Item - 2020.GL12.7

The General Government and Licensing Committee recommends that:

1.  City Council amend the Community Space Tenancy Policy to delegate authority to the Deputy City Manager, Corporate Services, in consultation with the Executive Director, Social Development, Finance and Administration and/or the Division Head responsible for the tenants' programs to approve initial Community Space Tenancy leases with respect to each of the existing Below Market Rent Policy tenants identified in Appendix 1 to the report (February 21, 2020) from the Executive Director, Social Development, Finance and Administration and the Executive Director, Corporate Real Estate Management, provided that at the time of entering into any such lease, the tenant is in good standing under its current lease, meets all criteria of the Community Space Tenancy Policy, and the new lease is on substantially the same terms and conditions as the lease for such tenant previously approved by City Council.

2.  City Council authorize each of the Deputy City Manager, Corporate Services, and the Executive Director, Corporate Real Estate Management, or their designate, to execute the Community Space Tenancy leases, and any related documents on behalf of the City of Toronto, as required.

3.  City Council authorize the Executive Director, Corporate Real Estate Management, or his/her designate, in consultation with the Executive Director, Social Development, Finance and Administration and/or the Division Head responsible for the tenant's programs to administer and manage the Community Space Tenancy leases including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

4.  City Council authorize the Executive Director, Social Development, Finance and Administration and/or the Division Head responsible for the tenant's programs to enter into, execute and administer service agreements, including the provision of any amendments, eligibility assessment, and annual reporting with the tenants when the Community Space Tenancy leases are entered into.

5.  City Council amend the Community Space Tenancy Policy to include facilities used as community centres as facilities that may be made exempt from property tax by means of a municipal capital facility designation and to correct the references to the municipal capital facility regulation.

The provision of accessible community space is a key component of building strong neighbourhoods. Community use of City space at below-market rent is a form of collaboration and investment in community and cultural organizations.

In November 2017, City Council approved the Community Space Tenancy Policy as a replacement for the Below Market Rent Policy moving forward. As a result, existing Below Market Rent tenants (see Appendix 1) whose leases have expired, or will expire, need to renew their leases under the Community Space Tenancy Policy. Currently under the Community Space Tenancy Policy, Council approval is required whenever a Below Market Rent lease requires renewal and entry into the Community Space Tenancy lease.

The purpose of this report is to recommend that Council amend the Community Space Tenancy Policy to allow existing Below Market Rent lease agreements, upon their future expiry, to be approved for renewal under the Community Space Tenancy Policy via Delegated Authority.  This is provided that the tenant is in good standing under its lease at the time of renewal, meets all of the Community Space Tenancy eligibility criteria, and the new lease is on substantially the same terms and conditions as the lease previously approved by Council.

This report also recommends amending the Community Space Tenancy Policy so that it includes facilities used as community centres in addition to facilities used for social or health services and cultural or recreation services as facilities that may be made exempt from property tax by means of a Municipal Capital Facility designation. It further recommends correcting the references to the municipal capital facility regulation.

The approval of the recommendations in this report will streamline the approval process and provide stability and security of leases for below market rent tenants, and ensure Council approved eligibility criteria continues to be met.