Item - 2026.GG27.11

The City Solicitor, the Executive Director, Corporate Real Estate Management and the Chief Procurement Officer recommend that:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1.

2. City Council direct that Confidential Attachment 1 remain confidential at this time and authorize the public release of the confidential recommendations contained in Confidential Attachment 1, at the discretion of the City Solicitor, but that the remainder of Confidential Attachment 1 remain confidential as it contains advice which is subject to solicitor-client and litigation privilege.

The City engaged the Atlas Corporation / Buttcon Limited Joint Venture (“BAJV”) as general contractor to deliver the St. Lawrence Market North Redevelopment Project (the “SLMN Project” or the “Project”) at 92 Front Street East. The City’s Contract with Atlas Corporation / Buttcon Limited Joint Venture contemplated that Atlas Corporation / Buttcon Limited Joint Venture would start work in July 2019 and achieve substantial performance of the work by December 11, 2021.

Substantial performance of the St. Lawrence Market North work was ultimately achieved on November 30, 2024. Following substantial performance, operations in the new St. Lawrence Market North building commenced, with the Provincial Offences Court opening on March 5, 2025 and the farmers’ market opening on April 5, 2025.

During and following construction, Atlas Corporation / Buttcon Limited Joint Venture and the subcontractors retained by Atlas Corporation / Buttcon Limited Joint Venture  for the purposes of the Project commenced lawsuits against the City relating to alleged damages and extra costs incurred during construction (the “BAJV Litigation”). The total amount claimed by Atlas Corporation / Buttcon Limited Joint Venture against the City on behalf of itself and its subcontractors is $81,448,497.40 plus Harmonized Sales Tax. Most of the amount claimed by Atlas Corporation / Buttcon Limited Joint Venture and its subcontractors concerns delay on the Project.

The City has defended the action and advanced a counterclaim against Atlas Corporation / Buttcon Limited Joint Venture in the amount of $8,307,084.19, plus Harmonized Sales Tax, for its own delay damages and outstanding deficiencies (the “City Counterclaim”).

In addition, the City’s architect and contract administrator for St. Lawrence Market North, Adamson Associates Architects (“AAA”) has requested an increase to its fixed fee for providing contract administration services as a result of the extension to the construction administration period was extended by an additional forty (40) months beyond the anticipated completion date (the “AAA Fees Claim”).

Confidential Attachment 1 contains legal advice from the City Solicitor regarding the Atlas Corporation / Buttcon Limited Joint Venture litigation, the City’s Counterclaim and the Adamson Associates Architects Fees Claim.

The financial implications are discussed in Confidential Attachment 1.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information discussed in Confidential Attachment 1.