to execute a construction agreement with Kilmer Group and Tricon Residential (Kilmer-Tricon, the “Developer”), following a competitive procurement process completed by CreateTO in 2024. The maximum upset limit of this agreement is $40,976,589 net of all applicable taxes and charges ($41,697,777 net of Harmonized Sales Tax recoveries), in addition to the amount identified in Confidential Attachment 1. This report also seeks to delegate authority to Corporate Real Estate Management, in consultation with Purchasing and Materials Management Division and Toronto Paramedic Services, to execute any necessary purchase order amendments, with a value exceeding $500,000, or more than 10 percent of the original commitment, for the construction of a new Toronto Paramedic Services Multi-Function Station (MFS 03) at 610 Bay Street.

In April 2022, City Council adopted a vision for the former Toronto Coach Terminal, located at 610 Bay Street and 130 Elizabeth Street, which prioritizes the delivery of mixed-income housing (the “Residential Project”) and incorporates MFS 03, public realm improvements, sustainable development, design excellence and the adaptive reuse of the heritage-listed former Toronto Coach Terminal.

In November 2024, through the adoption of item EX18.4, Council granted staff authority to enter into a lease and project agreement with the competitively procured tenant and Developer to construct MFS 03 alongside the mixed-income residential developments at 610 Bay Street and 130 Elizabeth Street. Under the lease and project agreement, the City, as landlord, would reimburse the Developer for the actual cost of construction.

As work progressed, staff identified that additional contractual mechanisms would better support the effective oversight, administration and delivery of MFS 03. Staff determined that an industry standard design-build construction agreement (CCDC-14) between the City and Kilmer-Tricon, as the delivery agent, would provide the most suitable contractual framework for delivering this project. A construction agreement defines risk allocation between project stakeholders and improves legal compliance with the Construction Act. It also establishes mechanisms for the City to provide oversight of the project, implements a more structured and transparent process for handling changes to the project scope, and includes a structured mechanism for payments, as opposed to reimbursements made under the existing lease and project agreement.

The execution of an additional construction agreement would constitute a material change from the delivery model approved by Council through item EX.18.4 and therefore requires additional Council authority.

Delegated authority to make necessary purchase order amendments is required to enable the City to respond to the Developer’s requests for approval, consent, or agreement to any action, document or plan related to the construction of MFS 03, where such approval would impact the critical path of the broader Residential Project. As MFS 03 will be constructed within the first two floors of the residential tower, the timeline for the Residential Project is directly dependent on the timely delivery of MFS 03. To support coordinated delivery and maintain the overall project schedule, the City must provide a written response to the Developer within seven working days of receiving a written request for approval. Any delay on the City’s part may result in additional financial implications.