Members of Council and Staff:  Please keep this agenda and the accompanying material until the City Council meeting dealing with these matters has ended.  The City Clerk’s Office will not provide additional copies.

Special Assistance for Members of the Public:  City staff can arrange for special assistance with some advance notice. If you need special assistance, please call 416-392-9151, TTY 416-338-0889 or e-mail gmc@toronto.ca.

Closed Meeting Requirements:  If the Government Management Committee wants to meet in closed session (privately), a member of the Committee must make a motion to do so and give the reason why the Committee has to meet privately (City of Toronto Act, 2006)

Notice to people writing or making a presentation to the Committee: The City of Toronto Act, 2006 and the City of Toronto Municipal Code authorize the City of Toronto to collect any personal information in your communication or presentation to City Council or its committees.

The City collects this information to enable it to make informed decisions on the relevant issue(s). If you are submitting letters, faxes, e-mails, presentations or other communications to the City, you should be aware that your name and the fact that you communicated with the City will become part of the public record and will appear on the City’s website. The City will also make your communication and any personal information in it – such as your postal address, telephone number or e-mail address – available to the public, unless you expressly request the City to remove it.

The City videotapes committee and community council meetings. If you make a presentation to a committee or community council, the City will be videotaping you and City staff may make the video tapes available to the public.

If you want to learn more about why and how the City collects your information, write to the City Clerk's Office, City Hall, 100 Queen Street West, Toronto ON M5H 2N2 or call 416-392-9151.

Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes – February 5, 2010

Speakers/Presentations – A complete list will be distributed at the meeting.

Communications/Reports

The Treasurer recommends that:

1.         Credit balances on all property tax accounts equal to or less than five hundred dollars ($500) be applied as a credit to the tax account of the current assessed owner of the property, and where requested in writing or required in order to meet legislated refund timelines, credit amounts between fifteen ($15) and $500 be refunded directly to the current assessed owner by way of a cheque, therein updating and amending the previously approved dollar threshold of one hundred ($100) dollars for automated refunds of credit balances.

2.         The appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

The purpose of this report is to seek the necessary authority to amend the existing one hundred dollar ($100) threshold for automated transfers of credit balances to property tax bills to five hundred dollars ($500).

There are no financial implications associated with this report.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

As of February 28, 2010, the amount of outstanding property taxes, fees and interest for the 45 Parks properties that have accumulated during the period from 1995 to 2009 is $1,650,996.  This amount includes unpaid property taxes, interest and penalty charges and certain administrative fees associated with tax statements.  This amount, and any other interest/penalty that will accumulate on the account pending the finalization of the process, is recommended to be written off.

Of the total amount recommended for write off, $1,235,698 represents the City share of taxes, and includes interest charges and fees of $720,356 and municipal taxes of $515,342.  The write-off of the municipal portion of taxes of $515,342 will be funded from the City’s Non-Program Tax Deficiency account, while the accrued interest/penalty and fees totalling $720,356 will be funded from the Non-Program Tax Penalties account.  The education portion of the amount to be written off totalling $415,297 will be fully recovered from the school boards/province following the write-off.  The amounts to be written off are summarized by taxation year in Table 1 below.

Table 1: Amounts Recommended for Write Off

Taxes and Accrued Interest (as at February 28, 2010)

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Treasurer recommends that:

1.         Council consent to provide an exemption from property taxes under paragraph 16 of subsection 3(1) of the Assessment Act for the premises occupied by the Canadian Air and Space Museum;

2.         in consideration of the fact that as a tenant of the federal government the Canadian Air and Space Museum is separately assessed and directly liable to taxation as if it were an owner, Council waive the requirement for a 99 year (or longer) lease or ownership identified in Attachment 1 to this report as a condition for providing a property tax exemption, as long as the space is occupied by the Canadian Air and Space Museum;

3.         Council write off the property taxes and interest that have accrued against the premises occupied by the Canadian Air and Space Museum for the period from March 1, 1997 to December 31, 2009;

4.         the City Clerk be requested to inform the Canadian Air and Space Museum and the Municipal Property Assessment Corporation of Council’s decision with respect to Recommendation 1 above; and,

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

As of January 31, 2010, the outstanding property taxes for the premises occupied by the Canadian Air and Space Museum at 65 Carl Hall Road for the period of March 1, 1997 to December 31, 2009 are $339,810.

Of the total outstanding property taxes of $339,810 recommended for write-off, $228,327 of this amount represents the City portion, comprising $72,269 in municipal taxes and $156,058 in interest charges (as at January 31, 2010).  The write-off of the municipal portion of taxes of $72,269 will be funded from the City’s Non-Program Tax Deficiency account.  The accrued interest/penalty and fees, which total $156,058 as at January 31, 2010 but will continue to accumulate on the account pending the finalization of this process, will be funded from the Non-Program Tax Penalties account.  The education portion of the recommended write off amount, which is $111,483, will be fully recovered from the school boards/province following the write-off.  The amounts recommended for write off are summarized in Table 1 below.

Table 1: Amounts Recommended for Write off – Canadian Air & Space Museum

(From March 1, 1997 to December 31, 2009 - as at January 31, 2010)

Once exempt, the property tax revenue forgone each year will be approximately $19,110, of which $9,996 is City portion of taxes and $9,114 is the education portion of taxes.  This estimate is based on 2009 Current Value Assessment and tax rates. 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

 This report requests authority to increase the value of Contract No. 47012152 with Compugen Inc. for the supply and delivery of desktop and notebook computers, printers and related hardware, software and services in the amount not to exceed $3,240,000.00 net of GST.    The increase will allow the various City Divisions to continue to purchase desktop-related equipment and services and allow the Information and Technology Division (I&T) to continue desktop sustainment service until the new Request for Quotation (RFQ) is released and a new contract is awarded in June 2010.

The Directors of the Toronto Office of Partnerships and of the Purchasing and Materials Management Division, and the General Manager of Parks, Forestry and Recreation recommend that:

1.         City Council grant authority to enter into an agreement with The Oxford Group for the provision and maintenance of internet-enabled computers in Toronto Community Housing and in Parks, Forestry and Recreation venues at no cost to the City.

The purpose of this report is to advise on the results of Request for Proposal No. 9155-10-7008, issued to invite counter proposals to the unsolicited proposal received from The Oxford Group for the provision and maintenance of internet-ready computers in City facilities, and to request authority to enter into an agreement with The Oxford Group.

This award will have no net cost impact on the City’s 2010 or future operating budgets. All costs and risks associated with the initiative are to be borne by The Oxford Group. Project costs include, but are not limited to, the computers themselves, as well as printers, furniture, and high-speed internet subscriptions. The Oxford Group will also be responsible for setting up and maintaining all hardware and software.  In addition, to further mitigate liability concerns, The Oxford Group is also responsible for ensuring adequate general and property insurance coverage.

The eventual full deployment of all workstations is projected to produce incremental revenues of $585,000 for the City over the initial 5-year term. This amount reflects an average annual payment of $117,000 to the City. The Revenues are to be assigned to Parks, Forestry and Recreation Division and will be reflected in the Division’s future Operating Budget submissions.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The General Manager of Parks, Forestry and Recreation and the Director of Purchasing and Materials Management recommend that:

1.         City Council grant authority to enter into a Licence Agreement with the Ontario Volleyball Association in relation to professional services for the operation of beach volleyball in Ashbridge’s Bay Park and Woodbine Beach Park for a term of five years, during the period from May 1st to September 30th in each years 2010, 2011, 2012, 2013 and 2014, with an option to renew at the sole discretion of the General Manager of Parks, Forestry and Recreation (the "General Manager") for an additional five-year term.  Should the option be exercised, the General Manager will request the Director of Purchasing and Materials Management Division to provide the necessary contract renewal for the May 1, 2015 to September 30, 2019 term under the terms and conditions outlined in this report, and satisfactory in form and content to the General Manager and the City Solicitor.

Conclusion of the agreement with the recommended proponent will result in guaranteed payments of $150,000 per year and 5% of projected gross revenue for 2011 and 7.5% of projected gross revenue for the remaining years of the contract (2012-2014), plus capital improvements of $200,000 per year in 2010 and 2011.  The Parks Forestry and Recreation Recommended 2010 Operating Budget anticipates total annual revenue from this location of $215,000 per year, so shortfalls of $65,000 in 2010 and $25,000 in 2011 could be expected.  If the option to renew the contract for an additional five-year term is exercised by the General Manager of Parks, Forestry and Recreation, the agreement will result in guaranteed payments of $180,000 per year plus 8% of projected gross revenue in 2015, 8.5% in 2016, 9% in 2017, 9.5% in 2018 and 10% in 2019.

There are no current or additional costs that the City will incur with the implementation of the proposed Licence Agreement.  The OVA will be responsible for all operating costs and all capital expenditures related to the operation of beach volleyball in Ashbridge’s Bay Park and Woodbine Beach Park.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council grant authority to enter into lease agreements (the "Agreements") between the City of Toronto, as landlord, and sixty-five (65) tenants, as outlined in “Appendix A,” in the building known municipally as 91, 93 and 95 Front Street East (St. Lawrence Market South) substantially on the terms and conditions as set out in “Appendix B” attached hereto and on such other terms and conditions as approved by the Chief Corporate Officer, or his or her designate, and in a form acceptable to the City Solicitor.

2.         City Council authorize the Chief Corporate Officer to administer and manage the Agreements including the provision of any consents, approvals, notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

The proposed Agreements, commencing retroactively on January 1, 2010, provide for a common rate structure and terms, as outlined in Appendix “B”, and will result in the following revenue for the City:

[1]  Includes semi-gross rent, storage rent and percentage rents

[2] Based on

 [1]  Includes semi-gross rent, storage rent and percentage rents

[2] Based on 2009 – actual costs will be passed through to the Tenants

With the new rates and after considering all revenues and expenses for the South Market, alongside capital repair requirements and the opportunity cost of City occupied space, the South Market operates close to a break-even position.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council authorize entering into a Lease Renewal Agreement with 3052690 Nova Scotia Limited for a five (5) year term commencing May 01, 2010 and expiring on May 31, 2015, including an option to renew for another five (5) year term and an option to acquire additional space, based substantially on the terms and conditions set out in the attached Appendix “A”, and other terms and conditions approved by the Chief Corporate Office, and in a form acceptable to the City Solicitor.

2.         City Council authorize the Chief Corporate Officer to administer and manage the lease agreements to include the provision for any consents, approvals,  notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

Total lease costs for the five (5) year term, commencing May 31, 2010 are approximately $1,572,608 net of taxes based on an annual basic rental rate of $9.50 per square foot of Rentable Area (approximately 20,397 square feet) and additional rent at a rate of $5.92 per square foot of Rentable Area for the term.

Funding is included in Toronto Employment and Social Services 2010 Operating Budget submission.  Funding requirements for 2011-2015 will be included in the respective years’ operating budget submission for Toronto Employment and Social Services and will be accommodated within approved operating budget targets.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer and the General Manager of Economic Development and Culture recommend that:

1.         City Council authorize a new Below Market Rent lease agreement with The Theatre Centre, for a ten (10) year term plus two (2) renewal options of 5-years each, based on the terms and conditions set out in the attached Appendix “A”, and on such other terms and conditions acceptable to the Chief Corporate Officer, and in a form acceptable to the City Solicitor.

2.         City Council authorize the Chief Corporate Officer to administer and manage the lease agreement including the provision of any consents, approvals, notices and notices of termination provided that the Chief Corporate Officer may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

3.         City Council authorize the City Solicitor to complete the lease, deliver any notices, pay expenses and amend the commencement and other dates to such earlier or later date(s), on such terms and conditions, as she may, from time to time, determine.

4.         City Council grant an exemption to the Below Market Rent Policy to allow The Theatre Centre to become a tenant at 1115 Queen Street West without the need to solicit a request for proposals as required by the Below Market Rent Policy.

The purpose of this report is to obtain City Council authority to enter into a new Below Market Rent lease agreement with The Theatre Centre for approximately 9,300 square feet of space located at 1115 Queen Street West.

The proposed agreement assumes a lease of 9,300 square feet of space for a nominal net rent consideration.  All operating costs related to the building occupancy (currently estimated at $186,000 per year based on a rate of $20.00 per square foot) will be paid by the tenant, resulting in no cost to the City of Toronto.  The Theatre Centre will take carriage of the building when it becomes vacant in October 2011 or later depending on completion of the new space for Public Health, which currently occupies the building.  The Theatre Centre will need to have the building vacant and available for construction/ renovation for approximately two years and will pay the operating cost during that period.  The Province has made all Theatres under 1,000 seats exempt from property tax.  Public Health does not currently pay property tax resulting in no Property Tax loss to the City.  The Theatre Centre development plan for the Occupancy Costs of the renovated building includes an allowance for capital repair and maintenance.

The Theatre Centre has developed a detailed capital program for the renovation of the building to accommodate its operation as a cultural centre.  Renovations of the building are estimated to costs approximately $5.2 million, with funding projected to be secured from a $1 million Section 37 contribution and from other levels of government, foundations and private donations.  To date the Section 37 contribution and $225,000 of foundation funding have been confirmed.

In accordance with the City’s Below Market Rent Policy, the opportunity costs of entering into the Below Market Rent agreement must be determined and reported to City Council.  Research indicates that the total opportunity cost of the lease over the 10-year term is approximately $1.6 million.  If the lease is renewed for an additional 5-year term, the opportunity cost for the 5-year lease extension term is approximately $.6 million, for a total opportunity cost of $2.2 million over the fifteen (15) year period.  If the lease is then renewed for the 2^nd 5-year renewal term, the opportunity cost for the 5-year lease extension term is approximately $.5 million, for a total opportunity cost of $2.7 million over the twenty (20) year period.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council, subject to authorizing the permanent closure of the public lane shown as Parts 1 to 3 on Sketch No. PS-2010-024 (the “Lane”), authorize the City to accept an Offer to Purchase in the amount of $2,170,000.00 from the Daniels HR Corporation (“Daniels”) to purchase the Lane substantially on the terms and conditions outlined in Appendix “A” to this report, and on such other terms and conditions as may be acceptable to the Chief Corporate Officer, and in a form satisfactory to the City Solicitor.

2.         City Council authorize each of the Chief Corporate Officer and the Director of Real Estate Services severally to accept the Offer to Purchase on behalf of the City.

3.         City Council grant authority to direct a portion of the proceeds of closing to fund the outstanding expenses related to the Lane and the completion of the sale transaction.

4.         City Council authorize the City Solicitor to complete the transaction on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as she considers reasonable.

The Chief Corporate Officer recommends that:

1.         City Council authorize the City to accept the Offer to Purchase from Akram Bousaleh to purchase 11 Spadina Road, being part of PCL 9-1, Section M2, designated as Parts 3 and 4 on Plan 66R-23383, subject to the retention of an easement in Part 3 for transit purposes (the “Property”), in the amount of $761,100.00, substantially on the terms and conditions outlined in Appendix “A” to this report.

2.         City Council authorize each of the Chief Corporate Officer and the Director of Real Estate Services severally to accept the Offer to Purchase on behalf of the City.

3.         City Council authorize a portion of the proceeds of closing be directed to fund the outstanding expenses related to the Property and the completion of the sale transaction.

4.         City Council authorize the City Solicitor to complete the transaction on behalf of the City, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as she considers reasonable.

The Chief Corporate Officer recommends that:

1.         City Council grant authority to the Director of Real Estate to negotiate to acquire, and if unsuccessful, to initiate expropriation proceedings, if necessary, for the Required Property for the purposes of constructing the Line from west of Birchmount Road to east of McCowan Road.

2.         City Council grant authority to the Director of Real Estate to serve and publish Notices of Application for Approval to Expropriate the Required Property, to forward to the Chief Inquiry Officer any requests for hearing that are received, to attend the hearing to present the City’s position and to report the Inquiry Officer’s recommendations to City Council for its consideration.

3.         City Council authorize the amendment to the property requirement, as set out in Appendix “B1” of this report, for which authority to initiate expropriation proceedings was previously approved by Council.

The Chief Corporate Officer recommends that:

1.         City Council authorize the Director of Real Estate to negotiate to acquire the identified property interest from 1270 Finch Avenue West for the purpose of widening Tangiers Road where it intersects with Finch Avenue West, in connection with the construction of a portion of the Toronto-York Spadina Subway Extension, and to initiate expropriation proceedings, if necessary.

2.         City Council authorize the Director of Real Estate to serve and publish Notices of Application for Approval to Expropriate the identified property interest from 1270 Finch Avenue West, to forward any requests for hearing that are received to the Chief Inquiry Officer, to attend the hearing in order to present the City’s position, and to report the Chief Inquiry Officer’s recommendations back to City Council for its consideration.

Total estimated property acquisition costs for the Project were estimated preliminarily at $125 million (in as spent dollars), with 59.96% of the cost, attributable to the City and the remainder to York Region.

All Project initiatives are included in the Council Approved 2010 Capital Budget and 2011-2019 Capital Plan for the Spadina Subway Extension.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council, as the Approving Authority, approve the expropriation of 3933 Keele Street, 3941 Keele Street and 3955 Keele Street for the purpose of constructing the Finch West subway station and all works ancillary thereto, in connection with the construction of a portion of the Toronto-York Spadina Subway Extension.

2.         City Council grant leave for introduction of the necessary Bill in Council to give effect thereto.

3.         City Council authorize City staff to take all necessary steps to comply with the Expropriations Act, including but not limited to, the preparation and registration of an Expropriation Plan and the service of Notices of Expropriation, Notices of Election as to a Date for Compensation and Notices of Possession, for these  three properties.

4.         City Council further authorize City staff to obtain appraisal reports to value these three properties, updated to the date of expropriation; and to prepare and serve offers of compensation on all registered owners, at the appraised values, all in accordance with the requirements in the Expropriations Act.

5.          City Council authorize the Director of Real Estate or his designate to sign the Notices of Expropriation, Notices of Possession and the Offers of Compensation on behalf of the City for these three properties.

6.         City Council authorize the public release of the confidential information contained in Attachment 1 once there has been a final determination of the compensation payable to the Owners by arbitration, appeal or settlement to the satisfaction of the City Solicitor.

Total estimated property acquisition costs for the Project were estimated preliminarily at $125 million (in as spent dollars), with 59.96% of the cost, attributable to the City and the remainder to York Region.

Confidential Attachment 1 to this report identifies the initial appraised values for the properties recommended for expropriation, namely 3933 Keele Street, 3941 Keele Street and 3955 Keele Street.

Funding is available in the Council Approved 2010 Capital Budget and 2011-2019 Capital Plan within the Spadina Subway Extension Capital Project.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Chief Corporate Officer recommends that:

1.         City Council, as approving authority under the Expropriations Act, consider the report of the Inquiry Officer as detailed herein and approve the expropriation of 4080 Sheppard Avenue East for the purpose of constructing a grade separation on Sheppard Avenue East at the Agincourt GO Station in connection with the Sheppard East LRT Project for the reasons outlined herein and based on the recommendations of David R. Vine Q.C., Inquiry Officer.

2.         City Council authorize payment of $200.00 in costs to PACIFIC Inc., the owner of 4080 Sheppard Avenue, in accordance with the provisions of the Expropriations Act.

3.         City Council, as expropriating authority under the Expropriations Act, authorize all necessary steps to comply with the Expropriations Act, including but not limited to the preparation and registration of an Expropriation Plan, service of Notices of Expropriation, Notices of Election as to a  Date for Compensation and Notices of Possession.

4.         The Director of Real Estate be authorized to sign the Notices of Expropriation and Notices of Possession on behalf of the City.

5.         Leave be granted to introduce the necessary Bill in Council to give effect thereto.

6.         City Council authorize the public release of the confidential information contained in Attachment 1 once there has been a final determination of the compensation payable for the subject property by arbitration, appeal or settlement to the satisfaction of the City Solicitor.

The Toronto Parking Authority recommends that:

1.         Subject to City Council’s approval of Recommendation #2, City Council authorize the acquisition of  250 Manning Avenue from the Toronto Catholic District School Board for a purchase price of $6.500 million plus the expenditure of an additional $440,000 for the demolition, construction and associated costs such as land transfer tax, survey, environmental studies, and legal fees relating to the development of the municipal parking facility;

2.         City Council approve in principle the sale of the northern portion of the Property, being the Development Lands declared surplus to the City's needs, for fair market value, provided that the TPA submits a supplementary report identifying the Purchaser and key business terms of the proposed sale by March 11, 2010;

3.         City Council approve the reallocation of funds in the TPA’s 2010 Approved Capital Budget of $2.440 million from account Queen/Soho (CPK167-01) to Bathurst/College (Little Italy CPK169-01);

4.         Upon acquisition, the Retained Lands be designated for municipal parking purposes, to be managed by the TPA;

5.         The City Solicitor be authorized to complete the purchase and sale transactions, deliver any notices, pay any expenses and amend the closing and other dates to such earlier or later date(s), on such terms and conditions, as she may, from time to time, determine; and

6.         The appropriate City Officials be authorized to take the actions necessary to give effect thereto.

The Toronto Parking Authority (the “TPA”) proposes to purchase 250 Manning Avenue (the “Property”) from the Toronto Catholic District School Board (the “TCDSB”) in order to establish a municipal parking facility with approximately 40 spaces (see attached Site Location Map and Aerial Photo and Assessment Parcel Map for 250 Manning Avenue).  Since the size of the Property exceeds TPA’s requirements, the TPA issued a Request for Proposals (“RFP”) in order to sell the northern portion of the Property (the “Development Lands”).  Proposals have been submitted, and a successful bidder is expected to be selected shortly. The TPA will enter into a conditional Purchase and Sale Agreement (“PSA”) with the successful proponent (the "Purchaser").

The purpose of this report is to obtain City Council’s approval to purchase 250 Manning Avenue, for the City to retain the southern portion of the Property (the “Retained Lands”) which will be redeveloped by the TPA to provide a new municipal parking facility, and approval in principle to sell the Development Lands to the Purchaser.  Once the PSA is signed, a supplementary report will be submitted with more information about the Purchaser and proposed deal.

This acquisition will help alleviate a shortfall in public parking within the area and continue to service the short term parking needs of the community.

Capital funds were approved in the 2010 Capital Budget for Bathurst/College-Little Italy (CPK169-01) of $4.500 million.  Additional funds of $2.440 million are required to complete this project.  The additional funding will be reallocated from account Queen/Soho (CPK167-01). The TPA will assess the funding requirements for the Queen/Soho project as part of the 2011 Capital Budget process. The total allocated capital funds include the additional expenditure of $440,000 for the demolition, construction and associated costs such as land transfer tax, survey, environmental studies, and legal fees relating to the development of the municipal parking facility.

In order to mitigate against the financial risk of acquiring the entire subject property, the TPA issued an RFP for the Sale of the Development Lands.  The TPA expects to enter into a conditional PSA with the successful proponent (the “Purchaser”) shortly.  The PSA will require the Purchaser to waive all their conditions prior to the TPA waiving its conditions with TCDSB.  The Development Lands sales transaction will be a recovery against the TPA’s total acquisition cost of the Property

The property purchase will be funded through TPA revenues.  The operating and maintenance costs associated with this facility will not affect the 2010 Operating Budget.

We have retained the services of an independent appraisal firm to determine the fair market value ("FMV") for the Property.  According to the appraisal report, the TPA purchase price for the Property and the sale price to be achieved on the sale of the Development Lands are considered fair, reasonable and reflective of fair market value.

The Deputy City Manager and Chief Financial Officer have reviewed this report and agree with the financial impact information.

The Toronto Parking Authority recommends that:

1.         City Council approve the proposed sale by the TPA to Protolog Developments Ltd. relating to the northern portion of the Property, being the Development Lands declared surplus to the City's needs, for $5.368 million.

2.         The City Solicitor be authorized to complete the purchase and sale transactions, deliver any notices, pay any expenses and amend the closing and other dates to such earlier or later date(s), on such terms and conditions, as she may, from time to time, determine.

3.         The appropriate City Officials be authorized to take the actions necessary to give effect thereto.

In a report to Government Management Committee dated February 24^th, 2010, the Toronto Parking Authority (the “TPA”) requested City Council to approve in principle the sale of the northern portion of the Property at 250 Manning Avenue, being the Development Lands declared surplus to the City's needs, for fair market value, provided that the TPA submits a supplementary report identifying the Purchaser and key business terms of the proposed sale.

Since the size of the Property exceeds TPA’s requirements, the TPA issued a Request for Proposals (“RFP”) in order to sell the northern portion of the Property (the “Development Lands”).  This supplementary report seeks Council approval of the proposed sale to the successful bidder, Protolog Developments Ltd. (“Protolog”), and is in support of the previous TPA report seeking approval of both the acquisition and partial disposition of 250 Manning Avenue.

In order to mitigate against the financial risk of acquiring the entire subject Property, the TPA issued an RFP for the sale of the Development Lands, and as a result has entered into a conditional Purchase and Sale Agreement (“PSA”) with the successful proponent, Protolog Developments Ltd. (“Protolog”).  The PSA requires Protolog to waive all their conditions prior to the TPA waiving its conditions with TCDSB.  The proceeds from the Development Lands sales transaction will be a recovery against the TPA’s total acquisition cost of the Property.

We have retained the services of an independent appraisal firm to determine the fair market value ("FMV") for the Property.  According to the appraisal report, the TPA purchase price for the Property and the sale price achieved for the Development Lands are considered fair, reasonable and reflective of fair market value.

Upon completion of the acquisition of the Property, the sale of the Development Lands, and the construction of the new parking facility on the Retained Lands, the total net development cost to the TPA of creating this added parking is estimated to range from $1.6 million to $1.8 million.

The Toronto Parking Authority recommends that:

1.         City Council authorize the acquisition of 457 Spadina Road (the “Property”) from Sharon Green and Fred Green (the “Vendor”) for a purchase price of $898,000 plus the expenditure of an additional $255,000 for construction and associated costs such as land transfer tax, survey, environmental studies, legal and brokerage fees for a total acquisition cost of $1,153,000;

2.         Upon acquisition, the purchased lands be designated for municipal parking purposes, to be managed by the TPA;

3.         The City Solicitor be authorized to complete the purchase transaction, deliver any notices, pay any expenses and amend the closing and other dates to such earlier or later date(s), on such terms and conditions, as she may, from time to time, determine; and

4.         The appropriate City Officials be authorized to take the actions necessary to give effect thereto.

The purpose of this report is to obtain City Council’s approval to purchase 457 Spadina Road (the “Property”) (see attached Site Location Map) in order to expand the adjacent Municipal Carpark 164 (453 Spadina Road) located at Thelma Avenue and Spadina Road from 43 spaces to 54 surface spaces.  This acquisition will help alleviate a shortfall in public parking while continuing to service the short term parking needs of the surrounding Forest Hill Village community

Capital funds were identified in the 2010 Capital Budget for TPA project No. 103 Forest Hill Village (Captor Number TPA907470 / SAPCPK140).  This acquisition is expected to close in the fall of 2010.  The property purchase will be funded through TPA revenues.  The operating and maintenance costs associated with this facility will not affect the 2010 Operating Budget.

We have retained the services of an independent appraisal firm to determine the Fair Market Value (“FMV”) for the Property.  According to the report, the TPA’s purchase price for the Property, while slightly above the estimated market value, is considered fair and reasonable given its location next to our existing parking lot particularly given that the Property will contribute to TPA’s overall net operating profit.

The Deputy City Manager and Chief Financial Officer have reviewed this report and agree with the financial impact information.