Item - 2019.EX9.6

The Executive Committee recommends that:

1.  City Council authorize the City of Toronto to enter into an Agreement of Purchase and Sale (the "Agreement") to acquire the property described in Confidential Attachment 1 to the report (October 8, 2019) from the Executive Director, Corporate Real Estate Management (the "Subject Property") substantially on the terms, including the purchase price, outlined in Confidential Attachment 1 to the report (October 8, 2019) from the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions as may be acceptable to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

2.  City Council declare the property described in Confidential Attachment 1 to the report (October 8, 2019) from the Executive Director, Corporate Real Estate Management surplus (the "City Property"), and direct staff to take all steps necessary to comply with the City's real estate disposal process set out in Municipal Code Chapter 213, Real Property, Sale of.

3.  City Council direct the Executive Director, Corporate Real Estate Management, working with the Chief Planner and Executive Director, City Planning and the Chief Executive Officer, CreateTO, to report back in 2020 on a "Precinct Plan" for the combined City Property, Subject Property and adjacent properties as appropriate (collectively, the "Properties"), including how these sites will be activated with City uses such as affordable housing, parks, Toronto Parking Authority, childcare, and any other uses as may be suitable.

4. City Council direct the Chief Financial Officer and Deputy City Manager, Corporate Services to align the strategic acquisition policy with the City-wide Real Estate Framework to include a specific city-building focus, and to report back to the Executive Committee in the first quarter of 2020.

5. City Council direct the Executive Director, Corporate Real Estate Management, working with the Chief Executive Officer, CreateTO and the Executive Director, Housing Secretariat, to report back in 2020 with a plan, including the financial implications, to deliver affordable housing as a portion of any development of the Properties in a manner that is consistent with the approach used in Housing Now, including funding and financial incentives, at the City Property.

6. City Council authorize the public release of the information contained in Confidential Attachment 1 to the report (October 8, 2019) from the Executive Director, Corporate Real Estate Management following execution of the Agreement.

The purpose of this report is to provide the City of Toronto Council ("Council") with an update on the strategic acquisition of property located within Ward 10 - Spadina-Fort York and the corresponding disposition of a nearby piece of City-owned property, as outlined in the Confidential Attachment 1 to this report.

The City of Toronto ("the City") is the owner of a property located within Ward 10 - Spadina-Fort York (the "City Property"). The City Property represents an important City-building opportunity due to its location and corresponding property value. For a number of years, the City Property has been identified as a significant redevelopment opportunity for the City. CreateTO, working with their colleagues in City Real Estate Management and City Planning, have developed a business case to strategically leverage the City Property's value and achieve significant City-building on the City Property along with purchasing a nearby piece of privately-owned property (the "Subject Property").

Unlocking the value of the City Property will work to fund significant City-building.  It will also fund the acquisition of the Subject Property which will also be used for significant City-building opportunities. In addition to the acquisition of the Subject Property, any residual value realized could be used to fund additional City-building objectives including affordable rental housing, state-of-good-repair of City infrastructure, new parks, a child care centre or other investments, as may be determined appropriate by Council. 

Properties in the downtown with significant redevelopment potential are becoming increasingly rare.  The value of the Subject Property will allow for strategic redeployment of stranded capital to acquire one of the few remaining significant pieces of property.