Item - 2018.PA12.7

The Board of Directors of the Toronto Parking Authority:

1.  Authorized staff to enter into an amending agreement ("Agreement") with Cresford Capital Corporation ("Cresford"), involving:

a.  a deferral of the provision of shoring and excavation permits;

b.  waiving the requirement for a 100 percent labour and material bond;

c.  Cresford shall pay to Toronto Parking Authority the sum of $250,000.00 per month as compensation for lost income if demolition of the Parking Garage has commenced and Cresford has not obtained the necessary shoring and excavation permits from the City by February 1, 2019; and

in accordance with the terms and conditions as detailed in Table 1.0 - Terms and Conditions of Agreement, of the report (June 8, 2018) from the Acting President, Toronto Parking Authority, or such other or amended terms and conditions acceptable to the Acting President and the Deputy City Manager, Internal Corporate Services, and in a form acceptable to the City Solicitor.

Toronto Parking Authority ("TPA") entered into a conditional Agreement of Purchase and Sale with MUC Properties Inc. ("MUC") dated February 16, 2011 (the "APS"), for the sale of City-owned lands at Municipal Carpark 15, municipally known as 50 Cumberland Street / 37 Yorkville Avenue, save and except for a strata area sufficient to accommodate a minimum of 800 parking spaces ("Subject Property").  The Agreement of Purchase and Sale provided that MUC Properties Inc. would construct and complete an 800-space municipal parking garage to Toronto Parking Authority standards and specifications, within the strata lands retained by the City, and in accordance with the terms and conditions of the Agreement of Purchase and Sale ("Municipal Garage Construction Obligations").

In December 2015, consent was obtained to an assignment of the Agreement of Purchase and Sale from MUC Properties Inc. of its undivided 40 percent interest as purchaser in the Agreement of Purchase and Sale to KingSett Real Estate Growth LP No. 4 ("KingSett"), the owner of the remaining undivided 60 percent beneficial interest in the Agreement of Purchase and Sale, with title to be taken in the name of MK 37 Yorkville Inc.  As part of the assignment, KingSett assumed the Municipal Garage Construction Obligations.

The sale of the Subject Property was completed by Toronto Parking Authority on December 18, 2015.  KingSett, who owns adjacent lands at 27 - 29 Yorkville Avenue and 26 - 30 Cumberland Street (collectively the "Development Lands") (refer to Appendix 'A' - Site Location Map) will combine the Development Lands with the Subject Property for a proposed mixed-use residential development.

In December 2017, consent was obtained to a further assignment of the Agreement of Purchase and Sale from Kingsett to Cresford Capital Corporation and 33 Yorkville Residences Inc. (collectively, "Cresford") for the sale of the Development Lands and the Subject Property, and the assignment of the Municipal Garage Construction Obligations to Cresford.

This report seeks the approval of the Board of Directors of the Toronto Parking Authority to enter into an amending agreement ("Agreement") with Cresford, in accordance with the terms and conditions as detailed in Table 1.0 - Terms and Conditions of the Agreement, and on such other or amended terms and conditions considered acceptable to the Acting President of the Toronto Parking Authority and the Deputy City Manager, Internal Corporate Services of the City, and in a form acceptable to the City Solicitor.  

City Real Estate Services concurs with the Toronto Parking Authority staff recommendation and will prepare and process the necessary City authority.  City Legal has assisted in the review of this matter.