Item - 2015.GM7.5

The Government Management Committee recommends that:

1.  City Council amend the Rental Rate in the Major Terms and Conditions for the Lease Extension, set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer by replacing "Base rent of $41.00 per square foot of rentable area" with "Base rent of up to $45.00 per square foot of rentable area."
 

2.  City Council authorize a Lease Extension and Amending Agreement with Infrastructure Ontario, acting on behalf of Her Majesty the Queen in Right of Ontario as represented by the Minister of Economic Development, Employment and Infrastructure (the "Tenant"), for the space currently leased at 60 Queen Street West, (the "Premises"),  for a five (5) year extension term commencing on January 1, 2017, and expiring on December 31, 2021, substantially on the terms and conditions as set out in Appendix A to the report (September 21, 2015) from the Chief Corporate Officer, as amended by Recommendation 1 above, and on such other or revised terms and conditions acceptable to the Chief Corporate Officer, or his or her designate, and in a form and content acceptable to the City Solicitor.

2.  City Council authorize the Chief Corporate Officer to administer and manage the Lease Extension Agreement, including the provision of any consents, approvals, notices and notices of termination, provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

3.  City Council direct that Notice be given to the Province of Ontario that the lease of Old City Hall will not be extended or renewed beyond December 31, 2021.

4.  City Council direct the Chief Corporate Officer, prior to discussions with future potential tenants and/or occupants of Old City Hall, and in consultation with Economic Development and Culture, Heritage Toronto and Heritage Preservation Services, to:

- undertake a feasibility study for museums and complementary ancillary public uses;

- undertake a public consultation process including a charrette to document feedback on potential public  uses for Old City Hall including a museum;

- develop a proposed design process; and

- report back to the Government Management Committee within two years on the results of that process.

This report makes recommendations for a strategy to secure and manage new tenants for Old City Hall once the provincial and municipal courts vacate the building. Brokerage firm Avison Young was retained by Real Estate Services to analyze both the property and market which has resulted in recommendations for a long-term ground lease capital partner to be sought for tenanting the building. This report also provides analysis of potential uses and themes for tenanting the property with a ground lease capital partner. 

This report further recommends that the existing lease between the City and the Province be extended for a term of five-years to allow the existing provincial court facilities to remain in place until the Province completes a new court facility, no later than December 31, 2021. Any lease with a ground lease partner would commence after the provincial courts relocate to their new facility.