CITY CLERK

ADMINISTRATION COMMITTEE

REPORT No. 1

For Consideration by

The Council of the City of Toronto

on July 6, 7 and 8, 1999

1 John Street Roundhouse - 222 Bremner Boulevard TrizecHahn Corporation Proposal Report
(Ward 24 - Downtown)

2 Toronto Police Association Poster and Stereotyping of the Hispanic Community

3 Acquisition of Vacant Lot on Unopened Midland Avenue Road Allowance (Ward 13 - Scarborough Bluffs)

4 Acquisition of C.N. Belt Line Railway in the Former City of York, Between Marlee Avenue
and Caledonia Road (Ward 28 - York Eglinton)

5 380-400 Richmond Street - Purchase and Sale Agreement with Context Development Inc.
(Ward 24 - Downtown)

6 Sale of Surplus Spadina Project Property at 42 Gloucester Grove(Ward 28 - York Eglinton)

7 Sale of City-Owned Property Known Municipally as 197, 197 Rear, 201 Yonge Street and
170 Victoria Street (Ward 24 - Downtown)

8 Proposed Encroachment -197 Yonge Street(Ward 24 - Downtown)

9 Declaring Property at South-End of Chemical Court Surplus and Authorizing its Sale
to an Abutting Owner (Ward 16 - Scarborough Highland Creek)

10 Lease of 156-158 Munro Street for Affordable Housing Purposes (Ward 25 - Don River)

11 5 Bathurst Street - Canada Malting Complex (Ward 24 - Downtown)

12 The Jolly Miller, Lease 3885 Yonge Street (Ward 9 - North York Centre South)

13 Recipient - City of Toronto Access Award - 1999

14 Authorization to Travel to the IFHP (International Federation for Housing and Planning) Congress, Glasgow

15 Other Items Considered by the Committee

APPENDIX "A"

City of Toronto

REPORT No. 1

OF THE ADMINISTRATION COMMITTEE

(from its meeting on June 15, 1999,

submitted by Councillor Lorenzo Berardinetti, Chair)

As Considered by

The Council of the City of Toronto

on July 6, 7 and 8, 1999

John Street Roundhouse - 222 Bremner Boulevard

TrizecHahn Corporation Proposal Report

(Ward 24 - Downtown)

(City Council on July 6, 7 and 8, 1999, amended this Clause by adding thereto the following:

"It is further recommended that the report dated July 2, 1999, from the Chief Administrative Officer and Acting Commissioner of Corporate Services, embodying the following recommendations, be adopted:

'(1) the Phase I Rehabilitation and Reuse undertaking proceed; and

(2) prior to any further phases being undertaken, the matter be referred to the Commissioner of Economic Development, Culture and Tourism and other appropriate staff for a comprehensive business assessment, including a full review and report on all funds required and available funding opportunities.' ")

The Administration Committee:

(1) recommends the adoption of Recommendations Nos. (1), (2), (3), (4), (5) and (7) embodied in the report (June 10, 1999) from the Commissioner of Corporate Services, subject to a provision in the lease that the Steam Whistle Brew Pub be smoke free indoors; and

(2) reports having approved Recommendation No. (6) embodied in the aforementioned report.

The Administration Committee further reports, for the information of Council, having:

(1) requested the Acting Commissioner of Corporate Services to submit a report to the Administration Committee respecting the comments raised by Miss Jane Beecroft, Chair, CHP Heritage Centre, at the meeting of the Administration Committee on June 15, 1999, regarding the proposal respecting Bays 12-32; and

(2) referred the communication (June 11, 1999) from Miss Jane Beecroft, Chair, CHP Heritage Centre, to the Acting Commissioner of Corporate Services.

The Administration Committee submits the following report (June 10, 1999) from the Commissioner of Corporate Services:

Purpose:

To advise the Administration Committee and City Council of the contents of a report received from TrizecHahn Corporation respecting the revitalization of the John Street Roundhouse and the outcome of the discussions between City Staff, TrizecHahn and Steam Whistle Brewing Limited Partnership (SWBLP) and other information relative to the rehabilitation and reuse of the John Street Roundhouse.

Financial Implications:

Should City Council wish to pursue a tenancy with SWBLP, there is a requirement for capital funds in the minimum amount of $750,000.00 (subject to confirmation upon detailed review of the access and servicing elements) in order to bring the building up to base standards. No account has been identified for this purpose.

Recommendations:

It is recommended that:

(1) authority be granted to proceed with the development of the John Street Roundhouse by way of individual agreements relating to various portions thereof rather than by one comprehensive proposal;

(2) subject to City Council agreeing to provide the necessary capital funding, a lease with SWBLP be approved in principle essentially in accordance with the Term Sheet attached as Appendix "A" and subject to further negotiations with SWBLP to arrive at an appropriate percentage rent and other terms and conditions deemed appropriate by the Chief Administrative Officer and the City Solicitor;

(3) the Chief Administrative Officer be authorized to advise TrizecHahn that City Council wishes to continue TrizecHahn's involvement with the establishment of a Board of Directors as set out in the body of this report;

(4) the Chief Administrative Officer and the Executive Director of Facilities and Real Estate be authorized to enter into discussions with CB Ellis and/or Headline Sports for the leasing of space in the Roundhouse and report back on the negotiations;

(5) the Chief Administrative Officer be instructed to continue to pursue all available funding sources and report back thereon;

(6) this report be referred to the Policy and Finance Committee for a report on capital funds directly to City Council; and

(7) the appropriate City officials be authorized to take the necessary action with respect to the foregoing.

Background:

The John Street Roundhouse has been used since 1986 for the storage of various rail related equipment and rolling stock. It was acquired by the City in 1997. A proposal call was issued on May 7, 1997, and only two submissions were received and neither one was acceptable to City Council. TrizecHahn was the successful proponent resulting from a Request for Expressions of Interest issued on December 19, 1997, and City Council, at its meeting of November 25, 26 and 27, 1998 (Clause No. 1 of Report No. 16 of The Corporate Services Committee) directed the Commissioner of Corporate Services, in consultation with the Heritage Toronto, to negotiate with TrizecHahn Corporation (TrizecHahn) in order to arrive at a comprehensive proposal for the rehabilitation and reuse of the John Street Roundhouse Complex and to report back on the results of the negotiations.

On May 19, 1999, the Commissioner of Corporate Services submitted to the Corporate Services Committee, (Item No. 40) at its meeting of May 20, 1999, a report advising that the proposal report has been received and that as part of that proposal, TrizecHahn advised of an interest from SWBLP to lease approximately 30,000 sq. ft. of the Roundhouse. The intention of this report was for information purposes only as the report dated May 10, 1999 "A Phased Reuse and Rehabilitation Strategy - John Street Roundhouse" was still subject to review by the Steering Committee and a meeting was not scheduled until May 26, 1999. The Corporate Services Committee, however:

(1) recommended that City Council support the SWBLP concept as outlined in the proposal report submitted by TrizecHahn as part of "A Phased Reuse and Rehabilitation Strategy for the John Street Roundhouse";

(2) requested the Commissioner of Corporate Services to work with TrizecHahn and SWBLP to facilitate their venture as an initial phase of the John Street Roundhouse Redevelopment; and

(3) will be reporting to City Council for information purposes that it has requested the Commissioner of Corporate Services to carry out Item No. 2 above, and that a report will be submitted to the Administration Committee for its meeting of June 15, 1999 on the report of TrizecHahn.

Comments:

1.0 TrizecHahn Report Elements:

1.1 Governance:

Although it was the desire of staff that TrizecHahn be the head lessee of the facility and proceed to rehabilitate and lease the facility for commercial and railway museum purposes, TrizecHahn has clearly stated it does not wish this role. Its reason for this position is primarily financial in nature. As an alternative, TrizecHahn has proposed the establishment of a governance entity with a Board of Directors structure to be undertaken in the initial phase of the project. This Board will effectively guide the process of developing a museum, develop and oversee a business plan and seek capital funding sources to implement the plan. TrizecHahn recommends the governance body be comprised of such group as an elected official, City staff members, a representative of TrizecHahn, a member versed in Canada's rail and transportation history, and a member with strong philanthropic background. TrizecHahn has proposed to continue its active involvement to establish a Board of Directors and to facilitate installing the micro brewery and brewpub discussed later in this report in the immediate term. Ultimately TrizecHahn would withdraw its direct participation, expected no later than December, 1999.

1.2 Allocation of Space:

TrizecHahn has advised it envisions one-third of the total space would be dedicated as an Operating Railway Museum and to achieve a fully restored and utilized Roundhouse, it is clear it will be necessary to develop a phased approach to the rehabilitation and reuse of the Roundhouse.

Their concept divides the Roundhouse into 3 functional areas and have proposed the following uses:

(a) Visitor Centre and Commercial Retail Uses, Bays 26-32;

(b) Railway Museum/Interpretive Centre, Bays 1-11; and

1.3 Timeline of Phased Development:

TrizecHahn's timetable of the phased rehabilitation and reuse of the complex with a commercial use in Phase 1 and railway museum and others in Phases 2-5 is shown below.

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

June 1999 to October 1999 June 1999 to June 2000 January 2000 to December 2001 January 2001 to December 2002 January 2002 to December 2003

Abatement and Base building upgrading

Governance Board Established

Installation of Microbrewery and Brewpub

Artefact consolidation

Reserve 1-11 for Museum
Visitor Centre

Funding and sponsorship search

Consultant study to develop Museum

Roundhouse and artefact viewing via a Glazed Link

Turntable rehabilitation and installation
Locomotive display on turntable and completion of Surrounding radial track

Expansion of commercial uses into Bays 18-25
Installation of Preliminary Museum, Bays 1-11

Coal and Sanding Tower rehabilitation

Park improvements
Expansion of Museum and/or Commercial opportunities into Bays 12-17

1.4 Abatement and Base Building Upgrades:

TrizecHahn has advised that before any tenant can occupy the site, all unimproved space must be brought to a minimum standard in three key areas:

(a) environmental abatement including lead paint, heavy oils and asbestos;

(b) building envelope upgrades and provision of rough services; and

They have itemized the work they envision relative to Bays 26 to 32 and this work is set out in Appendix "B". Overall they estimate this work to require about $50.00 per square foot or $5,000,000.00 for the entire facility.

1.5 Funding:

TrizecHahn has suggested that the sources of funding for the Railway Museum Centre's construction and operation include:

(a) using a portion of income from commercial tenants;

(b) potential availability of $5 to $15 million from a previously established government fund (Note - this reference was based on a 1994 Task Force report and the funds do not exist);

(d) Corporate Sponsorships and marketing possibilities.

What TrizecHahn's analysis fails to deal with in any concrete way is the capital funding required to undertake the work to bring the building up to base standards.

1.6 Summary of TrizecHahn's Report and Ensuing Discussions:

TrizecHahn has suggested that the concepts which require immediate approval include the phased development approach, establishment of governance entity and a commitment by the City to secure SWBLP as a tenant, ensuring its fast-track occupancy to provide the kick start that the project requires.

While TrizecHahn has invested time, its expertise and funds to bring forward its report, it did not meet staff's expectations that TrizecHahn would be the head lessee of the facility. Although it has some concern about the environmental issues, its prime reason is financially based, as the potential rents from the commercial uses of up to of the facility are not adequate to fund the needed capital improvements to the facility and support an ongoing museum operation.

Notwithstanding TrizecHahn's lack of desire to be the head lessee, TrizecHahn has provided a preliminary plan for the rehabilitation and reuse of the Roundhouse which can be implemented if sufficient funds are made available. TrizecHahn has offered to continue to help to resolve the Board of Directors set up in composition.

2.0 Steam Whistle Brewing Limited Partnership (SWBLP) Proposal:

As part of its report TrizecHahn tabled an interest from SWBLP to install and operate a brewpub and brewery, including a small brewing museum and hospitality space to be used for art displays, musical performances, community events and special promotions.

As a result of TrizecHahn's refusal to be the head lessee and Corporate Services Committee's instructions "to work with TrizecHahn and SWBLP to facilitate their venture as an initial phase of the John Street Roundhouse Redevelopment," staff met with SWBLP and a term sheet respecting the potential leasing of Bays 1-11 has been developed and is attached as Appendix "A" to this report.

There are still several issues that need to be fully resolved respecting this potential tenant including:

(a) Ensuring compliance of use;

(b) Resolution of Parks requirements/issues;

(d) Resolving access issues.

Assuming these issues are resolved the single biggest issue is the provision of funds to pay for the base building upgrades, including access. SWBLP has taken the position that these costs which are estimated to be in the range of $1,000,000.00 must be borne by the City as the landlord. Upon review of its financial performance SWBLP has advised it is prepared to "loan" the City $250,000.00 towards these costs provided the City repays this amount together with interest at the rate of 8 percent in the form of a rent free period. If the full net rent is allocated the rent free period would be approximately 2 � years. SWBLP is prepared to recover this sum over a 5 year period which reflects an approximate reduction of 50 percent to the net rent.

Whether or not the City pursues the loan option it will still be necessary to provide funding in the amount of $750,000.00 for the required capital improvements.

It is noted that all City staff, Councillors and other stakeholders feel this use is complementary to the Roundhouse and proposed Railway Museum and may well be the catalyst which initiates greater interest in further rehabilitation and reuse of the Roundhouse.

3.0 Other Interests:

An expression of interest attached as Appendix "C" has been received to lease approximately 30,000 sq. ft. of space in the John Street Roundhouse by CB Richard Ellis for its client, Headline Sports, a national television network. Headline Sports is a national Special Channel operating 24 hours a day. Subject to Headline Sports conducting a thorough evaluation of the condition of the building, it would be prepared to make an investment of approximately $3-4M in leasehold and technology improvements.

4.0 Funding Information:

Initiatives have been taken with the Historical Sites and Monuments Board of Canada to secure funding for the restoration of this property. Attached as Appendix "D" is a letter which was forwarded in April, 1999 to this group. They have expressed interest in supporting the project and will be visiting the Roundhouse on June 16, 1999. Although no other definitive applications have been advanced, it is felt that the governance entity once formed, would be able to approach various corporate sponsors including the CPR towards funding for the rehabilitation and re-use of this national historical site.

5.0 Options:

The City has three (3) options respecting this facility:

(a) To mothball the Roundhouse:

This option would result in minor costs to secure the facility properly and ongoing maintenance costs. It would result in no use being made of the Roundhouse nor any integration with the surrounding park.

(b) To re-issue either a Proposal Call or Request for Expressions of Interest:

This option is not considered prudent as we have issued both a Proposal Call and Expressions of Interest and have not been successful in securing a head lessee for this facility. TrizecHahn's rationale is that the facility is simply not financially viable given the high level of capital costs.

(c) To enter directly into a leasing arrangement with SWBLP, pursue the interest of Headline Sports and to continue discussions with TrizecHahn relative to the balance of the Phased Rehabilitation and Reuse of the Roundhouse Complex including the establishment of a Board of Directors.

This option, although it requires the City to provide capital funding, will result in leasing a portion of the Roundhouse, provides an opportunity for further utilization of other portions and provides an opportunity to integrate these uses with the Roundhouse park.

6.0 Legal Implications:

As TrizecHahn has indicated that it does not wish to be the head lessee and would be involved in installing the brewpub and would become an active member of the proposed Board, entering into a lease directly with SWBLP for part of the site differs from Council's directive to find an operator for the entire site as stated in the Request for Expressions of Interest dated December 19, 1997.

Conclusion:

City Council's direction has always been that the rehabilitation and reuse of the John Street Roundhouse shall not cost the City at all. It has been impossible to find a proponent that would invest money in a building that requires a large capital outlay to bring the building to base standards for the Railway Museum and other commercial uses.

As this use could be a catalyst for the building, SWBLP's proposal merits consideration and approval by City Council. Subject to other issues yet to be resolved, I am of the opinion that it would be prudent for the City to endorse this proposal as this provides an opportunity for the City to have a partially restored property that would spearhead the revitalization and ultimately, full restoration of the property, including the Railway Museum.

Contact Name:

Erlinda Bala, Telephone No. 392-1852, Fax No. 392-1800, e-mail:ebala@toronto.ca.

--------

Appendix "A"

Term Sheet

222 Bremner Boulevard - John Street Roundhouse

As Proposed By Steam Whistle Brewing Limited Partnership (SWBLP)

June 10, 1999

Set out below is the outline of the basic terms and conditions for the leasing of approximately 27,500 sq. ft. of space.

(1) Area:

(a) Bays 1-11 approximately 27,500 sq. ft., save and except an area up to 1,250 sq. ft. of space which would be reserved for Parks and Recreation requirements for facilities such as public washrooms, skate change area and lockers, and warming area; and

(b) Vacant land for patio space.

(2) Term: 20 years:

(3) (a) Minimum Rent:

Years 1-5: $5.00/sq.ft. Net

Years 6-10 $6.00/sq.ft. Net

Years 11-15 and Years 16-20 Rent to be determined in accordance with comparable market rents for similar space and uses and to be mutually agreed to by both parties, failing which will be determined through arbitration.

(b) Additional Rent:

Tenant to pay all taxes, utilities:

(4) Uses:

- microbrewery;

- brewpub/bistro with an outdoor patio;

- retail store;

- a steam whistle and rail related exhibition area;

- brewery and exhibit tour facilities;

- hospitality facilities for community ( special events), artistic, historical and charitable functions; and

- mezzanine offices.

(5) Construction and Fit-Up Costs:

(a) Base Building Standards:

The City shall undertake to construct all base building standards at its own expense at an estimated cost of $850,000.00, plus 15 percent contingency cost for a total of approximately $977,500.00.

SWBLP shall loan $250,000.00 towards the above cost provided the loan is repaid together with 8 percent interest in the form of net free rent over the first five year period.

(b) Tenant Leasehold Improvements:

SWBLP shall undertake to construct at its own expense approximately $500,000.00 for all leasehold improvements necessary to finish the space according to the uses outlined in Item No. (4)

(6) Timing of Proposal:

SWBLP agrees to comply with the City approval process for the construction of the project.

(7) Miscellaneous:

(a) consultants for both SWBLP and Parks and the City to work together and determine whether public washrooms common to both can be achieved;

(b) access and services to be investigated both by the City and SWBLP;

(c) SWBLP at its own expense, to investigate the possibility of obtaining connection from the underground garage of Metro Toronto Convention Centre (MTCC), and also check the hydro vault that exists in the roundhouse;

(d) SWBLP shall preserve the historical significance of the property; and

(e) SWBLP shall make arrangements with Metro Toronto Convention Centre (MTCC) for its parking requirements, at its own expense.

(8) The City as owner of the property, shall consent to the application for a minor variance for a microbrewery use if necessary; and

(9) SWBLP shall enter into a Lease Agreement, in a form satisfactory to the City Solicitor.

--------

Appendix "B"

Abatement and Base Building Upgrades

(I) Abatement of Existing Hazardous Materials, Bays 26-32 and Machine Shop:

Lead Paint:

- friable condition throughout inside of building; and

- removal by either labour intensive stripping or soft medium low-pressure air driven abrasives.

Heavy Oils:

- noxious fumes from oils from pits, fire hazard; and

- removal by surfactant treatment, possibly poulticing.

Asbestos:

- asbestos transite fire guard panels on ceilings; and

- requires level 1 abatement.

(II) Base Building Upgrades, Bays 26-32 and Machine Shop:

Sprinklers:

The building is highly combustible and would require a complete sprinkler system, fire standpipe and fire alarm system before any occupancy should be considered. If the building is to be unheated, a dry sprinkler and standpipe system will be required.

Exiting:

Currently there are not enough exits to facilitate occupancy. The train doors are not considered exit doors. New exits with adequate hardware should be installed possibly where some existing slider doors are located as well as some being cut into train doors and on south elevation through the window bays. Exit lights and emergency lighting relating to the exits would also have to be installed.

Washrooms:

There are not functioning washroom facilities on site. It will be necessary to provide adequate service so that washroom facilities based on use and occupancy can be provided.

Structural Repairs:

A full structural review of Bays 12 to 32 including the machine shop should be performed and any repairs to structure performed. Note deteriorated purlins and corroded steel columns in machine shop.

Mechanical:

If heating and cooling were to be installed a system would have to be adequate to service these large uninsulated spaces, with adequate re-circulation to avoid heat build-up in the monitor space. The environment would have to be maintained at a minimum of humidity (less than 25 percent) and would have to keep the building in a non-pressurized condition to keep air from being forced into the exterior wall where it could condense and do damage.

Electrical:

Power to the building has been removed and would have to be re-established. This would most likely result in a transformer vault being installed. The current vault at the west end of the building is dedicated to power requirements of the park.

Artefacts:

Large quantities of railroad industrial artefacts ranging from locomotives, entire out-buildings, to the disassembled turntable are stored in the Roundhouse. Re-occupancy would require cataloguing and relocation and concentration of these artefacts to one area of the Roundhouse. This could be part of the establishment of a museum function, however any type of re-occupancy as well as initial base building work will involve dealing with the artefacts.

(III) Building Envelope Upgrade Bays 26-30, and Machine Shop:

Vapour Barrier:

Interior default vapour barrier needs to be established if interior is to be left exposed.

Masonry:

Interior sealant such as paint, clear epoxy based coating. (Either tends to affect the appearance of the masonry).

Sealing and trim work around windows after lead paint removal is required.

Timber:

Jamb Columns, Lintels and Beam ends that are exposed to both inside and outside environments will require sealing at edges and joints and a default vapour barrier at the inside face (paint, varnish, etc.).

Transoms:

New and existing transoms exist above the train doors. These are made up of pine slats and have gaps between each board. These will require a back panel of plywood or other sheathing material to attain any measure of air/vapour barrier.

Windows:

New replacement windows were sealed at the outside but still require sealing (one component urethane foam) and ⁰ round trim at the jambs head and sill.

Train Doors:

The train doors were never designed to create a proper air seal and have large gaps around each. These would have to be renovated with soft compressible seals as well as inner stops at the jambs and head, a threshold strip at the sill, and an astragal strip at the interior edge of the junction between the two doors.

We have analysed the interior environment that will be required to support the proposed Phase 1 use for Bays 26-30 and the Machine Shop and recommend this level of reversible intervention. This will balance the heritage value of the building with the short to mid-term requirements of re-use.

The Administration Committee reports, for the information of Council, having also had before it the following communications:

(i) (June 9, 1999) from Mr. Raymond L. Kennedy, Old Time Trains, advising that he fully supports the concept of a microbrewery and pub in the John Street Roundhouse provided it is located in Bays 1-11, and encouraging the City to make all possible efforts to meet its timetable; and further advising that he does not support any further consultant study; and

(ii) (June 11, 1999) from Miss Jane Beecroft, Chair, CHP Heritage Centre, expressing concern with regard to missing artifacts and equipment belonging to or brought to the John Street Roundhouse; providing an inventory of items attached to the John Street Roundhouse prepared by Heritage Toronto staff some years ago; expressing concern regarding the matter of $7.5 million which was to have been applied to the Roundhouse; and stating that without the full involvement of the heritage community, the John Street Roundhouse cannot succeed because the City owns few items with which to develop a museum and has no one on its staff with any expertise about rail operations.

--------

The following persons appeared before the Administration Committee in connection with the foregoing matter:

- Miss Jane Beecroft, Chair, CHP Heritage Centre;

- Mr. Raymond Kennedy, Old Time Trains;

- Mr. Cameron Heaps, Steam Whistle Brewing; and

- Mr. A.W. (Bill) Davis, Senior Sales Consultant, CB Richard Ellis Limited.

(A copy of the attachment to the communication (June 11, 1999) from Miss Jane Beecroft, CHP Heritage Centre, entitled "Appendix V, Inventory of Roundhouse", was distributed to all Members of Council with the June 15, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)

(City Council on July 6, 7 and 8, 1999, had before it, during consideration of the foregoing Clause, the following report (July 2, 1999) from the Chief Administrative Officer and Acting Commissioner of Corporate Services:

Purpose:

To provide City Council with additional information on the overall anticipated costs for the entire structure and associated ancillary facilities and to provide information on the reasons why the Phase I Rehabilitation and Reuse Program should be undertaken at this time.

Financial Implications:

Capital funds will be required to facilitate the Steam Whistle Brewing Partnership Limited Phase I undertaking. The Chief Financial Officer is reporting on the amount and source of the funds required.

Recommendations:

It is recommended that:

(1) the Phase I Rehabilitation and Reuse undertaking proceed; and

(2) prior to any further phases being undertaken, the matter be referred to the Commissioner of Economic Development, Culture and Tourism and other appropriate staff for a comprehensive business assessment including a full review and report on all funds required and available funding opportunities.

Background:

The Administration Committee at its meeting held on June 15, 1999 gave consideration to a report dated June 10, 1999 from the Chief Administrative Officer and Acting Commissioner of Corporate Services dealing with the results of a Request for Expressions of Interest (REI) and a subsequent report that was submitted by TrizecHahn respecting the phased rehabilitation and reuse of the Roundhouse. The Policy and Finance Committee at its meeting held on June 24, 1999 gave consideration to the aforementioned report and a supplementary report submitted by the Chief Administrative Officer and the Acting Commissioner of Corporate Services dealing with the estimated capital costs to initiate the proposed Phase I rehabilitation and leasing to Steam Whistle Brewing Partnership Limited (SWBPL).

Comments:

Overall Capital Costs

Under a normal tenancy, the landlord is responsible to bring the property to a base building standard or to improve the building to an acceptable standard prior to leasing it to a tenant. Further, the tenant normally looks for the landlord to provide tenant inducement allowances for the tenant's cost of leasehold improvements. SWBPL, the proposed tenant in Phase I, is only requesting that the City bring the property to base building standards.

TrizecHahn, in the supplementary report dated June 15, 1999, provided additional information respecting the overall capital costs associated with the rehabilitation and reuse of the facility. Attached Appendix "A" has been prepared based on this information together with previous financial information assembled by City staff relative to the cost to rehabilitate ancillary facilities. As set out in Appendix "A", the total estimated cost to bring the facility to base building standards is $6,700,000.00. Phase I of the program requires $1,823,000.00, leaving a balance of approximately $4,877,000.00. It has not yet been determined whether or not there will be any additional sources of capital funds to offset these costs.

Two initiatives are currently underway to supplement the capital funds required for this facility. Firstly, a request has been submitted to the Historic Sites and Monuments Board of Canada to consider an application for funding assistance under the National Cost-Sharing Program. The Federal Government may cost-share up to fifty percent (50%) of expenditures related to the restoration and interpretation of the historic elements as identified in the minutes of the Historic Sites and Monuments Board of Canada recognizing the John Street Roundhouse complex as a national historic site. Secondly, a meeting has been arranged with staff of Finance Services to explore the benefits of corporate sponsorship to determine the viability of securing funds for the proposed Railway Museum.

Rationale for Phased Approach

The report from the Commissioner of Corporate Services dated June 10, 1999 advised the Administration Committee and City Council of TrizecHahn's proposal entitled "Phased Reuse and Rehabilitation Strategy for the John Street Roundhouse that included the proposal from SWBPL in Phase I. Recommendation No. 1 of this report is to proceed with the development of the John Street Roundhouse by way of individual agreements relating to various portions thereof on a phased basis rather than one comprehensive proposal due to the following:

1. The property had already gone through the process of Request for Proposal (RFP) and Request for Expressions of Interest (REI) and had been unsuccessful in securing a head lessee for the entire site. With the significant amount of capital funds required to be injected in this property no private developer is willing to undertake the development of the entire site. The process of issuing either an RFP or REI would take approximately 6-12 months. Repeating this process would only delay the development of this property, and there is no assurance that a head lessee may be secured for the entire site;

2. The main reason for TrizecHahn's unwillingness to be the head lessee was that this property would not be financially viable regardless of whether the use is all commercial or commercial/railway museum. As part of TrizecHahn's report, the proposal of SWBPL to be installed in Phase I was presented. SWBPL is in a position to proceed with the construction of its leasehold improvements in the amount of approximately $500,000.00 and the equipment (amounting to $1M) has been purchased and ready to be installed once its proposal is approved by City Council and subject to the municipal approval process. SWBPL needs to know as soon as possible if City Council supports its proposal as the John Street Roundhouse is its preferred location and SWBPL wishes to be up and running as soon as possible; and

3. The installation of SWBPL in Phase I would secure a tenant that would be the catalyst for the rehabilitation and reuse of the entire site, that would include the Railway Museum and other commercial use. SWBPL's proposal complements the historical significance of the property.

Other Matters/Other Issues

The Administration Committee at its meeting of June 15, 1999, among other things, requested the Acting Commissioner of Corporate Services to submit a report to the Administration Committee respecting the comments raised by Ms. Jane Beecroft, Chair, CHP Heritage Centre regarding the proposal for Bays 12-32, and referred the communication dated June 11, 1999 from Ms. Beecroft to the Acting Commissioner of Corporate Services:

1. expressing concern with regard to missing artifacts and equipment belonging to or brought to the John Street Roundhouse;

2. providing an inventory of items attached to the John Street Roundhouse prepared by Heritage Toronto staff years ago;

3. expressing concern regarding the matter of $7.5 million which was to have been applied to the Roundhouse; and

4. stating that without the full involvement of the heritage community, the John Street Roundhouse cannot succeed.

The concerns of Ms. Beecroft as noted above will be investigated and will be reported to the Administration Committee as soon as the outcome of this investigation becomes available.

Conclusion:

The John Street Roundhouse Complex is located in the downtown core, and is in close proximity to neighbouring tourist attractions such as the Metro Convention Centre, CN Tower, SkyDome, Air Canada Centre, the Marine Museum and Harbourfront. The approval of Phase I including the tenancy of Steam Whistle Brewing Partnership Limited will initiate the phased rehabilitation and reuse of this complex with a tenant that is complementary to the facility and will act as a catalyst for further rehabilitation and reuse initiatives. Accordingly, capital funds are being requested for Phase I. However, prior to any phases being undertaken, the matter should be referred to the Commissioner of Economic Development, Culture and Tourism and other appropriate staff for a comprehensive business assessment including a full review and report on all funds required and available funding opportunities.

Contact Name:

Erlinda Bala, Telephone No. 392-1852, Fax No: 392-1880,

E-mail:ebala@toronto.ca,

Report No: cc99106.doc)

Appendix "A"

ESTIMATED COST TO BRING THE ENTIRE SITE

TO BASE BUILDING STANDARDS,

INCLUDING RESTORATION OF ANCILLARY FACILITIES

Particulars	Amount	Amount
I. Estimated Cost of Base Building Standards for the entire site, including Abatement:
A. 1. Bays 1-11 (Commercial Use) - approx. 27,675 sq.ft., ( incl. concrete slab and building services, access road)	1,187,920.00
2. Fire Suppression (Bays 12-32)	635,500.00
B. Bays 12-22 (Commercial Use) - approx. 29,275 sq.ft.	1,628,352.00
C. Bays 22-32 (Railway Museum) - approx. 39,050 sq.ft. (Incl. Machine shop)	2,130,475.00
Cost of Base Building Standards for the entire site		5,582,247.00
II. Estimated Cost to restore and rehabilitate ancillary facilities
Restoration of Cabin D, other sheds, rehabilitation and reinstallation of the Turntable, etc.		1,090,000.00
Total Cost of I and II		6,672,247.00

(City Council also had before it, during consideration of the foregoing Clause, the following report (June 28, 1999) from the City Solicitor:

Purpose:

To respond to a request for a report on whether there should be a new Request for Proposal ("RFP") issued or whether the existing RFP can stand, given the new financial arrangement proposed.

Funding Sources, Financial Implications and Impact Statement:

This report has no financial implications as it is a matter of providing legal advice.

Recommendations:

It is recommended that this report be received for information.

Council Reference/Background/History:

At its meeting held on June 15, 1999 the Administration Committee recommended for adoption the report (June 10, 1999) of the Commissioner of Corporate Services entitled: "222 Bremner Boulevard - John Street Roundhouse (Ward 24 - Downtown)", recommending, among other things, that authority be granted to proceed with the development of the John Street Roundhouse (the "Roundhouse") by way of individual agreements relating to various portions thereof rather than by one comprehensive proposal for the entire site and that, subject to Council's approval of the necessary capital funding, a lease with Steam Whistle Brewing Limited Partnership (SWBLP) for a portion of the Roundhouse be approved in principle, subject to further negotiations in connection with appropriate rental rates and any other terms and conditions deemed necessary.

At the meeting of the Policy and Finance Committee held on June 24th, 1999, the City Solicitor was requested to report directly to Council on whether there should be a new Request for Proposal issued or whether the existing RFP can stand, given the new financial arrangement proposed.

Comments and/or Discussion and/or Justification:

As set out in the June 10, 1999 report of the Commissioner of Corporate Services, TrizecHahn was the successful proponent resulting from a Request For Expressions of Interest ("REI") concerning the rehabilitation and reuse of the Roundhouse issued on December 19, 1997. The purpose of the REI was to seek a proponent to arrive at a comprehensive proposal for the rehabilitation and reuse of the entire site. However, as indicated in the June 10, 1999 report, that REI process has effectively been concluded as TrizecHahn, being the party stipulated by Council, by its adoption of Clause No. 1 of Report No. 16 of the Corporate Services Committee on November 25, 26 and 27, 1998, to be the proponent with whom staff was to negotiate and report back with respect to the comprehensive proposal, has now declined to proceed, due to negative financial projections. It is only incidental that TrizecHahn has suggested that if a governance entity is formed for the Roundhouse, it would temporarily take part at the outset. Essentially, the June 10, 1999 report from the Commissioner of Corporate Services is the report directed to be provided on the outcome of the negotiations with TrizecHahn, being a summary of the failure of those negotiations due to TrizecHahn's lack of desire to proceed with the project. As such, the REI process as directed by Council has played itself out and therefore has been concluded.

Accordingly, the Commissioner of Corporate Services described three options for how the City may now deal with the site: the first is to "mothball" the Roundhouse; the second is to issue a new Proposal Call or Request For Expressions of Interest (but this option was not recommended since the City has already undertaken both processes without successfully finding a viable operator/head tenant for the entire site); and the third option, as set out in Recommendation No. (1) of the report, is to simply proceed to develop the Roundhouse by way of individual lease arrangements for portions of the site on a phased basis, rather than by one comprehensive proposal for the entire site.

It is now for Council to decide how it wishes to deal with the property. That is, it is open to Council to proceed, among other things, by way of a fresh RFP or REI (which may include provision for the subject base building upgrades or not), or proceed, as recommended, with the single prospective tenant who has approached the City (with provision for the subject base building upgrades or not).

Contact Name:

Robert Balfour, Solicitor Telephone: (416) 392-7225

Fax: (416) 397-4420

E-mail: rbalfour@toronto.ca)

(City Council also had before it, during consideration of the foregoing Clause, the following communications:

(i) (June 29, 1999) from Mr. Raymond L. Kennedy, Old Time Trains, in support of the proposal by Steam Whistle Brewing for the John Street Roundhouse Project;

(ii) (July 2, 1999) from Ms. Jane Beecroft, Chair, CHP Heritage Centre, The Society of Heritage Associates, in support of the proposal by Steam Whistle Brewing for the John Street Roundhouse Project; and

(iii) (June 30, 1999) from Mr. Cameron Heaps, President, Steam Whistle Brewing, advising of their commitment to the proposed John Street Roundhouse Project.)

(Mayor Lastman, at the meeting of Council on July 6, 7 and 8, 1999, declared his interest in the foregoing Clause, in that the Applicant's solicitor is a partner at the same law firm as his son, who is not a real estate lawyer and does not personally act on these files, and is representing applicants and has worked on related files.)

Toronto Police Association Poster and

Stereotyping of the Hispanic Community

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends:

(A) the adoption of the following resolutions embodied in the communication (June 10, 1999) from the Interim Community Co-Chair, City of Toronto Community Network on Policing, Anti-Racism, Access and Equity:

"(1) Toronto City Council join with the Mayor in formally expressing condemnation of the Toronto Police Association poster which promotes racist stereotyping and hostility against the Spanish speaking community, and tenders its apology to the Hispanic community and to the community at large;

(2) Toronto City Council express its concerns to the Toronto Police Association and that they be encouraged to adopt an anti-stereotyping policy and guidelines and the provision of anti-racism training;

(3) the Toronto Transit Commission, in conformity with existing municipal policy on the portrayal of the diverse community in all information and communications, be urged to implement with the support and assistance of the Access and Equity Centre, rigorous procedures in monitoring advertisements before being displayed on its properties;

(4) the Police Services Board be urged to clearly disassociate itself from the Toronto Police Association poster and also tender its regrets and apology to both the Hispanic community and community at large; and

(5) the Hate Crimes Unit of the Toronto Police Service, or an alternative independent judicial body investigate whether the Toronto Police Association poster is a chargeable offence under existing hate crimes legislation;"; and

(B) that the Access and Equity Division, within the office of the Chief Administrative Officer, be requested to facilitate a meeting with representatives of the Hispanic Community and the Toronto Police Association to find a resolution to this matter that is acceptable to all parties.

The Administration Committee submits the following communication (June 10, 1999) from the Interim Community Co-Chair, City of Toronto Community Network on Policing, Anti-Racism, Access and Equity:

On June 2, 1998, the City of Toronto Community Network on Policing, Anti Racism, Access and Equity discussed the above matter. This Network is one of the existing municipal advisory committees on access and equity established by the former Municipality of Metropolitan Toronto.

The poster ran for two weeks before it was taken down on May 31, 1999 by the T.T.C. It asks voters in the provincial election to "help fight crime by electing candidates who are prepared to take on the drug pushers, the pimps and the rapists�" It links this message with a picture that depicts a Hispanic gang. Members of the Hispanic community in Toronto have been deeply hurt by the poster because it "clearly enforces racist stereotyping and hostility against the Spanish speaking community".

The Network includes representatives of ethno-racial, Aboriginal, and other community stakeholder organisations and members of Council. It is supported by the City's Access and Equity Centre.

The Network strongly urges the City of Toronto Council to condemn this poster. A strong statement by City Council will demonstrate its political leadership, enhance its public image, and help to inspire community attitudes in keeping with the City's commitments in the fields of access, equity, race relations and diversity.

The Network notes that the right to free and unfettered political speech and debate is fundamental to a democratic society. However this right to free political expression must not be allowed to be abused by exploiting, causing or initiating prejudice. There can be no place in the democratic process of our society for those who seek to incite, whether blatantly or covertly, hatred, prejudice and discrimination. Council has the opportunity and obligation to clearly disassociate itself from a poster displayed on municipal property by an association representing municipal employees.

Therefore the Network requests Council to endorse the following resolutions:

(1) Toronto City Council join with the Mayor in formally expressing condemnation of the Toronto Police Association poster which promotes racist stereotyping and hostility against the Spanish speaking community, and tenders its apology to the Hispanic community and to the community at large;

--------

The following persons appeared before the Administration Committee in connection with the foregoing matter:

- Mr. Steve Rutchinski, The People's Front/East Indian Defence Committee, and filed a written submission in regard thereto;

- Ms. Elvira Sanchez de Malicki, Founding President, Canadian Hispanic Congress;

- Councillor Joe Mihevc, Chair, Community Access and Equity; and

- Councillor Sherene Shaw, Scarborough Agincourt.

Acquisition of Vacant Lot on Unopened Midland Avenue

Road Allowance (Ward 13 - Scarborough Bluffs)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (June 2, 1999) from the Commissioner of Corporate Services:

Purpose:

To seek authorization to accept a conveyance of a vacant lot on an unopened road allowance in exchange for an income tax receipt.

Financial Implications:

None.

Recommendation:

It is recommended that the Administration Committee and Council accept the conveyance of Lot 76, Registered Plan 1566, in exchange for an income tax receipt, indicating the value of the lands being transferred is $28,000.00.

Background:

Mr. and Mrs. John R. Murdoch, through their solicitor, have offered to convey a parcel of vacant land fronting on an unopened road allowance (part of the original Midland Avenue, south of Kingston Road) to the City in exchange for a tax receipt in an amount equal to the market value of the site.

The lands are part of a ravine which follows the southerly extension of Midland Avenue, south of Kingston Road. The City owns lands immediately to the south of the Murdoch holdings as well as a considerable tract of land on the west side of this unopened road allowance. A steep ravine running along the unopened road allowance precludes any development of the properties in this area.

The Murdoch lands are located within a Major Open Space Zone in the Cliffside Community Zoning By-law and are identified as Minor Open Space in the Cliffside Community Secondary Plan.

Works and Emergency Services responded to a departmental circulation of the property's availability recommending the property be acquired as part of the Midland Avenue ravine.

An appraisal report prepared by S. Spera and Associates Limited estimated the market value of the property which measures 50' x 125' at $28,000.00.

Conclusion:

The acquisition of this site will increase the City's holdings in the Midland ravine at a nominal cost. No additional operational/maintenance costs are anticipated with this acquisition. Acquisition in exchange for a tax receipt is therefore recommended.

Contact Name:

Roly Mayr, Telephone No. (416) 392-1166; Fax No. (416) 392-1880; mayr@city.scarborough.on.ca.

(A copy of the maps attached to the foregoing report was forwarded to all Members of Council with the June 15, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)

Acquisition of C.N. Belt Line Railway in the

Former City of York, Between Marlee Avenue

and Caledonia Road (Ward 28 - York Eglinton)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the confidential report (June 3, 1999) from the City Solicitor, entitled "Acquisition of C.N. Belt Line Railway in the former City of York between Marlee Avenue and Caledonia Road," which was forwarded to Members of Council under confidential cover, such report to remain confidential in accordance with the provisions of the Municipal Act.

380-400 Richmond Street - Purchase and Sale

Agreement with Context Development Inc.

(Ward 24 - Downtown)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the Recommendations of the Administration Committee embodied in the confidential communication (June 21, 1999) from the City Clerk, respecting the Purchase and Sale Agreement with Context Development Inc., which was forwarded to Members of Council under confidential cover, such report to remain confidential in accordance with the provisions of the Municipal Act.

(City Council on July 6, 7 and 8, 1999, had before it, during consideration of the foregoing Clause, the following confidential communication (June 21, 1999) from the City Clerk:

Recommendation:

The Administration Committee recommends the adoption of the confidential report (June 3, 1999) from the President, Toronto Parking Authority, subject to:

(i) inserting at the beginning of Recommendation No. (3) the words "subject to approval of the Ontario Municipal Board", so that Recommendation No. (3) now reads as follows:

"(3) subject to approval of the Ontario Municipal Board, approve the enactment of a special levy under paragraph 56 of section 207 of the Municipal Act in the amount of $385,000 to be levied against the benefitting property owners in the proportions outlined on Schedule 'A' attached;";

(ii) adding thereto the following new Recommendation No. (5):

"(5) leave be granted for the introduction of the necessary Bill in Council to give effect thereto;"; and

(iii) renumbering the remaining Recommendation No. (5) as Recommendation No. (6).

Background:

The Administration Committee at its in-camera meeting on June 15, 1999, had before it a confidential report (June 3, 1999) from the President, Toronto Parking Authority, recommending that City Council:

(1) approve a Purchase and Sale Agreement with Context Development Inc. whereby the Parking Authority will purchase the Public Parking Component containing approximately 115 public parking spaces to be located on the second and third levels above grade of the proposed mixed-use project;

(2) authorize the expenditure of funds in the amount of $2.4 million. The total funding request includes the purchase price, land transfer tax, appraisal, legal and environmental fees, development costs and contingencies;

(3) approve the enactment of a special levy under paragraph 56 of section 207 of the Municipal Act in the amount of $385,000 to be levied against the benefitting property owners in the proportions outlined on Schedule 'A' attached;

(4) designate the Public Parking Component for municipal parking purposes; and

(5) authorize appropriate City Officials to undertake the actions necessary to give effect thereto.

(Confidential Report dated June 3, 1999,

from the President, Toronto Parking Authority,

addressed to the Corporate Services Committee)

Purpose:

To provide additional public parking by purchasing a stratified component of a proposed mixed-use development at the above noted location, containing 115 public parking spaces to be located on the 2^nd and 3^rd levels above grade (the "Public Parking Component").

Funding Sources, Financial Implications and Impact Statement:

The Parking Authority is proposing to spend $2.4 million to purchase the Public Parking Component. Capital funds in the amount of $5.0 million were approved for the Queen and Spadina area (Capital account 216-030) as part of the Authority's five year capital budget, of which the Authority will be drawing down $2.4 million. The Parking Authority has completed a financial analysis which indicates that although the parking facility will operate at an operating profit, these profits will not cover the cost of construction. Based on the purchase price negotiated with the developer, the Authority requires a Benefitting Assessment ("BA") of $385,000.00.

Recommendations:

It is recommended that City Council:

(4) designate the Public Parking Component for municipal parking purposes; and

(5) authorize appropriate City Officials to undertake the actions necessary to give effect thereto.

Council Reference/Background History:

In March 1998, the owners of 380-400 Richmond Street West approached the Parking Authority to acquire an interest in the public parking component of their project. Context Development Inc., which is owned jointly by Waterloo Capital Corporation and C & A Developments is about to commence construction of a mixed-use project with commercial uses at grade, an above grade public parking garage on the second and third levels and 149 condominium units above. The project is known as the "District Lofts" and is located on the north side of Richmond Street West just east of Spadina Avenue.

Parking Authority staff have determined that there is a significant parking shortfall in the area, and as a result we were interested in acquiring the public parking portion of the development. At its meetings of March 30 and May 26, 1999, the Parking Authority Board of Directors approved a Purchase and Sale Agreement to purchase the Public Parking Component for municipal parking purposes.

Summary of Purchase and Sale Agreement

The basic terms and conditions of the Purchase and Sale Agreement are as follows:

(1) Context Development Inc. agrees to build and sell to the Parking Authority approximately 115 public parking spaces built to the Parking Authority's standard specifications. The purchase price is $2,320,000 to cover construction costs . The remainder of the funds being authorized, $80,000.00, will pay for land transfer tax, legal and environmental fees, development costs and contingencies.

(2) The closing of this transaction will take place 60 (sixty) days following the date of substantial completion of the entire project and after the lien period has expired.

(3) The Public Parking Component will be built on the 2^nd and 3^rd levels of the project in accordance with schematic designs approved by the Parking Authority.

(4) Context has agreed that in the event that the TPA is unsuccessful in obtaining the BA, it will reduce the purchase price by the amount of the BA (385,000) in return for participation in the net operating profits of the garage. The percentage of participation will be determined by taking the proportional costs of the BA and dividing it by the total cost of the garage. For example, if as expected the cost of the garage is $2.32 million and the BA is $385,000, the BA amount represents approximately 16% of the cost of the garage. Each party will amortize their respective capital costs over an agreed upon term. Initial net operating profits will be divided between the Parking Authority and Context proportional to the amount amortized in each year. If, in any year, there are profits in excess of the amortized capital costs, Context will be eligible to receive 16% of the net profits . Prior to closing the Parking Authority has the option to cancel this participation arrangement by paying the full amount of the purchase price, including the $385,000.00, to Context on closing.

(5) Context will require the Parking Authority to pay two deposits of $100,000.00 each, the first, upon approval from City Council and execution of the Purchase and Sale Agreement and the second upon approval of the BA or within one year of execution of the Agreement, whichever is earlier. The deposit will be held in trust by the vendors' lawyer and the deposit plus interest will be applied toward the purchase price on closing. The request for deposits is normal in any Purchase and Sale Agreement. The total deposit is less than 10% of the total purchase price.

(6) Context previously agreed with a local property owner to provide an option to rent up to 30 parking spaces to that owner for its tenants within the residential below grade parking garage component of the project. Context has informed us that they may not be able to accommodate all these spaces within the residential parking garage component and as part of the Purchase and Sale Agreement they want the right to rent up to 15 spaces from the Parking Authority. The spaces will be non reserved and Context will be required to pay the posted monthly rate. Since these spaces would be allotted to a specific party, it is clear that the local businesses who are funding the BA are not truly benefitting from the use of the entire Public Parking Component. Therefore, if Context exercises its option to lease the spaces, the BA and the purchase price will be reduced in proportion to the number of spaces that they secure. For example if 15 spaces are secured, the BA and the purchase price will be reduced by approximately $50,000.

(7) The Purchase and Sale Agreement is subject to the approval of City Council.

Comments and/or Discussion and/or Justification:

Parking Demand:

The site at 380-400 Richmond Street is located in the King/Spadina revitalization area. This area is currently undergoing rapid redevelopment. Many of the older industrial buildings in the area are being converted to commercial and residential uses. The majority of these properties do not include parking. In addition, the special zoning provisions adopted in this area require very low levels of parking for new buildings. The area is currently served by a large number of public and private sector car parks which can be expected to largely disappear as the area continues to redevelop. Parking demand in this area can be expected to continue to increase. The preliminary estimate of parking shortfall based on area land use is about 200 spaces. This development will meet a portion of this shortfall.

Financial Analysis

The Parking Authority has conducted a financial analysis which indicates that although the parking facility will operate at an operating profit, these profits will not completely cover the cost of construction. Based on the purchase price for 115 public spaces, the Authority will require a BA of $385,000. We have had preliminary discussions with some of the businesses and we believe that there will be substantial support for BA due to the significant shortfall of parking in the area. The developer has agreed that in the event the Parking Authority is unsuccessful in obtaining the BA, it will reduce the purchase price by the amount of the BA and in return it will secure participation in the profits of the garage.

Profile of Developer

Context Development Inc. is a development corporation formed by the principals of Waterloo Capital Corporation and C & A Development. For almost three years, the principals of Context have been concentrating on the development and financing of various types of residential condominiums in the downtown market. This project which is known as the District Lofts is about to commence construction and will have 149 condominium units. Other projects include 20 Niagara Street, Upper East Side (located at Pape and Danforth) and, most recently, Kensington Market lofts.

Conclusions:

Staff have determined that there is a significant public parking shortfall in the area and this acquisition is consistent with the Parking Authority's mandate to try to meet the parking requirements of the area. The Parking Authority benefits because it is only paying for the construction cost of the Public Parking Component and is not required to incur a land cost which would normally be attributed to such an acquisition. The developer benefits as it will obtain public parking which will help the leasing of its commercial component. It is recommended that City Council approve the transaction as described above.

Contact Names:

Maurice J. Anderson, President

Telephone: (416) 393-7276

Facsimile: (416) 393-7352

Lorne Persiko, Director, Real Estate & Development

Telephone: (416) 393-7294

Facsimile: (416) 393-7352

(City Council also had before it, during consideration of the foregoing Clause, the following report (June 28, 1999) from the President, Toronto Parking Authority:

Recommendation:

That Council adopt the Recommendations of Administration Committee Report No. 1, Clause No. 5 and authorize the City Solicitor to make the required application for approval to the Ontario Municipal Board subject to the receipt of a petition objecting to the levy as provided for in the Municipal Act.

Comments:

Prior to writing the above-noted report regarding the proposed 115-space above-grade parking garage at 380-400 Richmond Street West, the Toronto Parking Authority (TPA) had preliminary discussions with several of the local businesses owners and felt that there was substantial support for a Benefitting Assessment (BA). Subsequent to that report, the TPA conducted a poll of the property owners and the results of that poll did not reflect the outcome of the preliminary discussions that had taken place.

The TPA conducted the above-noted poll by mail of fifty-three addresses representing the 40 local property owners. Response to the Benefitting Assessment (BA) was weak. Only nine (9) property owners responded (22% of total owners). Of these nine responses, eight (8) were not in favour of imposing a levy on their property to cover the development costs of the proposed garage.

The TPA believes that due to the low response rate, the BA as described in Administration Committee Report No. 1, Clause No. 5. should be pursued. Since this matter automatically goes to the Ontario Municipal Board (OMB), local property owners will still have the right to appeal the BA. The City of Toronto is required under Paragraph 56 of Section 207 of the Municipal Act to apply to the OMB for approval of parking lot costs. The OMB shall not approve the by-law if a petition objecting to the levy, signed by at least two-thirds of the assessed owners, representing at least one-half of the total assessment of the land in the area defined in the by-law, is filed with the OMB at or prior to the hearing of the application.

Contact Names:

Maurice J. Anderson, President

Telephone: (416) 393-7276

Facsimile: (416) 393-7352

Lorne Persiko, Director, Real Estate & Development

Telephone: (416) 393-7294

Facsimile: (416) 393-7352)

Sale of Surplus Spadina Project Property

at 42 Gloucester Grove

(Ward 28 - York Eglinton)

(City Council on July 6, 7 and 8, 1999, amended this Clause by adding thereto the following:

"It is further recommended that the Acting Commissioner of Corporate Services be requested to:

(1) include, in the review of the property sale process currently being prepared for submission to the Administration Committee, detailed provisions to ensure that the Offer delivery process is not compromised when real estate brokers are utilized in the sale of City property; and

(2) ensure that a copy of all Offers received for the purchase of City-owned property be retained in the City's files.")

The Administration Committee recommends the adoption of the following report (June 2, 1999) from the Commissioner of Corporate Services:

Purpose:

To authorize the disposal of the property municipally known as 42 Gloucester Grove.

Funding Sources, Financial Implications and Impact Statement:

Revenue of $281,100.00, less closing costs and the usual adjustments, subject to the revenue sharing agreement with the Province pursuant to Clause No. 1 of Report No. 25 of the former Metropolitan Corporate Administration Committee, approved on December 4, 1996.

Recommendations:

It is recommended that:

(1) the Commissioner of Corporate Services or the Executive Director of Facilities and Real Estate be authorized to accept the highest offer in the amount of $281,100.00 as detailed herein;

(2) Council, pursuant to Clause No. 14 of Report No. 22 of the former Metropolitan Management Committee adopted on September 28, 1994, waive the minimum required deposit of 10 per cent of the purchase price;

(3) authority be granted to direct a portion of the sale proceeds on closing to fund the outstanding balance of Costing Unit No. CA700CA2524;

(4) the City Solicitor be authorized and directed to take the appropriate action, in conjunction with Province of Ontario Officials and/or agents, to complete the transaction on behalf of the City and he be further authorized to amend the closing date to such earlier or later date as he considers reasonable; and

(5) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

The Province of Ontario is the owner of 42 Gloucester Grove, subject to a ninety-nine year lease in favour of the City of Toronto. By its adoption of Clause No. 1 of Report No. 3 of The Corporate Administration Committee on February 12 and 13, 1997, Metropolitan Council declared the property surplus pursuant to By-law No. 56-95 and authorized its disposal. The procedures with respect to By-law No. 56-95 have been complied with, a utility canvass has been completed and the only requirement is set out below.

By its adoption of Clause No. 4 of Report No. 9 of The Corporate Services Committee of July 8, 9 and 10, 1998, Toronto Council authorized that properties listed in Schedule "A", including the subject property, be offered to such tenants at market value determined as of the date of expression of their interest and that such sale be subject to an option to repurchase at that purchase price (unadjusted) for a period of two years. Accordingly, the tenant was provided with our July 2, 1997 appraisal estimating the fair market value of this property at $225,000.00 together with an Agreement of Purchase and Sale. The tenant, Anne Marie Kopp, subsequently advised that she was not prepared to proceed with the purchase of the property but instead would prefer the financial incentive to vacate. Subsequently, Ms. Kopp vacated her rented premises (December 31, 1998) and was thereafter credited $3,688.44 as a financial incentive.

Comments and/or Discussion and/or Justification:

Pursuant to the February 12 and 13, 1997 authority, the property was listed with Forest Hill Real Estate Inc. on April 29, 1999 at an asking price of $239,900.00. As a result, the following offers were received:

Purchaser Purchase Price Deposit Terms

Godfrey Higgins and $281,100.00 $14,500.00 No Conditions

Clara Gavino (bank draft)

Edward D. Nagel and $276,500.00 $20,000.00 No Conditions

Hyla H.B. Levy

Purchaser Purchase Price Deposit Terms

Michael, Zavie and $252,252.00 $12,612.60 No Conditions

Gail Yablonsky

Jennifer Glickman $250,393.00 $13,000.00 No Conditions

and Robert Glickman

The highest offer is recommended for acceptance:

Property Address: 42 Gloucester Grove.

Legal Description: The easterly 32 feet of Lot 18, Registered Plan 2339, City of Toronto, designated as Part 24 on Expropriation Plan 7777, together with and subject to the rights-of-way and encroachments thereon as set out in Instrument No. YORK 537600.

Approximate Lot Size: 9.45 metres (32 feet) fronting onto Gloucester Grove,

33.53 metres (110 feet) depth.

Easement: N/A.

Location: North side of Gloucester Grove, north of Ava Road, south of Eglinton Avenue West.

Improvements: Detached, 3 bedroom, brick and stone bungalow.

Occupancy Status: Vacant.

Recommended Sale Price: $281,100.00.

Deposit: $14,500.00 (bank draft).

Purchaser: Clara Gavino and Godfrey Higgins.

Closing Date: August 16, 1999.

Terms: Cash on closing, subject to the usual adjustments.

Listing Broker: Forest Hill Real Estate Inc.

Selling Broker: Sutton Group - Royal Realty Inc.

Commission: Four (4) per cent plus G.S.T., payable on closing of the transaction.

By the adoption of Clause No. 5 of Report No. 9 of The Corporate Services Committee, Council at the meeting held on July 8, 9 and 10, 1998, directed that comparable sales data be provided in future reports of property sales. Appendix "A", identifies three comparable properties located in the vicinity that have recently sold. While comparable sales information can be included as part of the staff report, this property was listed for sale on the TREB multiple listing service and the forces of the market place have determined the true market value.

Conclusion:

Completion of this transaction detailed above is considered fair and reasonable and reflective of market value.

Contact Name:

Michelle DeVey, Valuator-Negotiator, Real Estate Services, (416)392-8160,

Fax No.: (416)392-4828, E-Mail Address: michelle_devey@metrodesk.metrotor.on.ca.

--------

Appendix "A"

42 Gloucester Grove - Comparable Sales

The following three addresses represent comparable sales of properties that are quite similar to the residence which forms the subject matter of this report. These three properties consist of detached, three bedroom dwellings.

Approximate

Address Lot Size Sale Price Date of Sale

111 Everden Road 31' x 110' $267,850.00 May 11, 1999

36 Gloucester Grove 27.5' x 100' $293,700.00 April 13, 1999

11 Watford Avenue 27.5' x 101' $255,000.00 February 11, 1999

Sale of City-Owned Property Known Municipally

as 197, 197 Rear, 201 Yonge Street and

170 Victoria Street (Ward 24 - Downtown)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (June 7, 1999) from the Commissioner of Corporate Services:

Purpose:

To provide the Administration Committee with information on the offers received for the sale of the City-owned property municipally known as 197, 197 Rear, 201 Yonge Street and 170 Victoria Street and to recommend that the Offer to Purchase submitted by Parasuco Jeans Inc. in the amount of $5,000,000.00 be accepted.

Financial Implications:

The sale of this property for the amount of $5,000,000.00 less real estate commission and GST will result in a net amount of approximately $4,786,000.00. It is noted that in a report approved by City Council on July 8, 9 and 10, 1998, dealing with the Yonge Dundas Redevelopment Project, the sale of this property was identified as a measure to offset the net cost of the Yonge Dundas Project.

Recommendation:

It is recommended that the Offer to Purchase from Parasuco Jeans Inc. to acquire 197, 197 Rear, 201 Yonge Street and 170 Victoria Street, in the amount of $5,000,000.00, including a deposit of $500,000.00, be accepted and:

(A) that the City Solicitor be authorized and directed to complete this transaction according to the terms and conditions of the Offer to Purchase and pay any expenses incurred by the City incidental to the closing of the transaction or otherwise;

(B) that the City Surveyor furnish the necessary legal description;

(D) that the appropriate City officials be authorized and directed to take the necessary action to give effect hereto.

Background:

Theatre Block:

In October of 1982, City Council designated an area bounded by Yonge, Queen, Victoria and Shuter Streets as a redevelopment area under the Planning Act. This area is known as the "Theatre Block" and contains three major and historical theatre and concert hall facilities (the Elgin and Winter Garden theatres located on Yonge Street and Massey Hall on Shuter Street) and three historical bank structures (173, 197 and 205 Yonge Street). The Revitalization Concept for the Theatre Block, approved in August of 1987, focussed on creating enlivened central public space that would serve as a focal point for the Theatre Block and would also integrate the historical buildings. In its commitment towards this revitalization concept, City Council in October of 1988 adopted a Part II Official Plan for the Theatre Block. The City proceeded to acquire key properties (Nos. 197, 197R, 201 and 205 Yonge Street and 170 Victoria Street) as they became available.

Partial funding for the revitalization concept was to be secured from the sale of surplus density from the City's lands to the owners of the development site proposed at the northeast corner of Queen and Yonge Streets. The development did not proceed and the sale of density was never completed. Due to the lack of funding, redevelopment within the Theatre Block did not proceed as anticipated.

Description of the City's Holdings:

The City is the owner of lands known municipally as 197, 197R, 201 and 205 Yonge Street and described as PARTS 1, 2, 3, 4, 5, 6, 7 and 8 on Reference Plan 66R-15815. The total site area of the City holding is 24,534 square feet. We are not selling 205 Yonge Street and accordingly, the area of the site being offered for sale comprises 20,178 square feet with frontage on Yonge Street of 88.48 feet and 39.00 feet on Victoria Street. It is noted that the Yonge Street frontage is zoned CR T6.0 C4.5 R6.0 H.46.0 and the Victoria Street frontage is zoned CR T7.8 C4.5 R7.8 H61.0.

197 and 197R Yonge Street:

In May 1987, the City acquired 197 Yonge Street and 197R Yonge Street from the Canadian Imperial Bank of Commerce for the sum of $2,695,000.00. The City subsequently entered into an agreement with the Ontario Heritage Foundation, the owner of 189 Yonge Street and 156 Victoria Street, the Elgin Winter Garden Theatre, for an exchange of lands. The City conveyed to the Ontario Heritage Foundation lands to facilitate the backstage addition to the Elgin Winter Garden Theatre and in exchange, the City acquired additional lands fronting on Victoria Street. Existing rights-of-way were extinguished and easements were granted to the Ontario Heritage Foundation and the owner of 193 Yonge Street to facilitate ongoing operations at both locations.

In 1990, 197 Yonge Street was designated by by-law to be of architectural value and interest. Attempts, including a proposal call, have been made to lease the building, however, renovation costs, leasehold improvement costs, accessibility and costs to preserve its historical significance proved to be too high to attract a lessee, so that the building has remained vacant. The site has been the source of numerous complaints due to debris, vagrants and illegal street vending at the front of the building and debris and illegal parking at the rear. The City has installed barriers to prevent the vagrancy and illegal street vending.

201 Yonge Street:

In September 1983, Cadillac Fairview conveyed 201 Yonge Street and 170 Victoria Street to the City in exchange for the right to preserve certain density at the Bay/Dundas Street West corner. The Colonial Tavern, located at 201 Yonge Street, was demolished. Certain interim park improvements (known as Jazz Place Park) were undertaken in 1996 which included a low stage, a seating wall and a crushed stone path leading to the parking area at the rear. A plaque placed in the ground commemorates the Colonial Tavern and the history of jazz in Toronto.

Certain of the City lands at 170 Victoria Street (now merged with 201 Yonge Street) are subject to easements in favour of the owners of 193 Yonge Street and 189 Yonge Street for loading and unloading to the rear of their buildings as shown on the attached plan. In addition, the City granted the Corporation of Massey Hall and Roy Thompson Hall a 12 foot temporary right-of-way over the northerly limit of 170 Victoria Street, as shown hatched on the attached plan, that continues to be in use until further notice.

205 Yonge Street:

205 Yonge Street, while not a subject of this report for disposal, was acquired from the Toronto Dominion Bank in 1989 for a purchase price of $3,200,000.00. As a condition of sale, the City entered into a 99 year lease with the Toronto Dominion Bank for the exclusive and continuous occupancy of two automated teller machines (ATMs) at a rental rate of $1.00 per annum. The ATMs are located at the southwest corner of the building and are accessed from the south side of the building. Also located at this corner is a disability access ramp to 205 Yonge Street. This former Bank of Toronto building is designated under the Ontario Heritage Act. Extensive renovations were undertaken in 1992 to accommodate the offices of Heritage Toronto.

Comments:

At its meeting held on July 29, 30 and 31, 1998, City Council adopted Clause No. 47 of Report No. 11 of The Corporate Services Committee declaring the property surplus and to proceed with the sale of the property on the open market using a real estate Broker at a listing to be determined with the Broker, and to report back to the City Council on the details of the sale.

In addition to receiving a recommendation from the listing Broker regarding the listing price, the City hired an independent appraisal firm to provide an estimate of value for the property. The appraisal firm appraised the property to be within the range of $5 to $5.4 million.

The property was originally listed for $5.6 million on the open market with Avison Young Commercial Real Estate (Ontario) Inc. on October 28, 1998 with an offer submission deadline of 5:00 p.m. on December 15, 1998. Four unacceptable offers were received at that time. The property was re-listed with the same Broker for $5 million on April 7, 1999 with an offer submission deadline of 12:00 noon on June 3, 1999. Three offers were received prior to the deadline and are discussed below.

Offer No. 1:- Recommended Offer:

Purchaser: Parasuco Jeans Inc.

128 Deslauriers Street

Quebec, Canada, H4N 1V8

Purchase Price: $5,000,000.00

Deposit: $500,000.00 (Certified)

Intended Use: Retail Apparel Use

Solicitor: David M Kutner

Minden Gross Grafstein & Greenstein

111 Richmond Street West, Suite 700,

Toronto, Ontario

M5H 2H5

GST. No.: R104719117

Irrevocable Date: Until 4:30 p.m. on the 70 day from June 2, 1999

Due Diligence Date: 45 Days from acceptance date by the City

Closing Date: 20 Days following "Due Diligence" period

The unamended Offer to Purchase agreement submitted by Parasuco Jeans Inc. was duly executed by the purchaser on June 2, 1999. The transaction involved a co-broker transaction with a $500,000.00 deposit by certified cheque. Apart from the City's "Standard" conditions and clauses shown below, this offer contained no changes or amendments.

This offer contains the highest offer price and was submitted in an unaltered form with no amendments and full deposit of $500,000.00 by certified cheque. Consequently, this offer is recommended to your Committee for acceptance.

Offer No. 2:

Purchaser: Context Real Estate Inc.

229 Yonge Street, Suite 500

Toronto, Ontario

M5B 1N9

Purchase Price: $4,600,000.00

Deposit: No deposit submitted with offer

The deposit of $460,000.00 will be provided on notification of recommendation to Council.

Intended Use: Residential/Retail Commercial Use

Solicitor: Harris Sheaffer

Phillip J. Draper

4100 Yonge Street, Suite 310,

Toronto, Ontario

M2P 2B5

GST. No.: 867902165

Irrevocable Date: Until 4:30 p.m. on the 70 day from June 3, 1999

Due Diligence Date: 60 days from acceptance date by the City

Closing Date: 90 Days following "Due Diligence" period

The altered and amended Offer to Purchase agreement submitted by Context Real Estate Inc. included conditions including confirmation of the density to be distributed between the front and back zones; confirmation that the back portion of 197 Yonge Street can be demolished while retaining the front "historic" portion in the context of a comprehensive plan for the site, and, "the Vendor, after closing agrees not to object to the processing of the Purchaser's development and zoning plans and this covenant may be pleaded as an estoppel to any such objection and shall be binding on the Vendor's successors and assigns in title and the vendor agrees to extract a similar covenant from any subsequent purchaser of any retained lands abutting the property."

This offer contained a purchase price lower than the offer price offered by Parasuco Jeans Inc; requests a longer "Due Diligence" period; was altered from its original form and contained amendments which are not acceptable. Further, no deposit cheque was submitted with the offer on the submission date. This offer is not recommended.

Offer No. 3:

Purchaser: Elcarim Inc.

27 Ellis Park Road

Toronto, Ontario

M6S 2V4

Purchase Price: $2,500,000.00

Deposit: No deposit submitted with the offer

(5 percent or $125,000.00 to be submitted upon acceptance by City Council)

Intended Use: To restore and preserve the historical heritage significance of the building at 197 Yonge Street and redevelop the balance of the property for retail and residential condominium development.

Solicitor: Robert B. Aaron

Aaron & Aaron

10 King Street East, 14 Floor

Toronto, Ontario

M5C 1C3

GST. No.: 892-319088

Irrevocable Date: Until 4:30 p.m. on the 70 day from June 2, 1999

Due Diligence Date: 45 days from acceptance date by the City

Closing Date: January 25, 2000

This offer is conditional for a period of 6 months from the date of acceptance by the City upon the Purchaser completing the sale of the Purchaser's property at 1947 Bloor Street West, in the City of Toronto. Failing which the offer shall become null and void and the Purchaser's deposit shall be returned in full without any deductions plus interest.

This offer contained the lowest offer price at $2.5 million; is conditional on the sale of the purchaser's property; has the longest closing date and was submitted with no deposit. This offer is not recommended.

The Offer to Purchase agreement submitted by Parasuco Jeans Inc. for the purchase of this property contains standard conditions including the following more relevant clauses.

Due Diligence:

The Purchaser shall be allowed a period of forty-five (45) days from the Acceptance Date (the "Due Diligence Period") to examine at the Purchaser's own expense the title to the Real Property, and to satisfy itself that:

(a) the title to the Real Property is good and free from all registered restrictions, charges, liens, and encumbrances except as otherwise specifically provided in this Agreement and save and except for: (i) any registered restrictions or covenants that run with the Real Property, provided that such have been complied with; (ii) any registered municipal agreements and agreements with publicly regulated utilities, provided that such have been complied with; (iii) any easements and rights of way, including but not limited to those described on Schedule "A" hereto; (iv) any qualifications, reservations, provisos and limitations imposed by any applicable statute; (v) any discrepancies in title or possession which would be disclosed by an up-to-date survey; and

(b) there are no outstanding orders, deficiency notices or directives issued by any federal, provincial or municipal authority affecting the Real Property.

The Vendor hereby consents to the release by governmental authorities to the Purchaser of details of all outstanding municipal work orders or deficiency notices affecting the Real Property, and the Vendor agrees to execute and deliver to the Purchaser such further authorizations in this regard as the Purchaser may reasonably require.

If, within the Due Diligence Period, the Purchaser notifies the Vendor or the City Solicitor (referred to in Section 10.1) of any valid objection to title or to any outstanding order, deficiency notice or directive and which the Vendor is unable or, in its sole discretion, determines not to remove, remedy or satisfy and which the Purchaser will not waive, this Agreement shall, notwithstanding any intermediate acts or negotiations in respect of any such objection, be at an end and the Deposit shall be dealt with in accordance with the provisions of Section 3.1 and the Vendor shall not be liable for any costs or damages. Save as to any valid objection so made within the Due Diligence Period, and except for any objection going to the root of title, the Purchaser shall be conclusively deemed to have accepted the Vendor's title to the Real Property.

Environmental Matters:

"The Vendor has not undertaken any environmental assessments. The Purchaser agrees to accept the real property in its present condition, except as set out in this clause, and acknowledges that the Vendor makes no warranty or representation to the Purchaser as to the physical and environmental condition of the Real Property, including, but without limitation, the condition of the soil, both surface and subsurface, the existence of any sub-surface installations or the existence of any Hazardous Substance on the site. "Hazardous Substance" in this paragraph means any contaminant, pollutant, dangerous substance, potentially dangerous substance, noxious substance, toxic substance, hazardous waste, flammable material, explosive material, radioactive material, urea-formaldehyde foam insulation, asbestos, PCBs and any other substance or materials declared or defined to be hazardous, toxic, a contaminant, or a pollutant in or pursuant to any applicable federal, provincial or municipal statutes, by-laws, regulations or orders.

During the Due Diligence Period, the Purchaser may, at its own expense and risk and in accordance with the provisions set forth below, conduct its own environmental assessment of the Real Property (the "Assessment") provided, however, that nothing herein contained shall be deemed to authorize or permit the Purchaser to request any governmental inspections of the Real Property. If the Purchaser wishes to conduct the Assessment, then the following provisions shall apply:

(a) The Purchaser shall submit a written proposal outlining the nature, timing and duration of the Assessment and subject to the approval of the Commissioner of Corporate Services of the Vendor, or her designate (the "Commissioner"), conduct the Assessment within the Due Diligence Period. The Purchaser shall repair any damage caused to the Real Property as a result of the Assessment and shall indemnify and save harmless the Vendor from all claims, actions, damages, losses, costs and expenses that the Vendor may pay, suffer or incur as a result of the acts or omissions of the Purchaser or its agents in conducting the Assessment. Prior to entering on to the Real Property to conduct the Assessment, the Purchaser shall deliver to the Vendor evidence that the Purchaser and its agents have obtained a policy of insurance for the conduct of the Assessment on the Real Property in an amount not less than $5,000,000.00, and that the Vendor is a named insured;

(b) The Purchaser shall not undertake the Assessment without the approval of the Commissioner (which approval shall not be unreasonably delayed or withheld). Upon completion, the Purchaser shall promptly deliver a copy of the Assessment to the Vendor;

(c) The Standard (the "Standard") for the purposes of this Agreement is the Industrial/Commercial land use set out in the guideline published by the Ministry of Environment of the Province of Ontario, entitled Guideline for Use at Contaminated Sites in Ontario and revised February 1997. If, before the expiration of the Due Diligence Period, the Purchaser's Assessment reveals that the Real Property does not meet the Standard, then subject to subsection (d) below, the Purchaser shall have the right to terminate this Agreement by written notice to the Vendor prior to expiration of the Due Diligence Period. If the Purchaser fails to deliver such notice to the Vendor within the Due Diligence Period, the Purchaser shall have no further right of termination under the provisions of this Article 7 and shall be deemed to have waived or satisfied this condition;

(d) The Purchaser may terminate this Agreement pursuant to subsection (c) only if the Assessment discloses that the Real Property does not meet the Standard. The Purchaser's right to terminate this agreement is conditional on the Purchaser providing to the Vendor prior to the termination, a copy of the Assessment and an estimate of the cost of restoring the Real Property to meet the Standard to the Vendor, together with such other evidence as the Vendor may reasonably require, confirming that the Assessment does not meet the Standard; and

(e) Upon any termination of this Agreement without completion: (i) the Purchaser shall forthwith return all copies of environmental assessments, if any, provided to the Purchaser by the Vendor; and (ii) the Purchaser shall keep strictly confidential the provisions of the Vendor's environmental assessments and any Assessment that the Purchaser has obtained and shall not use the information contained therein for any purpose whatsoever.

Schedule 'A' Conditions:

The Property is being sold subject to the following easements:

(1) over Parts 1 and 4 on Plan 63R-3426 and Parts 4, 6 and 7 on Plan 66R-15815, as set out in Instrument Nos. C468591 and CT948092 registered on May 12, 1988, in favour of the Ontario Heritage Foundation;

(2) over Parts 1 and 4 on Plan 63R-3426 and Parts 4, 6 and 7 on Plan 66R-15815, as set out in Instrument Nos. C468596 and CT948093 registered on May 12, 1988, in favour of Olympia & York Developments Limited;

(3) over Part 8 on Plan 66R-15815, as set out in Instrument Nos. 89860 and 89861 registered on June 26, 1913, in favour of the Heinzman Building (193 Yonge Street) and the Ontario Heritage Foundation (Elgin Theatre Property); and

(4) to be created in favour of the Vendor, over the northerly limit of 201 Yonge Street, having a proposed width of approximately 13.50 feet and a length of approximately 122 feet, to preserve an existing concrete accessibility ramp and enclosed stairwell.

The Property is being sold subject to the following encroachments:

Relating to Parts 1 and 2 on Plan 66R-15192, as set out in Instrument No. CT948094 registered on May 12, 1998, the northerly wall of the building at 193 Yonge Street encroaches onto the southerly limit of 197 Yonge Street. The particularized list of the encroachments is set out in Schedule "C" of Instrument No. CT948094.

The Property is being sold subject to the following Heritage Agreement:

The Property is being sold subject to a Heritage Easement to be entered into between the Vendor and the Purchaser, to preserve the historical significance of the building at No. 197 Yonge Street. The form of such heritage easement shall be at the discretion of the Vendor but shall be similar in form to heritage easements entered into by the Vendor in similar circumstances."

Schedule 'B'

(Amendments to Offer to Purchase)

The Purchaser agrees to obtain and pay for a reference plan (the "Reference Plan") required to illustrate and describe the easement to be reserved in favour of the Vendor as more particularly set out in Article (4) of Schedule "A" to the Agreement. Prior to registering the Reference Plan, the Purchaser shall obtain the consent of the Vendor to the Reference Plan which consent shall not be unreasonably withheld.

The City's real estate Broker has provided its recommendations, a copy of which is attached to this report. The Broker recommends the offer submitted by Parasuco Jeans Inc. Further, the offer price submitted by Parasuco Jeans Inc. in the amount of $5,000,000.00 is within the range of value estimated by the City's fee appraiser. It is noted that there is also a report before your Committee on an encroachment request over 197 Yonge Street from the owner of the neighbouring property to the south. This encroachment request does not impact on the sale of this property.

Conclusion:

I am of the opinion that the Offer to Purchase received from Parasuco Jeans Inc. in the amount of $5,000,000 is acceptable. The other offers received should be declined.

Contact Name:

Peter Aziz, 392-1856, Fax: 392-1880, paziz@toronto.ca.

(A copy of the Site Plan "197, 197 Rear, 201 Yonge Street and 170 Victoria Street", and the communication (June 4, 1999) from Avison Young Commercial Real Estate (Ontario) attached to the foregoing report was forwarded to all Members of Council with the June 15, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)

Proposed Encroachment -

197 Yonge Street

(Ward 24 - Downtown)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (June 7, 1999) from the Commissioner of Corporate Services:

Purpose:

To obtain authority for the City to enter into an encroachment agreement with Corby Distilleries Limited.

Financial Implications:

The standard one-time fee of $350.00 will be generated.

Recommendations:

It is recommended that:

(1) authority be granted to enter into an encroachment agreement with Corby Distilleries Ltd. subject to the terms and conditions as set out in the body of this report;

(2) the City Solicitor be authorized to prepare the necessary documentation; and

(3) the appropriate officials be authorized and directed to take the necessary action to give effect thereto.

Background:

Corby Distilleries will be affixing a set of murals to the north and south faces of its building located at 193 Yonge Street. As part of this procedure, they propose to attach lighting to the rooftop of the building in order to illuminate the murals after dark.

The proposed roof top lights will extend into the air space of the City-owned building at 197 Yonge Street. Accordingly, Corby Distilleries Ltd. is requesting the City's permission to encroach into its air space.

Comments:

I have no objection to the encroachment provided:

(1) Corby Distilleries Ltd. agrees to:

(a) payment of a one-time administration fee for $350.00;

(b) provide a general indemnity;

(c) provide a comprehensive general liability, all risks insurance in the amount of $2,000,000.00 per occurrence, and other insurance satisfactory to the Chief Financial Officer and City Treasurer;

(2) the term of the encroachment shall be the earlier of the lifetime of the encroachment or the City or any future owner providing seven (7) days written notice to remove the light fixtures;

(3) the design of the lights and extent to which they extend into the City's air space shall be subject to the Commissioner of Corporate Services approval in her absolute discretion; and

(4) any other terms and conditions the City Solicitor may deem necessary.

It is noted that a report on the possible sale of this property is also being considered by the Administration Committee and the approval of this request for an encroachment will not impact on the sale of the property.

Conclusion:

I am of the opinion that the request for an encroachment is reasonable.

Contact Name:

Vinette Brown, Property Manager, Telephone No. 392-7138, Fax No.392-1880, E-mail vbrown@toronto.ca.

Declaring Property at South-End of Chemical

Court Surplus and Authorizing its Sale

to an Abutting Owner

(Ward 16 - Scarborough Highland Creek)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (May 31, 1999) from the Commissioner of Corporate Services:

Purpose:

To declare a strip of municipally owned land surplus and authorize its sale to the abutting owner.

Financial Implications:

None.

Recommendations:

It is recommended that:

(1) the Administration Committee and City Council declare the lands described as Parts 2, 3, 4 and 5, 64R-15477 as surplus and provide notice of its intent to dispose of the lands in accordance with By-law No. 551-1998 (disposal of real property);

(2) the lands be conveyed to Witco Canada Inc. for the nominal sum of $1.00, subject to reserving easement rights over the entire property being sold to permit access for the operation, maintenance and/or replacement of the storm and sanitary sewers;

(3) the City Solicitor be authorized to complete this transaction according to the terms and conditions of the Agreement of Purchase and Sale; and

(4) the appropriate City officials be authorized and directed to take necessary action to give effect thereto.

Background:

By the adoption of Item 17, Report 22 of the Administrative and Finance Committee, on October 4, 1994, the Council of the former City of Scarborough agreed to convey Parts 2, 3, 4, and 5, 64R-15477 to Surpass Chemical, now Witco Canada Inc., for the nominal sum of $1.00 to accommodate the construction of additional railway spur lines to a proposed plant expansion. The conveyance was conditional upon Surpass extending the existing storm sewer approximately 50 metres and relocating an existing headwall. The sewer extension was to have been constructed prior to the conveyance.

The City property is approximately 57 feet x 700 feet (0.937 ac.) and is located between the Witco property at the end of Chemical Court and the CNR tracks and extends westerly from Chemical Court. The lands are encumbered with storm and sanitary sewers. Easement rights are required to facilitate maintenance of the existing services. In addition, Witco has an easement over Part 3 for a rail spur line.

Although the then Scarborough Council approved the conveyance in October 1994, a formal agreement between the parties was not executed until July 1995. The work was completed by Witco prior to November 30, 1995, however, the conveyance was never completed.

Between the time that Council authorized the conveyance and the formal agreement was executed, and now the provisions of the Municipal Act relative to the disposal of surplus property have changed, and we are required to meet the standards of the amended legislation.

Given the original intent to convey the lands in exchange for capital improvements thereon which have been completed, it is recommended that Council declare the lands as surplus and provide public notice of its intent to convey the lands to Witco Canada Inc.

Conclusion:

Declaring the lands surplus and providing notice of intent to dispose of the lands will meet the requirements of the Municipal Act and will honour the 1995 agreement between the former City of Scarborough and Witco Canada Inc. (formerly Surpass Chemicals Ltd.).

Contact Name:

Mr. Roland Mayr, Director of Real Estate, Telephone No. (416) 392-1166; Fax No.: (416) 392-1880; E-mail Address: roly_mayr@metrodesk.metrotor.on.ca.

(A copy of the "Plan of Survey" attached to the foregoing report was forwarded to all Members of Council with the June 15, 1999, agenda of the Administration Committee and a copy thereof is also on file in the office of the City Clerk.)

Lease of 156-158 Munro Street

for Affordable Housing Purposes

(Ward 25 - Don River)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (June 1, 1999) from the Commissioner of Community and Neighbourhood Services:

Purpose:

To grant authority to staff to lease two vacant uninhabitable City-owned semi-detached houses at 156 and 158 Munro Street to a community group for affordable housing purposes.

Financial Implications:

The City-owned site at 156-158 Munro Street was retained by the former City of Toronto Council for use as affordable housing and this decision was reconfirmed by the present Council. However, pending a long term development plan for the site it will not be feasible to redevelop this site for some time. 156-158 Munro Street forms part of a considerably large site with long term redevelopment potential to accommodate a number of uses over the whole site. The southern portion of the site is a City-owned industrial building, the future status of which has yet to be determined. Longer term plans must be based on consolidation and redevelopment of the whole site. As an interim plan, it is proposed that the two existing semi-detached houses at the front of the property be leased at a nominal rate to a community agency for affordable housing. While the City will not be receiving rent, the community group will assume the operating expenses and the City will receive property taxes of approximately $1,500.00 per year per house. Any lease agreement with a community agency would make provisions for accommodating the redevelopment of the two houses as part of any future over-all redevelopment of the site. The proposed interim use will provide a public benefit (low-cost housing) and will provide accommodation at less cost to the taxpayer than shelters or hostels.

There are funds currently available in the federal Residential Rehabilitation Assistance Program to renovate the houses to make them habitable, at no cost to the City.

Recommendations:

It is recommended that:

(1) authority be granted to lease the two City-owned houses at 156 and 158 Munro Street to a community not-for profit corporation, to be selected through a proposal call process in consultation with the local community and the Ward Councillors, in order to provide affordable housing; further that the terms of the lease provide for a payment of $2.00 per year, for a term of 15 years, with a cancellation provision on six months' notice to the tenant and such other terms that are acceptable to the Commissioner of Community and Neighbourhood Services and the City Solicitor; and

(2) the appropriate City officials be authorized to take whatever action is necessary to give effect to these recommendations.

Background:

156-158 Munro Street is a City-owned site that was retained by the former City of Toronto for the development of affordable housing. The site was rezoned in the early 1990's for a non-profit housing project but could not be developed after the Provincial program was cancelled in 1995. In December of 1998, Council confirmed that this site would be retained for future affordable housing use.

The site consists of two single family dwellings built in 1929, each two storeys with a full basement in a semi-detached building form. The two houses take up a small portion of a considerably larger site (the lot area of 156 Munro Street is 966.1m2 and of 158 Munro Street is 111.4m2) with longer term development potential. 156 Munro Street shares a common boundary with a City-owned industrial building to the south which comprises a substantially larger property with future comprehensive redevelopment potential.

Comments:

Discussions have been held with the two ward Councillors for this site with regard to use of the two semi-detached houses which sit on the front of this site. The development of a long term strategy for the site will take some time. The current objective is to make the two houses habitable for interim use.

Recently funds have become available from the federal Residential Rehabilitation Assistance Program to renovate the houses, but this funding commitment will expire shortly. Previously, City-owned properties were not eligible for RRAP funding.

Councillors Layton and McConnell are initiating a community consultation process to determine what uses would be most appropriate for the community. A number of locally based organizations have been invited to express an interest in leasing the houses. Those organizations will be involved in a community discussion to identify what models and approaches would make the best use of the houses and best fit in the neighbourhood.

Based on the results of this consultation, the Commissioner of Community and Neighbourhood Services will invite community groups to make formal proposals to lease the houses and will be in a position to select a group based on criteria developed with the community. Given timing limitations on funding under the RRAP program, authority is being requested now so that a lease can be entered into following community consultation.

The successful not-for profit corporation could lease the properties to tenants, yielding approximately $1,300.00 per month per unit. They would be responsible for utilities, maintenance and taxes. It is estimated that the project would be operated on a break even basis. The net cost to the City would be zero and the City would now be in a position to collect property taxes which it hasn't been in since 1988 when the properties were purchased. The proposed interim use will provide a public benefit (low-cost housing) and will provide accommodation at less cost to the taxpayer than shelters or hostels.

We are committed to a community process that selects an appropriate model for use of the two houses and that builds in the recognition of the need to work with the City to accommodate any future redevelopment of the site. City real estate staff have been consulted in the preparation of this report.

Contact Name:

Joanne Campbell, Phone: 392-7885, Fax: 392-0548.

5 Bathurst Street - Canada Malting Complex

(Ward 24 - Downtown)

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (June 3, 1999) from the Commissioner of Corporate Services:

Purpose:

To obtain authority to extend the milestone dates set out in the Agreement to Lease dated March 30, 1999, between the City and Metronome Canada Inc ("MCI") as shown in the chart in the body of this report and to declare the subject property surplus to the needs of the City for the lease term of ninety-nine (99) years.

Financial Implications:

There are no financial implications to this report.

Recommendations:

It is recommended that:

(1) authority be granted for the extension of the milestone dates set out in the Agreement to Lease dated March 30, 1999, between the City and Metronome Canada Inc. ("MCI") as set out herein;

(2) Council declare surplus the property known as 5 Bathurst Street for the purposes of, and to the extent required by the lease and that the appropriate City Officials take all steps necessary to give effect to By-law No. 551-1998; and

(3) the appropriate City officials be authorized and directed to take the necessary action to give effect to the foregoing.

Background:

At its meeting of October 6, 1997, City Council adopted a report from the previous City of Toronto Board of Management to which was attached, a relatively detailed Term Sheet, as amended, setting out the basic terms and conditions of the agreement between the City and MCI including a number of milestone dates. It was anticipated that the City and MCI would enter into a Master Agreement governing the rehabilitation and reuse of the Canada Malting Complex which would incorporate the terms, conditions and milestone dates contained within the Term Sheet, as amended.

As the signing of the Master Agreement was delayed, City Council, at its meeting of February 2, 3 and 4, 1999 (Clause No. 10 embodied in Report No. 1 of The Corporate Services Committee), adopted the report authorizing the extension of the milestone dates as set out in the Term Sheet, as amended, by the previous Council of the former City of Toronto. This extension related to the delay in Council's approval of the fixed link to the Toronto Island Airport.

Comments:

The Agreement to Lease between the City and MCI has been fully executed both by the City and MCI on March 30, 1999.

The solicitor for MCI, in a letter dated May 26, 1999, is requesting that certain milestone dates be extended by up to six months as set out in the following chart. MCI has had difficulty finalizing its financial support without charitable status. MCI obtained its Charitable Registration Number on May 26, 1999. Attached as Appendix "A" is a copy of an executive summary of MCI's campaign for this project. The extension would allow MCI sufficient time to secure financial commitments and to facilitate the planning and design process for the rehabilitation and reuse of the Canada Malting Complex.

A schedule of the current milestone dates, as contained in the Agreement to Lease dated March 30, 1999, and the requested extension dates is shown below:

Existing Date Section Action Status/MCI

Request

April 30, 1999 3.2(a) MCI to provide satisfactory evidence of commencement of capital campaign program. Met

April 30, 1999 3.2(b) MCI to provide satisfactory status report respecting the raising of capital. Met

May 31, 1999 3.3(c) MCI being satisfied re availability of utility services with adequate capacities Waived

May 31, 1999 3.3(d) MCI being satisfied respecting environmental soil conditions, geotechnical conditions and depth of water table. Waived

May 31, 1999 4.2.2 Decision re retention of 1928 and 1944 Bin Floors Met

MCI to retain 1928 as part of exhibit and 1944 as offices

May 31, 1999 4.1.3 Parties to agree as to whether Music Education Centre to be included in Phase I or Phase II. Met

MCI to include it in Phase II

May 31, 1999 4.2.3 MCI to decide whether to retain Plant Office Bldg. At No. 5 Bathurst Met

MCI not to retain

May 31, 1999 11.1 MCI to submit title requisitions August 31, 1999

June 30, 1999 3.1(b) MCI to submit OPA, rezoning and site plan approval applications together with full payment of prescribed application fees December 31, 1999

August 31, 1999 3.2(c)(i) City Treasurer being satisfied that MCI has obtained adequate financing commitments in the amount of not less than $10 million. February 29, 2000

November 30, 1999 3.1(a) City compliance with Section 193 of the Municipal Act. May 31, 2000

December 31, 1999 4.2.5 City and MCI to agree on preservation and display of original building artifacts June 30, 2000

September 1, 2000 9.1 Parties to resolve sub-lease terms for swimming pool facility if City exercises option March 1, 2001

November 1, 2000 14.1 Outside date for closing May 1, 2001

By-law No. 551-1998 establishing procedures governing the sale of real property, requires City Council to declare as surplus all lands that it proposes to sell or to lease for 21 years or more. Council has not yet declared the lands in this transaction as surplus for the purposes of the 99 year lease and should do so at this time.

It is noted that City ownership of this asset is being maintained, and the property will revert back to the City at the end of the 99-year lease.

Conclusion:

MCI's request for the extension of the milestones dates is reasonable as MCI just received its Charitable Registration Number.

Contact Name:

Erlinda Bala, Telephone No.392-1852, Fax No. 392-1800, e-mail:ebala@toronto.ca.

--------

Metronome

Canada

Executive Summary/Metronome Canada Inc.

Approval of charitable status by Revenue Canada on May 26, 1999.

Twelve construction trades have committed to donate 50 percent of fees (estimated value $1.8 million)

Tradewind Electrical Smith & Long

Dominion/Circon A.G.S. Contract Glazing

ADF Steel The ECE Group Ltd.

Novel Mechanical Imperial Contracting

Detailed Design Structural Engineering Three Bell Painters Limited

Consolidated Concrete Forming Anpro Environmental Group Inc.

As of June 1, 1999, $4 million committed in insurance-based planned gifts by James Porter, Craig Thompson, Jodie Lewis and Ron Houle.

$1.2 million in donated space from Media Patrons as part of the Public Awareness Campaign to introduce Metronome as Canada's Millennium Project.

Exclusive Advertising Inc. Eye Weekly

Gallop + Gallop Mic Check Magazine

Pattison Mall Media NewAD Media

Zoom Media Inc. Professional Sound

Imagenius 3D Studios Inc. The Villager Community Newspaper

International Media Advertising Inc. Broadcasting Dialogue

Mediacom Inc. Cieslok Outdoor

Pattison Outdoor Etc...news

Corriere Canadese International Duplicating Services

HOToronto Magazine Magnetic Enterprises

Omni Outdoor Ming Pao Daily Newspaper

Tandem Weekly Our Toronto Free Press

Canadian Musician Performing Arts & Entertainment

Where Toronto Magazine

Seventy-two companies are on the priority waiting list to lease office and retail space.

Twenty-six companies including Mastercard International (N.Y.), Lucent Technologies Canada, Bell Canada, Yorkville Sound, Imasco and IBM have expressed interest in corporate sponsorship involvement.

The Canadian National Exhibition will feature a Metronome Canada Pavilion at the Music Building during the 1999 CNE.

--------

Mr. John Harris, President, Metronome, appeared before the Administration Committee in connection with the foregoing matter.

The Jolly Miller, Lease

3885 Yonge Street

(Ward 9 - North York Centre South)

(City Council on July 6, 7 and 8, 1999, amended this Clause by adding thereto the following:

"It is further recommended that, if an agreement is not reached with Prime Asset Management within three months' time, this matter be brought back to City Council, through the Administration Committee, for further consideration.")

The Administration Committee recommends the adoption of the following report (June 3, 1999) from the Commissioner of Corporate Services:

Purpose:

To advise the Committee on the status of the Jolly Miller lease.

Funding Sources, Financial Implications and Impact Statement:

No financial implications at this stage.

Recommendations:

It is recommended that:

(1) staff continue negotiations with Prime Asset Management to finalize the Jolly Miller lease;

(2) staff submit a report to Council through the Administration Committee recommending the terms of the lease; and

(3) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

Council Reference/Background/History:

Clause embodied in Report No. 13 of the North York Community Council, as adopted by the Council of the City of Toronto at its meeting held on November 25, 26 and 27, 1998, recommended that staff be authorized to negotiate within 6 months, a lease with Prime Asset Management Corporation for tenancy of the property at 3885 Yonge Street, known as "The Jolly Miller". Once negotiated, the lease is to be forwarded to Council for approval through the Corporate Services Committee (now known as Administration Committee).

Furthermore, by Clause embodied in Report No. 4 of the Corporate Services Committee, as adopted by the Council of the City of Toronto at its meeting held on April 13, 14, and 15, 1999, the subject property was declared surplus to the needs of the City for the lease term of fifty (50) years. It was recommended that staff submit a report to Corporate Services Committee addressing the terms and conditions of the lease after the notification period has expired.

Comments and/or Discussion and/or Justification:

Further to Council's recommendation directing staff to negotiate within 6 months a lease of the subject property with the tenant, we wish to advise negotiations are still ongoing at this time.

Currently, there are issues concerning restoration and some terms of the lease which are still being negotiated. Furthermore, the property was declared surplus to the City's requirements and the notification period expired on June 1, 1999. Therefore, a longer time frame is required to finalize our negotiations.

A draft lease document has been prepared by the Legal Division which has been forwarded to the tenant.

Conclusion:

The leasing of the Jolly Miller site has been a joint venture of the Corporate Services and Economic Development, Culture and Tourism Departments. Both departments are in agreement the lease negotiations require more time for finalization.

Contact Name:

Vicky Papas, 392-1830; Fax: 392-1880; E-Mail address: papas@toronto.ca.

(Councillor Feldman, at the meeting of Council on July 6, 7 and 8, 1999, declared his interest in the foregoing Clause, in that he resides in the vicinity of the subject property.)

Recipient - City of Toronto

Access Award - 1999

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends the adoption of the following report (June 10, 1999) from the Executive Director of Human Resources:

Purpose:

To report on the selection of the 1999 City of Toronto Access Award recommended by the Nominating Committee for the Access Award.

Financial Implications:

Provision for the presentation of this Award is available within existing resources.

Recommendations:

It is recommended that:

(1) City Council endorse the selection of Link-Up Employment Services as the recipient of the City of Toronto Access Award for 1999; and

(2) the appropriate City officials be authorized and directed to take the necessary actions to give effect thereto.

Background:

At its meeting on October 1 and 2, 1998, City Council approved the continuation program for the Constance E. Hamilton Award, the Access Award for Disability Access and the William P. Hubbard Race Relations Award.

The City of Toronto Access Award was first awarded in 1982. This Award was established to celebrate and recognize 1981 as the International Year for the Disabled. The International Year for the Disabled was established by the United Nations to highlight the concerns and contributions of people with disabilities.

The City of Toronto Access Award has been presented annually to a person or persons who have made a significant contribution towards improving access for people with disabilities. Access can include the design of a new or renovated structure, program or service which contributes significantly towards the independent living of people with disabilities. The Award recipient was selected by a nominating panel comprised of representatives of the Toronto Joint Committee for People with Disabilities, which includes representatives from various regions of the City. Nominations are received through a publicly advertised call for nominations.

The Nominating Committee has selected Link-Up Employment Services as the recipient of the 1999 City of Toronto Access Award. Presentation of the award will be made later this year in conjunction with other awards established for access and equity.

Link-Up Employment Services is a project established by the Training Coordinating Group for Persons with Disabilities. This program was started in 1998 to "link-up" employers with potential employees with a disability. It provides employers with consulting advice on accessibility, accommodation standards, workable ideas for managing diversity, information on tax incentives and other cost recovery/sharing programs as well as targeted wage subsidy programs. Potential employees are provided with the knowledge, confidence and job readiness skills to market themselves to potential employers. To date, over 100 people with disabilities have found employment through Link-Up Employment services.

Conclusion:

The Access Award celebrates the positive steps people in the City of Toronto are making toward improving the lives of people with disabilities by integrating them into all aspects of life, including housing, recreation, civic participation, employment and education. Their dedication and commitment has improved the quality of life for all in the City. The public acknowledgment of the work of the recipients serves to encourage others to become actively involved to help create an environment of inclusion and equal opportunity for all.

Contact and Telephone Number:

Catherine Leitch, Access and Equity - 392-7855

Geoff Eden, Urban Development Services - 392-0496.

Authorization to Travel to the IFHP

(International Federation for Housing and

Planning) Congress, Glasgow

(City Council on July 6, 7 and 8, 1999, adopted this Clause, without amendment.)

The Administration Committee recommends that the request from Councillor Bruce Sinclair, Rexdale-Thistletown, to attend the International Federation for Housing and Planning (IFHP) Congress, to be held in Glasgow, Scotland, between September 19, 1999, and September 23, 1999, be approved.

The Administration Committee submits the following communication (May 26, 1999) from Councillor Bruce Sinclair, Rexdale-Thistletown:

I wish to attend the International Federation for Housing and Planning Congress which will take place between September 19, 1999, and September 23, 1999, (both days inclusive) and request approval of these arrangements. I confirm that sufficient funds exist within Councillor global budget to cover this expense of approximately $4,700.00.

--------

Councillor Bruce Sinclair, Rexdale-Thistletown, appeared before the Administration Committee in connection with the foregoing matter; and filed additional information in regard thereto; copies of which are on file in the office of the City Clerk.

Other Items Considered by the Committee

(City Council on July 6, 7 and 8, 1999, received this Clause, for information.)

(a) Membership - Administration Committee.

The Administration Committee reports having:

(1) received the following communication; and

(2) appointed Councillor Sandra Bussin, East Toronto, as Vice-Chair of the Administration Committee:

(May 25, 1999) from the City Clerk, advising that City Council on May 11 and 12, 1999, in adopting, as amended, Clause No. 1 of Report No. 6 of The Striking Committee, entitled "Appointment of Members of Council to Standing and Other Committees of Council, Various Boards and Special Purpose Bodies", appointed the following Members of Council to the Administration Committee, for a term of office commencing the effective date of the new governance structure, i.e., June 14, 1999, and expiring November 30, 2000:

Adams, J.

Altobello, G.

Balkissoon, B.

Berardinetti, L. (Chair)

Bussin, S.

Holyday, D.

Mahood, D.

Miller, D.

Minnan-Wong, D.

Moeser, R.

(The Mayor is a Member ex-officio).

(b) Council-Committee Structure.

The Administration Committee reports having received a presentation from Mr. Peter Fay, Senior Policy and Planning Analyst, City Clerk's Division, respecting the New City of Toronto Committee-Council Structure.

--------

Mr. Peter Fay, Senior Policy and Planning Analyst, City Clerk's Division, gave a presentation to the Administration Committee respecting the foregoing matter and filed a copy of his presentation material.

(c) Corporate Services Department - Accomplishments.

The Administration Committee reports having:

(1) received a presentation from the Chief Administrative Officer respecting the accomplishments of the Corporate Services Department; and

(2) requested the Chief Administrative Officer to submit a report to the meeting of the Administration Committee scheduled to be held on July 13, 1999, respecting the steps involved in the hiring process for the new Commissioner of Corporate Services.

--------

The Chief Administrative Officer gave a presentation to the Administration Committee respecting the foregoing matter and filed a copy of his presentation material.

(d) Proposed Governance Structure for Advanced Environmental Decision Making.

The Administration Committee reports having:

(1) concurred with the recommendations embodied in the following report (June 1, 1999) from the Chair, Environmental Task Force; and

(2) requested the Chief Administrative Officer and the City Auditor to submit a joint report respecting the foregoing matter, as soon as possible, to the Policy and Finance Committee:

(June 1, 1999) from Councillor Jack Layton, Chair, Environmental Task Force, recommending that:

(1) the attached recommendations from the Environmental Task Force to the July meeting of the Policy and Finance Committee be endorsed;

(2) the attached report entitled "The Proposed Governance Model for Advanced Environmental Decision Making for the City of Toronto" by the Environmental Task Force be received for information and comment; and

(3) any comments on the proposed governance structure, as outlined in the attached report, be forwarded to the Environmental Task Force before June 28, 1999, for consideration in the report and recommendations going to the Policy and Finance Committee in July, 1999.

--------

Councillor Jack Layton, Chair, Environmental Task Force, gave a presentation to the Administration Committee respecting the foregoing matter.

(e) Green Roofs for Healthy Cities Coalition - Demonstration Project at Toronto City Hall.

The Administration Committee reports having:

(1) endorsed, in principle, the concept proposed for a roof top garden at Toronto City Hall;

(2) requested the Acting Commissioner of Corporate Services to submit a report to the Administration Committee on the concept as proposed and the request for proposal suggested by the Green Roofs for Healthy Cities Coalition;

(3) requested the Planning and Transportation Committee to invite representatives of the Green Roofs for Healthy Cities Coalition to make a presentation to the Planning and Transportation Committee on land use planning and other tools that can be considered respecting this project;

(4) requested the Executive Director and Chief Planner to meet with the Green Roofs for Healthy Cities Coalition in advance of the presentation to the Planning and Transportation Committee; and

(5) requested the Toronto Atmospheric Fund to give consideration to providing funding assistance to the Coalition to help move the project forward:

(June 8, 1999) from Mr. Steven W. Peck, Director, Green Roofs for Healthy Cities Coalition, advising that the Green Roofs for Healthy Cities Coalition represents Canadian, U.S. and European roofing companies that want to introduce the green roof technology concept to City Councillors as part of their ongoing community outreach activities; that this month the Coalition has sponsored a demonstration project at Toronto City Hall outside the Council Chambers; and that to follow up on the success of the demonstration project they would like to make a five minute presentation to the Administration Committee to highlight the benefits of the technology and to propose a permanent roof top garden at Toronto City Hall.

--------

The following persons appeared before the Administration Committee in connection with the foregoing matter:

- Mr. Steven W. Peck, Director, Green Roofs for Healthy Cities Coalition; and

- Ms. Monica E. Kuhn, Architect, Architecture Rooftop Gardens Permaculture Designs.

(f) Review of Former City of York Employees' Pension Plan Financial Status.

The Administration Committee reports having deferred consideration of the following report until its meeting scheduled to be held on July 13, 1999:

(June 3, 1999) from the Chief Financial Officer and Treasurer, reporting as requested by Council on December 16 and 17, 1998, on how the City of York Employees' Pension Plan came to be in its current negative financial situation; advising that the current financial situation of the York Pension Plan can in large part be traced to the minimum funding strategy adopted by the former City of York; that pension and benefit improvements which substantially increased the liabilities of the Plan were not funded or provided for at the time they were granted; that it appears that there was an expectation that benefit improvements would be funded by future plan surpluses which did not materialize; that in effect, the former City of York followed a pay as you go practice; that the York Pension Plan is now virtually fully retired with only five active members remaining; that future actuarial gains or losses will arise primarily through investment performance, pensioner increases and pensioner mortality; that the actuarial assumptions of the plan should be reviewed and updated to reflect plan provisions and current economic conditions; that recommendations in this regard will be brought forward with the results of the December 31, 1998 actuarial review; and recommending that this report be received for information.

(g) Request for Proposal No. 3412-99-01464 for the Acquisition of 2000 Optical Scan Vote Tabulators and 100 Touch Screen Voting Units.

The Administration Committee reports having:

(1) deferred consideration of the following joint report until its meeting scheduled to be held on July 13, 1999;

(2) requested the appropriate staff to report to the aforementioned meeting of the Committee on the possibility of some type of cost sharing with Elections Ontario and Elections Canada; and

(3) requested the City Clerk to arrange a briefing session for all Members of Council respecting the foregoing matter:

(June 15, 1999) from the Chief Administrative Officer, Acting Commissioner of Corporate Services, Chief Financial Officer and Treasurer and the City Clerk, recommending that:

(1) the City Clerk be given authority to enter into a contract with Election Systems & Software Inc., being the proponent with the highest evaluated score, for the acquisition of the necessary optical scan vote tabulators and touch screen voting units, including all necessary support and service agreements, at a capital cost not to exceed $13.05 million ($1.0 million in 1999 and $12.05 in 2000), such contract to be in accordance with the Request for Proposal and the Proposal submitted, and on terms and conditions satisfactory to the City Clerk, and in a form satisfactory to the City Solicitor; and

(2) the appropriate City officials be authorized to take the necessary action to give effect thereto.

Respectfully submitted,

LORENZO BERARDINETTI

Chair

Toronto, June 15, 1999

(Report No. 1 of The Administration Committee, including additions thereto, was adopted, as amended, by City Council on July 6, 7 and 8, 1999.)

Existing Date	Section	Action	Status/MCI Request
April 30, 1999	3.2(a)	MCI to provide satisfactory evidence of commencement of capital campaign program.	Met
April 30, 1999	3.2(b)	MCI to provide satisfactory status report respecting the raising of capital.	Met
May 31, 1999	3.3(c)	MCI being satisfied re availability of utility services with adequate capacities	Waived
May 31, 1999	3.3(d)	MCI being satisfied respecting environmental soil conditions, geotechnical conditions and depth of water table.	Waived
May 31, 1999	4.2.2	Decision re retention of 1928 and 1944 Bin Floors	Met MCI to retain 1928 as part of exhibit and 1944 as offices
May 31, 1999	4.1.3	Parties to agree as to whether Music Education Centre to be included in Phase I or Phase II.	Met MCI to include it in Phase II
May 31, 1999	4.2.3	MCI to decide whether to retain Plant Office Bldg. At No. 5 Bathurst	Met MCI not to retain
May 31, 1999	11.1	MCI to submit title requisitions	August 31, 1999
June 30, 1999	3.1(b)	MCI to submit OPA, rezoning and site plan approval applications together with full payment of prescribed application fees	December 31, 1999
August 31, 1999	3.2(c)(i)	City Treasurer being satisfied that MCI has obtained adequate financing commitments in the amount of not less than $10 million.	February 29, 2000
November 30, 1999	3.1(a)	City compliance with Section 193 of the Municipal Act.	May 31, 2000
December 31, 1999	4.2.5	City and MCI to agree on preservation and display of original building artifacts	June 30, 2000
September 1, 2000	9.1	Parties to resolve sub-lease terms for swimming pool facility if City exercises option	March 1, 2001
November 1, 2000	14.1	Outside date for closing	May 1, 2001