Item - 2020.RA17.4
Tracking Status
- This item was considered by CreateTO on October 9, 2020 and was adopted without amendment.
RA17.4 - Proposal for Long-term Land Lease - Strategic City-owned Property
- Decision Type:
- ACTION
- Status:
- Adopted
- Ward:
- 11 - University - Rosedale
Confidential Attachment - proposed or pending acquisition or disposition of land by the Board of Directors of CreateTO and the City of Toronto
Board Decision
The Board of Directors of CreateTO:
1. Authorized the Chief Executive Officer, CreateTO in consultation with the Executive Director, Corporate Real Estate Management, and the Chief Executive Officer, Toronto Transit Commission, to negotiate the terms and conditions of a long-term fair market-value lease agreement with the current lessee of the Property as identified and outlined in Confidential Attachment 1 to the report (October 1, 2020) from the Chief Executive Officer, CreateTO.
2. Directed the Chief Executive Officer, CreateTO to work with the Executive Director, Corporate Real Estate Management, and the Chief Executive Officer, Toronto Transit Commission to request necessary funding through City Council to engage third party services to negotiate the lease transaction.
3. Authorized the public release of Confidential Attachment 1 to the report (October 1, 2020) from the Chief Executive Officer, CreateTO following the closing of any lease transaction or lease amending agreements.
Decision Advice and Other Information
The Board of Directors of CreateTO recessed its public meeting to meet in closed session to consider this item as it pertains to proposed or pending acquisition or disposition of land by the Board of Directors of CreateTO and the City of Toronto.
Origin
Summary
The purpose of this report is to provide an update to the Board of CreateTO on discussions between staff of CreateTO, Corporate Real Estate Management ("CREM"), the Toronto Transit Commission (the "TTC") and the Proponent regarding a proposed long-term lease renegotiation and redevelopment of a City-owned property located within Ward 11 - University-Rosedale (the "Subject Property"). The Proponent, which has an existing long-term ground lease in place with the City of Toronto, has proposed a redevelopment of the Subject Property that would occur in conjunction with a critical transit expansion project. A renegotiated ground lease is a critical requisite for both the TTC project requirements along with the proposed mixed-use redevelopment. The Subject Property and terms of leasehold interest are identified and detailed within Confidential Attachment 1.
Collectively, the two major projects will result in a significant capital investment and major city building deliverables that include new improved transit services, a reimagined public realm and mixed-use development - including the potential for inclusion of affordable housing and other City uses and needs for the area. The combination of both projects, will potentially result in significant cost and construction schedule savings.
As part of the renegotiation process, a Working Group has been formed to include staff from CreateTO, Corporate Real Estate Management, the Toronto Transit Commission, and the Proponent. CreateTO, with support from CREM, will play a lead role in the negotiation process while also facilitating and overseeing discussions with the numerous primary and secondary stakeholders involved in this complex project. Engagement with City Planning Staff, the Local Councillor, and other stakeholders has begun to understand the opportunities that exist within this proposal for Subject Property, and within the broader public realm in the area. The project is also expected to undergo an early public consultation process that would include the establishment of a working group with the local residents associations' to input into the guiding principles that would inform the overall design and public realm outcomes.
As part of negotiating the lease agreement, obligations for design excellence, sustainability and connectivity along with ground level activation have been identified to the Proponent for consideration within their redevelopment. CreateTO, Urban Design, and Community Planning have identified this redevelopment of Subject Property as an excellent candidate to help advance the City's Urban Design Initiative which could see an open and transparent design competition for this transformational project.
The Working Group is aiming to complete a draft memorandum of understanding on the terms of the renegotiated ground lease by the first quarter of 2021 for CreateTO Board endorsement. Subsequent to CreateTO Board endorsement, City Council approval of the final draft term sheet and final lease terms is targeted for the first quarter of 2021, which would align with the TTC's project schedule. A high-degree of planning and coordination is required by all parties to advance these two major projects in conjunction with one another.
Background Information
https://www.toronto.ca/legdocs/mmis/2020/ra/bgrd/backgroundfile-157081.pdf
Confidential Attachment 1 - Property Information Sheet