TABLE OF CONTENTS
REPORTS OF THE STANDING COMMITTEES
AND OTHER COMMITTEES
As Considered by
The Council of the City of Toronto
on October 28, November 25, 26 and 27, 1998
CORPORATE SERVICES COMMITTEE
REPORT No. 16
1John Street Roundhouse - Request for Expressions of Interest (Ward 24 - Downtown)
2Toronto City Hall - Accommodation of Press Gallery(Ward 24 - Downtown)
3Financial Incentive for Tenants to Vacate Surplus Houses in the Scarborough Transportation
Corridor (Ward 13 - Scarborough Bluffs, Ward 14 - Scarborough Highland Creek and Ward 26 - East
Toronto)
4Pay Equity for Women in the Federal Public Service
5Other Items Considered by the Committee
City of Toronto
REPORT No. 16
OF THE CORPORATE SERVICES COMMITTEE
(from its meeting on October 9, 1998,
submitted by Councillor Dick O'Brien, Chair)
As Considered by
The Council of the City of Toronto
on November 25, 26 and 27, 1998
1
John Street Roundhouse - Request for
Expressions of Interest (Ward 24 - Downtown)
(City Council on November 25, 26 and 27, 1998, amended this Clause by adding thereto the following:
"It is further recommended that the Chair of Heritage Toronto be requested to submit a report to the Corporate Services
Committee, prior to the Spring of 1999, on any provisions necessary in the negotiation process with TrizecHahn in order
to ensure the protection of heritage features and other structural elements of the John Street Roundhouse.")
(City Council on October 28, 29 and 30, 1998, deferred consideration of this Clause to the next regular meeting of City
Council to be held on November 25, 1998.)
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(Clause No. 1 of Report No. 15 of The Corporate Services Committee)
The Corporate Services Committee recommends the adoption of Recommendations Nos. (1) to (3) embodied in the
report (May 11, 1998) from the Commissioner of Corporate Services contained in the communication (June 9, 1998)
from the City Clerk; and the adoption of the report (September 11, 1998) from the Commissioner of Corporate
Services, viz:
"It is recommended that:
(1)the Commissioner of Corporate Services, in consultation with Heritage Toronto, be authorized to enter into
negotiations with TrizecHahn in order to arrive at a comprehensive proposal for the rehabilitation and reuse of the
John Street Roundhouse Complex;
(2)in formalizing their proposal, TrizecHahn investigate the possibility of incorporating the Canadian Air Land
Sea Museum and/or the group known as Terminus, as tenants within the Roundhouse;
(3)the Review Committee, convened to assess the submissions received in response to this Request for Expressions
of Interest, be continued for the purpose of providing consultative support in the above-noted negotiations; and
(4)the Commissioner of Corporate Services report back to the Corporate Services Committee by the spring of
1999 with details of the negotiations with TrizecHahn Corporation and recommendations on appropriate next
steps."
The Corporate Services Committee submits the following communication (June 9, 1998) from the City Clerk:
City Council, at its meeting held on June 3, 4 and 5, 1998, had before it Clause No. 1 of Report No.7 of The Corporate
Services Committee, headed "John Street Roundhouse - Request for Expressions of Interest (Ward 24 - Downtown)".
Council directed that the aforementioned Clause be struck out and referred back to the Corporate Services Committee for
further consideration; and the Commissioner of Corporate Services be requested to continue negotiations with the two
leading proponents in order to obtain additional information and submit a further report to Council for its meeting to be
held on October 1, 1998, through the Corporate Services Committee, once more substantive information is available.
(Clause No. 1 embodied in Report No. 7 of the Corporate Services
Committee, entitled John Street Roundhouse - Request for
Expressions of Interest (Ward 24 - Downtown.)
(City Council on June 3, 4 and 5, 1998, struck out and referred this Clause back to the Corporate Services Committee for
further consideration; and the Commissioner of Corporate Services was requested to continue negotiations with the two
leading proponents in order to obtain additional information and submit a further report to Council for its meeting to be
held on October 1, 1998, through the Corporate Services Committee, once more substantive information is available.)
The Corporate Services Committee recommends the adoption of the following report (May11, 1998) from the
Commissioner of Corporate Services; and, further, that the position of City Council be communicated to TrizecHahn that
any proposal must include an operating railway museum:
Purpose:
To obtain authority to enter into negotiations with TrizecHahn in order to provide The Corporate Services Committee with
a firm proposal and clear recommendations that may be presented to City Council, relative to the rehabilitation and reuse of
the John Street Roundhouse.
Financial Implications:
The financial implications will be addressed in a further report on the outcome of negotiations with TrizecHahn, to The
Corporate Services Committee on September 14, 1998.
Recommendations:
It is recommended that:
(1)the Commissioner of Corporate Services, in consultation with Heritage Toronto, be authorized to enter into
negotiations with TrizecHahn in order to arrive at a comprehensive proposal for the rehabilitation and reuse of the John
Street Roundhouse Complex;
(2)in formalizing their proposal, TrizecHahn investigate the possibility of incorporating the Canadian Air Land Sea
Museum and/or the group known as Terminus, as tenants within the Roundhouse;
(3)the Review Committee, convened to assess the submissions received in response to this Request for Expressions of
Interest, be continued for the purpose of providing consultative support in the above-noted negotiations; and
(4)the Commissioner of Corporate Services report back to the Corporate Services Committee, at its meeting to be held on
September 14, 1998, with details of the negotiations and recommendations on appropriate next steps.
Background:
The Canadian Pacific John Street Roundhouse Complex, known municipally as 222 Bremner Boulevard, is a complex of
historical significance located within Roundhouse Park, a new major urban park. The Roundhouse Complex consists of a
number of structures which have been designated as being of historical significance at the national and municipal levels.
At its meeting held on March 28, 1994, the Council of the previous City of Toronto adopted a report from the
Commissioner of Planning and Development, dated March 14, 1994, granting approval for the expansion of the Metro
Toronto Convention Centre (MTCC). The MTCC expansion is a major subsurface development located below a portion of
the Roundhouse Park and below a portion of the Roundhouse Complex.
As a component of the MTCC development, a portion of the Roundhouse, Bays 1 - 11 was dismantled and stored for future
reassembly. The reassembly work is currently being tendered and it is anticipated that the reconstruction will commence in
June 1998 and be complete by approximately September, 1998.
The City of Toronto assumed title to the Roundhouse Complex, Roundhouse Park and Bremner Boulevard, in the summer
of 1997, in accordance with agreement made between MTCC and other parties with interests in the Railway Lands East,
and has leased back the portion of the property occupied by MTCC for a term which expires in 2083.
The City's objectives for the site are to secure the rehabilitation and reuse of the John Street Roundhouse Complex as an
operating rail museum and other uses. To this end, a proposal call was issued in May of 1997. This process produced only
two responses, neither of which was acceptable to the Selection Committee. After examining the reasons for this poor
response, it was determined that issuing a Request for Expression of Interest would be appropriate.
At its meeting held on October 6 and 7, 1997, the Council of the previous City of Toronto, adopted, with amendments,
Clause No.9 of Executive Committee Report No. 23, thereby authorizing the Director, Property Services, in consultation
with Heritage Toronto and the City Solicitor, to issue a Request for Expressions of Interest (REI) for the Rehabilitation and
Reuse of the John Street Roundhouse Complex. In addition, the Selection Committee, previously established to serve in an
advisory capacity relative to a proposal call previously issued in connection with the John Street Roundhouse Complex,
was continued under the revised name of the Review Committee. The Review Committee consists of staff representatives
from City Legal, Property Services, Economic Development, Parks and Recreation, Finance, City Planning and Heritage
Toronto, as well as two representatives from the rail heritage community and one member of City Council.
The REI was advertised on December 19 and 29, 1997. A site meeting was held on January 6, 1998, and the REI closed on
January 28, 1998, at noon. A total of five submissions were received.
A copy of the REI is on file with the City Clerk.
Comments:
Submissions were received in response to the REI from Terminus, Axiis Architects, Invacon Development Group Inc., the
Canadian Air Land Sea Museum and TrizecHahn Corporation. The Review Committee has met with all five proponents.
Details of the five submissions received in response to the REI are set out on the attached Appendix I. A summary of these
submissions follows:
Terminus:
This group proposed a mixed use facility comprised of a rail museum (25,000 ft2) , meeting and special event space
(40,000 ft.2), a railway themed restaurant facility developed as distinct eating venues (15,000 ft.2) and a performing arts
facility (20,000 ft.2).
The project team consists of an Event Design, Planning and Management firm, hospitality/food and beverage firm,
developer and architect and the consultant team consists of a museum consultant, conservation architect, railroad
consultant and heritage preservation consultant team.
While the ability of this team to provide the proposed uses of event planning, hospitality/food service appears to be sound,
the Review Committee had reservations with respect to this team's capability to develop a project of this magnitude and to
provide a sustained operating rail museum. Although a number of creative ideas were presented relative to the rail
museum, park programming, etc., the role of this respondent would, more appropriately, be that of a tenant or end user of
space within the Roundhouse.
The Review Committee concluded that this respondent should not be considered further in terms of these deliberations but
could be considered as a possible tenant.
Axiis Architects:
The proposed project consists of the "Triennale" of Toronto/Exhibit Hall (60,000 ft.2), Canadian Museum of Railway
History and Toronto Visitor Centre (20,0000 ft.2), Ecology Centre and Interactive Exhibit for a Sustainable City (exterior
demonstration of active and passive solar energy harnessing) and commercial uses (20,000 ft.2). The commercial tenants
have reportedly already been secured (food service and event planning).
This project team consists of two members of the Design Exchange, two members from the Maison D'Etre Gallery and
two members from the Architectural Literacy Forum and the consultant team consists of a museum consultant, cultural
tourism consultant, conservation planner, conservation architect and railroad consultant.
It is the opinion of the Review Committee that in order to sustain the proposed uses, with the exception of the 20,000 ft.2 of
commercial space, it is likely that some form of financial subsidy will be required. The Review Committee is also of the
opinion that the proposed uses will not result in a dynamic use of the complex and will appeal to a limited audience. This
respondent should not be considered further.
Invacon Development Group Inc.:
The proposed project consists of an operating rail museum (50,000 ft.2 as per submission and first interview and 30,000 ft.2
of museum plus 20,000 ft2 of common area as per second interview), below ground IMAX theatre (40,000 - 50,000 ft.2)
and commercial uses including retail, dining and entertainment venues (50,000 ft.2).
The project team consists of Invacon Development Group Inc., and the consultant team consists of two architects, a fire
protection consulting engineering firm and a heritage consultant.
This group presented a dynamic reuse of the site that would attract a number of visitors throughout the day and evening and
at all times during the year. The museum concept was not well developed, however, the respondent indicated that a general
manager and museum curator would be hired immediately upon selection as the successful respondent. The respondent
also stated that funds in the amount of $65M (to include approximately $5 - $6M equity) were committed to proceed
immediately with construction. The Review Committee considered this submission to be worthy of serious consideration.
Accordingly, the Review Committee required that it be satisfied in terms of the respondents development experience and
ability to finance the project. This is a shell corporation, incorporated specifically for the purpose of responding to this REI
and, as such, evidence of financial ability and previous experience in development of the principle was requested.
Information was requested to support the representations made in terms of availability of financing and previous
experience of the principal in developments of this scale. Invacon Development Group Inc., did not provide sufficient
evidence that financing could be secured, and did not provide any evidence that equity funds existed or that the principle
had completed any development projects. In addition, as further interviews were held and investigations made, a number of
discrepancies in information came to light.
It is the opinion of the Review Committee that this respondent should not be given further consideration. Raymond
Kennedy, one of the members of the Review Committee representing the rail heritage community, dissents this opinion.
The Canadian Air Land Sea Museum:
This respondent proposes an operating rail museum, the Canadian Air Land Sea Museum, International Vintage Aircraft
exhibition and a ground school.
The project team includes the Canadian Air Land Sea Museum Inc., and the consultant team consists of a curator, rail
consultant, marine consultant, restoration consultant and architect.
The three users, the Canadian Air Land Sea Museum, the International Vintage Aircraft exhibition, and the ground school
are all established enterprises that are seeking a new location. This respondent has not undertaken any major rehabilitation
projects and should not be considered further in the context of rehabilitation and reuse of the John Street Roundhouse
Complex. However, the Review Committee is of the opinion that this respondent could be an end user. Substantial
experience, enthusiasm and creativity in terms of museum/exhibit uses would be brought to any project which included this
respondent. Further, there are obvious ties between the rail industry and other modes of transportation. Inclusion of
programming which is dedicated to these other modes of transportation within the rail museum, or, an independent
museum operating in conjunction with the rail museum, will appeal to a much wider audience and may result in a more
intensive use of the site.
The Review Committee agreed that this respondent should not be considered in the role as developer, but their
involvement on a user level could be encouraged.
TrizecHahn Corporation:
The project team consists of TrizecHahn Corporation. The consultant team consists of a museum consultant, railroad
consultant, conservation architect, executive architect and a project management firm. In addition, the City may have direct
representation in the project team, if it so desires. Although no formal arrangement exists, TrizecHahn advises that they
have the support, and possibly the assistance, of Skydome Corporation.
The Review Committee expressed some reservation about certain members of the consultant team and was assured by
TrizecHahn that they are willing to consider changes to their consultant team.
This respondent assumed that the REI process would be followed by a formal proposal call process (which is the case in
most instances). This assumption is evident in the lack of detail within this groups submission. During the interview held
with this group, the Review Committee clarified that it was not necessarily the intent of the City to follow the REI process
with a proposal call. This respondent has asserted that any program of rehabilitation and reuse must be based on the
principle of "preservation with a purpose" and a certain degree of market analysis and consultation is necessary prior to
finalizing any development plans. This group has advised that, if entering into negotiations with the City, a firm proposal
could be formulated in approximately six weeks.
The project may be comprised of an operating rail museum, the Toronto Museum School (alternative preparatory school
with a focus on urban studies), a community centre, Cirque de Soleil, retail and event space and railway themed parkland.
TrizecHahn is undertaking a redevelopment project at the base of the CN Tower. This development will consist of an
entertainment complex with a maximum of approximately 385,000ft2. If selected, it is the intention of TrizecHahn to
redevelop the John Street Roundhouse concurrently with the development at the base of the CN Tower. The development
of these major projects, in such close proximity and by the same developer, will provide cross marketing opportunities and
will lend this emerging neighbourhood a degree of cohesiveness.
Although TrizecHahn did not present a well defined submission for the rehabilitation and reuse of the John Street
Roundhouse, this respondent is considered to be the only respondent with the experience and financial capability to
undertake a project of this magnitude. The manner in which the John Street Roundhouse is redeveloped and reused, could
have a substantial impact on the success of the respondent's real estate holdings due to their close proximity. It is
anticipated that this vested interest in the rehabilitation and reuse of the John Street Roundhouse Complex, of this
particular respondent, will translate into a project which reflects the City's objectives for the site in a sustained manner.
It is the opinion of the Review Committee that TrizecHahn should be considered to be the preferred respondent and that the
Commissioner of Corporate Services, in consultation with members of the Review Committee and Heritage Toronto,
should enter into negotiations in order to arrive at a firm proposal, including a long term museum strategy, which will be
suitable for presentation to The Corporate Services Committee and City Council and from which a master agreement and
lease agreement can be formulated. Raymond Kennedy, one of the members of the Review Committee representing the rail
heritage community, dissents this opinion.
It is also recommended by the Review Committee that, in formalizing their proposal, TrizecHahn contact the Canadian Air
Land Sea Museum and the group known as Terminus to discuss any interest these groups may have in being tenants within
the rehabilitated Roundhouse.
Conclusion:
Of the five submissions received, only one respondent is considered to have the development expertise and financial
backing to undertake a project of the scale envisioned. Although a number of creative and dynamic ideas were put forward
by other respondents, the sustainability of a project, particularly a museum, is as important as the components of the project
itself. It is the opinion of the Review Committee that entering into negotiations with TrizecHahn for the rehabilitation and
reuse of the John Street Roundhouse, will result in a final product which has been built upon sound business practices and
backed by extensive experience in the development industry.
I concur with the opinions of the Review Committee.
Contact Name:
Bonnie G. Duncan, Telephone No. 392-1861, Fax No. 392-1880, bduncan@city.toronto.on.ca, Report No. cs98071.wpd
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The Corporate Services Committee reports, for the information of Council, having also had before it the following
communications from concerned individuals respecting the recommendations contained in the report (May 11, 1998) from
the Commissioner of Corporate Services:
(i)(May 24, 1998) from Ms. Peggy Kurtin, President, Cabbagetown Preservation Association;
(ii)(May 23, 1998) from Mr. Bob Trueman;
(iii)(May 24, 1998) from Mr. John L. Males; and
(iv)(May 23, 1998) from Mr. Jack Bell, President, Canadian Railroad Historical Association, Toronto and York.
Mr. Doug Stewart, Interim Lead, Facilities and Real Estate, gave a presentation to the Corporate Services Committee in
connection with the foregoing matter, and filed a copy of his briefing notes in regard thereto.
The following persons appeared before the Corporate Services Committee in connection with the foregoing matter:
-Mr. Doug Lister, on behalf of Mr. Don Lister, and filed a submission in regard thereto;
-Mr. Don Lister, and filed a written submission in regard thereto;
-Mr. Phillip Garforth, Invacon 98', and filed a written submission in regard thereto;
-Ms. Jane Beecroft, CHP Heritage Centre, and filed a written submission in regard thereto;
-Mr. Raymond Kennedy;
-Mr. Melvin, on behalf of Mr. Jack, Bell, President, Canadian Railroad Historical Association, Toronto and York; and
-Mr. William Phillips.
(A copy of Appendix "A", detailing the five submissions received in response to the REI, referred to in the foregoing
report, was forwarded to all Members of Council with the May 25, 1998, agenda of the Corporate Services Committee, and
a copy thereof is also on file in the office of the City Clerk.)
(City Council on June 3, 4 and 5, 1998, had before it, during consideration of the foregoing Clause, the following report
(June 3, 1998) from the Commissioner of Corporate Services:
Purpose:
To respond to questions set out in a communication from Councillor Ila Bossons, dated May 25, 1998, addressed to the
Corporate Services Committee.
Financial Implications:
Not Applicable
Recommendation:
It is recommended that this report be received.
Background:
Councillor Ila Bossons has requested that certain information be provided as set out in Item 2(b) to be considered by City
Council, in conjunction with Clause No. 1 of Report No. 7 of The Corporate Services Committee. Councillor Bossons has
requested information regarding the possibility of obtaining direct rail access from the John Street Roundhouse Complex to
the main line tracks and has requested that a detailed financial analysis of all materials provided by the respondents to the
above-noted Request for Expressions of Interest be provided to members of Council.
Comments:
Direct Rail Access:
It is not possible to achieve direct rail access to the main rail line. The attached sketch has been provided by Carruthers and
Wallace, Structural Engineers. The portion of the site which has been reinforced to withstand loads from rolling stock is
limited to the area between the sand/coal loader and the turntable. Direct rail access to the main line would require a spur
line extending in a north-easterly fashion from the turntable, over Bremner Boulevard and arcing just south east of the CN
Tower to the main line. This spur line is no longer possible due to the fact that the redevelopment project located at the
base of the CN Tower will occupy lands that would be required to accommodate the spur line.
Financial Issues:
The Review Committee included within it's membership appropriate staff of the City Finance Department who analysed
financial information provided by the respondents. It was concluded by staff that the financial information available with
respect to Invacon was not sufficient to warrant further negotiations and that the financial information available with
respect to TrizecHahn Corporation was sufficient to warrant further negotiation and members of the Review Committee
were so advised.
Contact Name:
Bonnie G. Duncan, 392-1861; Fax: 392-1880; bduncan@city.toronto.on.ca, (cn98089.wpd).)
(A copy of the sketch, referred to in the foregoing report, is on file in the office of the City Clerk.)
(City Council also had before it, during consideration of the foregoing Clause, the following communication (May 25,
1998) from Councillor Ila Bossons, Midtown:
(1)Rail Access: Feasible or Not??
Subsequent to your May 25, 1998 meeting, I've been given to understand by members of the heritage community that
sufficient reinforcements do exist which would make it feasible to bring engines and cars by RAIL rather than by CRANE
to the Roundhouse site.
I would request that the necessary engineering reports be provided so that, once and for all, we can find out whether rail
access is feasible or not. Direct access would allow historical train excursions, which would have a major impact on the
feasibility of any site development proposal.
(2)Financial Information Provided by INVACON vs. Information Provided by Other Proponents.
I would request that Members of Council be provided with a detailed financial analysis of all materials provided. The
evaluation provided on May 25, 1998 is insufficient.)
(City Council also had before it, during consideration of the foregoing Clause, the following communications in opposition
to the recommendations of the Corporate Services Committee, and requesting that the matter be referred back to the
Corporate Services Committee for further consideration:
(i)(June 1, 1998) from Mr. John L. Males, Willowdale, Ontario;
(ii)(May 31, 1998) from Mr. Raymond L. Kennedy, Old Time Trains; and
(iii)(May 28, 1998) from the Chair, The Society of Heritage Associates.)
(Mayor Lastman, at the meeting of City Council on June 3, 4 and 5, 1998, declared his interest in the foregoing Clause, in
that the applicant's solicitor is a partner at the same law firm as his son.)
The Corporate Services Committee submits the following report (September 11, 1998) from the Commissioner of
Corporate Services:
Purpose:
To report on negotiations with Invacon 98' and TrizecHahn as directed by Council at its meeting of June 3, 4 and 5, 1998.
Financial Implications:
Not applicable at this time.
Recommendations:
It is recommended that Clause No. 1 of Report No. 7 of the Corporate Services Committee entitled, "John Street
Roundhouse - Request for Expressions of Interest (Ward 24 - Downtown)" be adopted with the exception that
Recommendation No. 4 be amended to read as follows:
"(4)the Commissioner of Corporate Services report back to the Corporate Services Committee by the spring of 1999 with
details of the negotiations with TrizecHahn Corporation and recommendations on appropriate next steps."
Background:
In May of 1997, a proposal call was issued for the rehabilitation and reuse of the John Street Roundhouse Complex. This
process produced only two responses, neither of which was acceptable. After examining the reasons for this poor response,
it was determined that issuing a Request for Expressions of Interest would be appropriate.
At its meeting held on October 6 and 7, 1997, the Council of the previous City of Toronto, adopted, with amendments,
Clause No. 9 of Executive Committee Report No. 23, thereby authorizing the Director, Property Services, in consultation
with Heritage Toronto and the City Solicitor, to issue a Request for Expressions of Interest (REI) for the Rehabilitation and
Reuse of the John Street Roundhouse Complex.
In addition, the Selection Committee, previously established to serve in an advisory capacity relative to the proposal call
was continued under the revised name of the Review Committee. The Review Committee consisted of staff representatives
from departments then previously known as City Legal, Property Services, Economic Development, Parks and Recreation,
Finance, City Planning and Heritage Toronto, as well as two representatives from the rail heritage community and one
member of City Council.
A total of five submissions were received upon the closing of the REI on January 28, 1998. The Review Committee met
with all five proponents and submitted a report to the Corporate Services Committee for its consideration.
Clause No. 1 of Report No. 7 of The Corporate Services Committee, titled, "John Street Roundhouse- Request for
Expressions of Interest (Ward 24 - Downtown)" was submitted to the Corporate Services Committee at its meeting of May
25, 1998, and considered by Council on June3, 1998. A copy of the report is attached as Appendix "A".
The report concluded that:
"it is the opinion of the Review Committee that entering into negotiations with TrizecHahn for the rehabilitation and reuse
of the John Street Roundhouse, will result in a final product which has been built upon sound business practices and
backed by extensive experience in the development industry."
The report recommended the following:
(1)the Commissioner of Corporate Services, in consultation with Heritage Toronto, be authorized to enter into
negotiations with TrizecHahn in order to arrive at a comprehensive proposal for the rehabilitation and reuse of the John
Street Roundhouse Complex;
(2)in formalizing their proposal, TrizecHahn investigate the possibility of incorporating the Canadian Air Land and Sea
Museum and/or the group known as Terminus, as tenants within the Roundhouse;
(3)the Review Committee, convened to assess the submissions received in response to this Request for Expressions of
Interest, be continued for the purpose of providing consultative support in the above-noted negotiations; and
(4)the Commissioner of Corporate Services report back to the Corporate Services Committee; at its meeting to be held
on September 14, 1998, with details of the negotiations and recommendations on appropriate next steps.
At its meeting of May 25, 1998, the Corporate Services Committee recommended the adoption of the report from the
Commissioner of Corporate Services with the amendment:
"...that the position of City Council be communicated to TrizecHahn that any proposal must include an operating railway
museum."
Council at its meeting of June 3, 4, and 5, 1998 further amended the report with the following:
"...that the Commissioner of Corporate Services be requested to continue negotiations with the two leading proponents in
order to obtain additional information and submit a further report to Council for its meeting to be held on October 1, 1998,
through the Corporate Services Committee, once more substantive information is available."
In view of the concerns raised by the rail heritage community, it was decided to add Councillor Michael Prue and Jon
Harstone (Heritage Toronto Board Member) to the Review Committee. On July 14, 1998, the Review Committee met and
agreed to send letters to the two leading proponents, Invacon 98' and TrizecHahn Corporation to obtain the additional
information necessary to report to Corporate Services Committee. The letters dated July 20, 1998 are attached as Appendix
"B" to this report.
On August 13, 1998, a response was received from Invacon 98' and on August 14, 1998 a response was received from
TrizecHahn Corporation. A further clarification was received from TrizecHahn on September 3, 1998 after staff at the
request of the Review Committee contacted TrizecHahn. These responses are attached as Appendix "C" to this report.
Comments:
REI Discussion:
On September 1, 1998, the Review Committee met and reviewed the letters received from Invacon98' and TrizecHahn
Corporation and determined the appropriate next steps.
Invacon 98'
The response dated August 13, 1998 received from Audrey Fennell of the Law Firm, Cassels Brock& Blackwell, on behalf
of Invacon 98' states, "...that all of this information has already been provided in our clients Proposal documents."
After reviewing the material in their original REI submission, Finance staff provided comments and verified that Invacon
98' did not demonstrate satisfactory financial ability to make a commitment to develop the John Street Roundhouse
Complex. Invacon 98' was given a further opportunity to supply new information to clarify their REI submission as
requested by Council at its meeting of June 3, 4 and 5, 1998. A letter was sent by the City dated July 20, 1998, which is
attached as Appendix "B". No new information was submitted as indicated in their response dated August 13, 1998. The
Review Committee discussed this matter and decided to recommend to the Commissioner of Corporate Services that
Invacon 98' be eliminated from this REI process.
TrizecHahn Corporation
The response dated August 13, 1998, received from Bud Purves, Senior Vice President, Development of TrizecHahn
Corporation states, "If the City is satisfied that there are others who have solved these issues, we suggest that they be
selected by the City to move forward."
The Review Committee discussed this matter and decided staff should contact TrizecHahn Corporation to get clarification
of their letter dated August 13, 1998.
Staff have contacted TrizecHahn Corporation and TrizecHahn has confirmed in a letter dated September 3, 1998, attached
as Appendix "C" that, should Council decide to approve Clause No.1 of Report No. 7, of The Corporate Services
Committee, titled, "John Street Roundhouse - Request for Expressions of Interest (Ward 24 - Downtown)" which was
initially considered at Council on June3, 4 and 5, 1998, then TrizecHahn is prepared to commence negotiations to arrive at
a comprehensive proposal for the Roundhouse Complex and to commence studies, at their cost, in consultation with the
City, to identify an appropriate solution for the future of the Roundhouse Complex.
The Review Committee discussed this matter on September 1, 1998, and decided to recommend to the Commissioner of
Corporate Services to request City Council to again consider the original report submitted to Corporate Services
Committee at its meeting of May 25, 1998. Raymond Kennedy, one of the members of the Review Committee representing
the rail heritage community, dissents this recommendation.
Status of Reconstruction of Bays 1 to 11
As a component of the Metro Toronto Convention Centre development, a portion of the Roundhouse, Bays 1 to 11 was
dismantled and stored for future assembly. The reassembly work of Bays 1 to 11 commenced in early August, 1998. The
reassembly work will take approximately 30weeks to complete as illustrated in the bar chart attached as Appendix "D".
However, due to the Bricklayers strike, the reconstruction may be delayed.
Conclusions:
The Review Committee having reviewed responses from Invacon 98' and TrizecHahn Corporation as directed by Council
at its meeting of June 3, 4 and 5, 1998 has recommended to eliminate Invacon98' from this REI process and that the
original Clause No. 1 of Report No. 7 of The Corporate Services Committee, titled, "John Street Roundhouse - Request for
Expressions of Interest (Ward 24 - Downtown)" be approved by City Council. I concur with the recommendations of the
Review Committee.
Contact Name:
Bonnie G. Duncan, Telephone No. 392-1861, Fax No. 392-1880, bduncan@city.toronto.on.ca
and Mike Saffran, Telephone No. 392-7205, Fax No. 392-1880, msaffran@city.toronto.on.ca,
Report No. cs98169.wpd.
________
The Corporate Services Committee reports, for the information of Council, having also had before it the following
communications:
(i)(September 13, 1998) from Mr. John Males, registering concern that the additional report from the Commissioner of
Corporate Services respecting the John Street Roundhouse was not made available to members of the public for comment
prior to the September 14, 1998, meeting of the Corporate Services Committee.
(ii)(September 11, 1998) from Miss Jane Beecroft, Chair, CHP Heritage Centre, forwarding comments respecting the
John Street Roundhouse; and advising that in the public interest, it is necessary to place sole control of the site in the hands
of Heritage Toronto and assign for this purpose the budgetary amount equal to what has been spent by other departments.
The following persons appeared before the Corporate Services Committee in connection with the foregoing matter:
-Mr. Doug Lister and submitted a brief in regard thereto on behalf of his brother Mr.DonLister;
-Mr. Phillip Garforth, President, Invacon;
-Mr. William Phillips, and submitted a brief in regard thereto; and
-Ms. Jane Beecroft, Chair, CHP Heritage Centre.
(A copy of Appendices "A", "B" "C" and "D" referred to in the foregoing report (September 11, 1998) from the
Commissioner of Corporate Services was forwarded to all Members of Council with the October 9, 1998, agenda of the
Corporate Services Committee and a copy thereof is also on file in the office of the City Clerk.)
(Mayor Lastman, at the meeting of City Council on October 28, 29 and 30, 1998, declared his interest in the foregoing
Clause, in that the applicant's solicitor is a partner at the same law firm as his older son, who is not a real estate lawyer and
does not personally act on this file.)
(Mayor Lastman, at the meeting of City Council on November 25, 26 and 27, 1998, declared his interest in the foregoing
Clause, in that the applicant's solicitor is a partner at the same law firm as his older son, who is not a real estate lawyer
and does not personally act on this file.)
2
Toronto City Hall - Accommodation of Press Gallery
(Ward 24 - Downtown)
(City Council on November 25, 26 and 27, 1998, amended this Clause by adding thereto the following:
"It is further recommended that the following recommendation of the Strategic Policies and Priorities Committee
embodied in the communication dated October 21, 1998, from the City Clerk, be adopted:
'The Strategic Policies and Priorities Committee recommends that Council approve the construction of the Press Gallery
with funding to be taken from the Transition Reserve Fund.' ")
(City Council on October 28, 29 and 30, 1998, deferred consideration of this Clause to the next regular meeting of City
Council to be held on November 25, 1998.)
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(Clause No. 2 of Report No. 15 of The Corporate Services Committee)
The Corporate Services Committee recommends that:
(1)the financial terms of the occupancy for office space at City Hall by Members of the Press be phased-in as
follows:
Year one:$10.00 per square foot;
Year two:$15.00 per square foot; and
thereafter 50 percent of the then current market rate; and
(2)the Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and/or such legal entities which may be
determined to be appropriate.
The Corporate Services Committee reports, for the information of Council, having directed that the funds required to cover
the cost of construction of the Press Gallery at City Hall not be taken from the Equity Account which was established to
create the new women's washrooms, specifically in Public Works Facilities in the former City of Toronto, but be found
elsewhere; and that the Budget Committee be advised accordingly, and requested to report thereon directly to Council for
its meeting scheduled to be held on October 28, 1998.
The Corporate Services Committee submits the following report (September 8, 1998) from the Commissioner of
Corporate Services:
Purpose:
To obtain a decision from City Council with respect to the financial terms of the occupancy of office space in City Hall by
members of the press.
Financial Implications:
The financial implications associated with the recommended option, being Option 2, is that the City will incur out of
pocket renovation costs of $285,000.00 and this amount, together with all ongoing operating costs, will be recovered from
the Toronto Municipal Press Gallery and The Globe and Mail over ten years. In addition, the City will forego net rent in the
amount of $48,500.00 per annum and provide parking free of charge.
Recommendation:
It is recommended that:
(1)City Council adopt Option 3 as set out in this report; and
(2)the Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and with the Globe and Mail on the basis of Option 3.
Background:
The proceedings of City Council and the various Committees are reported on by the press. In order to facilitate this
reporting, space which takes the form of either gallery or office space is provided to members of the press. The gallery
space is that which is located within the same room as the Council and/or Committees where the press gathers first hand
knowledge of proceedings, obtains quotations, film footage, audio clips etc. The office space is that which is actual
"working" space where information gathered is prepared and edited for news reporting. This is a location that houses staff,
telephones, fax machines and computers where the press can file their reports to their respective media outlets in privacy.
The purpose of this report is to discuss the provision of press office space.
On June 7, 1972, the former Toronto City Council endorsed the following resolution contained in Clause No. 33 of the
City of Toronto Executive Committee Report No. 25:
"That the Corporation of the City of Toronto, recognizing the right of the press to examine and report on the political and
governmental process, and the obligation of the government in a free society to encourage the dissemination of information
about its activities, hereby recognizes "The Toronto Municipal Press Gallery" as representing the Press and directs that the
working space currently used by the Press in the New City Hall be under the jurisdiction of the Toronto Municipal Press
Gallery with respect to the allocation of space, subject to the concurrence of the Metropolitan Corporation in the same
arrangements."
The provision of space within the former Toronto City Hall has been provided to members of the Toronto press, including
local newspapers and radio stations, through the Toronto Municipal Press Gallery (the "Press Gallery") as set out in the
above resolution. This space has been provided free of charge. The exception is that the Toronto Globe and Mail
Newspaper and the Toronto Star Newspaper, have been making financial contributions through donations to the City. The
amount donated by the Globe and Mail is $1,787.52 per annum and the amount donated by the Toronto Star is $3,727.68
per annum.
Historically, records also indicate the press paid for minor renovations to their own private office space.
Space has also been provided free of charge to the press at Metro Hall.
The space which was occupied in the former Toronto City Hall by the press, is located on the main and second floors of
City Hall. The use of City Hall space by the press has been disrupted due to the renovation work taking place on the second
floor of City Hall and members of the press now use only their space in Metro Hall.
The second floor renovations are underway in order to accommodate the relocation of all City Councillors to City Hall.
These renovations will be complete in December of 1998 in order that all Councillors may be relocated to their permanent
offices prior to the first meeting of City Council in 1999. In order to facilitate the provision of the public service which the
press provides, it is prudent to coordinate this relocation plan for the press with the Council move. A number of
accommodation scenarios have been explored by staff and the press and a plan satisfactory to the press, has now been
developed.
Capital costs will be incurred by the City in carrying out the renovations necessary in order to accommodate the press in a
permanent location and the manner of dealing with these costs must be addressed. Further, given that this is a new Council
of a new City, the manner of dealing with other costs, including ongoing operating costs, realty taxes (if applicable) and a
market rental rate must also be addressed. Accordingly, the purpose of this report is to present available options and secure
Council approval of the financial terms of occupancy by the press, in consideration of all of the stated costs.
Comments:
A number of meetings have been held with the press and various options explored. The preferred, space to be allocated is
set out on Attachment 1. This option allows for the occupation of 4,850contiguous square feet. All, but a portion of this
area can be made available at the present time. The portion of the space, shown cross hatched, is currently occupied by the
City of Toronto main frame fire suppression system. It is anticipated that this system can be relocated in approximately one
to two years.
An interim solution has been developed as set out on Attachment 2, which allows for 3,363 square feet of contiguous
square feet in the permanent location and 1,147 total square feet in temporary locations. Once the main frame fire
suppression system has been relocated, the press can amalgamate into their permanent location as shown on Attachment 1.
The estimated renovation costs associated with providing this space includes a renovation cost for the permanent space of
$285,000.00 and a cost for the temporary space of $34,000.00. This equates to a cost of approximately $5.45 per square
foot per annum to recover these costs over a ten year period. The total, approximate costs per square foot which could
apply to this space are summarized as follows:
Recovery of construction costs$ 5.45
Operating Costs 17.00
Taxes (if applicable) 7.00
Net Rent 10.00
Total$39.45 per square foot
Based on a 4,850 square foot area, this equates to an annual cost of approximately $191,332.50. In addition, the press has
requested 15 parking spaces in the underground parking garage and based on the Parking Authority's monthly rate, this
cost would total $32,130.00 per annum for a grand total of $223,462.50.
A decision by Council is required respecting the amount to charge the press for the occupancy of the space and parking.
Three options are set out below:
Option 1 - Provide the space to the press and charge all costs as detailed above.
While this option relieves the City of all financial liability associated with accommodating the press in City Hall, the
inclusion of a rental rate does not reflect the historical relationship between the City and the press or provide recognition of
the importance of the public service which the press provides.
Option 2 -Provide the space to the press gallery free of all charges.
This option would result in the City being out of pocket approximately $285,000.00 for the renovation cost, the yearly
ongoing operating costs and realty taxes (if applicable).
Option 3 -Provide the space to the press free of net rent and parking charges, but at a rate which will recapture the City's
actual expenses including the costs of renovation, ongoing operating costs and realty taxes (if applicable) as follows:
Recovery of construction costs$ 5.45
Operating Costs 17.00
Taxes (if applicable) 7.00
Total$29.45 per square foot
This rate per square foot applied to the total permanent area equates to $142,832.50 per annum. It is noted that after ten
years, renovation costs will have been fully recovered. At that time, it is recommended that only current operating costs and
taxes, if applicable, be passed on to the Press Gallery.
Conclusion:
Given the historical relationship between the City and the press, and recognizing the right of the press to examine and
report on the political and governmental process, and the obligation of the government in a free society to encourage the
dissemination of information about its activities, as set out in the above quoted resolution while ensuring that the City is
not out of pocket in providing this space, it is recommended that Option 3 be selected by Council.
Contact Name:
Lawrence Quinn, 392-0486, Fax No. 392-0029, lquinn@city.toronto.on.ca,
Greg Wallans, 392-7135, Fax No. 392-1880, gwallans@city.toronto.on.ca.
Attachment 1
Attachment 2
The Corporate Services Committee submits the following report (September28, 1998) from the Commissioner of
Corporate Services:
Purpose:
To provide the Corporate Services Committee with further information with respect to present and best practices of other
municipalities and other levels of government to aid in determining the appropriate financial terms for occupancy of office
space in City Hall by members of the press.
Financial Implications:
The costs associated with providing Media space have been detailed in the report dated September8, 1998 and this report
advises that funds can be utilized from Capital Account 216965 (see Funds section).
Recommendation:
It is recommended that this report be received for information purposes.
Background:
The Corporate Services Committee on September 14, 1998, had before it a report (September 8, 1998) from the
Commissioner of Corporate Services, respecting the financial terms of the occupancy of office space in City Hall by
members of the press which recommended that:
(1)City Council adopt Option 3 as set out in that report; and
(2)The Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and with the Globe and Mail on the basis of Option 3.
The Corporate Services Committee deferred consideration of the aforementioned report, pending the hearing of
deputations; and requested a further report be submitted that detailed present practices and best practices.
Comments:
As indicated in my September 8, 1998 report, the former City of Toronto and Metro Toronto provided office space and a
press viewing area to the Media. With the exception of the City of North York, all of the other five former municipalities
provided only a press viewing area to report on Council proceedings. North York had previously rented one small office to
a daily newspaper. For ease of reference this information has been compiled in a table as set out in Appendix 1.
Further research has been conducted with other municipalities, as well as the Provincial and Federal legislatures, to
determine present practices and best practices in the provision of space to the Media. This research has been compiled as
set out in Appendix 2, and is summarized below.
Best Practices
Most cities and other levels of government provide Media access to government proceedings by allowing the Media
general access or some other form of assigned seating arrangements from which they may view and report on the
legislative process. Many of the larger government entities have some form of Media Centre Space for general shared use
by members of the press from which they may file their reports. In many instances, private offices for Media outlets are not
generally available. In circumstances where the space needs of a particular Media outlet exceeds what is provided by way
of a general use Media Centre Space, then independent office space may be obtained off site, on a commercial basis. Media
space, provided in this format is in use by the press at the Federal level, as well as in other Canadian cities. Provincially,
Media space is administered through a Press Gallery which has a common electronic distribution centre, a press lounge
area and private offices for the Media which are all provided free of charge by the Government of Ontario.
A further meeting between members of the Press Gallery and City Staff was held on September 22, 1998, to discuss the
various financial options as set out in the September 8, 1998 report, and to determine if the Press Gallery had formulated a
preferred response to the alternatives presented in the aforementioned report. A memo dated September 25, 1998 has been
received from John Spears representing the Press Gallery and expressing their concerns and is attached as Appendix 3 to
this report.
Space requirements for the proposed new Media Centre Space were developed through consultation with the Press Gallery.
Formerly, Media space within City Hall was approximately 3,558 sq. ft., and as outlined in the aforementioned report of
September 8, 1998 , it has now been determined that an increase to 4,850 sq. ft. is preferred by the Media to accommodate
their office requirements.
Funds
Should Council adopt the recommendations contained in this report regarding construction of the Media Centre Space a
construction budget of $285,000.00 is required. Funding for this project is presently available in the Equity Account
(Capital Account 216965). This account was established to create new women's washrooms specifically in Public Works
facilities in the former City of Toronto, which were historically populated predominantly by males. The yards
rationalization process is underway. It is likely the need for these funds will be reduced as a result of the rationalization
and, in any case, the funds will not be required for a significant period of time.
In the event Council adopts either of Options 1 or 3 contained in this report, the capital amount of $285,000.00 required for
construction could be reimbursed to the Capital Account over the ten year cost recovery period. If Council adopts Option 2
then the reimbursement of this Capital Account needs to be addressed.
Conclusion:
It is generally concluded that in most instances the Media Centre Space provided at other locations is more modest than
that being proposed for Toronto City Hall and the Media Centre Space is provided free of charge.
Contact Name:
Greg Wallans, telephone 392-7135, fax 392-1880, gwallans@city.toronto.on.ca (cs98189.wpd)
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Appendix 1
Provision of Space to the Press - Practices of Former Cities
|
Press Viewing Area |
Press Offices |
Fee Structure |
City of Toronto |
Yes - No charge. |
Yes. 3558 sq ft on
main flr & 2nd flr. |
Some financial donations by Media, other
space provided free. |
Metro Toronto |
Yes - No charge. |
Yes. |
Provided free of charge. |
City of East York |
Yes - No charge. |
No |
N/A |
City of York |
Yes - No charge. |
No |
N/A |
City of Scarborough |
Yes - No charge. |
No |
N/A |
City of Etobicoke |
Yes - No charge. |
No |
N/A |
City of North York |
Yes - No charge. |
Yes |
One small office rented to daily
newspaper at market rent. |
Appendix 2
Provision of Space to the Press - Practices of Other Cities and other Levels of Government
|
Press Viewing Area |
Press Offices |
Present Practice |
Federal
Government |
Yes-90 reserved
seats.
No charge. |
Media Centre Space of 2500 sq
ft provided on site consisting
of 40 desks in 1 large room. |
Media Centre Space provided rent free in
parliament building, desk space only, fax,
telephones, copier-administered by Canadian
Parliamentary Press Gallery, a non-profit
corporation consisting of 650 members. Private
offices rented by press off site in nearby buildings
independently at market rents by Media outlets. |
Provincial
Government
|
Yes-2 reserved
areas.
No charge.
|
Media Centre Space on site
containing wire service,
computer, copier, and private
offices assigned to Media on
site. |
Press Gallery consists of approximately 45 full
time members and 30 part time members. Office
space assigned by Press Gallery, and provided
free of charge. |
City of Calgary |
Yes.
No charge. |
Media Centre Space consists
of 8 tiny offices. |
Media Centre Space provided free of charge.
Extra office space provided on annual lease
charged at $12.00/sq.ft. Rent plus a portion of
annual operating costs. |
City of Edmonton |
Yes.
No charge. |
not verifiable |
N/A |
City of Montreal |
Yes-4 rows of
benches.
No charge. |
1 large office split into 12
cubicles with partitions-
phones provided by city. |
Provided free of charge to Media. |
City of Ottawa |
Yes.
No charge. |
2000 sq ft Media room. |
Provided free at this time, but new Council
authority to charge rent. |
City of Winnipeg |
Yes-assigned
seating.
No charge. |
Small Media Centre Space, 8
small offices, 1 larger
independent office for
newspaper outlet. |
Provided free of charge, except for fax telephone
and parking which Media pays for. |
Appendix 3
(Communication dated September 25, 1998, addressed to
Councillor Ron Moeser, from Mr. John Spears, Toronto City Hall Press Gallery)
Thank you for meeting the executive of the City Hall Press Gallery on September 23, 1998. Your staff requested that we
summarize our position in writing.
Members of the gallery appreciate the work that is proceeding in City Hall. Most of the gallery members have reviewed the
September 8, 1998, report to the Corporate Services Committee; some members have had preliminary responses from their
head offices on the options outlined in the report.
Gallery members would prefer that the current terms on which they occupy space be maintained. The changes in
accommodation have come at the initiative of the City, not the gallery. Since most gallery members are getting less total
space in the new gallery than they formerly occupied at City and Metro Halls, it seems unrealistic of the City to impose
more onerous terms.
Substantial rents may discourage some current gallery members from taking space in the new press gallery. High rents may
also effectively bar small, non-commercial print and broadcast outlets from access to the gallery.
We have noted that the Corporate Services Committee will hear deputations on October 9, 1998. Managers of some gallery
members may want to appear before the Committee.
We have also noted your suggestion that gallery members might pay the renovation costs outlined in the September 8,
1998, report, or a portion of the renovation costs, amortized over a period of up to 20 years.
Thank you for your attention.
_______
Mr. Fred Kuntz, Deputy Managing Editor, Toronto Star, appeared before the Corporate Services Committee in connection
with the foregoing matter.
(City Council on October 28, 29 and 30, 1998, had before it, during consideration of the foregoing Clause, the following
transmittal letter (October 21, 1998) from the City Clerk:
Recommendation:
The Strategic Policies and Priorities Committee recommends that Council approve the construction of the Press Gallery
with funding to be taken from the Transition Reserve Fund.
Background:
At its meeting on October 20, 1998, the Strategic Policies and Priorities Committee gave consideration to
recommendations of the Budget Committee from its meeting on October 13, 1998 contained in the communication
(October 13, 1998) from the City Clerk, recommending to the Strategic Policies and Priorities Committee and Council,
that:
(1)the construction of the Press Gallery be approved with funding to be taken from the Transition Reserve Fund; and
(b)usage of the Press Gallery be provided free of charge to members of the press and media.
This report relates to Clause No. 2 of Report No. 15 of The Corporate Services Committee which is being considered by
Council on October 28, 1998.
(Transmittal letter dated October 13, 1998 addressed
to the Strategic Policies and Priorities Committee
from the City Clerk)
Recommendation:
The Budget Committee on October 13, 1998 recommended to the Strategic Policies and Priorities Committee, and Council
that:
(1)the construction of the Press Gallery be approved with funding to be taken from the Transition Reserve Fund; and
(b)usage of the Press Gallery be provided free of charge to members of the press and media.
The Budget Committee also advises Council that it will not be budgeting for any rent to be collected from the Press
Gallery.
Background:
The Budget Committee on October 13, 1998, had before it, a transmittal letter (October 9, 1998) from the City Clerk
forwarding the report (September 28, 1998) from the Commissioner of Corporate Services regarding Toronto City Hall -
Accommodation of Press Gallery (Ward 24-Downtown).
(Transmittal letter dated October 9, 1998
addressed to the Budget Committee
from the City Clerk)
Recommendation:
The Corporate Services Committee on October 9, 1998, directed that the funds required to cover the cost of construction of
the Press Gallery at City Hall not be taken from the Equity Account which was established to create the new women's
washrooms, specifically in Public Works Facilities in the former City of Toronto, but be found elsewhere; and that the
Budget Committee be advised accordingly, and requested to report thereon directly to Council for its meeting scheduled to
be held on October 28, 1998.
The Corporate Services Committee reports, for the information of the Budget Committee, having recommended to Council
that:
(1)the financial terms of the occupancy for office space at City Hall by Members of the Press be phased-in as follows:
Year one:$10.00 per square foot
Year two:$15.00 per square foot; and
thereafter 50 percent of the then current market rate; and
(2)the Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and/or such legal entities which may be determined to be
appropriate.
Background:
The Corporate Services Committee on October 9, 1998, had before it the following reports:
(a)(September8, 1998) from the Commissioner of Corporate Services recommending that:
(1)City Council adopt Option 3 as set out in this report; and
(2)the Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and with the Globe and Mail on the basis of Option 3; and
(b)(September 28, 1998) from the Commissioner of Corporate Services providing the Corporate Services Committee
with further information with respect to present and best practices of other municipalities and other levels of government to
aid in determining the appropriate financial terms for occupancy of office space in City Hall by Members of the press; and
recommending that this report be received for information purposes.
Mr. Fred Kuntz, Deputy Managing Editor, Toronto Star, appeared before the Corporate Services Committee in connection
with the foregoing matter.)
3
Financial Incentive for Tenants to Vacate
Surplus Houses in the Scarborough Transportation
Corridor (Ward 13 - Scarborough Bluffs,
Ward 14 - Scarborough Highland Creek
and Ward 26 - East Toronto)
(City Council on November 25, 26 and 27, 1998, adopted this Clause, without amendment.)
(City Council on October 28, 29 and 30, 1998, deferred consideration of this Clause to the next regular meeting of City
Council to be held on November 25, 1998.)
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(Clause No. 5 of Report No. 15 of The Corporate Services Committee)
The Corporate Services Committee recommends the adoption of the following report (September 23, 1998) from the
Commissioner of Corporate Services:
Purpose:
This report recommends that the City extend the same financial incentives to tenants of houses in the Scarborough
Transportation Corridor as have been approved for tenants within the Spadina Corridor.
Funding Sources, Financial Implications and Impact Statement:
The cost of the financial incentives recommended in this report are to be deducted from the revenue of the sale of the
properties.
Recommendations:
It is recommended that:
(1)City Council affirm the former Metro Council's position that tenants within the Scarborough Transportation Corridor
be given the first opportunity to purchase the City-owned houses they rent at current market value;
(2)the tenants who do not wish to purchase the property be offered a financial incentive to provide vacant possession of
the property, as follows:
(i)two months rent for tenants with less than three years occupancy; and
(ii)three months rent for tenants with three or more years occupancy; and
(3)the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
The former Metropolitan Toronto Council directed that surplus residential properties within both the Scarborough
Transportation Corridor and Spadina Expressway Corridor be offered for sale first to the existing tenants, and then on the
open market.
A staff report dated May 13, 1998, and considered by Council on July 8, 9, and 10, outlined a process for disposing of the
surplus residential properties within these two projects. Included as part of the staff recommendations was a proposal to
offer tenants who did not wish to purchase their leased property, a financial incentive equivalent to either one or two
months rent, depending upon length of tenure, in order to obtain vacant possession.
Corporate Services Committee amended the staff recommendation vis a vis the financial incentive by recommending to
Council that tenants in the Spadina Corridor be offered the equivalent of two months rent for those with less than three
years tenure, and three months for longer occupancy. Council's adoption of the Committee recommendations had the effect
of providing different financial incentives to tenants in the two transportation projects.
Comments and/or Discussion and/or Justification:
Experience has shown that most purchasers of residential property want to occupy the property themselves, and therefore
properties to be sold which are subject to an existing tenancy generally sell for a lower price and take longer to sell.
The Spadina and Scarborough corridors contain a majority of the surplus residential properties the City owns. Marketing
efforts in these two projects, where the direction has been to first offer the property to the tenant, should include similar
financial incentives to obtain vacant possession.
Conclusion:
Providing a financial incentive to the City's tenants in the Scarborough Transportation Corridor to vacate the properties
will make the City's properties more attractive to prospective purchasers, and will result in a higher net return than selling
the properties subject to the existing tenancies.
Contact Name:
R. Mayr, AACI, Director of Real Estate, Telephone (416) 396-4930,
Fax (416) 396-4241, mayr@city.scarborough.on.ca.
4
Pay Equity for Women in
the Federal Public Service
(City Council on November 25, 26 and 27, 1998, adopted this Clause, without amendment.)
(City Council on October 28, 29 and 30, 1998, deferred consideration of this Clause to the next regular meeting of City
Council to be held on November 25, 1998.)
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(Clause No. 15 of Report No. 15 of The Corporate Services Committee)
The Corporate Services Committee recommends the adoption of the Recommendation of the Committee on the
Status of Women, embodied in the following communication (September25, 1998) from the Committee
Administrator, Committee on the Status of Women:
Recommendation:
It is recommended that City Council endorse the position of the Committee on the Status of Women as outlined in the
attached communication to the Prime Minister of Canada.
Comments:
At its meeting on September 17, 1998, the Committee on the Status of Women reaffirmed its decision to write to the Prime
Minister of Canada urging that the government not appeal the decision of the human rights tribunal regarding pay equity
for women in the federal public service. A copy of the letter to the Prime Minister of Canada is attached.
The Committee also decided to ask City Council to endorse its action.
(Communication dated August 27, 1998 addressed to The
Right Honourable Jean Chretien, Prime Minister of Canada
from the Chair, Committee on the Status of Women.)
I am writing on behalf of the members of the Committee on the Status of Women for the City of Toronto to urge that you
do not appeal the decision of the human rights tribunal regarding pay equity for women in the federal public service.
The City's Committee on the Status of Women originated from the recommendation of the Report of the Royal
Commission on the Status of Women that municipalities establish advisory bodies on the status of women. In 1973, former
Mayor Crombie established a Task Force on Women's Issues.
One of the first activities of that Task Force was a review of the employment conditions of women in the civic work force.
The Task Force survey identified a wage gap of 21.5% between the men and women workers of our City. The City
responded by establishing a rigorous job evaluation program which is based on the principle of equal pay for work on equal
value through which the job content of any job could be evaluated without regard to the gender or personal characteristic of
the person holding the job.
In the City's 1986 brief to the Province of Ontario, Mayor Eggleton noted that between 1973 and 1986, that wage gap was
successfully reduced to less than 4 percent between men and women workers. The set up cost between 1977 and 1979 was
one percent (1%) of payroll. Between 1980 and 1984, during maintenance, the cost was less than one quarter of a percent
of payroll. After that the estimated ongoing cost was less than one tenth of one percent of payroll.
Clearly, there are strategies for paying women what they have earned. We are requesting that you do not appeal the
decision of the tribunal and that you commit to establishing a percent of federal payroll to recover the estimated $4b which
your employees deserve.
The Corporate Services Committee reports, for the information of Council, having also had before it a communication
(August 19, 1998) from the Acting President, CUPE Local 79, addressed to the Prime Minister of Canada, advising the
Federal Government that Local 79 is dismayed by the Government's apparent interest in appealing the Canadian Human
Rights Tribunal's decision to the Federal Court in an attempt to lower the amount awarded to current and former federal
government employees; and urging the Federal Government to accept the decision of the Canadian Human Rights Tribunal
to live up to its principled commitment to pay women and men equally.
(City Council on November 25, 26 and 27, 1998, had before it, during consideration of the foregoing Clause, a
communication (November 18, 1998) from the Committee Administrator, Committee on the Status of Women, advising that
the Committee received for information the communication dated October 13, 1998, from The Honourable
DavidM.Collenette regarding pay equity in the federal public service, and requesting that such communication be
forwarded to City Council.)
5
Other Items Considered by the Committee
(City Council on November 25, 26 and 27, 1998, received this Clause, for information.)
(City Council on October 28, 29 and 30, 1998, received this Clause, for information, subject to deferring consideration of
Items (a), (i) and (l), entitled "Sale of 'Property Houses' (Multiple Wards - Former City of Toronto)", "Court Application
by COTAPSAI to Quash the Decision of Council Respecting the Agreement with COTAPSAI" and "Union Station
Negotiations", respectively, embodied in this Clause, to the next regular meeting of City Council to be held on
November25, 1998.)
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(Clause No. 17(a) of Report No. 15 of The Corporate Services Committee)
(a)Sale of "Property Houses"
(Multiple Wards - Former City of Toronto).
The Corporate Services Committee reports having deferred consideration of the following reports and
communications until its meeting scheduled to be held on November 9, 1998:
(i)(June 11, 1998) from the Commissioner of Corporate Services, seeking City Council authority to declare the "property
houses" in the former City of Toronto on attached Appendix I (save and except for those five properties currently leased to
community based housing providers and also identified on attached Appendix I) as surplus to the City's requirements and
authorize the sale of these properties on the open market; advising that the issue of allocation of funds will be addressed in
a separate joint report from the Commissioner of Corporate Services and the Commissioner of Community Services
recommending policies on the use of property assets to meet social objectives; that the total of the current value assessment
for the 55 property houses recommended to be declared surplus in this report is $10,955,845.00; that pending sale of the
properties, a loss in rental revenue will be incurred in the amount of approximately $10,000 per month as at July 1, 1998;
and recommending that:
(1)subject to the Board of Cityhome passing a resolution to do so, the existing leases between Cityhome and the
Corporation of the City of Toronto, for the property houses be terminated in the manner described in this report;
(2)City Council, by By-law, declare that, upon the leases having been terminated, the 55 houses owned by the City of
Toronto, as set out on the attached Appendix I are surplus;
(3)notice to the public of the proposed disposition of the lands declared surplus be given;
(4)prior to offering the properties for sale on the open market, the first right to purchase be given to the previous owners
and/or current tenants, on the terms set out in the body of this report;
(5)the Commissioner, Corporate Services, be authorized to market those properties which the previous owners and/or
tenants do not wish to purchase through a real estate broker for a listing price to be determined in consultation with the
listing broker;
(6)the funds from the sale of the houses subject to the 25 year lease be deposited into an account to be used to satisfy the
mortgage at maturity;
(7)the City Surveyor, in consultation with the Director, Development and Support, Parks and Recreation, be directed to
prepare a survey of the north portion of 144 Balsam Avenue and that this portion of the property be retained by the City, in
fee simple or by way of an easement, and placed under the jurisdiction of the Parks and Recreation Division for parks
purposes;
(8)City Council endorse the tenant relocation plan as outlined in this report;
(9)the five properties currently being leased to community based housing providers, as identified within this report on
Appendix I, be retained by the City to allow the current use of these properties to continue and the Commissioners of
Corporate Services and Community and Neighbourhood Services determine the appropriate leasing arrangement for these
five properties and report back thereon to the Corporate Services Committee;
(10)the Commissioner of Community and Neighbourhood Services advise social housing providers and the non-profit
housing sector of the City's intention to dispose of the 55 properties set out in Appendix I and to report back if any of these
groups are interested in acquiring any of these properties at market rates;
(11)the Commissioner of Community and Neighbourhood Services, review any particular needy or hardship situations
and report, in consultation with the Commissioner of Corporate Services, on these situations;
(12)the Commissioner of Community and Neighbourhood Services and the Commissioner of Corporate Services submit
a joint report recommending policies governing the use of property assets to meet social objectives; and
(13)the appropriate Civic Officials be authorized to take the necessary action to give effect to the foregoing.
(ii)(May 11, 1998) from the Commissioner of Corporate Services, seeking City Council authority to declare the "property
houses" in the former City of Toronto on attached Appendix I (save and except for those four properties currently leased to
community based housing providers and also identified on attached Appendix I) as surplus to the City's requirements, and
authorize the sale of these properties on the open market; advising that the total of the current value assessment for the 56
property houses recommended to be declared surplus in this report is $11,134,845.00; and submitting recommendations in
regard thereto.
(iii)(May 25, 1998) from the Corporate Secretary, Board of Directors of the City of Toronto, Non-Profit Housing
Corporation (Cityhome) and the Board of Directors of the Metropolitan Toronto Housing Company Limited (MTHCL),
advising that the Board of Directors of the City of Toronto Non-Profit Housing Corporation (Cityhome) and the Board of
Directors of the Metropolitan Toronto Housing Company Limited (MTHCL) on May 25, 1998, during its consideration of
a report (May 11, 1998) addressed to the Corporate Services Committee from the Commissioner of Corporate Services,
headed "Sale of Property Houses", recommended to the Corporate Services Committee that it:
(1)defer consideration of the report (May 11, 1998) from the Commissioner of Corporate Services; and
(2)request the General Manager, Cityhome and the General Manager, MTHCL, to submit a joint report to the Corporate
Services Committee, on alternative methods to retain these property houses for Social Housing purposes; and
that the Board of Directors also requested the General Managers to submit the aforementioned report to the Boards' Asset
Management Committee for comment, prior to its submission to the Corporate Services Committee, if the Corporate
Services Committee approves the foregoing Recommendations Nos. (1) and (2).
(vi)(June 18, 1998) from Ms. Peggy Birnberg, Executive Director, Houselink Community Homes, advising that as a
housing provider in the City of Toronto, they are greatly disappointed to learn that the Corporate Services Committee will
be considering a proposal to sell selected City-owned residential properties; and stating that it is not in the interest of the
citizens of Toronto to have a municipal government that treats a precious few units of housing as a revenue generating
commodity and that it is in everyones interest that the municipal government demonstrates a willingness to fight against the
trend of simple, short-term, money saving solutions, and to work with groups and organizations struggling to make this city
more humane.
(v)(September 18, 1998) from the Corporate Secretary, Board of Directors of the City of Toronto Non-Profit Housing
Corporation (Cityhome) and the Board of Directors of the Metropolitan Toronto Housing Company Limited (MTHCL),
advising that The Boards of Directors on September 14, 1998, recommended that the Corporate Services Committee
recommend to Council the adoption of Recommendations Nos.(1) and (3) contained in the report (September 9, 1998)
from the Acting Chief Operating Officer; and that The Boards of Directors also decided to advise the Corporate Services
Committee that the Boards would appreciate the City's support of the request to have the ownership of these property
houses transferred to the amalgamated Toronto Housing Company, and to allow staff to further explore the options for
such housing stock in order to maximize its potential for social housing purposes, given:
(a)the extent of the current waiting lists for affordable family housing; and
(b)that City Council has previously advised the Minister of Municipal Affairs and Housing and the Chairs of the Boards
of the Ontario Housing Corporation (OHC) and the Metropolitan Toronto Housing Authority (MTHA) of its opposition to
the sale of the scattered houses owned by OHC in the City of Toronto.
(vi)(September 9, 1998) from Councillor Sandra Bussin, East Toronto - Ward 26, requesting that the Committee consider
the following:
"that existing tenants receive the right to purchase his/her own specific unit within any of the subject properties that are of
the following type: a duplex, triplex or fourplex",
So that a tenant who wishes to purchase will have the option to purchase a single unit only.
(vii) (August 21, 1998) from Ms. Kimberly L. Beckman, Davies, Howe Partners, advising that she has been retained by
Ms. Sharron Sayliss, a resident of 1 Hubbard Boulevard for a number of years; that her client and a number of her
neighbours are interested in purchasing the building located at 1 Hubbard Boulevard; and forwarding a proposal respecting
the use of the buildings located in the area.
(viii)(September 25, 1998) from the Commissioner of Community and Neighbourhood Services, recommending that the
Corporate Services Committee give serious consideration to the proposal of the Housing Company Board that would
transfer ownership of the Property Houses to the Company for affordable housing purposes, prior to considering other
options that would result in their sale to the tenants or others at market value.
(ix)(October 7, 1998) from Councillor Jack Layton, Don River, recommending that:
(1)all vacant units in the City's "Property Houses" portfolio be immediately rented to households in the emergency
shelter system and/or families and individuals on the City's Housing Connections waiting list;
(2)the City retain the ownership of all houses in the portfolio and that the City Housing Company manage this stock in a
manner that maximizes the number of affordable units available for low-income families;
or alternatively
(3)the City delay any decisions to sell units in the Property Houses portfolio for 12 months to facilitate the review of
recommendations of the Mayor's Homelessness Action Task Force with regard to the use of municipal assets for the
reduction of homelessness.
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(Clause No. 17(i) of Report No. 15 of The Corporate Services Committee)
(b)Court Application by COTAPSAI to Quash the Decision of Council Respecting the Agreement with
COTAPSAI.
The Corporate Services Committee reports having received the following report:
(September 28, 1998) from the City Solicitor, advising that by Application dated September15, 1998, to the Ontario Court
(General Division) COTAPSAI (the "applicant") initiated legal proceedings against the City of Toronto; that the applicant
seeks Orders:
(a)quashing City of Toronto By-law No. 277-1998 dated June 3, 1998, to the extent that it adopted the recommendations
in Clause No. 3 contained in Report No.7 of The Corporate Services Committee, headed "City of Toronto Administrative,
Professional, Supervisory Association, Incorporated (COTAPSAI)";
(b)quashing City of Toronto By-law No. 554-1998, dated July 31, 1998; and
(c)directing specific performance of the Consolidated Memorandum of Understanding between the City of Toronto and
COTAPSAI, adopted by the City of Toronto in Confirmation By-law No. 1997-0088 dated February 3, 1997;
that the grounds for the application are that By-law No. 277-1998, to the extent that it adopted the recommendations in
Clause No. 3 of Report No. 7 of the Corporate Services Committee, and By-law No. 554-98, purport to annul the binding
agreement between COTAPSAI and the City of Toronto as set out in the Consolidated Memorandum of Understanding
and, therefore, should be quashed for illegality; that Christopher Riggs, Q.C., of the law firm of Hicks, Morley, Hamilton,
Stewart, Storie, has been retained to act on behalf of the City of Toronto; that the Application will be heard on October 20,
1998; and recommending that this report be received and forwarded to Council for information.
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(Clause No. 17(l) of Report No. 15 of The Corporate Services Committee)
(c)Union Station Negotiations.
The Corporate Services Committee reports having endorsed the recommendation embodied in the confidential
report (October 8, 1998) from the Commissioner of Planning and Urban Development Services respecting Union
Station Negotiations.
(City Council on November 25, 26 and 27, 1998, had before it, during consideration of item (b), headed "Court
Application by COTAPSAI to Quash the Decision of Council Respecting the Agreement with COTAPSAI", embodied in the
foregoing Clause, the following report (November18, 1998) from the City Solicitor:
Recommendation:
It is recommended that this report be received for information.
Discussion:
City Council at its meeting of October 28, 29 and 30, 1998, deferred consideration of Clause No.17(i) of Report No. 15 of
The Corporate Services Committee to the next meeting of Council on November25, 1998, concerning my report (September
28, 1998) advising Council of the Court Application by COTAPSAI to quash the decision of Council terminating the
agreement with COTAPSAI.
The application was heard by Mr. Justice Ferrier of the Ontario Court (General Division) on October20, 1998. By
decision dated November 10, 1998, the Court dismissed the application with costs.
The Court concluded that Council did not exceed its authority or act in bad faith in unilaterally terminating the agreement
between the former City of Toronto and COTAPSAI. A copy of the decision of the Court is attached as Appendix I to this
report. Christopher Riggs, Q.C. of the law firm of Hicks, Morley, Hamilton, Stewart, Storie, who was retained to act on
behalf of the City in this matter, has been instructed to seek reasonable party and party costs.
Contact Name:
George S. Monteith - 392-8062
(Appendix I)
Decision of Mr. Justice Ferrier of the Ontario Court
(General Division)
Notwithstanding the apparent benefits to the parties in continuing the Memorandum of Understanding ("the agreement"), I
am of the view that the application must be dismissed for the reasons which follow.
The facts are fully developed in the factums of the parties.
A by-law may be quashed for illegality if it removes contractual rights upon which the other part to the contract has relied
to its detriment. If the repeal of a by-law impairs or cancels vested rights, the repeal may be set aside as illegal:
Re: Hamilton Powder Co. (1909) 13 J.W.R. 661
Mukoka Mall (1997) 3 M.P.L.R. 278
In the case at bar, the applicant has not relied on the agreement to its detriment; nor has it acquired vested rights.
As to the issue of bad faith, the threshold of establishing bad faith is high. The council's actions must entail fraud or
oppression or improper motives - which is not this case.
Re: Howard [1928] 1 D.L.R. 952
The central issue is whether the agreement permits the City to unilaterally terminate it. In my view, it does, for the
following reasons:
The agreement is not a collective agreement under the Labour Relations Act. It is rather an agreement between an agent
for a large number of individual employees and an employer, which permits the agent to act as such on behalf of the
employees. The contract is one at common law and the law governing the relationship between the applicant and the City
and between the City and its employees is the common-law.
It is untenable to suggest that an employee or its agent could compel an employer to negotiate employment terms through
the agent. Any employer has the right to say, "I will no longer deal with your agent - I will deal only with you directly".
The only issue in such circumstances would be reasonable notice. The question thus becomes, does this agreement prevent
this employer from doing so? I think not. To remove such a fundamental right from the employer, express words in the
agreement would be required. Here, there are none. The applicant relies on Section 34.01 of the agreement which requires
notice of "the desired or proposed changes or alterations", to be given within a specified period and obliges the parties to
"thereupon negotiate in good faith in respect of" the proposed changes.
In my view, it cannot reasonably be said that the words "changes" and "alterations" include termination of the agreement.
Those words contemplate a continuation of the agreement. I am re-enforced in this view by the earlier words in the
paragraph "any change or alterations to this Consolidated Memorandum of Understanding for the ensuing years of this
Consolidated Memorandum". These latter words in section 34.01 clearly contemplate a continuation of the agreement
between the parties.
Further, the applicant says that in any event the employer would have to negotiate in good faith following the giving of
notice to terminate. This is a further untenable proposition in my view. If it is open to the employer to terminate the
agreement, which I hold it is, and if an employer has decided to do so, there is nothing left to negotiate. Thus in my view
Section 34.01 does not apply to termination of the agreement.
The agreement is intended to continue only so long as both parties want it to. Section 34.01 provides a mechanism for
changes and alterations, but only if the basic relationship between the two parties under the agreement is to continue.
Finally, it cannot reasonably be said that the applicant has bound itself to the City in perpetuity to act as agent for the
employees. Similarly, it cannot be said that the City has bound itself in perpetuity to negotiate the employer-employee
relationships through an agent.
Accordingly the application is dismissed. If counsel cannot agree on costs, I may be spoken to.)
(City Council also had before it, during consideration of item (c), headed "Union Station Negotiations", embodied in the
foregoing Clause, a confidential report (October 8, 1998) from the Commissioner of Urban Planning and Development
Services, regarding Union Station Negotiations with the Toronto Terminal Railways Company (TTR), such report to
remain confidential in accordance with the Municipal Act.)
Respectfully submitted,
DICK O'BRIEN,
Chair
Toronto, October 9, 1998
(Report No. 16 of The Corporate Services Committee, including additions thereto, was adopted, as amended, by City
Council on November 25, 26 and 27, 1998.)
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