Item - 2022.GL32.24

The General Government and Licensing Committee recommends that:

1. City Council increase the 2022-2031 Council Approved Capital Budget and Plan for Corporate Real Estate Management by $4,657,000 gross and $0 debt in 2022, funded from the Land Acquisition Reserve Fund (XR1012) and accelerate cash flow of the amount identified in the Confidential Attachment 1 to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, from 2023 to 2022 under account CCA226-10 – Parkdale Hub Acquisition to support the fee simple acquisition of 1337 Queen Street West for the purposes of new affordable housing and community program space as part of the Parkdale Hub project.

2. City Council authorize the City to enter into an agreement of purchase and sale for the fee simple acquisition of the property municipally known as 1337 Queen Street West, as listed in Appendix A to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, and shown on the maps attached as Appendix B to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, substantially on the terms and conditions set out in Appendix D to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, and Confidential Attachment 1 to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, and on such other terms and conditions that are acceptable to the Executive Director, Corporate Real Estate Management, and in a form satisfactory to the City Solicitor.

3. City Council authorize the public release of Confidential Attachment 1 to the report (June 17, 2022) from the Executive Director, Corporate Real Estate Management, following the closing of any purchase transaction.

The purpose of this report is to seek City Council authority for the City to acquire a fee simple interest in the property municipally known as 1337 Queen Street West (the "Property") for the purposes of new affordable housing and community program space as part of the strategic city-building initiative, Parkdale Hub project (the "Project").  This report also requests a portion of the acquisition costs be funded through the Land Acquisition Reserve Fund.

In December 2021, City Council authorized the advancement of the Project to Phase Three and provided staff the authority to initiate expropriation proceedings to acquire the Property. Since then, staff have negotiated major terms and conditions with the Property's owner to acquire the Property and have identified additional funding requirements. Staff are proposing the additional funding required to acquire the Property be funded from the City's Land Acquisition Reserve Fund as the acquisition aligns with the Council-adopted Strategic Acquisition Policy under the City-Wide Real Estate model. The details of the major terms and conditions and financial implications can be found in Appendix D and Confidential Attachment 1 to this report.