Item - 2010.GM30.20
Tracking Status
- City Council adopted this item on May 11, 2010 with amendments.
- This item was considered by Government Management Committee on April 28, 2010. It is being forwarded to City Council without recommendations. It will be considered by City Council on May 11, 2010.
GM30.20 - Tuggs Incorporated - Revised Proposal for Redevelopment of the Eastern Beaches Food Service Facilities
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 32 - Beaches-East York
City Council Decision
City Council on May 11 and 12, 2010, adopted the following:
1. City Council accept the revised proposal from Tuggs Incorporated, dated April 17, 2009 (the "Revised Proposal" attached as Appendix “A” to the report (April 6, 2010) from the General Manager, Parks, Forestry and Recreation and the Deputy City Manager and Chief Financial Officer) in accordance with the recommendations contained in Item PE1.3 and the following additional conditions and amendments thereto:
a. the Licensed Premises be expanded to include Ashbridges Bay Park;
b. permission be granted to Tuggs to erect a maximum of three first and/or third party sponsorship signs, as well as a new reader board to be located at Coxwell and Lakeshore Rd. East, subject to compliance with the City’s sign by-law and policies, and placed in locations satisfactory to the General Manager of Parks, Forestry and Recreation, provided that there will be no conflict with any City contracts or programs related to sponsorship;
c. Tuggs existing exclusive vending rights be further expanded to permit the location of one licensed mobile vending truck within the limits of the east parking lot located at Ashbridges Bay;
d. additional authority be granted to Tuggs to sell non-consumable goods and products in the Parklands (entire Eastern Beaches), subject to prior written approval of all such products by the General Manager of Parks, Forestry and Recreation;
e. Tuggs existing exclusive rights to sell alcoholic beverages in Woodbine Beach park be expanded to include Ashbridges Bay Park, subject to Tuggs having obtaining any necessary permits to do so;
f. City Council accept Tuggs revised Base Rent proposal of $4,750,000 to the City over a revised term of twenty-one years less a day, being $1,000,000 less than the Base Rent previously approved by Council in 2007;
g. Council accept Tuggs revised guaranteed Sponsorship Revenue sharing payment of $340,000 to the City over the revised term of twenty-one years less a day, as detailed in the Revised Proposal, being $410,000 less than the guaranteed Sponsorship Revenue previously approved by Council in 2007;
h. Tuggs be required to contribute $200,000 as set out in section 3.1 of the original proposal to be used for capital improvements Woodbine Beach Park and provided in the year 2011 – 2012. The General Manager of Parks, Forestry and Recreation shall have final approval of the use of the $200,000; and
i. the Term of the agreement be changed from twenty years to twenty-one years less a day commencing with effect from September 17, 2007 and terminating on September 16, 2028.
2. City Council direct staff to finalize the agreement with Tuggs as authorized by City Council in accordance with the recommendations contained in Item PE1.3 and as amended by the recommendations set out in the report (April 6, 2010) from the General Manager, Parks, Forestry and Recreation and the Deputy City Manager and Chief Financial Officer, to the satisfaction of the General Manager, Parks, Forestry and Recreation, and in a form satisfactory to the City Solicitor, subject to Tuggs paying any and all outstanding arrears of taxes and rent.
3. If the agreement referred to in Part 2 above is not executed by Tuggs by June 30, 2010, City Council direct staff to give notice to Tuggs to cease and vacate by December 31, 2010, and issue an RFP for the Food Service Facilities at the Eastern Beaches to commence in 2011.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2010/gm/bgrd/backgroundfile-29553.pdf
Communications (Committee)
Communications (City Council)
(May 11, 2010) E-mail from Chris Yaccato (CC.New.GM30.20.3)
(May 12, 2010) E-mail from Muriel Lennox (CC.New.GM30.30.4)
(May 12, 2010) Letter from Bruce Baker, which is to remain confidential in accordance with the provisions of the City of Toronto Act, 2006, as it contains personal information about an identifiable individual (CC.New.GM30.20.5)
(May 12, 2010) E-mail from Brian Williams (CC.New.GM30.20.6)
Motions (City Council)
That City Council adopt the following recommendations contain in the report (April 6, 2010) from the General Manager of Parks, Forestry and Recreation, and the Deputy City Manager, Chief financial Officer:
1. City Council accept the revised proposal from Tuggs Incorporated, dated April 17, 2009 (the "Revised Proposal" attached as Appendix “A” to the report (April 6, 2010) from the General Manager, Parks, Forestry and Recreation and the Deputy City Manager and Chief Financial Officer) in accordance with the recommendations contained in Item PE1.3 and the following additional conditions and amendments thereto:
a. the Licensed Premises be expanded to include Ashbridges Bay Park;
b. permission be granted to Tuggs to erect a maximum of three first and/or third party sponsorship signs, as well as a new reader board to be located at Coxwell and Lakeshore Rd. East, subject to compliance with the City’s sign by-law and policies, and placed in locations satisfactory to the General Manager of Parks, Forestry and Recreation, provided that there will be no conflict with any City contracts or programs related to sponsorship;
c. Tuggs existing exclusive vending rights be further expanded to permit the location of one licensed mobile vending truck within the limits of the east parking lot located at Ashbridges Bay;
d. additional authority be granted to Tuggs to sell non-consumable goods and products in the Parklands (entire Eastern Beaches), subject to prior written approval of all such products by the General Manager of Parks, Forestry and Recreation;
e. Tuggs existing exclusive rights to sell alcoholic beverages in Woodbine Beach park be expanded to include Ashbridges Bay Park, subject to Tuggs having obtaining any necessary permits to do so;
f. City Council accept Tuggs revised Base Rent proposal of $4,750,000 to the City over a revised term of twenty-one years less a day, being $1,000,000 less than the Base Rent previously approved by Council in 2007;
g. Council accept Tuggs revised guaranteed Sponsorship Revenue sharing payment of $340,000 to the City over the revised term of twenty-one years less a day, as detailed in the Revised Proposal, being $410,000 less than the guaranteed Sponsorship Revenue previously approved by Council in 2007;
h. Tuggs be required to contribute $200,000 as set out in section 3.1 of the original proposal to be used for capital improvements Woodbine Beach Park and provided in the year 2011 – 2012. The General Manager of Parks, Forestry and Recreation shall have final approval of the use of the $200,000; and
i. the Term of the agreement be changed from twenty years to twenty-one years less a day commencing with effect from September 17, 2007 and terminating on September 16, 2028.
2. City Council direct staff to finalize the agreement with Tuggs as authorized by City Council in accordance with the recommendations contained in Item PE1.3 and as amended by the recommendations set out in the report (April 6, 2010) from the General Manager, Parks, Forestry and Recreation and the Deputy City Manager and Chief Financial Officer, to the satisfaction of the General Manager, Parks, Forestry and Recreation, and in a form satisfactory to the City Solicitor, subject to Tuggs paying any and all outstanding arrears of taxes and rent.
3. If the agreement referred to in Part 2 above is not executed by Tuggs by June 30, 2010, City Council direct staff to give notice to Tuggs to cease and vacate by December 31, 2010, and issue an RFP for the Food Service Facilities at the Eastern Beaches to commence in 2011.
Vote (Amend Item (Additional)) May-12-2010 9:00 PM
| Result: Carried | Majority Required - GM30.20 - Fletcher - Motion 1 |
|---|---|
| Total members that voted Yes: 15 | Members that voted Yes are Maria Augimeri, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Paula Fletcher, Mark Grimes, Suzan Hall, Pam McConnell, Joe Mihevc, Frances Nunziata, Joe Pantalone, Gord Perks, Anthony Perruzza, Kyle Rae, Bill Saundercook |
| Total members that voted No: 12 | Members that voted No are Paul Ainslie, Brian Ashton, Mike Del Grande, A.A. Heaps, Doug Holyday, Norman Kelly, Gloria Lindsay Luby (Chair), Denzil Minnan-Wong, Ron Moeser, Howard Moscoe, John Parker, Adam Vaughan |
| Total members that were Absent: 18 | Members that were absent are Sandra Bussin, Shelley Carroll, Raymond Cho, Mike Feldman, John Filion, Rob Ford, Adam Giambrone, Cliff Jenkins, Chin Lee, Giorgio Mammoliti, Peter Milczyn, David Miller, Case Ootes, Cesar Palacio, David Shiner, Karen Stintz, Michael Thompson, Michael Walker |
That:
1. City Council rescind its previous action taken on February 5, 6, 7 and 8, 2007 authorizing the terms of the agreement with Tuggs Incorporated.
2. City Council direct the Deputy City Manager and Chief Financial Officer, and the General Manager, Parks, Forestry and Recreation to issue an RFP for the Food Service Facility at the Eastern Beaches to commence in 2011.
(Due to Council's adoption of motion 1 by Councillor Fletcher, motion 2 by Councillor Minnan-Wong was not voted on.)
GM30.20 - Tuggs Incorporated - Revised Proposal for Redevelopment of the Eastern Beaches Food Service Facilities
- Decision Type:
- ACTION
- Status:
- Without Recs
- Ward:
- 32 - Beaches-East York
Committee Recommendations
The Government Management Committee submits this Item to Council without recommendation, as all motions lost on a tie vote.
Decision Advice and Other Information
The Government Management Committee considered the following recommendations contained in the report (April 6, 2010) from the General Manager of Parks, Forestry and Recreation, and the Deputy City Manager and Chief Financial Officer:
1. The revised proposal from Tuggs Incorporated, dated April 17, 2009 (the "Revised Proposal" attached as Appendix “A”) be accepted, in accordance with the recommendations contained in PE1.3 and the following additional conditions and amendments thereto:
a. the Licensed Premises be expanded to include Ashbridges Bay Park;
b. permission be granted to Tuggs to erect a maximum of three first and/or third party sponsorship signs, as well as a new reader board to be located at Coxwell and Lakeshore Rd. East, subject to compliance with the City’s sign by-law and policies, and placed in locations satisfactory to the General Manager of Parks, Forestry and Recreation, provided that there will be no conflict with any City contracts or programs related to sponsorship;
c. Tuggs existing exclusive vending rights be further expanded to permit the location of one licensed mobile vending truck within the limits of the east parking lot located at Ashbridges Bay;
d. additional authority be granted to Tuggs to sell non-consumable goods and products in the Parklands (entire Eastern Beaches), subject to prior written approval of all such products by the General Manager of Parks, Forestry and Recreation;
e. Tuggs existing exclusive rights to sell alcoholic beverages in Woodbine Beach park be expanded to include Ashbridges Bay Park, subject to Tuggs having obtaining any necessary permits to do so;
f. Council accept Tuggs revised Base Rent proposal of $4,750,000 to the City over a revised term of twenty-one years less a day, being $1,000,000 less than the Base Rent previously approved by Council in 2007;
g. Council accept Tuggs revised guaranteed Sponsorship Revenue sharing payment of $340,000 to the City over the revised term of twenty one years less a day, as detailed in the Revised Proposal, being $410,000 less than the guaranteed Sponsorship Revenue previously approved by Council in 2007;
h. Tuggs be required to contribute $200,000 as set out in section 3.1 of the original proposal to be used for capital improvements Woodbine Beach Park and provided in the year 2011 – 2012. The General Manager of Parks, Forestry and Recreation shall have final approval of the use of the $200,000. and
i. The Term of the agreement be changed from twenty years to twenty-one years less a day commencing with effect from September 17, 2007 and terminating on September 16, 2028.
2. Staff be directed to finalize the agreement with Tuggs as authorized by Council in accordance with the recommendations contained in PE1.3 and as amended by the recommendations set out in this report, to the satisfaction of the General Manager, Parks, Forestry and Recreation, and in a form satisfactory to the City Solicitor, subject to Tuggs paying any and all outstanding arrears of taxes and rent.
3. If the agreement referred to in Recommendation 2 above is not executed by Tuggs by June 30, 2010, staff be authorized and directed to give notice to Tuggs to cease and vacate by December 31, 2010, and staff be directed to issue an RFP for the Food Service Facilities at the Eastern Beaches to commence in 2011.
The Government Management Committee recessed its public session to meet in closed session to consider this item as it relates to the receiving of advice that is subject to solicitor-client privilege. a
Origin
Summary
At its meeting of February 5, 6, 7 and 8, 2007, City Council adopted Parks and Environment Committee Report PE1.3 entitled “Tuggs Incorporated Investment Proposal for Redevelopment of the Eastern Beaches Food Services Facilities,” and in so doing, directed staff to accept Tuggs unsolicited proposal to redevelop the Eastern Beaches food services. Staff were directed to negotiate and enter into a new twenty-year agreement with Tuggs in accordance with the terms contained in the unsolicited proposal, subject to receipt and review of a detailed business plan, including financial forecasts, evidence of financing, a marketing plan and a partnership plan and additional conditions imposed by Council in regards to rent, capital contribution and state of good repair, as set out in the recommendation approved by Council in PE1.3.
Since the approval of PE1.3 City Staff have attempted, without success, to negotiate an agreement consistent with the terms approved by Council. This report seeks authority to vary the terms approved by Council in 2007 in order to arrive at a resolution and to conclude negotiations on terms satisfactory to the Proponent and Parks, Forestry and Recreation staff.
Background Information
https://www.toronto.ca/legdocs/mmis/2010/gm/bgrd/backgroundfile-29553.pdf
Communications
Speakers
George Foulidis, Tuggs Incorporated
Councillor Michael Walker, Ward 22 - St. Paul's
Motions
That the Government Management Committee recess its public session to meet in closed session to consider this item as it relates to the receiving of advice that is subject to solicitor-client privilege.
That the Government Management Committee recommend that:
1. City Council receive the report (April 6, 2010) from the General Manager of Parks, Forestry and Recreation, and the Deputy City Manager and Chief Financial Officer.
2. City Council rescind its previous action taken on February 5, 6, 7 and 8, 2007 authorizing the terms of the agreement with Tuggs Incorporated.
3. City Council direct the appropriate City Officials to issue an RFP for the Food Service Facility at the Eastern Beaches to commence in 2011.
Vote (Amend Item) Apr-28-2010
| Result: Lost (tie) | Majority Required |
|---|---|
| Total members that voted Yes: 2 | Members that voted Yes are Pam McConnell, Bill Saundercook (Chair) |
| Total members that voted No: 2 | Members that voted No are Mike Del Grande, A.A. Heaps |
| Total members that were Absent: 1 | Members that were absent are Doug Holyday |
That the General Manager of Parks, Forestry and Recreation, and the Deputy City Manager and Chief Financial Officer be requested to report directly to City Council on the results of discussions with Tuggs Inc., to putting their proposal to a Swiss Challenge process.
Vote (Amend Item (Additional)) Apr-28-2010
| Result: Lost (tie) | Majority Required |
|---|---|
| Total members that voted Yes: 2 | Members that voted Yes are Pam McConnell, Bill Saundercook (Chair) |
| Total members that voted No: 2 | Members that voted No are Mike Del Grande, A.A. Heaps |
| Total members that were Absent: 1 | Members that were absent are Doug Holyday |
That the Government Management Committee recommend that City Council adopt the recommendations contained in the report (April 6, 2010) from the General Manager of Parks, Forestry and Recreation and the Deputy City Manager and Chief Financial Officer.
As all motions lost on a tie vote, the item was submitted to Council without recommendation.
Vote (Adopt Item) Apr-28-2010
| Result: Lost (tie) | Majority Required |
|---|---|
| Total members that voted Yes: 2 | Members that voted Yes are Pam McConnell, Bill Saundercook (Chair) |
| Total members that voted No: 2 | Members that voted No are Mike Del Grande, A.A. Heaps |
| Total members that were Absent: 1 | Members that were absent are Doug Holyday |