Item - 2016.GM9.5
Tracking Status
- City Council adopted this item on February 3, 2016 with amendments.
- This item was considered by the Government Management Committee on January 4, 2016 and adopted without amendment. It will be considered by City Council on February 3, 2016.
GM9.5 - Union Station Proposed Building Enhancements
- Decision Type:
- ACTION
- Status:
- Amended
- Ward:
- 28 - Toronto Centre-Rosedale
City Council Decision
City Council on February 3 and 4, 2016, adopted the following:
1. City Council authorize an amendment to the 2009 Head Lease Agreement between the City of Toronto and Osmington (Union Station) Inc. ("Osmington"), and authorize any other necessary agreements, to implement the building enhancements for Union Station, any necessary upgrades required to allow for retail on the GO West Concourse, and the heritage interpretation plan, substantially on the terms set out in the Term Sheet - Attachment 1 to the report (December 24, 2015) from the Chief Corporate Officer and such other or amended terms as may be acceptable to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
2. City Council authorize an amendment to the retainer agreement with Davies Ward Phillips and Vineberg LLP (Purchase Order No. 6025203), in the additional amount of up to $350,000.00 (net of all applicable taxes), to provide continuing real estate legal advice and expertise for the on-going agreement updates associated with the revitalization project.
3. City Council authorize an amendment to the retainer agreement with PwC (Purchase Order No. 6037971), in the additional amount of up to $150,000.00 (net of all applicable taxes), to provide continuing real estate advice and expertise for the on-going lease related matters associated with the revitalization project.
4. City Council direct that the confidential information in Confidential Attachment 1to the report (January 15, 2016) from the Chief Corporate Officer remain confidential as it pertains to a proposed or pending land disposition by the City or one of its agencies, boards and commissions and it contains confidential business information of the head lessee.
Confidential Attachment 1 to the report (January 15, 2016) from the Chief Corporate Officer remains confidential in its entirety in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to a proposed or pending land disposition by the City or one of its agencies, boards and commissions and it contains confidential business information of the head lessee.
Confidential Attachment - A proposed or pending land disposition by the City or one of its agencies, boards, and commissions
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-87143.pdf
(January 4, 2016) Presentation from Brad Keast, Vice President, Osmington Inc. and Denis Gervais, Principle, GH+A, on Union Station Proposed Building Enhancements
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-87170.pdf
(December 22, 2015) Report and Attachment 1 from the Chief Corporate Officer on Union Station Proposed Building Enhancements
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-87140.pdf
(December 14, 2015) Report from the Chief Corporate Officer on Union Station Proposed Retail Enhancements - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-86773.pdf
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2016/cc/bgrd/backgroundfile-87892.pdf
Confidential Attachment 1 - Sponsorship Revenue and Financial Analysis for Union Station Building Enhancements
Motions (City Council)
That City Council adopt the following recommendation contained in the supplementary report (January 15, 2016) from the Chief Corporate Officer [GM9.5a]:
1. City Council direct that the confidential information contained in Attachment 1 remain confidential as it pertains to a proposed or pending land disposition by the City or one of its agencies, boards and commissions and it contains confidential business information of the head lessee.
GM9.5 - Union Station Proposed Building Enhancements
- Decision Type:
- ACTION
- Status:
- Adopted
- Ward:
- 28 - Toronto Centre-Rosedale
Committee Recommendations
The Government Management Committee recommends that:
1. City Council authorize an amendment to the 2009 Head Lease Agreement between the City of Toronto and Osmington (Union Station) Inc. ("Osmington"), and authorize any other necessary agreements, to implement the building enhancements for Union Station, any necessary upgrades required to allow for retail on the GO West Concourse, and the heritage interpretation plan, substantially on the terms set out in the Term Sheet - Attachment 1 to the report (December 24, 2015) from the Chief Corporate Officer and such other or amended terms as may be acceptable to the Chief Corporate Officer and in a form satisfactory to the City Solicitor.
2. City Council authorize an amendment to the retainer agreement with Davies Ward Phillips and Vineberg LLP (Purchase Order No. 6025203), in the additional amount of up to $350,000.00 (net of all applicable taxes), to provide continuing real estate legal advice and expertise for the on-going agreement updates associated with the revitalization project.
3. City Council authorize an amendment to the retainer agreement with PwC (Purchase Order No. 6037971), in the additional amount of up to $150,000.00 (net of all applicable taxes), to provide continuing real estate advice and expertise for the on-going lease related matters associated with the revitalization project.
Decision Advice and Other Information
The following gave a presentation to the Government Management Committee on Union Station Proposed Building Enhancements:
- the Chief Corporate Officer;
- Brad Keast, Vice-President, Osmington Inc.; and
- Denis Gervais, Principle, GH+A.
Origin
Summary
In 2013, City staff reported to Council that the City's Head Lessee at Union Station, Osmington (Union Station) Inc., was interested in developing a renewed vision for the commercial retail and event elements at the Station. As the revitalization of Union Station has progressed, Osmington has further developed the design for the commercial retail and event spaces to create a 2015 vision for a dynamic, customer-focussed experience that includes engaging the top restauranteurs, retailers and cultural institutions of the City. The City shares this vision with Osmington to create a destination for commuters, local residents and visitors alike. In order to create a world class destination, base building and leasehold enhancements to the building are needed, including lighting, audio-visual equipment, furniture, amenities and other improvements to the retail and event offerings for Station users.
The enhancements are estimated to cost $32 million plus HST and contingency, and will be shared between Osmington (60%) and the City (40 percent). The City's 40 percent portion of the enhancement costs will be funded by Osmington and recovered with revenue that is generated from sponsorship and retail tenant percentage rent (as defined in the attached Term Sheet). The proposed enhancements do not require the City to use its own capital funding and presents no risk to the revenues that the City would receive in the absence of these enhancements.
This report recommends that City Council authorize an amendment to the 2009 Head Lease Agreement between the City and Osmington and authorize any necessary related agreements to allow Osmington to fund, design and construct enhancements to Union Station that will make it a City-wide destination for dining, retail, events and culture.
Background Information
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-87143.pdf
(January 4, 2016) Presentation from Brad Keast, Vice President, Osmington Inc. and Denis Gervais, Principle, GH+A, on Union Station Proposed Building Enhancements
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-87170.pdf
(December 22, 2015) Report and Attachment 1 from the Chief Corporate Officer on Union Station Proposed Building Enhancements
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-87140.pdf
(December 14, 2015) Report from the Chief Corporate Officer on Union Station Proposed Retail Enhancements - Notice of Pending Report
https://www.toronto.ca/legdocs/mmis/2016/gm/bgrd/backgroundfile-86773.pdf
Motions
Vote (Adopt Item) Jan-04-2016
Result: Carried | Majority Required |
---|---|
Total members that voted Yes: 5 | Members that voted Yes are Paul Ainslie (Chair), Janet Davis, Mark Grimes, Pam McConnell, Frances Nunziata |
Total members that voted No: 1 | Members that voted No are Rob Ford |
Total members that were Absent: 0 | Members that were absent are |