Item - 2018.PA8.3

The Board of Directors of the Toronto Parking Authority:

1.  Approved the submission of a joint report by the Toronto Parking Authority ("TPA") and the Director, Real Estate Services to City Council on a property transaction between the City and Lanterra 234 Simcoe Realty Limited (the "Developer") which will involve:

a.  a sale to the Developer of Municipal Carpark 221 located at 121 St. Patrick Street, save and except for a strata area sufficient to accommodate an underground parking garage;

b.  the purchase of an underground public parking garage with a minimum of 75 spaces and a maximum of 125 spaces; and

c.  entering into all necessary agreements, including but not limited to, an interim parking lease agreement, construction procedures agreement and reciprocal cost sharing agreement, along with all necessary transfers and undertakings;

under the business, including financial, terms and conditions set out in Appendix 'A' - Summary of Major Business Terms, contained in the report (February 16, 2018) of the Acting President, and any such other amended terms and conditions as may be acceptable to the Acting President and the City Solicitor.

Toronto Parking Authority ("TPA") and City Real Estate Services ("City RES") have negotiated major business terms of a property transaction and municipal parking development with Lanterra 234 Simcoe Realty Limited (the "Developer") involving the City-owned property located at 121 St. Patrick Street, also known as Municipal Carpark 221 (the "Subject Property") and adjacent lands owned by the Developer at 234 Simcoe Street ("Developer Lands") (collectively, "Development Lands"). The proposed transaction involves the sale of the Subject Property to the Developer, save and except for a strata area sufficient to accommodate an underground parking garage which will provide a minimum of 75 spaces, up to a maximum of 125 spaces, on the Development Lands. The Developer will construct a mixed-use development consisting of residential, retail and office space, the underground public parking garage, and public parkland of approximately 1,000 square meters (10,764 square feet) (collectively, the "Development"). As part of the proposed transaction, the City would acquire the public parking garage from the Developer. The public parking garage is to be constructed in accordance with TPA standards and specifications, and operated by the TPA as a municipal parking facility.  

The Board of Directors of the TPA is requested to receive the information contained in the body of this report (February 16, 2018) and approve the submission of a joint report presented by TPA and the Director, Real Estate Services, to City Council on the property transaction under the major business terms and conditions set out in Appendix 'A' - Summary of Major Business Terms. The proposed transaction has been assessed in accordance with City RES' due diligence procedures and City RES is supportive of the proposed transaction. Any further due diligence, if required, will be conducted in accordance with City RES' due diligence procedures. City Legal has been engaged and will continue to oversee the proposed transaction, which is also subject to a number of other approvals through the City process. The local Councillor and City Planning have been consulted through the process.