Item - 2017.EX26.46

The purpose of this report is to provide an update on the Ward 38, 705 Progress Building Improvements capital project and to seek a Council decision on an increase in the project budget of up to $370,000, funded by the Parkland Acquisition - Scarborough Reserve Fund (XR2007), for a revised total project budget of $520,000 through an amendment to the Facilities, Real Estate, Environment and Energy (FREEE) 2017 Council Approved Capital Budget and 2018-2026 Capital Plan. This amendment, if approved, would require a $370,000 gross expenditure increase, fully funded through the Parkland Acquisition - Scarborough Reserve Fund (XR2007), and no debt impact.

The amendment would be necessary to fund capital repairs and improvements for occupancy and program delivery of the Below Market Rent (BMR) tenant at 705 Progress Avenue, Unit 63. A significant portion of the $520,000 is related to work that typically is the responsibility of the tenant. The City will ensure all normal landlord responsibilities related to building repairs are completed. Should Council decide not to amend the project cost, the BMR tenant would be required to fund any improvement costs over and above $150,000. It is doubtful, however, that the tenant has the financial resources to fund these building capital costs and therefore would have to fund raise, adjust its programming in order to operate out of the space, or the proposed tenancy and project could be placed at risk.