Item - 2017.GM22.31

The Government Management Committee recommends that:

1.  City Council authorize the Chief Corporate Officer to enter into a Section 24 Expropriations Act Agreement for the acquisition of 1229 Ellesmere Road with 2288868 Ontario Limited for the purchase price outlined in Confidential  Attachment 1 to the report (August 31, 2017) from the Chief Corporate Officer and the General Manager, Shelter, Support and Housing Administration, and authorize the City to enter into the Agreement substantially on the terms outlined in Appendix A to the report (August 31, 2017) from the Chief Corporate Officer and the General Manager, Shelter, Support and Housing Administration, and on such other or amended terms and conditions as may be acceptable to the Chief Corporate Officer, and in a form satisfactory to the City Solicitor.

2.  City Council amend the 2017 Council Approved Capital Budget for Shelter, Support and Housing Administration by the addition of a new capital project called "1229 Ellesmere Road - Shelter Acquisition" for the costs as outlined in Confidential Attachment 1 to the report (August 31, 2017) from the Chief Corporate Officer and the General Manager, Shelter, Support and Housing Administration, funded from the Land Acquisition Reserve Fund (XR1012).

3.  City Council authorize severally each of the Chief Corporate Officer and the Director, Real Estate Services to execute the Agreement and any ancillary agreements and documents under the Agreement, on behalf of the City.

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

5.  City Council authorize the City Solicitor to complete the Agreement on behalf of the City, including paying any necessary expenses, amending the closing and other dates, and amending terms and conditions, on such terms as she considers reasonable.

6.  If the acquisition of the Property is not successfully completed as provided for in Recommendation 1:

a.  City Council, as approving authority under the Expropriations Act, approve the expropriation of the property shown as Part 1 on the draft Reference Plan in Appendix C to the report (August 31, 2017) from the Chief Corporate Officer and the General Manager, Shelter, Support and Housing Administration;

b.  City Council authorize the City, as expropriating authority under the Expropriations Act, to take all necessary steps to comply with the Expropriations Act, including but not limited to, the preparation and registration of an Expropriation Plan and service of Notices of Expropriation, Notices of Election as to a Date for Compensation and Notices of Possession; and

c.  City Council authorize the Director, Real Estate Services to sign the Notices of Expropriation, Notices of Possession and the Offer of Compensation for the Property, on behalf of the City.

7.  City Council authorize the public release of the confidential information in Confidential Attachment 1 to the report (August 31, 2017) from the Chief Corporate Officer and the General Manager, Shelter, Support and Housing Administration once the transaction contemplated in the report has been successfully completed, and the Owner has disposed of its interest in the Property, or in the event of an expropriation, there has been a final determination of all claims for compensation, to the satisfaction of the City Solicitor.

The purpose of this report is to obtain authority and funding to enter into a Section 24 Agreement under the Expropriations Act (Ontario) (the "Act"), to settle the acquisition 1229 Ellesmere Road, also known as Birkdale Residence. The acquisition will allow for the continued use of the site for emergency family shelter programs. This report also seeks approval from City Council, as the approving authority under the Act, to expropriate the lands in the event City Council does not approve this recommended settlement, or the Section 24 Agreement transaction is not successfully completed.

This shelter has been leased by the City as a tenant since 1996.  The latest lease term ended on March 31, 2017.  Since then, the City has continued as a month-to-month tenant, on the terms and conditions of the lease. On January 31, 2017, City Council granted authority to serve and publish Notices of Application for Approval to Expropriate 1229 Ellesmere Road, as it was unlikely that satisfactory terms for a continued lease or purchase could be reached at the time.

Due to the sensitive use of the site and shortage of shelter beds in the system, this property acquisition is necessary and recommended to ensure its continued use as an emergency shelter.

Staff have successfully negotiated terms of a settlement with the owner of the property and this report seeks approval from City Council to proceed with the acquisition. In the event that City Council does not adopt the settlement recommendation or the acquisition cannot be successfully completed, this report also seeks approval from City Council, as the approving authority under the Act, to expropriate the lands known municipally as 1229 Ellesmere Road.  The owner has served a Notice to Quit the premises by November 30, 2017, if the acquisition or expropriation of the property has not been completed by that date.