Item - 2020.GL16.8

The General Government and Licensing Committee recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO, the General Manager, Economic Development and Culture, the Chief Planner and Executive Director, City Planning, and the General Manager, Parks, Forestry and Recreation, to enter into a fair market-value Long-Term Land Lease based on the terms and conditions outlined in Attachment 2 to the report (September 21, 2020) from the Executive Director, Corporate Real Estate Management, as amended by Recommendation 2 below, with the principals of the Tamil Community Centre (which is expected to be named "Tamil Community Centre"), to design, build, finance and operate a new not-for-profit Community Recreation Facility on the south parcel of the City-owned property at 311 Staines Road, as shown and outlined on Attachment 1 to the report (September 21, 2020) from the Executive Director, Corporate Real Estate Management, and on such other terms and conditions to be agreed between the parties, as may be approved by the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

2. City Council amend the conditions outlined in Attachment 2 to the report (September 21, 2020) from the Executive Director, Corporate Real Estate Management to read that, Prior to commencing construction, the Tamil Community Centre shall provide a security deposit to the City in an amount equal to up to 50 percent of the budgeted value of construction for the Project, with the amount to be determined at the sole discretion of the Executive Director, Corporate Real Estate Management, to protect the City should the development not take place as contemplated; such security shall be reduced as work is completed and once the Executive Director, Corporate Real Estate Management is satisfied that all amounts owing to contractors, suppliers, trades and subtrades have been paid in full; and the security deposit shall be in the form of cash, certified cheque or an irrevocable and unconditional Letter of Credit from a major Canadian bank, in the form required by the Chief Financial Officer and Treasurer, and satisfactory to the Deputy City Manager, Corporate Services and shall be delivered to the City, upon issuance of any building permit.

3. City Council direct that the Tamil Community Centre shall be responsible for any and all amounts and costs payable with respect to any claim or litigation with respect to the change in use of the Subject Property, from a naturalized state to a new community centre, to be secured by an irrevocable and unconditional Letter of Credit in the amount of Five Million ($5,000,000.00) Dollars from a major Canadian bank, in the form required by the Chief Financial Officer and Treasurer upon request of the Executive Director, Corporate Real Estate Management.

4. City Council direct that within (5) five years of the commencement date of the lease, the tenant shall deliver to the landlord, documentation as required by the landlord, and to the complete satisfaction of the landlord, confirming the tenant's financial standing with respect of the project, including all fundraising and grant commitments received for the Project.

5. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO, the General Manager, Economic Development and Culture, and the General Manager, Parks, Forestry and Recreation, to enter into a Community Access Agreement to accompany the Land Lease authorized by Recommendation 1 above.

6. City Council direct the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO, to consult with the Executive Director, Social Development Finance and Administration and the Director, Indigenous Affairs Office on how to ensure that the Community Access Agreement is developed to best meet the needs of vulnerable and Indigenous communities.

7. City Council direct the Executive Director, Corporate Real Estate Management, in consultation with the Chief Executive Officer, CreateTO and the Director, Indigenous Affairs Office, to report back on the feasibility of how any agreements may include requirements for Indigenous placemaking and how this would be incorporated into any redevelopment of the Subject Property.

8. With respect to restricting the lands to a naturalized state, City Council grant an exemption for the south parcel, and provide its consent and authority to permit the Land Lease on the terms and conditions as set out in Attachment 2 to the report (September 21, 2020) rom the Executive Director, Corporate Real Estate Management, as amended by Recommendation 2 above, Community Access Agreement and any related agreements for the new Community Recreation facility.

The City-owned 311 Staines Road comprises a north parcel and south parcel, separated by a Hydro corridor, which was acquired by the City in 2007, with the provision that the lands be restricted to a naturalized state. The purpose of this report is to provide an update to City Council on the non-binding discussions between staff and the principals of the Tamil Community Centre regarding a proposed land lease (the "Land Lease") for the south parcel of 311 Staines Road (the "Subject Property"). The principals of Tamil Community Centre have proposed a new community centre on the Subject Property which will serve the community as a whole, while providing a focus on serving the Tamil community in particular. 

The Tamil community has been working for some time to identify a location within Northeast Scarborough in order to build a new community centre with the goal to address the gap in services available to the broader Tamil community. The proposed location of the new Tamil Community Centre at the Subject Property is ideally located to serve the immediate community along with the broader Tamil communities in Pickering, Ajax and Markham.

In addition, the proposed community centre will work to incorporate the needs of community members at large, who would be able to access and use this facility through a Community Access Agreement which will work as a companion document to the Land Lease. This area is home to a large number of new immigrant families, single parent households, and/or individuals with socio-economic barriers. Communities including Indigenous, Black and Caribbean communities confront similar difficulties in terms of travel time to access vital services, a lack of recreational services, neighbourhood improvement projects, and affordable spaces for community and cultural events. The Tamil Community Centre will be a valuable resource to improve vital services to all communities in the surrounding neighbourhoods.