Item - 2009.EX36.6

The Facilities and Real Estate 2009 Approved Capital Budget included a project for $12.2 million with $3 million of cash flow in 2009 and $9.2 in 2010 to carry out the Phase I improvements to the site.   $3.8 million of this amount is required for the east dock wall repairs, $6 million is required for demolition of buildings to the west of the silos, $1.5 million for removal of the marine leg and stabilization of the east face of the silos to secure a safe walkway with the remaining $900,000 to be spent on necessary stabilization and repair work designed to address the rapid decay of the silo structures.  Facilities and Real Estate will retain responsibility for ongoing operational costs relating to the site that are estimated at approximately $140,000 annually and will be provided from the current Base budget of the program.

Any additional improvements to the area are anticipated to follow a successful process to facilitate redevelopment of a portion of the site. Assumptions to guide a restoration plan for the silos are not yet firm.  Estimates for  that aspect of the work are in the order of $9.0 million.  It is anticipated that other funding sources such as a land sale and other contributions could yield in excess of $10 million.

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

Facilities and Real Estate Division (F&RE) was directed by Executive Committee at its meeting of June 03, 2008, item EX21.1.10 to provide long-term options for the silos and structures of the former Canada Malting Complex in support of future development of this site and to facilitate public access to Ireland Park. The silo facilities are on the City’s inventory list of heritage properties.

Trow Associates Inc. (Trow), the engineering consultant of record, has provided cost estimates on the five alternatives detailed in this report and summarized in table form in Appendix “A”, which range in cost from $7.65 Million to $20.6 Million.  The project budget included in the 2009 Capital Budget submission is $12.2 Million, which incorporates an estimated $3.8 Million repair to the east dock wall, resulting in $8.4 Million for the site building structures.  The east dock wall repairs are needed and common to all Alternatives presented.  

The City’s Heritage Preservation Services (HPS) prefers Alternative “B”, to retain and restore all silos and demolish the buildings to the west at a total cost of about $17.7 Million.  This requires additional funding of approximately $9.3 Million to be added to the approved project budget.

This report recommends Alternative “D”, to demolish all silos and structures leaving only a symbolic outline representation of nine southern silos in a landscape setting at a cost of about $8.4 Million.  HPS is not in agreement with this recommendation.

The content of this report has no direct financial impact to the current year’s budget provided the recommended Preservation Alternative “D” is approved.  Should Alternative’s “A”, “B” or “C” be approved additional funding will be required to implement the respective Alternative.  The capital budget plan for this project is $12.2 Million ($3 Million in 2009 and $9.2 Million in 2010); however, $3.8 Million of this amount is required for the east dock wall repairs. 

The property at 5 Eireann Quay (formerly known as 5 Bathurst Street) containing the Canada Malting Complex is included on the City of Toronto Inventory of Heritage Properties. It was reviewed by the Federal Heritage Review Office (FHRO) and that report concluded that “the structures enjoy significant symbolic status and considerable public recognition profile.”

Facilities and Real Estate Division have applied to demolish the entire complex, save and except a small representative portion of the silos.

Four preservation options for the Canada Malting Complex that were reviewed by an Industrial Heritage Consultant (Historica Research Ltd) are described below.  The consultant was retained specifically by Facilities and Real Estate Division to comment on the heritage impacts of the proposed conservation component.

Comment is provided by both Heritage Preservation Services and Community Planning staff regarding the importance in conserving the site for the citizens of Toronto.

While the act of passing the bylaw recommended in this report has no financial implication for the City of Toronto, the resulting expectations of remedial work to conserve the heritage structures will have financial implications.  Currently a proposal to substantially demolish the silos and leave a representative portion of the buildings behind will cost council approximately $8.4 million.  However, this option represents the least desirable approach from a heritage conservation point of view and is directly at odds with policies regarding heritage conservation in the Official Plan and the Council adopted Standards and Guidelines for the Conservation of Historic Places in Canada, and is not consistent with the Provincial Policy Statement 2005.