Item - 2018.GM29.23

The Government Management Committee recommends that:

1.  City Council approve the purchase of 29 Judson Street and authorize the Deputy City Manager, Internal Corporate Services, to execute the Agreement of Purchase and Sale for the City acquisition of 29 Judson Street, pursuant to the general terms and conditions contained in Confidential Attachment 1 to the report (June 18, 2018) from the Deputy City Manager, Internal Corporate Services, and on such other amended terms and conditions as may be approved by the Deputy City Manager, Internal Corporate Services, and in a form satisfactory to the City Solicitor.

2.  City Council authorize any two officers of Toronto Port Lands Company to undertake such actions and to execute any and all necessary documents required to complete the lease agreement at 545 Commissioners Street, pursuant to the general terms and conditions contained in Confidential Attachment 2 to the report (June 18, 2018) from the Deputy City Manager, Internal Corporate Services, and on such other amended terms and conditions as may be approved by the Transition Lead of CreateTO, and in a form satisfactory to the Head Legal and Corporate Secretary of CreateTO.

3.  City Council amend the 2018 - 2027 Council Approved Capital Budget and Plan for Facilities, Real Estate, Environment and Energy to include creation of a new project called "Concrete Batching Consolidation" with total project cost, cash flow funding and funding sources identified in Confidential Attachment 3 to the report (June 18, 2018) from the Deputy City Manager, Internal Corporate Services. 

4.  City Council authorize funding from the Strategic Property Acquisition project, funded by the Land Acquisition Reserve Fund (XR1012), in the amount of $4,938,000 to be used as part of the total consideration for the acquisition of 29 Judson Street.

5.  City Council authorize the public release of the information in Confidential Attachments 1, 2 and 3 to the report (June 18, 2018) from the Deputy City Manager, Internal Corporate Services, upon the completion of the respective transactions.

This report responds to City Council direction from July 04, 2017 report CC31.24, for the Deputy City Manager to report back to the Government Management Committee on the overall financial implications of the following transaction, prior to finalizing any purchase or lease agreements for either property: the City acquisition of Remicorp Industries Inc. ("ML Ready Mix") owned 29 Judson Street and the Toronto Port Lands Company ("TPLC") lease out of a portion of 545 Commissioners Street to ML Ready Mix.

ML Ready Mix currently owns and operates a legal nonconforming concrete batching facility in South Etobicoke located at 29 Judson Street. These operations are adjacent to multiple residential and other sensitive uses which have resulted in inherent land use conflicts and ongoing community concerns. On the other hand, the City-owned 545 Commissioners Street property located in the Port Lands is directly adjacent to/surrounded by several other concrete batching ready-mix facilities within the immediate vicinity.

Relocating ML Ready Mix from 29 Judson Street to 545 Commissioners Street through this transaction presents a strategic opportunity to further consolidate concrete batching operations within an existing cluster of concrete businesses in the Port Lands, while simultaneously reducing the existing land use conflicts that are currently experienced by residents of the Judson Street community.