Item - 2019.GL7.13

The General Government and Licensing Committee recommends that:

1.  City Council authorize the City of Toronto to enter into an Agreement of Purchase and Sale (the Agreement) to acquire 11 Brock Avenue (the Property) for the purchase price outlined in Confidential Attachment 1 and substantially on the terms outlined in Appendix A to the report (August 15, 2019) from the Executive Director, Housing Secretariat, and 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 authorize the Executive Director, Corporate Real Estate Management, to execute the Agreement of Purchase and Sale (the Agreement) and any ancillary agreements and documents under the Agreement on behalf of the City of Toronto.

3.  City Council authorize the Executive Director, Corporate Real Estate Management, to administer and manage the transaction, including the provision of any consents, approvals, waivers, and notices, provided that they may, at any time, refer consideration of any such matters (including their content) to City Council for consideration and direction.

4.  City Council authorize the City Solicitor to complete the transaction on behalf of the City of Toronto, including paying any necessary expenses, amending the closing, due diligence, and other dates, and amending and waiving terms and conditions, on such terms as they consider reasonable.

5.  City Council authorize the public release of the confidential information contained in Confidential Attachment 1 to the report (August 15, 2019) from the Executive Director, Housing Secretariat, and the Executive Director, Corporate Real Estate Management, once the transaction contemplated in the report has been completed and the Liquor Control Board of Ontario (LCBO) (the Vendor) has disposed of its interest in the Property.

6.  City Council approve an increase to the 2019 Approved Operating Budget for Shelter, Support and Housing Administration, in coordination with the Executive Director, Housing Secretariat, for the total of the proposed purchase price and closing costs outlined in Confidential Attachment 1 to the report (August 15, 2019) from the Executive Director, Housing Secretariat, and the Executive Director, Corporate Real Estate Management, fully funded from the Development Charges Reserve Fund for Subsidized Housing (XR2116).

7.  City Council approve an increase of $31,000 gross, $0 net to the 2019 Approved Operating Budget for Shelter, Support and Housing Administration, in coordination with the Executive Director, Housing Secretariat, to provide additional funding to cover the cost of the completed due diligence work at 11 Brock Avenue, fully funded from the Capital Revolving Reserve Fund for Affordable Housing (XR1058).

This report seeks City Council authority to acquire the property at 11 Brock Avenue for affordable rental housing purposes and identifies the source of funding to support the acquisition, as outlined in this report and Confidential Attachment 1.

In July 2015, as directed by City Council in MM8.19, Infrastructure Ontario and the Liquor Control Board of Ontario (LCBO) were advised of the City's interest in acquiring the property and discussions between the parties have been ongoing since. In July 2018, City Council directed staff in EX36.50 to complete the required due diligence to acquire 11 Brock Avenue and to report back on the results and the sources of funding to support the acquisition.

Staff have completed negotiations with the LCBO and are following up with the LCBO for the signed agreement. Staff have also completed the environmental investigations for the property. Following the acquisition, the City's Housing Secretariat will release a competitive proposal call to select a non-profit proponent to work with the City and CreateTO to design, build, and operate this site under a long-term lease to the City. The Housing Secretariat will report to City Council on the results of the proposal call, including funding and incentives allocations, as well as seek authority for the long-term lease to the successful non-profit group.