Item - 2014.GM32.6
Tracking Status
- City Council adopted this item on August 25, 2014 without amendments and without debate.
- This item was considered by Government Management Committee on August 11, 2014 and was adopted with amendments. It will be considered by City Council on August 25, 2014.
GM32.6 - Lease Dispute Between City and Queen St. Patrick Market Inc. Regarding 238 Queen Street West Property
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Ward:
- 20 - Trinity-Spadina
City Council Decision
City Council on August 25, 26, 27 and 28, 2014, adopted the following:
1. City Council adopt the recommendations in the Confidential Transmittal (August 11, 2014) from the Government Management Committee.
2. City Council authorize the public release of the recommendations in the Confidential Transmittal (August 11, 2014) from the Government Management Committee.
3. City Council direct that the remaining information in Confidential Attachment 1 to the report (July 23, 2014) from the City Solicitor, remain confidential as it contains advice that is subject to solicitor-client privilege.
The following recommendations in the Confidential Transmittal (August 11, 2014) from the Government Management Committee were adopted by City Council and are now public:
1. City Council authorize the City Solicitor, in consultation with the Chief Corporate Officer, to execute the documentation necessary to settle the financial issues in the litigation between Market Inc. and the City relating to the Lease and the Sub-Lease of the Market Building in accordance with the terms of the report (July 23, 2014) from the City Solicitor.
2. City Council authorize the City Solicitor to settle any remaining issues regarding use of the Market Building under the Lease on such terms as are satisfactory to the Chief Corporate Officer, in consultation with the City Solicitor.
3. In the event that the Court decides the City can terminate the lease, City Council direct the Chief Corporate Officer in consultation with the General Manager, Economic Development and Culture, to review options for the use of the building including a strategy to attract a new tenant or tenants that would result in a more appropriate use of the property and the management of the site by the City as a market similar to the St. Lawrence Market.
The remaining information in Confidential Attachment 1 to the report (July 23, 2014) from the City Solicitor remains confidential in its entirely in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to litigation or potential litigation and it contains advice that is subject to solicitor-client privilege.
Confidential Attachment - Litigation or potential litigation that affects the City and contains advice that is subject to solicitor-client privilege.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2014/gm/bgrd/backgroundfile-72078.pdf
(July 23, 2014) Confidential Attachment 1 - Lease Dispute Between City and Queen St. Patrick Market Inc. Regarding 238 Queen Street West Property
Background Information (City Council)
Communications (Committee)
https://www.toronto.ca/legdocs/mmis/2014/gm/comm/communicationfile-48937.pdf
(August 8, 2014) E-mail from Max Allen, President for Planning and Development, Grange Community Association (GM.New.GM32.6.2)
GM32.6 - Lease Dispute Between City and Queen St. Patrick Market Inc. Regarding 238 Queen Street West Property
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 20 - Trinity-Spadina
Confidential Attachment - Litigation or potential litigation that affects the City and contains advice that is subject to solicitor-client privilege.
Committee Recommendations
The Government Management Committee recommends that:
1. City Council adopt the recommendations in the confidential transmittal (August 11, 2014) from the Government Management Committee.
2. City Council authorize the public release of the recommendations in the confidential transmittal (August 11, 2014), if adopted by City Council.
3. City Council direct that the remaining information in Confidential Attachment 1 to the report (July 23, 2014) from the City Solicitor, remain confidential as it contains advice that is subject to solicitor-client privilege.
Decision Advice and Other Information
The Government Management Committee recessed its public session to meet in closed session to consider Item GM32.6 titled "Lease Dispute Between City and Queen St. Patrick Market Inc. Regarding 238 Queen Street West Property" as it relates to litigation or potential litigation that affects the City and contains advice that is subject to solicitor-client privilege.
Origin
Summary
The St. Patrick Market (the “Market Building”) at 238 Queen St. W., is leased by the City to Queen-St. Patrick Market Inc. (“Market Inc.”) for a 50 year term pursuant to a lease dated June 15, 1989 (the “Lease”).
From 1989 to June 19, 2014, the City sub-leased the basement of the Market Building pursuant to a sub-lease dated June 16, 1989 (the “Sub-Lease”).
Legal actions were commenced by Market Inc. against the City and by the City against Market Inc., each alleging that the other had failed to pay the correct amounts owed under the Lease and Sub-Lease. In addition, the City’s legal action sought termination of the Lease on the basis of other alleged breaches of the Lease.
The purpose of this report and the confidential attachment is to seek instructions from Council as to the proposed settlement of the financial dispute between the City and Market Inc. relating to the financial terms of the Lease and Sub-Lease.
Background Information
https://www.toronto.ca/legdocs/mmis/2014/gm/bgrd/backgroundfile-72078.pdf
(July 23, 2014) Confidential Attachment 1 - Lease Dispute Between City and Queen St. Patrick Market Inc. Regarding 238 Queen Street West Property
Communications
https://www.toronto.ca/legdocs/mmis/2014/gm/comm/communicationfile-48937.pdf
(August 8, 2014) E-mail from Max Allen, President for Planning and Development, Grange Community Association (GM.New.GM32.6.2)
Motions
1:44 p.m. - That the Government Management Committee recess its public session to meet in closed session to consider Item GM32.6 titled "Lease Dispute Between City and Queen St. Patrick Market Inc. Regarding 238 Queen Street West Property" as it relates litigation or potential litigation that affects the City and contains advice that is subject to solicitor-client privilege.
That City Council adopt the recommendations made in closed session by the Government Management Committee.