Item - 2020.GL14.11

The General Government and Licensing Committee recommends that:

1. City Council authorize the City of Toronto to accept the offer to sell and enter into an agreement of purchase and sale with 2970 Lake Shore GP Inc. to acquire the adjoining properties municipally known as 2950 and 2970 Lake Shore Boulevard West on such terms and conditions outlined in Appendix A and Confidential Attachment 1 to the report (June 22, 2020) from the Executive Director, Corporate Real Estate Management, and 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, or their designate to negotiate a lease assignment and amendment with Bell Mobility Inc. for continued use of portions of 2970 Lake Shore Boulevard West in a form satisfactory to the City Solicitor.

3. City Council authorize the public release of Confidential Attachment 1 to the report (June 22, 2020) from the Executive Director, Corporate Real Estate Management following the closing of any purchase transaction, and the public release of Confidential Attachment 2 to the report (June 22, 2020) from the Executive Director, Corporate Real Estate Management upon securing the written consent of Bell Mobility Inc.

4. City Council authorize severally the City Clerk, the Chief Financial Officer, the Deputy City Manager, Corporate Services and the Executive Director, Corporate Real Estate Management, or their designate, to execute the agreement of purchase and sale, the lease assignment and amendment agreement, and any ancillary agreements and documents on behalf of the City.

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

6. City Council authorize the City Solicitor to complete the contemplated transaction on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as she considers reasonable.

The purpose of this report is to obtain authority to accept the offer to sell (the "Offer") that the City has received from 2970 Lake Shore GP Inc. (the "Vendor") and to enter into an agreement of purchase and sale to acquire the adjoining properties municipally known as 2950 and 2970 Lake Shore Boulevard West (collectively, "the Property") for use as a municipal shelter. City staff will ensure to limit the City's exposure to potential latent defects through due diligence prior to completing the transaction, through warranty conditions in the agreement of purchase and sale, or by other measures.

The location of the Property meets the requirements of the Municipal Shelter By-law 138-2003. In an effort to ensure that shelter services are located throughout all areas of the City of Toronto (not only downtown) this Property was deemed as the only available viable option, with a willing seller, that is strategically located in the southwest area of Etobicoke. 

The use of the Property as a municipal shelter will support City Council's direction to expand the number of permanent new shelter beds by 1,000. The combination of the two properties creates a large sized property that allows flexibility in responding to changes in shelter standards and demand as a result of the COVID-19 pandemic.

In response to the COVID-19 pandemic, Shelter, Support and Housing Administration (SSHA) has made interim changes to the Toronto Shelter Standards to maintain a minimum of two (2) metre separation between beds. If this change becomes permanent, or other changes to the Shelter Design Guidelines are made as a result of the pandemic, the Property will be designed to accommodate the new standards either with the two (2) metre separation or with the use of more private rooms or partitions, thus resulting in only a minor reduction in capacity. All new shelters, including the Property, are being designed so that they may be converted into housing in the future. As demand for municipal shelters changes, the property can be partly or wholly transitioned into supportive or transitional housing.

Finally SSHA, in collaboration with Corporate Real Estate Management, will continue to explore other real estate opportunities in order to meet the balance of the required 1,000 shelter beds. Consideration to current market conditions will be made to ensure that future acquisitions align with SSHA's COVID-19 response strategies, as may be appropriate, and will work to ensure that future options reduce the City's upfront capital investments.