Item - 2018.EX33.7

The Executive Committee recommends that:

1.  City Council approve the confidential instructions to staff in Confidential Attachment 1 of Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission.

2.  City Council authorize the Toronto Transit Commission:   

a.  as Landlord, to enter into a lease amendment agreement with current tenants, which may include Cansquare (Canada 8) LP, CT Reit LP, and OPG Investment Holdings LP (which are subsidiaries of Northam Realty, CT Reit and Oxford Properties), or other related corporations satisfactory to the Chief Executive Officer, Toronto Transit Commission and the City's Deputy City Manager, Internal Corporate Services (the "Tenant"), on the property shown as parts 1-4 in Appendix A (the "Lands") to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, on terms and conditions not materially inconsistent with the major terms and conditions described in the Lease Terms, contained in Confidential Attachment 1 of Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, together with such other terms and conditions as may be deemed appropriate by the Chief Executive Officer, Toronto Transit Commission, in consultation with the Deputy City Manager, Internal Corporate Services, the Chief Financial Officer and CreateTO, and in a form satisfactory to the Toronto Transit Commission's General Counsel; and

b.  as Licensor, to enter into a license agreement or agreements (the "License Agreements") with the Tenant for any period of time and for any consideration, including nominal consideration, with respect to the Lease Lands for the purpose of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purpose deemed appropriate by the Deputy City Manager, Internal Corporate Services and the Chief Capital Officer, Toronto Transit Commission and in a form satisfactory to Toronto Transit Commission's General Counsel.

3.  City Council grant authority for the City to enter into any and all such ancillary and related agreements, including easement, license, tie back, or shoring agreements as may be necessary for any periods of time and for any consideration, including nominal consideration if appropriate, with respect to adjacent City-owned lands for the purposes of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purposes deemed appropriate by the Deputy City Manager, Internal Corporate Services, in a form satisfactory to the City Solicitor to effect the development of the Yonge-Eglinton Toronto Transit Commission lands, on the condition that such agreements are consistent with the intent of the development and the lease terms set out Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission.

4.  City Council direct that the information in Confidential Attachment 1 of Appendix B to the joint report (April 9, 2018) from the Deputy City Manager, Internal Corporate Services and the Chief Executive Officer, Toronto Transit Commission, remain confidential until all lease amendment agreements have been executed by the parties, as the information relates to a proposed or pending acquisition or disposition of land by the City or local board.

On June 7, 2016 City Council requested Build Toronto, in consultation with the Toronto Transit Commission (TTC), Real Estate Services (RES) and City Planning (CP) to negotiate directly with the long term lessee(s) located at Yonge and Eglinton regarding amendments to the existing ground lease to facilitate the redevelopment of the lands, identified in Parts 1 to 4 in Appendix A (the "Lands").

Build Toronto (now CreateTO), in consultation with the Toronto Transit Commission, Real Estate Services and City Planning have negotiated a new business proposal with the long term lessees for a new ground lease relating to the redevelopment of the Lands, the details of which are outlined in Appendix B and Confidential Attachment 1. The proposed transaction has been developed within the new City real estate model to achieve key city building objectives, including unlocking the value of City assets through transit oriented development. This report follows a report on the same initiative submitted for consideration by the Toronto Transit Commission Board on April 11, 2018 entitled "Redevelopment of Toronto Transit Commission Lands at Yonge and Eglinton". The Toronto Transit Commission Board report is attached herein as Appendix B, with its confidential attachments contained within Confidential Attachment 1 to this report.

In accordance with City of Toronto Municipal Code Chapter 279 (Toronto Transit Commission), Section 6 (Delegate Real Estate Authority), Subsection 6(d), the Toronto Transit Commission wishes to proceed with a transaction that falls outside of the scope of authority delegated by Council pursuant to the Real Estate Approval Process.  The Toronto Transit Commission seeks Council approval for such transaction by way of a joint report to Council from the Toronto Transit Commission and the Deputy City Manager, Internal Corporate Services.

At a Special Meeting held on April 16, 2018 the Toronto Transit Commission Board had before it the attached report titled "Redevelopment of Toronto Transit Commission Lands at Yonge-Eglinton", recommending that:

1.  The Board approve the recommendation in Confidential Attachment 1.

2.  The Board approve that the major lease terms ("the Lease Terms") substantially as provided in Confidential Attachment 1.

3.  The Board recommend to City Council, by way of a joint report together with the Deputy City Manager, Internal Corporate Services ("DCM-ICS"), that the Toronto Transit Commission:

a.  as Landlord enter into a lease amendment agreement with current tenants, which may include Cansquare (Canada 8) LP, CT Reit LP, and OPG Investment Holdings LP (which are subsidiaries of Northam Realty, CT Reit and Oxford Properties), or other related corporations satisfactory to the Chief Executive Officer of Toronto Transit Commission and the City's Deputy City Manager, Internal Corporate Services (the "Tenant"), on the property shown as parts 1-4 in Appendix 1 (the "Lands"), on terms and conditions not materially inconsistent with the major terms and conditions described in the Lease Terms, contained in Confidential Attachment 1, together with such other terms and conditions as may be deemed appropriate by the Toronto Transit Commission's Chief Executive Officer in consultation with the Deputy City Manager, Internal Corporate Services, the City's Chief Financial Officer (CFO) and CreateTO and in a form satisfactory to the Toronto Transit Commission's General Counsel; and

b.  as Licensor, to enter into a license agreement or agreements (the "License Agreements") with the Tenant for any period of time and for any consideration, including nominal consideration, with respect to the Lease Lands for the purpose of site mobilization, site preparation, excavation, shoring, surveying, soil investigation, access, construction staging, parking and any other purpose deemed appropriate by the Deputy City Manager, Internal Corporate Services, Toronto Transit Commission's Chief Capital Officer and in a form satisfactory to Toronto Transit Commission's General Counsel.

4.  The Board grant authority to reimburse CreateTO (formerly Build Toronto) for expenses incurred related to negotiations of the proposed lease amendment contained within this report up to $2.0 million.

5.  The Board forward this report to the City of Toronto's Executive Committee along with the Board's decision for consideration with its report on the same subject; and

6.  The Board authorize that the information provided in the Confidential Attachment 1 is to remain confidential until all lease amendment agreements have been executed by the parties.

 
The foregoing is submitted to City Council, through Executive Committee, for approval.