Item - 2017.EX28.8

The Executive Committee recommends that:

1.  City Council adopt the Community Space Tenancy Policy as set out in Appendix A to the report (October 6, 2017) from the Deputy City Manager, Internal Corporate Services and the Executive Director, Social Development, Finance and Administration, to come into effect on January 1, 2018.

2.  City Council authorize the Deputy City Manager, Internal Corporate Services, in consultation with the Executive Director, Social Development, Finance and Administration and/or the Division Head responsible for the tenants' programs, to administer and manage all lease agreements approved by City Council under the Community Space Tenancy Policy, including the provision of any consents, approvals, notices and notices of termination provided that the Deputy City Manager, Internal Corporate Services may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

3.  City Council authorize the Deputy City Manager, Internal Corporate Services, in consultation with the Executive Director, Social Development, Finance and Administration and/or the Division Head responsible for the tenants' programs, to approve new leases with tenants occupying space pursuant to the Community Space Tenancy Policy when a prior lease entered into pursuant to the policy has expired, provided that such tenant remains in good standing, continues to meet all criteria of the policy, and the new lease is on substantially the same terms and conditions as the lease for such tenant previously approved by City Council.

4.  City Council authorize the Deputy City Manager, Internal Corporate Services, in consultation with the Executive Director, Social Development, Finance and Administration, and/or the Division Head responsible for the tenants' programs, to approve lease arrangements for vacant space located within a City facility occupied by three or more tenants operating with intentional program and service integration pursuant to the Community Space Tenancy Policy, where such vacancy arises from the termination of a prior tenancy by the City, the replacement tenant meets all criteria of the Community Space Tenancy Policy and the new lease is on substantially the same terms and conditions as the terminated lease previously approved by City Council.

5.  City Council authorize the Deputy City Manager, Internal Corporate Services, in consultation with the Executive Director, Social Development, Finance and Administration, and/or the Division Head responsible for the tenants' programs, to consent to the subleasing of space occupied by a tenant pursuant to the Community Space Tenancy Policy to no more than two subtenants, provided any such subtenant meets all criteria of the Community Space Tenancy Policy and enters into a Sublease Acknowledgement Agreement with the City.

6.  City Council authorize severally each of the Deputy City Manager, Internal Corporate Services and the Director, Real Estate Services to execute such leases, and any related documents on behalf of the City.

7.  City Council request that the Deputy City Manager, Internal Corporate Services and Executive Director, Social Development, Finance and Administration, in consultation with the City Solicitor, coordinate with the City Manager regarding the manner in which the delegations identified above can be incorporated in the new Delegation Framework approved by City Council as part of the City-wide real estate model.

8.  City Council request the Executive Director, Social Development, Finance and Administration and the Chief Financial Officer to include $75,000 to support the incremental operating expenses of Incubator Tenants using community space under the Community Space Tenancy Policy, for consideration in the 2018 Budget process with other City priorities.

9.  City Council direct the Deputy City Manager, Internal Corporate Services to include a summary of Community Space tenancies authorized by Council or by delegated authority in the annual report to the Government Management Committee on all real estate transactions.

The City of Toronto's Policy for City-Owned Space Provided at Below-Market Rent (BMR) provides Council and staff with a process for leasing City-owned or managed space (Community Space) at below market rent to non-profit organizations that deliver community and cultural services to residents and further the City's strategic objectives. The policy has supported collaboration to build strong neighbourhoods, investments in community and cultural groups, and programs that respond to local needs.

Staff, in consultation with existing Below-Market Rent tenants, have conducted a review of the Below-Market Rent policy.  This report proposes to replace the Below-Market Rent policy with a new Community Space Tenancy (CST) policy. The Community Space Tenancy policy retains the main components of the Below-Market Rent policy while adding necessary elements to meet the needs of the City and the non-profit sector.  New elements include requirements for formal leases, clearer eligibility criteria and four types of tenancies: Legacy, Community Partner, Incubator and Community Hub.

The Community Space Tenancy policy ensures that the City continues to meet its policy objectives to provide a consistent, fair, accountable and transparent approach to leasing Community Space to service sector and cultural organizations at less than market rates, while fostering partnerships that support these organizations to meet resident needs. The Policy includes a regular review process to ensure that it continues to adapt as needed to meet these objectives.

If adopted, the Community Space Tenancy policy would take effect for Legacy Tenants, Community Partner and Community Hub tenancies on January 1, 2018. Incubator tenancies will be implemented if the required resources are approved through the 2018 budget process.