Item - 2026.EX29.2

The Deputy City Manager, Development and Growth Services recommends that:

1. City Council authorize the Director, Real Estate Services, to negotiate, enter into, and execute a lease or licence agreement with the Toronto Port Lands Company for nominal consideration to provide the City with access to lands for site investigations, site preparation (including the construction of enabling infrastructure), environmental remediation, interim activation and any other early works related to the Ookwemin Minising Phase 1, on such terms and conditions satisfactory to the Director, Real Estate Services  and in a form satisfactory to the City Solicitor.

2. City Council authorize the Director, Real Estate Services to negotiate, enter into, and execute agreements, including agreements with Waterfront Toronto and other parties approved by Waterfront Toronto, for nominal consideration, to provide access to lands leased or licensed by the City for site investigations, site preparation (including the construction of enabling infrastructure), environmental remediation, interim activation and any other early works related to the Ookwemin Minising Phase 1, on such terms and conditions satisfactory to the Director, Real Estate Services  and in a form satisfactory to the City Solicitor.

3. City Council as shareholder direct the Toronto Port Lands Company Board of Directors to authorize the execution on behalf of Toronto Port Lands Company of any agreements as may be necessary to accept the temporary placement of up to 200,000 cubic metres of excess soils on Toronto Port Lands Company-owned future development blocks within the Port Lands Flood Protection Project Area, until such time that the City of Toronto provides further direction to Toronto Port Lands Company regarding the redevelopment of the lands, which will address the removal, disposal and/or relocation of such excess soils, with said agreements to include terms and conditions as the Chief Executive Officer, CreateTO deems appropriate and in a form satisfactory to the Chief Legal Counsel, CreateTO.

4. City Council authorize the Deputy City Manager, Development and Growth Services, in consultation with the Chief Financial Officer and Treasurer, to negotiate and execute required agreements, in a form acceptable to the City Solicitor, with Toronto and Region Conservation Authority and the Toronto Port Authority for an annual sediment and debris management program, to be subject of future year budget requests.

5. City Council authorize the Director, Waterfront Secretariat in consultation with Toronto and Region Conservation Authority to begin advancing pre-planning and feasibility work in support of potential future Environmental Assessment(s) required to locate and develop a new Confined Disposal Facility or suitable alternative to support the sediment management program, subject to future budget requests.

This report provides an update on the Port Lands Flood Protection project, which reached substantial completion on September 30, 2025. Since the last update to City Council in May of 2023 many important project milestones have been reached. These include:

- Completion and opening of four new bridges (two on Cherry Street over the Keating Channel, one on Cherry Street Bridge over the new Don River and one bridge on Commissioners Street over the new Don River);

- Reconstruction of the new Lake Shore Bridge over the Don River;

- Removal of the old Cherry Street lift bridge over Keating Channel;

- New water, sanitary and stormwater infrastructure along Cherry Street, Commissioners Street and Don Roadway;

- Completion of a Flood Protection Landform underneath the new Don Roadway;

- Completion, flooding and opening of the new Don River valley to Lake Ontario, with associated habitats and public realm;

- Reopening of Commissioners Street, Don Roadway and a fully realigned Cherry Street;

- Completion of Biidaasige Park east of Cherry Street, including Fire Hall 30;

- Naming of former Cherry Street to Ookwemin Street;

- Naming of Ookwemin Minising and Biidaasige Park;

- Installation of key Indigenous design and art elements; and

- The commencement of the sediment removal program in the Keating Channel.

As part of finalizing the project, certain assets, such as the western portion of Biidaasige Park, will be transferred to the City in the first half of 2026. This will occur following installation of final finishes and plantings that can only be done in the spring. Removal of the backlogged sediment in the Keating Channel, needed to maintain flood protection, will also resume in the spring of 2026 under the management of Toronto and Region Conservation Authority (TRCA). Infrastructure assets that will be completed and handed over to the City in 2026 include:

- The portion of Biidaasige Park west of Cherry Street, which will open to the public in the summer of 2026;

- A reconstructed Lake Shore Boulevard East bridge over the Don River, and expanded right-of-way between the Don Roadway and Carlaw Avenue;

- Storm and sanitary related infrastructure; and

- The Sediment and Debris Management Area, built to an interim condition will function as a key staging and management area for dredging, debris removal and sediment handling.

The report also recommends providing the Director, Real Estate Services, Corporate Real Estate Management with authority to negotiate and enter into nominal leases with the Toronto Port Lands Company and with Waterfront Toronto to enable Ookwemin Minising Phase 1. These authorities were not obtained in October 2025 when Council approved Ookwemin Minising Phase 1. In addition, the report recommends that Council as shareholder direct the Toronto Port Lands Company Board of Directors to authorize the execution of any agreements as may be necessary to accept the temporary placement of excess soils on Toronto Port Lands Company-owned future development blocks. This is a housekeeping matter to finalize the handback of lands, as reported to City Council in 2023.

The full development potential of Ookwemin Minising and the broader Port Lands area requires the annual removal of sediment and debris in the Lower Don River and in the Keating Channel. Given the nature of the sediment removed from the Don River, it must currently be disposed of in an approved Confined Disposal Facility (CDF) located within the Leslie Spit. It is recommended that City staff be authorized to enter into agreements with Toronto and Region Conservation Authority and the Toronto Port Authority for an annual sediment and debris management program.

It is also recommended that City staff begin working with Toronto and Region Conservation Authority, the Toronto Port Authority and other stakeholders in identifying alternative dredging technologies to ensure that the most cost effective, and environmentally sensitive approaches are being taken. Preliminary work, in support of potential future Environmental Assessment(s) to identify the location for a new Confined Disposal Facility is also recommended. Further studies will be brought to City Council as appropriate.

The Port Lands Flood Protection project is a large-scale capital initiative which reached substantial completion in 2025.

The operating costs of the assets being transferred in 2026, specifically the portion of Biidaasige Park west of Cherry Street, the rebuilt Lake Shore Boulevard East bridge over the Don River and expanded right-of-way between the Don Roadway and Carlaw Avenue, and storm and sanitary-related infrastructure are included in the 2026 Operating Budgets of Parks and Recreation, Transportation, and Toronto Water, respectively. Any additional costs including annualization will be provided for consideration through the 2027 and future budget processes.

The 2026 Waterfront Revitalization Capital Budget includes $14.7 million for dredging work to remove backlog sediment. Once the backlog is clear, a permanent dredging program will be required to clear annual sediment accumulation. This program is currently being costed by the Toronto and Region Conservation Authority, the Toronto Port Authority and the City, but is expected to range between $12-15 million per year and will be requested through future budget processes. The capital expenses for the acquisition of new equipment, estimated to be $3 million for two low-mast push tugs that can pass under the new Lake Shore Boulevard bridge over the Don River and $7 million for three custom bottom dump scows, are expected to be included in the dredging operations charges from Toronto Port Authority.

The costs of Environmental Assessment(s) required to locate and develop a new Confined Disposal Facility or suitable alternative to support the sediment management program are not yet known and will need to be requested through future budget processes, once assessed.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.