Item - 2021.PH21.3

The Planning and Housing Committee recommends that:  

1. City Council authorize the City of Toronto to accept an offer to lease (the "Offer to Lease") from, and enter into a lease (the "Lease") with Native Men's Residence, or a related non-profit corporation for the property at 218 Carlton Street at nominal value and substantially on the major terms and conditions set out in Attachment 2 of the report (February 16, 2021) from the Executive Director, Housing Secretariat, and the Executive Director, Corporate Real Estate Management, and on such other or amended terms and conditions acceptable to the Executive Director, Corporate Real Estate Management, or their designate and in a form satisfactory to the City Solicitor.

2. City Council authorize the Executive Director, Corporate Real Estate Management, to execute both the Offer to Lease from and the Lease with respect to 218 Carlton Street with Native Men's Residence, or a related non-profit corporation on behalf of the City and any ancillary agreements or documents, as required to give effect to the lease, on behalf of the City.

3. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, in consultation with the Executive Director, Housing Secretariat to administer and manage the Lease for 218 Carlton Street, including the provision of any amendments, consents, approvals, waivers, notices, and notices of termination, provided that the Executive Director, Corporate Real Estate Management, or their designate, may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

4. City Council consider the Lease with Native Men's Residence, or a related non-profit corporation for the property at 218 Carlton Street to be in the interests of the City.

5. City Council authorize that the $200,000 pre-development funds approved by City Council at its July 16, 17 and 18, 2019 meeting for costs incurred in the development of 218 Carlton prior to occupancy can be used for costs incurred by both the City and the approved Indigenous non-profit, at the discretion of the Executive Director, Housing Secretariat.

6. City Council request the Executive Director, Housing Secretariat to hold a public information session together with Native Men's Residence, or a related non-profit corporation, for the property at 218 Carlton Street with the local community and stakeholders as programming and other pertinent information related to the operation of the site becomes available.

This report seeks City Council authorization to accept an offer to lease and enter into a lease agreement with Native Men's Residence for the property at 218 Carlton Street (the "Property") for a period of 50 years for nominal consideration. Native Men's Residence ("Na-Me-Res") is an experienced non-profit Indigenous rental housing and support services provider, and is being recommended to operate the Property following a request for proposals issued in December 2020. The new affordable rental homes that will be created at 218 Carlton Street will help address the urgent need for good quality, permanent affordable housing for Indigenous men who are experiencing homelessness. The number of future permanent homes to be created at the Property is currently estimated to be ten, but will be determined through the architectural design and planning approvals process.

One of the key strategic actions of the City's HousingTO 2020-2030 Action Plan is to "Enhance Partnerships with Indigenous Community Partners". The new affordable housing at 218 Carlton Street is an example of the City working with the Indigenous Community to co-develop Indigenous-led solutions to the unique and growing housing challenges faced by Indigenous persons in the city, especially those that are experiencing homelessness.

The City will become the owner of 218 Carlton Street as a result of a Section 37 Agreement related to the development of 55 - 61 Charles Street East. One of the community benefits the developer MOD Developments Inc. (MOD) will provide is to transfer 218 Carlton Street to the City, fully renovated for use as affordable rental housing. MOD will begin the renovation of the Property, which it now owns, once the Indigenous non-profit provider is approved, and expects the Property to be ready for occupancy by the end of 2023. MOD will transfer ownership of the Property, at nominal value, to the City when renovations are complete.   

City Council at its meeting July 16, 17 and 18, 2019 approved the City leasing the Property to a non-profit housing provider for 50 years and approved Open Door Program affordable housing incentives, including a property tax exemption for the length of the lease. Based on the recommendations in the report, immediately following the transfer of ownership, the City will commence a 50 year lease to Na-Me-Res.