Agenda

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Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - May 14, 2024

Speakers/Presentations - The speakers list will be posted online at 8:30 a.m. on June 11, 2024.

Communications/Reports

The Deputy City Manager, Infrastructure Services recommends that :  

1. City Council authorize the City Manager, in consultation with the Chief Planner and Executive Director, City Planning, the Executive Director, Transit Expansion, theGeneral Manager, Transportation Services  and the City Solicitor, to conclude negotiations and enter into and execute a site-specific Transit Oriented Communities agreement with the Province of Ontario as represented by the Minister of Infrastructure and the Ontario Infrastructure and Lands Corporation, including provisions relating to the transfer of funding provided by Cadillac Fairview and the Province for the construction of new City infrastructure and coordination of infrastructure projects in the area, based on the terms outlined in Attachment 2 and such other terms and conditions satisfactory to the City Manager, on condition that the Contribution Agreement between the Province and Cadillac Fairview (the "Owner) is amended as necessary to ensure consistency with the terms of site-specific Transit Oriented Communities Agreement and that the Transit Services/ Operating Agreement has been entered into between Metrolinx and Cadillac Fairview, and to enter into any such ancillary or related agreements, amendments, extensions and renewals as may be necessary, on such terms and conditions as are satisfactory to the City Manager, in consultation with the above named City officials, all in a form satisfactory to the City Solicitor.

2. City Council authorize the City Manager, in consultation with the Deputy City Manager, Infrastructure Services and the City Solicitor, to conclude negotiations and execute Project Delivery Agreements with Waterfront Toronto, on terms and conditions satisfactory to the Deputy City Manager, Infrastructure Services, and in a form satisfactory to the City Solicitor, for the full implementation of the Preferred Design of the Broadview Eastern Flood Protection project Environmental Assessment, including completion of design and construction, subject to City Council budget approvals.

3. City Council authorize the City Manager, in consultation with the Chief Planner and Executive Director, City Planning, the General Manager, Parks, Forestry and Recreation, the General Manager, Children's Services and the City Solicitor to conclude negotiations, enter into and execute a Development Agreement with Cadillac Fairview and the Province of Ontario as represented by the Minister of Infrastructure and the Ontario Infrastructure and Lands Corporation to secure among other matters two childcare centres and a community recreation centre, based on the terms outlined in Attachment 3 and such other terms and conditions satisfactory to the City Manager and in a form satisfactory to the City Solicitor.

4. City Council authorize the City Manager, in consultation with the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning and the City Solicitor, to conclude negotiations, enter into and execute an Affordable Housing Agreement with Cadillac Fairview and its related nominees/corporations and the Province of Ontario as represented by the Minister of Infrastructure and the Ontario Infrastructure and Lands Corporation based on the terms outlined in Attachment 4 and such other terms and conditions satisfactory to the City Manager and in a form satisfactory to the City Solicitor, and to enter into and execute any ancillary and related site-specific affordable housing agreements in consultation with the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning and the Chief Financial Officer and Treasurer all in a form satisfactory to the City Solicitor, but only provided that the aforementioned agreements are able to be registered on title and binding on successor owners, to the satisfaction of the City Solicitor.

5. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer and the City Solicitor, to execute any security or financing documents as they relate to the Affordable Housing Agreement with Cadillac Fairview and its related nominees/corporations and the Province of Ontario as represented by the Minister of Infrastructure and the Ontario Infrastructure and Lands Corporation and any site-specific affordable housing agreement, or any other documents required to facilitate the affordable housing development and related activities, construction and secure conventional financing, where required, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the applicable affordable housing agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council, all in a form satisfactory to the City Solicitor, but only provided that the aforementioned agreements are able to be registered on title and binding on successor owners, to the satisfaction of the City Solicitor.

6. In accordance with the delegated approval under By-law 229-2000, as amended, City Council be advised that the Chief Planner and Executive Director, City Planning or delegate intends to approve the Draft Plan of Subdivision as generally illustrated in Attachment 6d subject to:

a. the conditions as generally listed in Attachment 6e which, except as otherwise noted, must be fulfilled prior to final approval and the release of the Plan of Subdivision for registration; and

b. any such revisions to the proposed subdivision plan or any such additional modified conditions as the Chief Planner and Executive Director, City Planning may deem to be appropriate to address matters arising from the on-going technical review of this development.

7. Notwithstanding Chapter 415-28 of the Municipal Code, City Council authorize the conveyance of Phase 2 parkland, being Block 11 on the Draft Plan of Subdivision shown on Attachment 6d to occur prior to issuance of the final building permit for any building within Phase 2 of the Plan of Subdivision.

8. Notwithstanding Section 415-26B of the Municipal Code, City Council authorize the conveyance of Block 26 on the Draft Plan of Subdivision containing infrastructure to service Block 11 on the Draft Plan of Subdivision, as shown on Appendix 6, Attachment 6d, to the satisfaction of the General Manager, Parks, Forestry and Recreation and the City Solicitor.

9. City Council authorize the appropriate City officials to enter into a limiting distance agreement, if necessary, with the Owner of the lands to address the relationship between the future development on Block 4 and Block 26 of the Draft Plan of Subdivision as shown on Appendix 6, Attachment 6d, and determine that the facilitation of appropriate municipal servicing and associated land ownership be due consideration, all to the satisfaction of the General Manager, Parks, Forestry and Recreation, in consultation with the City Solicitor.

10. City Council authorize the General Manager, Parks, Forestry and Recreation, the General Manager, Transportation Services and the Executive Director, Corporate Real Estate Management to accept the conveyance of the East Harbour Flood Protection Landform and Buffer Zone, including the portion of Street E that traverses the East Harbour Flood Protection Landform, on terms acceptable to the General Manager, Transportation Services, the General Manager, Parks, Forestry and Recreation and the Executive Director, Corporate Real Estate Management, in consultation with the City Solicitor, which may include a restrictive covenant in favour of the Toronto Region Conservation Authority or other form of encumbrance with the purpose of protecting the structural integrity of the flood protection landform.   

11. City Council approve development charge credits or exemptions for the proposed development at East Harbour as follows:

a.  a development charge credit against the Parks and Recreation component of the development charges for the design and construction by the Owner of the Above Base Park Improvements to the satisfaction of the General Manager, Parks, Forestry & Recreation; the development charge credit shall be in an amount that is the lesser of the cost to the Owner for the design and construction of the Above Base Park Improvements as approved by the General Manager, Parks, Forestry and Recreation, and the Parks, and the Recreation component of development charges for Phases 2 and 3 respectively, payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time;

b.  a development charge credit against the Storm Water Management  component of the Development Charges applicable to the development, for the design and construction by the Owner of the eligible upsizing of stormwater infrastructure to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services; the development charge credit shall be in an amount that is the lesser of the eligible cost to the Owner of the eligible upsizing the stormwater infrastructure and the Storm Water Management component of the development charges payable for the development as approved by the General Manager, Toronto Water, in consultation with the Chief Planner and Executive Director, City Planning, in accordance with the City’s Development Charges By-law, as may be amended from time to time, to a maximum of $3.3 million;

c.  a development charge credit against the Sanitary Sewer component of the Development Charges applicable to the development, for the design and construction by the Owner of the eligible upsizing of sanitary infrastructure to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services; the development charge credit shall be in an amount that is the lesser of the eligible cost to the Owner of the eligible upsizing the sanitary infrastructure and the Sanitary Sewer component of the development charges payable for the development as approved by the General Manager, Toronto Water in accordance with the City’s Development Charges By-law, as may be amended from time to time, to a maximum of $1.4 million;

d.  a development charge credit against the Transit component of the development charge for the design and construction by the Owner of the eligible Toronto Transit Commission base infrastructure within the Broadview Avenue Extension right of way to the satisfaction of the Toronto Transit Commission but only as necessary to address costs incurred by the Owner in excess of $5 million in relation to this work; the development charge credit shall be in an amount that is the lesser of the eligible cost to the Owner of constructing the transit base infrastructure within the Broadview Avenue Extension right of way that is above $5 million, as approved by the Toronto Transit Commission and the Transit component of the development charges payable for the development in accordance with the City’s Development Charges By-law, as may be amended from time to time; and

e.  a development charge exemption for the Community Recreation Centre and the portions of any building containing a Child Care Facility or alternate community use.

12. City Council authorize the City Manager, in consultation with the Chief Financial Officer and Treasurer, the Chief Engineer and Executive Director, Engineering and Construction Services, the General Manager, Parks, Forestry and Recreation, and the City Solicitor, to enter into and execute appropriate agreements to secure the development charge credits or exemptions as identified in Recommendation 11.a. - e. in appropriate agreements.

13. City Council authorize the Deputy City Manager, Infrastructure Services to negotiate and enter into an agreement between the City and the Owner to reimburse the Owner for the eligible design and construction costs to a value of $10 million for the East Harbour Flood Protection Landform, as approved by the Toronto and Region Conservation Authority and the Director, Waterfront Secretariat, and upon acceptance by the City, the reimbursement will be funded through a development charge credit against the East Harbour Port Lands Flood Protection and/or a development charge credit against the Storm Water Management component of the Development Charge payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time and/or through the approved budget for Broadview Eastern Flood Protection.

14. City Council accept deviations from the City’s Policy for Accepting Potentially Contaminated Lands to be Conveyed to the City under the Planning Act (2015) for the East Harbour lands being 21 Don Valley Parkway, 30 Booth Avenue and 375 and 385 Eastern Avenue, as set out below:

a.  exempt the conveyance of lands comprising the future widening of the Don Roadway, being Block 13 on the Draft Plan of Subdivision shown on Attachment 6d, from the Policy for Accepting Potentially Contaminated Lands to be Conveyed to the City under the Planning Act (2015), or as may be amended, and authorize City staff accept the conveyance of such lands in its current physical condition; 

b.  exempt the conveyance of lands for future parks (Blocks 10, 11 and 26) and the East Harbour Flood Protection Landform (Blocks 15 and 25) as shown on the Draft Plan of Subdivision in Attachment 6d from the application of Sections 5.1.2, 5.4.3, and 5.4.5 of the Policy for Accepting Potentially Contaminated Lands to be Conveyed to the City under the Planning Act (2015), or as may be amended, and any other sections that may be required to implement the conditions of draft plan approval, and authorize City staff to accept the conveyance of such lands that may be subject to Risk Management Measures that require ongoing monitoring of groundwater by the City and/or vapour mitigation during construction, following conveyance for such lands; and

c. exempt the conveyance of lands for future public roads as shown on the Draft Plan of Subdivision in Attachment 6d from the application of Sections 5.1.2, 5.4.3, and 5.4.5 of the Policy for Accepting Potentially Contaminated Lands to be Conveyed to the City under the Planning Act (2015), or as may be amended, and any other sections that may be required to implement the conditions of draft plan approval, and authorize City staff to accept the conveyance of such lands that may be subject to Risk Management Measures that require ongoing monitoring of groundwater by the City and/or vapour mitigation during construction, following conveyance for such lands.

15. City Council authorize the City Manager, in consultation with the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services and the City Solicitor, to conclude negotiations, enter and execute a TTC Infrastructure Agreement with the Owner and the TTC to secure the construction by the Owner of base transit right of way improvements within Broadview Avenue between the rail corridor and Lake Shore Boulevard East on such terms and conditions satisfactory to the City Manager and in a form satisfactory to the City Solicitor.

16. If the Committee of Adjustment approves minor variances as described in the Implementing Agreements Section of this report, City Council require the Owner to enter into an Amended and Restated Section 37 Agreement, pursuant to Section 37 of the Planning Act (as it read the day before the date Section 1 of Schedule 17 of the COVID-19 Economic Recovery Act, 2020, came into force), to amend the existing Section 37 Agreement registered on title to the lands to implement the Committee’s decision, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

17. City Council request the Toronto Port Lands Company Board of Directors to authorize any agency approvals necessary to enable the delivery and, once completed, the conveyance to the City of Broadview Avenue from the East Harbour lands to Lakeshore Boulevard East on Toronto Port Lands Company lands.

18. City Council direct staff to request that CreateTO, acting on behalf of Toronto Port Lands Company, negotiate and enter into a licence agreement for construction access and laydown with Cadillac Fairview Corporation Limited over portions of Toronto Port Lands Company lands, being described in PIN 21077-0147, located south of the TOC lands, which are necessary to enable delivery of the TOC development and improvements described in this report.

19. City Council delegate to the Executive Director, Corporate Real Estate Management the authority to approve, in consultation with the General Manager, Transportation Services, all necessary transactions required to effect the acquisition, and lease or licence if required, by the City of Toronto from the Toronto Port Lands Company of lands required to effect the extension of Broadview Avenue and such other road allowance extensions, as may be required, from the TOC lands to Lake Shore Boulevard East, at nominal consideration, upon the satisfaction of all requirements imposed upon the Owner in respect of same, and that such authority include the negotiation and execution of all agreements and documents as may be reasonably required to give effect thereto the terms of which shall be consistent with the intent set out herein and the financial parameters determined and approved by Council.  

20. City Council authorize the appropriate City officials to enter into a limiting distance agreement, if necessary, with the Owner of the lands, to address the relationship between the 4C Building and the new City-owned Community Recreation Centre only and determine that a commensurate portion of the value of the Community Recreation Centre being constructed by the Owner to be due consideration.

21. City Council authorize the Deputy City Manager, Development and Growth Services and the Deputy City Manager, Infrastructure Services to engage in discussions with the Province and Cadillac Fairview related to Cadillac Fairview's request for further changes to land use permissions at East Harbour, based on the following initial conditions:

a.  the provision of 20 percent of all new housing units as affordable housing for a term of 99 years and depending on the density increase in the area and on the same terms as the affordable housing provided for the first part of the East Harbour TOC;

b.  the provision of additional community benefits at a rate of up to 10 percent on the value of new development;

c. a firm commitment to the protection of employment development at East Harbour, the phasing of employment development to coincide with residential development, and a specific approach to develop the film sector at East Harbour; and

d.  a commitment to fully integrate the Toronto Port Lands Company owned Keating Lands into the revised East Harbour master plan and to acquire the lands to support important benefits, including an increase in affordable housing and expanding the Community Recreation Centre.

22. City Council request the Deputy City Manager, Development and Growth Services and the Chief Planner and Executive Director, City Planning to report back to City Council on the results of the discussions with the Province and Cadillac Fairview and to seek appropriate negotiating authorities as required.

23. City Council authorize the appropriate City officials to take such actions as are necessary to implement City Council's decision.

This report presents the outcome of negotiations with the Province and Cadillac Fairview related to the East Harbour Transit Oriented Community (TOC) development.  In addition, the report seeks City Council approval to conclude a series of agreements based on the negotiated terms and advises Council of the Chief Planner's intention to issue Draft Plan of Subdivision approval subject to conditions (Draft Plan Conditions). The report also seeks City Council authority to continue discussions with the Province and Cadillac Fairview on an emerging proposal to adjust the current ratio of employment and residential permissions by increasing the amount of mixed use and residential development at East Harbour.

An essential element for the East Harbour TOC development is the East Harbour Transit Hub (the Transit Hub). The Transit Hub is a priority project for the City and the Province. Along with other major infrastructure investments in the area, the Transit Hub will be an economic catalyst creating opportunities for new employment and housing development in the broader area, as well as being essential for the East Harbour TOC development. City Council provided direction in April 2022 confirming City priorities for the East Harbour TOC, including the negotiated community benefits and affordable housing. Based on this direction, City staff have negotiated an overarching approach with the Province and Cadillac Fairview that effectively addresses City interests and requirements at East Harbour.

The East Harbour TOC development is based on terms outlined in a Contribution Agreement between the Province and Cadillac Fairview. The City is not a party to the Contribution Agreement and is restricted in its ability to negotiate given the key terms pre-determined by the Contribution Agreement. The Contribution Agreement establishes several Conditions Precedent (CPs) to be satisfied in order for Cadillac Fairview to release $300 million in cash and in-kind contributions to the City. The majority of the CPs relate to actions to be taken by the City, while certain other CPs relate to actions to be taken by the Provincial government and Metrolinx. Cash contributions will flow through the Province to the City according to the terms of the Contribution Agreement.

In April 2022, following City Council's approval of negotiating direction, the Province issued a Ministerial Zoning Order (MZO) to give effect to the TOC, granting Cadillac Fairview residential development permissions of 302,000 square metres (3.25 million square feet) at East Harbour. With the introduction of residential development at East Harbour, City staff have been guided by an overarching objective to create a liveable, functional mixed-use community, with appropriate supportive community services and facilities, parks and open space, affordable housing, and transportation and servicing infrastructure. Key objectives for City staff have been to ensure City interests are properly reflected in the terms of agreements with the Province and Cadillac Fairview, and to effectively manage financial and other risks to the City.  This includes a focus on limiting the impact of the TOC development on the remaining employment lands on the site and in the vicinity as directed by City Council.

As noted above, this report outlines the terms of several key agreements required by the CPs and seeks City Council authority to conclude and execute the agreements:

-A Site-Specific TOC Agreement between the City and the Province to set out the CPs and the manner in which the CF funds will flow to the city, details respecting Provincial and City funding commitments for infrastructure works and governance terms for the delivery of the Broadview Eastern Flood Protection project and the Broadview Avenue extension;

-A Development Agreement between the City, Cadillac Fairview and the Province related to requirements for the delivery of in-kind contributions including a community centre and two childcare centres and other aspects of the TOC development;

-An Affordable Housing Agreement between the City and Cadillac Fairview establishing the key terms for the delivery of 215 affordable housing units for 99 years at East Harbour; and

-Amendments to the existing Section 37 Agreement to reflect changes in the location and timing of the delivery of certain benefits.

The report also outlines conditions related to the Draft Plan of Subdivision and a Pre-Servicing Agreement with Cadillac Fairview. These also relate to CPs identified in the Contribution Agreement.

The New Deal between the City and Province includes terms regarding two key infrastructure projects in East Harbour – the Broadview Avenue Extension north of the rail corridor to Eastern Avenue, and the Broadview Eastern Flood Protection project.  The New Deal outlines commitments to funding for the delivery of these City infrastructure projects and provides direction relating to the design approach as well as roles and responsibilities of the City and the Province. This report provides more detail on an updated approach to implementing the Broadview Eastern Flood Protection project.

The outcomes of negotiations described in this report are based on Cadillac Fairview's existing East Harbour master plan. The master plan reflects 926,000 square metres (10 million square feet) of employment development approved by City Council in 2018 and the addition of 302,000 square metres (3.25 million square feet) of residential development approved through the Provincial MZO in 2022.

Cadillac Fairview's previous employment conversion request as part of the recent Municipal Comprehensive Review is being considered by Planning and Housing Committee in June 2024 to coincide with this broader East Harbour TOC report.  That report recommends the maintenance of the employment lands at East Harbour, except for the particular sites where the MZO provides for residential development.

While Cadillac Fairview has confirmed their commitment to concluding these negotiations, in late May 2024, Cadillac Fairview informed the Province and the City that with market conditions related to the office development and the costs of financing the East Harbour development, it intends to pursue with the Province further changes to the employment lands to allow more mixed use and residential development. 

The City has been clear throughout these TOC negotiations that any future change in the balance of residential and employment permissions on the East Harbour site will require additional affordable housing and other community benefits.  This report seeks guidance for City staff discussions with the Province and Cadillac Fairview.  City staff will report back to City Council with further information on the Cadillac Fairview proposal as it becomes available and will seek any required City Council direction.

Several initial City conditions are fundamental to this discussion and should be articulated to the Province and Cadillac Fairview as discussions begin. City staff recommend that City Council endorse several key conditions related to any changes to allow more residential development:

-Depending on the proposed density increase, City Council has set a target of 20% of all new housing units as affordable housing on the same 99 year affordability period as the affordable housing provided for the first part of the East Harbour TOC;

-The provision of additional community benefits at a rate of up to 10% on the new development, depending on what the market can bear

-A firm commitment to the protection of employment development, the phasing of employment development to coincide with residential development, and a specific approach to develop the film sector at East Harbour

-A commitment to fully integrate the Keating Lands into the revised East Harbour master plan and to acquire the lands to support important benefits, including an increase in affordable housing and expanding the Community Recreation Centre.

The East Harbour TOC proposal includes benefits that will come to the City in the form of cash and in-kind contributions from Cadillac Fairview.  The TOC proposal and the East Harbour Transit Hub also rely on major infrastructure investments by the City and the Province. The New Deal between the City and the Province also includes terms to advance the delivery of two major related City infrastructure projects, namely the extension of Broadview Avenue and the Broadview Eastern Flood Protection project north of the East Harbour site.

Contributions to the City

The East Harbour TOC proposal is based on terms outlined in a Contribution Agreement between the Province and Cadillac Fairview. The City is not a party to the Contribution Agreement and has been restricted in its ability to negotiate given that the key terms were pre-determined by the Province and Cadillac Fairview. This agreement establishes Conditions Precedent (CPs) that must be undertaken, to the satisfaction of Cadillac Fairview to release approximately $300 million in cash and in-kind contributions to the City. The following table outlines the major elements of the $300 million contribution negotiated between the Province and Cadillac Fairview, in consultation with the City. The contribution will be made by Cadillac Fairview via the Province to the City and in two tranches valued at $100 million and $200 million:

Table 1: Cash and In-kind Contributions from Cadillac Fairview to the City

* Estimated costs as of 2022

**Includes contribution of $4.5 million toward Broadview Avenue Extension and $42.55 million toward Broadview Eastern Flood Protection

The current TOC proposal by Cadillac Fairview will not be subject to future Community Benefits Charges on the basis that the site is subject to a zoning by-law that was passed under the previous Section 37 density bonusing regime. It is anticipated that Inclusionary Zoning (IZ) will not apply to the site. City staff have clearly articulated that any future change in the proportion of residential and employment development compared to the current MZO permissions will require additional community benefits with affordable housing being a key priority.

Cadillac Fairview is bound by the existing Section 37 agreement which secures community benefits with an escalated value of approximately $64 million.  The release of these benefits is linked to the employment development on the East Harbour site.  The benefits include:

Table 2: Section 37 Contributions

Cadillac Fairview will deliver site-specific and local infrastructure including a number of new public streets including the Broadview Avenue Extension south of the rail corridor to Lake Shore Boulevard East, servicing improvements, parkland and the East Harbour Flood Protection Landform on the East Harbour site.

Contributions by the City

The City is investing close to $1 billion in infrastructure projects to support the establishment of the future East Harbour Transit Hub. This includes the City's share of towards the Transit Hub as part of the City's SmartTrack program, an estimated $14.7 million in development charges credits to Cadillac Fairview for growth-related infrastructure, an estimated $140 million for the extension for the Broadview Avenue below the rail corridor and north to Eastern Avenue, and $200 million for the Broadview Eastern Flood Protection project. These infrastructure projects are also required to enable the development south of the rail corridor and create a significant benefit for the East Harbour TOC development and future development in the area.

This report seeks approval of development charge credits for some of the eligible growth-related infrastructure work and services Cadillac Fairview will undertake.  Consistent with the City's practice, the value of the DC credits will be the lesser of the respective service component of the development charges payable to which the works relates, and the eligible cost of the works as approved by the City, currently estimated to be $14.7 million.  This includes an agreed amount of $10.0 million for the flood protection landform and estimates of $3.3 million for storm water management upgrades, and $1.4 million for sanitary sewer upgrades. Should Cadillac Fairview undertake the above base park improvements for the on-site parks, this report seeks approval of Development Charge credits for the lesser amount of the cost of delivering those improvements and the cost of the parks component of the development charges payable subject to terms to the satisfaction of the General Manager of Parks, Forestry and Recreation.  If the Owner's costs for base transit infrastructure along Broadview exceed $5 million, additional costs will be covered through a development charge credit mechanism.  It is unlikely that costs will exceed $5 million.

As noted, in accordance with the terms of the New Deal, the City has agreed to fund the delivery of the Broadview Avenue Extension north of the rail corridor to Eastern Avenue. The estimated cost of this project is currently reflected in the 2024-2033 Capital Budget and Plan.  However, the final costs of the project have not been confirmed as the Province is still engaged in property negotiations with the landowner and design work is ongoing. Any adjustments to the budget for updated cost assessments and/or funding contributions from third-party cost-sharing opportunities will be brought forward through future Budget process.

Additionally, the City's share of the design and delivery of the Broadview Eastern Flood Protection project is the lesser of 50% of the total costs and $200M. This represents the full extent of the City's commitment on the Broadview Eastern Flood Protection. The City has included $57 million towards Broadview Eastern Flood Protection project in the 2023-2032 Capital Plan. Funding for the additional $143 million required to achieve the City's full $200 million commitment will be prioritized through the 2025 Budget process, subject to refinement of project cash flow estimates and further review of funding sources, including but not limited to, unlocked funding from the upload of the Gardiner Expressway and Don Valley Parkway through the New Deal.

The future operating budget impacts of the above noted infrastructure, including the in-kind contributions under the TOC agreement and the Section 37 agreement, will be addressed in future year City budgets as required.

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

The Deputy City Manager, Infrastructure Services and the Deputy City Manager, Development and Growth Services recommend that:  

1. City Council direct the Deputy City Manager, Infrastructure Services and the Deputy City Manager, Development and Growth Services to strengthen internal coordination amongst City Divisions in order to maximize achievement of the priorities outlined in Attachment 2 to this report in interactions with the Provincial government and its agencies in the delivery of all current and future transit expansion and transit-oriented community projects.

2. City Council forward this report to the Toronto Transit Commission, Waterfront Toronto, the Ontario Ministry of Transportation, Ontario Ministry of Infrastructure, Metrolinx and Infrastructure Ontario.

An unprecedented level of transit expansion, housing development and other major infrastructure projects is currently underway in Toronto. Delivery of higher-order transit lines, as well as development, brings numerous benefits, to increase housing supply, reduce congestion, support the City’s environmental goals, and promote a well-connected and accessible city. The advancement of the Province’s transit expansion projects along with its Transit Oriented Communities (TOC) Program, present significant opportunities to advance City priorities and maximize benefits to communities. At the same time, these large-scale and long-term construction projects present challenges that must be carefully managed to mitigate negative impacts on residents and businesses.

The purpose of this report is to:

1. Identify the City priorities that guide and inform negotiations with the Provincial government and its agencies, as well as the relevant policies and levers for implementation;

2. Provide a guide to external partners that outlines the City expectations with the Province, Metrolinx and the public more broadly; and,

3. Assist City staff in reviewing permit, licences and agreements under negotiation to determine if City priorities are being sufficiently addressed, while strengthening internal coordination to maximize City benefits.

The report identifies City priorities in the following areas, as detailed further in Attachment 2:

- Delivering mobility;

- Transit and housing as city building;

- Public realm improvements;

- Roadways, traffic and construction management;

- Parkland, forestry, and recreational facilities;

- Real estate;

- Protecting City infrastructure and assets;

- Community benefits;

- Business and cultural supports; and

- Community engagement.

City Divisions continue to review the Province’s technical designs, plans and requests for permits licences and approvals, in coordination with the local Councillor, as necessary, to identify all opportunities to advance the City’s priorities and to ensure a wholistic and coordinated City-wide approach that maximizes the benefits for the City. To further strengthen coordination processes as well as the engagement with the local Councillor, staff will:

- Ensure all City staff participating in transit expansion and TOC work understand the City priorities identified in Attachment 2, which will help guide and inform all negotiations with the Province and its agencies.

- Establish a monthly Transit and TOC Leaders Roundtable consisting of senior City staff across City Divisions. The purpose of this Roundtable is to review and provide strategic direction on critical, complex or non-routine permits, licenses and other agreements prior to issuance, where permitted under applicable law.

- Enhance their engagement with the local Councillor as part of ongoing work to assess opportunities to deliver on City priorities and identify potential improvements for advancement that reflect local ward priorities.

There are no financial impacts associated with this report. The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The General Manager, Toronto Shelter and Support Services, the Chief Financial Officer and Treasurer, and the Executive Director, Corporate Real Estate Management recommend that:  

1.  City Council amend the 2024 Capital Budget and 2025 – 2033 Capital Plan for Toronto Shelter and Support Services to create a new capital project called “Homelessness Services Capital Infrastructure Strategy (HSCIS)” with a project cost of $89.5 million, with cash flows commitments of $57.3 million in 2024 and a future commitment of $32.2 million in 2025, fully funded by the City Building Fund, in order to proceed with the due diligence and acquisition of properties.

2.  City Council request the Government of Canada to provide $674.5 million in funding over 10 years to support the capital funding needs of Toronto’s Homelessness Services Capital Infrastructure Strategy.

3.  City Council direct the Executive Director, Corporate Real Estate Management, in consultation with the General Manager, Toronto Shelter and Support Services, and the Chief Procurement Officer, to extend the use of Request for Supplier Qualifications solicitations RFSQ No. Doc3982873048 and RFSQ No. Doc3829596667 for Rapid Build Construction and Traditional Build Construction, established for the Rapid Housing Initiative to the Homelessness Services Capital Infrastructure Strategy until such time as updated RFSQs are issued in 2025, including any amendments to the documents necessary to reflect such changes in a form satisfactory to the City Solicitor, but excluding the approvals and delegated authorities set out in Recommendation #13 of Item 2021.PH26.4.

This report provides an update on Toronto Shelter and Support Services’ (TSSS) long-term, proactive approach to capital planning through the new Homelessness Services Capital Infrastructure Strategy (HSCIS). This report also seeks funding to increase the total number of new long-term and permanent spaces in the base shelter system by 1,600 spaces between 2024 and 2033. The majority of these new spaces will replace the temporary spaces secured during the COVID-19 pandemic, including hotel sites, and will support recovery and stability of the shelter system. The requested funding will advance securing up to five new shelter sites in 2024 through acquisitions, and additional sites through development on existing City-owned land for the first phase of the HSCIS. The City is in active negotiations with the federal government to secure  capital funding for the HSCIS Strategy.

This report also provides an update on other TSSS shelter development projects as part of the 2025 Shelter Infrastructure Plan as required by the Emergency Shelter Development Process (ESDP), approved by City Council in 2017. The Infrastructure Plan provides updates on the Housing and Shelter Infrastructure Development project (HSID, formerly 1,000 beds), the George Street Revitalization (GSR) project, in addition to the new projects as part of the HSCIS that will begin in 2024.

Finally, this report provides an update on the Council-approved COVID-19 Shelter Transition and Relocation Plan, including de-commissioning plans for temporary shelter hotel locations with the largest (more than 200) single adult and chronically homeless populations.

The total capital cost to implement the Council approved Homelessness Services Capital Infrastructure Strategy (HSCIS) to acquire and develop 20 new purpose-built shelter sites from 2024 – 2033 is estimated to be $674.5 million.

As part of the New Deal Term Sheet with the Province of Ontario, the federal government was requested to provide financial support to help fund the HSCIS. The City is in active negotiations with the federal government to secure the full capital cost of the HSCIS.

This report recommends an increase of $89.5 million of new capital funding to the 2024 – 2033 Capital Budget and Plan for Toronto Shelter and Support Services, fully funded by the City Building Fund, to advance securing up to five (5) new shelter sites in 2024, through acquisitions and development of existing City-owned land, for the first phase of HSCIS.

This funding is required to facilitate securing new shelter sites which includes, but is not limited to, executing conditional agreements of purchase and sale for new sites, and conducting the necessary technical investigations and due diligence on new and City-owned sites, all required to be completed prior to formally advancing new shelter development and construction on suitable shelter sites. For purchased sites, all funding must be in place before the signing of an Agreement of Purchase and Sale (APS).  A breakdown of the funding required is identified in Table 1 below:

Table 1: Funding required for HSCIS for 2024 and 2025

Given the urgent need to advance the acquisitions of new shelter sites and development of existing City-owned land, the City Building Fund will serve as the funding source for the HSCIS in 2024 and part of 2025, consistent with its eligible use towards housing and transit infrastructure priorities. There is sufficient funding capacity within the City Building Fund to support this initial phase. The City will continue to negotiate for federal funding for the entire cost of this capital project. Collaboration with and financial support from other levels of government is critical to establish sustainable and collaborative solutions for refugee claimants and asylum seekers requiring access to shelter spaces in the city.

Future funding will be required for the HSCIS capital projects for 2025 to 2033 to advance the pathway to recovery and stability of the shelter system through the development of 20 new purpose-built, permanent, and long-term use shelters.  

The remaining funding required for the HSCIS capital project will be requested annually through the budget process including through the 2025 Budget. Budget processes for consideration along with other critical City-wide operating and capital priorities subject to the City’s financial and resource capacity.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The City Manager recommends that:      

1. City Council direct the Sankofa Square Board of Management to develop a multi-year strategic and business plan, in consultation with the General Manager, Economic Development and Culture and the City Manager that includes:

a. strategies to enhance the activation of Sankofa Square for economic development, tourism, and community and commercial programming;

b. enhanced revenue streams to deliver on the mandate and programming of Sankofa Square and the community;

c. a review of permitting, production support policies, and fee structures, including considerations for increasing accessibility by community and not-for-profit organizations;

d. considerations for setting up a foundation to fund the resourcing of the Square's revitalization and enhance access for community and not-for-profit organizations;

e. strategies to enhance the safety and perception of safety of Sankofa Square;

f. rebranding of Yonge-Dundas Square to Sankofa Square;

g. outcomes of community engagement on the revitalization of Sankofa Square;

h. opportunities for partnerships on programming with key stakeholders;

i. a business case and detailed financial implications of implementation of the multi-year strategic plan and business plan; and

j. performance metrics to measure progress on the plans.

2. City Council direct the Sankofa Square Board of Management to report back to City Council through Executive Committee by Q3 of 2025 on the results and implementation status of the Board’s multi-year strategic plan and business plan adopted by the Board as set out in Recommendation 1, and an update on the partnership/sponsorship opportunities undertaken by the Board.

3. City Council advise the Sankofa Square Board of Management that the City Manager’s governance review requested in Item 2023.MM7.5 is concluded and that it is authorized to pursue appropriate partnership and sponsorship opportunities, subject to the Board-approved partnership policy, multi-year strategic plan and business plan, and consistent with the City’s partnership policies.

4. City Council amend Toronto Municipal Code Chapter 636, Public Squares, to:

a. replace all references to Yonge-Dundas Square with Sankofa Square;

b. replace all references to Yonge-Dundas Square Board of Management with the Sankofa Square Board of Management; and

c. replace all references to Ryerson University with Toronto Metropolitan University.

5. City Council authorize the City Solicitor to submit bills directly to Council for enactment to amend any City of Toronto by-law or Municipal Code Chapter to replace all references to Yonge-Dundas Square with Sankofa Square and to replace all references to the Yonge-Dundas Square Board of Management with the Sankofa Square Board of Management.

6. City Council authorize the City Manager, in consultation with the City Solicitor, to amend the City’s Relationship Framework with the Yonge-Dundas Square Board of Management and any other substantive or technical changes as may be required to give effect to City Council's decision to reflect the change of the name of Yonge-Dundas Square and the Yonge-Dundas Square Board of Management as set out in Recommendation 4, and as may be required by any other City Council decisions in this report.

7. City Council authorize the Sankofa Square Board of Management to amend their rules of procedure to reflect the change of the name to Sankofa Square and Sankofa Square Board of Management as set out in Recommendation 4.

8. City Council authorize the City Manager and the Sankofa Square Board of Management or their delegates, to take any necessary action to give effect to Recommendations 1 to 7.

This report responds to City Council's request to conduct a governance and operational review of Sankofa Square[1], including but not limited to considerations such as publicly operating Sankofa Square in the same manner as Nathan Phillips Square (NPS).

The review included a jurisdictional scan and engagement with Board members. Key findings of the review include:

-Sankofa Square has a broader mandate than the City's civic squares which includes economic development and community and commercial objectives.

-Sankofa Square's governance and operations model is similar to other North American squares that have broad mandates.

-Sankofa Square is mandated to be financially self-sufficient while the civic squares are not and therefore Sankofa Square can generate revenues from advertisements, sponsorships and commercial events.

Based on the key findings of the review, it is recommended that Sankofa Square continue its current board of management governance structure. Departing from this structure and operating Sankofa Square in the same manner as NPS could constrain programming, limit its ability to conduct fundraising, generate revenues, and potentially increase the City of Toronto’s net expenditures.

A multi-year strategic plan and business plan is recommended to refresh the Square's objectives. This strategic planning process will help to align the Square's objectives with the post pandemic events market and evolving neighbourhood context and to address the opportunities and challenges identified in this report.

This report also transmits, as directed by City Council, the Sankofa Square Board of Management (Board) report on Yonge-Dundas Square's adoption of the new name of Sankofa Square, as previously adopted by City Council, and includes the Board's implementation and transition plan for the new name (Attachment 1).

The financial impacts of the implementation of the multi-year strategic plan and business plan will be identified when the Board reports to City Council in Q3 2025 on the adoption and implementation of the plans. Additional resources, if necessary, will be included in future year budget processes for consideration, subject to the City’s financial resource capacity.  

City Council previously adopted the new name of Sankofa Square selected by the Recognition Review Community Advisory Committee (MM13.29) and as adopted by the Board at its February 2024 Board meeting. Funding of $0.230 million is included in the 2024 Operating Budgets for one-time marketing and communication costs to implement the new name, and $0.105 million in 2024-2033 Capital Budget and Plans funded by Section 37 Reserve Fund from the local ward for new signage.

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

City Council on May 22 and 23, 2024, referred Administrative Inquiry IA18.1 from Councillor Stephen Holyday, Ward 2, Etobicoke Centre, regarding Yonge-Dundas Square Renaming Initiative and Answer IA18.1a from the City Manager to the Executive Committee for consideration.

The General Manager, Parks, Forestry and Recreation and the Chief of Staff, City Manager's Office recommend that:

1. The Executive Committee receive this report for information.

This report responds to City Council's direction to the City Manager, in consultation with the General Manager, Parks, Forestry and Recreation, to assess the impacts of transitioning the governance and operations of Moss Park Arena from a Board of Management to a City-operated arena. This report provides governance considerations as well as financial, operational, staffing and program impacts of such a transition.

Moss Park Arena provides indoor ice sport facilities along with programming including hockey leagues, hockey camps, and instructional programs. It is operated by a Board of Directors, appointed by City Council through the Civic appointments process and follows City policy in terms of how ice is allocated to community user groups.

If directed by City Council to transition Moss Park Arena from a Board of Management to a City-operated arena, a transition plan would need to be developed and implemented. This plan would include, but not be limited to, transitioning current programming to third party user groups, renegotiating ice contracts, a workforce management assessment and Council approval of additional operating funding required, through the budget process.  

There are no immediate financial impacts identified as a result of these recommendations.

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

The Executive Director, Corporate Real Estate Management recommends that:  

1. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO, the General Manager, Parks, Forestry and Recreation, and the Executive Director, Social Development and Finance Administration, to negotiate and execute a nominal lease based on the terms and conditions outlined in Attachment 2 with the Somali Centre for Culture and Recreation to design, build, finance and operate a new not-for-profit community centre on a portion of 30 Mulham Place, as shown and outlined in Attachment 1, and on such other or amended terms and conditions as may be approved by the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

2. City Council authorize the General Manager, Parks, Forestry and Recreation, in consultation with the Executive Director, Corporate Real Estate Management, the Chief Executive Officer, CreateTO, and the General Manager, Economic Development and Culture, to enter into a Community Access Agreement with Somali Centre for Culture and Recreation to accompany the lease authorized by Recommendation 1 above.

3. City Council direct the General Manager, Parks, Forestry and Recreation, in consultation with the Executive Director, Corporate Real Estate Management, the Chief Executive Officer, CreateTO, and the Executive Director, Social Development Finance and Administration, to engage with the impacted Councillor(s), to ensure that the Community Access Agreement is developed, based on community consultation, to best meet the needs of the local community.

4. City Council request the Chief Planner and Executive Director, City Planning, to commence and expeditiously advance an Official Plan Amendment to prepare a portion of 30 Mulham Place, as shown and outlined in Attachment 1, for disposal for the purposes of a long-term lease for a not-for profit community recreation centre.

5. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO and the General Manager, Parks, Forestry and Recreation to amend the term of the nominal ground lease authorized in Recommendation 1 of this report to 30 years, with two 10 year renewal options, following the completion of an Official Plan Amendment required to permit the disposal of a portion of 30 Mulham Place, as shown and outlined in Attachment 1.

6. City Council authorize the Executive Director, Corporate Real Estate Management to negotiate and enter into a nominal licence for a term of 24 months with the Somali Centre for Culture and Recreation to use up to 3 acres on a portion of the lands knowns as 30 Mulham Place for environmental, geological and other pre-construction investigations on terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management, or their designate, and in a form satisfactory to the City Solicitor.

City Solicitor.

The purpose of this report is to provide an update to City Council on the non-binding discussions between CreateTO, City staff and the principals of the Somali Centre for Culture and Recreation (the "SCCR") regarding a proposed land lease (the "Land Lease") for a portion of City-owned 30 Mulham Place (the "Subject Property") and to obtain authority thereof. The Subject Property, also known as Buttonwood Park, is a 4.3 hectare (10.63 acres) park near Royal York Road and Eglinton Avenue West featuring an outdoor artificial ice rink (operating as tennis courts in the off-season), a children's playground, large open green space and mature trees.

At the direction of City Council, CreateTO, in consultation with City staff, and the SCCR have completed a feasibility study to identify potential sites for a proposed community centre and are recommending advancing the Subject Property as the site for the proposed development, which will serve the community as a whole, while providing a focus on serving the Somali community in particular.

The Somali community has been working for decades to identify a location in order to build a new community centre with the goal to address the gap in services available to the broader Somali community. The Subject Property provides a location near, and accessible to, much of Toronto's Somali population and can also be developed to service local community recreation needs. Through this opportunity, the City will require programs, services, and facilities that appeal to and be available to the broader public. This would be secured through a Community Access Agreement which will work as a companion document to the Land Lease. Equity deserving communities confront difficulties in terms of travel time to access vital services, a lack of recreational services, neighbourhood improvement projects, and affordable spaces for community and cultural events. The proposed community centre will be a valuable resource to improve vital services to all communities in the surrounding neighbourhoods.

The Land Lease will be provided for nominal rent and in accordance with the terms of the Land Lease, the SCCR will own the facility and be responsible for all costs, including development, construction, maintenance and operating costs, replacement costs, and property taxes, related to Subject Property. At the expiry or earlier termination of the Lease, the SCCR will surrender the Leased Lands and community centre to the City, or demolish the buildings and improvements on the Leased Lands in the condition in which they were received.    

The estimated total opportunity cost of the Land Lease over the potential term of 21-years less a day is $4,940,000 for up to 3 acres, based on a land value of $2,000,000 per acre, and at an annual rental rate of five percent.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.

The City Manager and Chief Financial Officer and Treasurer recommends that:  

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to this report from the City Manager and Chief Financial Officer and Treasurer.

2. City Council authorize the public release of Confidential Attachment 1 and Confidential Appendix A to this report from the City Manager and Chief Financial Officer and Treasurer, if Council adopts the confidential instructions to staff in Confidential Attachment 1 and if Confidential Appendix A is adopted by City Council and executed by the City Manager.

3. City Council direct that all information contained in Confidential Appendix B remain confidential as disclosure of this information could reasonably be expected to prejudice Toronto Hydro's competitive position or interfere significantly with the contractual or other negotiations of Toronto Hydro and result in undue loss to Toronto Hydro; in addition, any disclosure could give rise to a breach of law, including applicable securities law.

The purpose of this report is to seek Council's instructions to enable Toronto Hydro's sustainable growth.

Commentary and analysis regarding the financial impacts are contained within the Confidential Attachments.

The Chief Financial Officer and Treasurer recommends that:

1. City Council receive this report for information.

The purpose of this report is to provide the following information:

1.  Performance of the Funds for the year 2023

2.  General Market Update and Benchmark Performance

3.  City of Toronto Investment Policy and Procedures

The City's General Group of Funds (General Fund) hold the working capital and amounts designated for the City's reserves and reserve funds.  The General Fund is comprised of two pools of investments: (a) the Short Term Fund (liquidity funds managed internally), and (b) the Long Term Fund (funds not immediately required managed by the Toronto Investment Board).  The General Fund had a book return of 4.0 per cent and generated $444 million for the full year 2023. 

As a result of the pandemic, the General Fund has held a larger position in the Short Term Fund (STF) to enhance the liquidity and to generally lower the overall risk (risk management).  On average, the Short Term Fund, including the short-term investments of the Long Term Fund (LTF), was about 67 per cent of the overall General Fund in 2023 compared to 48 per cent from the pre-pandemic level in 2019.  This higher weighting in the Short Term Fund provided significant protection, as well as increased returns as short-term rates moved higher in recent years.

Staff re-assessed the City's liquidity position in late 2023 and advised the Chief Financial Officer and Treasurer (CFO&T) that excess funds within the Short Term Fund were available for longer term investment.  At that time, a plan was set for $2 billion to be transferred from STF to the LTF in four quarterly installments during 2024.  The CFO&T maintains the right to halt these transfers if circumstances change and there are higher needs for liquidity.

The City's Sinking Fund portfolio, which holds the investment funds for future debt repayments, had an earned income basis return of 1.2 per cent and generated $29.0 million for the twelve months ending December 31, 2023. 

Since January 1, 2018, the City's long-term investments (Long Term Fund and Sinking Fund) have been managed by the Toronto Investment Board (Board) under a Council adopted Investment Policy which is based on the prudent investor standard. Investment portfolios of different asset classes have been progressively phased in to make use of the broader range of investments that have become available. Although, the potential for volatility in total returns over the short-term investment horizon still exist, the overall portfolio risk has been reduced through asset mix diversification. The overall risk-adjusted total returns over the long-term investment horizon are expected to be higher.

The Board currently provides oversight of four external fixed income managers and four external global equity managers that invest the long-term investments. Both fixed income and equity investment classes are fully funded in accordance with the target asset mix in the Investment Policy with 70 per cent allocated to fixed income and 20 per cent to global equities. 

As at December 31, 2023, approximately 90 per cent of both the Sinking Fund and the Long Term Fund were managed by external investment managers.  The remaining 10 per cent of each fund will be allocated to real assets, which is currently in the contract negotiation phase with the Board's selected investment managers.  Adding real assets to the current investment portfolios, which already compose of fixed income and global equity, will enhance the overall portfolios' risk-adjusted investment return and align with the Council-approved policy target asset mix. The Board continues to evaluate opportunities in the real asset category to fulfill the target asset mix.

It is a legislative requirement that the Investment Policy be reviewed annually. Staff have reviewed the Investment Policy and no changes are recommended at this time given that policies have only been in place since 2018 and in that time we have experienced several years of volatility triggered by COVID-19 impacts.  The City of Toronto Investment Policy can be reviewed in Attachment 1 of this report.

Although the prudent investor standard has only been in place for five years, and was carefully phased in, the change has been monitored for effectiveness versus the previous prescribed list (prior to 2018).  This report also provides a comparison of returns between the previously used prescribed list versus the currently used prudent investor standard. The review shows the current regulation has been beneficial to the Long Term Fund by approximately $260 million over the five years it has been in place.

For the year 2023, all funds managed are compliant with the Investment Policy. KPMG LLP, the City's auditor, will conduct the Investment Policy audit during the second half of 2024.

The Toronto Investment Board has contracted a third-party data provider in order to monitor and report on the high-level Environmental, Social, and Governance (ESG) attributes of the City's long-term investment portfolio. This investment fund-level ESG reporting process will complement the existing corporate-level ESG performance report. At the end of 2023, the City's long-term investment portfolio's score is in the "Leader" category and is aligned with the selected market benchmark as depicted in the investment policy.

Subsequent to 2022, with a moderation of inflation and other related economic data, it would seem many central banks, such as the Bank of Canada, have now paused any further short-term interest rate increases. Since it would appear the actions of central banks are near a terminal point, with the prospect of lower interest rates in the future, long-term assets have rebounded to provide significantly higher returns in 2023.

From an operating budget perspective, when recognizing only realized gains and losses, the General Fund earned $444 million, of which $183.5 million was allocated to reserve funds in accordance with the Council-approved interest allocation policy. The remaining ($253 million) was allocated to the operating plan after Toronto Investment Board expenses in 2023 ($7.5 million) were deducted.  

When recognizing only realized gains and losses, the City's Sinking Funds portfolio earned $29 million for the year 2023. These earnings are retained within the Sinking Funds and must be used for the purpose of retiring debenture debt at maturity.

The Board of Directors of the Toronto Parking Authority recommends that:

1. City Council approve the terms of the Net Income Share Agreement between the City and the Toronto Parking Authority for a three (3) year period, effective January 1, 2024, as outlined in Attachment 2 to the report (May 15, 2024) from the President, Toronto Parking Authority and the Chief Financial Officer and Treasurer, City of Toronto.

2. City Council authorize appropriate City staff to prepare a Net Income Sharing Agreement between the Toronto Parking Authority and the City of Toronto, in accordance with the terms set out in Attachment 2 to the report (May 15, 2024) from the President, Toronto Parking Authority and the Chief Financial Officer and Treasurer, City of Toronto, in a form satisfactory to the City Solicitor, and subject to the approval of the Board of Directors of the Toronto Parking Authority.

At its meeting on May 28, 2024, the Board of the Directors of the Toronto Parking Authority considered Item PA9.11 and made recommendations to City Council.

Summary from the report (May 15, 2024) from the President, Toronto Parking Authority and the Chief Financial Officer and Treasurer, City of Toronto

The purpose of this report is to present the Board of Directors of the Toronto Parking Authority (TPA) with the proposed terms of a new Net Income Share Agreement with the City of Toronto (the "City"). Toronto Parking Authority and the City's Financial Planning Division have collaborated to develop the principles of a new net income sharing agreement that will ensure that Toronto Parking Authority has access to sufficient resources to both fund its Capital Program, and continue to make annual contributions to the City of Toronto that build upon the $1.4 billion, including dividends, property taxes, and rents, that Toronto Parking Authority has contributed to the City since 2002, as outlined in Attachment 1 - Annual Contributions Made by the Toronto Parking Authority to the City of Toronto.

The review of Toronto Parking Authority's financial framework with the City is being carried out in two (2) phases with the first phase intended to arrive at an agreement with the City that will provide Toronto Parking Authority with the needed financial stability in the short-term to execute its 2024 Operating Budget and the 2024 - 2026 segment of the 10-Year Capital Budget and Plan, including the continued capital expansion of Toronto Parking Authority's Bike Share Toronto and Electric Vehicle (EV) Charging programs. The second phase of work, intended to address the long-term sustainability of Toronto Parking Authority will continue, with recommendations expected to be presented to the Board of Directors of the Toronto Parking Authority in Q4 2024.

Under the new framework, the net income sharing formula will be changed to increase the percentage of net income that Toronto Parking Authority retains from its operations from 15 percent to 25 percent which results in the City dividend dropping from 85 percent to 75 percent from the current Agreement. This enhanced income share ratio will provide Toronto Parking Authority with incremental net income over the next three (3) years to address the extensive backlog in state of good repair (SOGR) in Toronto Parking Authority's parking garages. In addition, the City will directly fund the continued capital expansion of Toronto Parking Authority's Bike Share Toronto and Electric Vehicle Charging programs over the term of the Agreement. Table 1 summarizes the proposed terms that are recommended for the new Net Income Share Agreement.

Table 1: Proposed Changes to the City of Toronto - TPA Net Income Share Agreement

The change to the income sharing formula reflects the conditions that were in place prior to the 2017 agreement where a 75/25 income sharing formula was used to support Toronto Parking Authority's capital requirements at a time that pre-dated the extension of Toronto Parking Authority's mandate to include Bike Share Toronto and Electric Vehicle Charging. A reversion to this model is required given the Toronto Parking Authority's relative cash reserve position after the pandemic and current capital program requirements of approximately $186.7 million over three (3) years (2024 - 2026) of Toronto Parking Authority's 10-Year Capital Budget and Plan. 

The new Agreement will continue to support annual net income contributions by Toronto Parking Authority to the City, estimated to be at least $91.0 million over the three (3) year term. Contributions will be paid on a quarterly basis, subject to unforeseen circumstances which may result from the interruption of service, any other unplanned occurrence or Council decision, which may have an adverse and material effect on the net income and/or the Toronto Parking Authority's cash reserves.

Subject to the Board's endorsement and approval by City Council, the Net Income Share Agreement will retroactively take effect January 1, 2024, for a three (3) year period ending December 31, 2026.

The Board of Management of the Toronto Zoo recommends that:

1. City Council approve the draft by-law as set out in Revised Attachment 2 to the report (May 17, 2024) from the Director of Finance, Technology, and Innovation.

At its meeting on May 31, 2024, the Board of Management of the Toronto Zoo considered item ZB10.3 and made a recommendation to City Council.

Summary from the Board of Management of the Toronto Zoo:

This report requests approval from the Board of Management of the Toronto Zoo for a revised records retention schedule for records in the custody and control of the Board, requests that the Board forward the schedule to City Council for enactment of the necessary by-law, and requests approval to integrate the Board's records retention schedule in the Toronto Municipal Code Chapter 219, Records, Corporate (Local Boards).

The Service Excellence Committee recommends that:

1. The Executive Committee request the Executive Director, Customer Experience (311), to report back to the Service Excellence Committee in the second quarter of 2025, on the Service Promise Refresh implementation progress, compliance rate, and internal or external feedback.

At its meeting on May 31, 2024, the Service Excellence Committee considered item SE3.1 and made recommendations to the Executive Committee.

Summary from the report (May 16, 2024) from the Executive Director, Customer Experience:

At its meeting held March 19, 2024, the Service Excellence Committee requested the City Manager, in consultation with the Executive Director, Customer Experience (311), to report back to the Service Excellence Committee by May 31, 2024, with an update on the development of the City’s Service Promise, and outlining the specific principles being considered for interactions across all service channels, including staff-to-public interactions and staff-to-staff interactions.

The Executive Director, Customer Experience (311) will deliver a presentation to the Service Excellence Committee in response to this request to provide an update on the Service Promise Refresh Initiative and outline the principled statements that make up the refreshed Service Promise. This report serves to complement that presentation by summarizing the work to date and outlining next steps.

The Service Promise Refresh Initiative is part of the City of Toronto's journey towards greater service excellence. It will renew the City's guidelines for professional and consistent service in daily interactions with the public, Members of Council, and each other. Significant progress has been made to refresh the Service Promise and City-wide Service Standards, collectively referred to as the Service Promise, and to plan for implementation - first with staff internally, and then to Members of Council and the public.

The Service Excellence Committee recommends that:

1. The Executive Committee request the Executive Director, Customer Experience (311), consider including, where feasible, the following features on future versions of the Dashboards:

a. multi-year data, including pre-COVID-19 data where available;

b. the ability to select multiple wards for comparison or aggregation;

c. predictive trends, or normal or target lines on the graphs;

d. relative performance against service standards; and

e. consideration of how future changes to ward boundaries or service standards may affect reporting.

At its meeting on May 31, 2024, the Service Excellence Committee considered item SE3.2 and made recommendations to the Executive Committee.

Summary from the report (May 16, 2024) from the Executive Director, Customer Experience:

The purpose of this report is to provide an update to the Service Excellence Committee on the Customer Experience (311) Division’s plans for a new reporting framework and feature that incorporates Ward Dashboards and key performance indicator data for 311 Toronto (311) Integrated Service Divisions, as well as a framework for future reports to highlight key trends.

This report will:

-Provide an overview of existing 311 information available to Members of Council, divisions, and the public.
-Provide information on the progress towards the establishment of Ward Dashboards and key performance indicator data related to specific City divisions.
-Provide high-level next steps to producing Dashboards.
-Outline the framework under which the Customer Experience Division currently reports on and Plans for emerging trends, seasonal, cyclical, and geographic patterns or trajectories and how new Dashboards will complement these efforts.
-Provide a sample Proof of Concept Dashboard.

Mayor Olivia Chow recommends that the Executive Committee:

1. Deem all FIFA World Cup 2026 related matters to be in the mandate of the Executive Committee, and that Executive Committee will be the Standing Committee to consider and approve awards in excess of $20 million and any award where the Chief Procurement Officer is of the opinion that the award should be made by Standing Committee.

2. Rescind the mandate of the FIFA World Cup 2026 Financial Oversight Subcommittee established in 2024.EX13.16.

3. Rename and establish a new mandate for the FIFA World Cup 2026 Subcommittee as follows:

a. to consider and make recommendations to Executive Committee on all FIFA World Cup 2026 (FWC26) related matters, including awards to be considered by Executive Committee; and

b. to consider and make recommendations to Executive Committee on the procurement plan for FWC26 including anticipated Chapter 71 – Schedule A expenditures in excess of $500,000 (exclusive of taxes).

4. Request the Chief Procurement Officer to report to the first meeting of the FIFA World Cup 2026 Subcommittee on July 5, 2024 on a procedure under which awards and purchase order amendments not typically requiring Standing Committee approval will be brought to the FWC26 Subcommittee and Executive Committee, including for procurements that exceed budget by the lesser of 5 percent or $250,000.

5. Request the Executive Director, World Cup Hosting 2026, and the Chief Procurement Officer to report for information to the FIFA World Cup 2026 Subcommittee on procurements (competitive, non-competitive and invitational), Chapter 71 - Schedule A expenditures, and amendments that are transacted in accordance with Chapter 195, Chapter 71 and other delegated authorities.

As the City prepares to host six matches during the FIFA World Cup 2026 (FWC26), City Council has committed to delivering the games in a transparent, accountable, and collaborative manner. On April 9, Executive Committee created the FWC26 Financial Oversight Subcommittee. Based on further advice from City staff, I am writing to recommend that Executive Committee deem all matters related to FWC26 in the mandate of Executive Committee and then in turn delegate that work to the Subcommittee, which will then report to Executive Committee. This will allow for strong oversight of the entire FWC26 program, budget, and expenditures.