The Chief Corporate Officer recommends that:

1.         City Council grant authority to the Director of Real Estate Services to negotiate to acquire and, if unsuccessful, to initiate expropriation proceedings, for the Required Property for the purposes of widening Sheppard Avenue East and constructing the Line between the Don Mills Station and Consumers Road.

2.         City Council grant authority to the Director of Real Estate Services 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.

In July 2008, City Council approved the recommendations in the Sheppard East Light Rail Transit (the “Line”) Environmental Assessment Study for this first Transit City light rail line.

This report seeks authority to acquire the property requirements set out in Appendix “A” and as illustrated in Appendix “B” (the “Required Property”) for the purposes of widening Sheppard Avenue East and constructing the Line.

Funding for the Required Property is available in the 2010 approved Capital Budget, project CTT135.

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 an agreement to transfer part of the property at the southwest corner of Eglinton Avenue East and Don Mills Road, more particularly described in Appendix 2, including agreements related thereto, to Build Toronto, substantially on the terms and conditions set out in Appendices 1 and 2 attached, and on such other and amended terms and conditions as may be approved by the Chief Corporate Officer, in a form satisfactory to the City Solicitor.

2.         City Council grant authority to enter into an agreement to transfer the property municipally known as 3326 Bloor Street West and part of 1226 Islington Avenue, more particularly described in Appendix 3, including agreements related thereto, to Build Toronto, substantially on the terms and conditions set out in Appendices 1 and 3 attached, and on such other and amended terms and conditions as may be approved by the Chief Corporate Officer, in a form satisfactory to the City Solicitor.

3.         City Council grant authority to enter into an agreement to transfer the property municipally known 4050 Yonge Street, more particularly described in Appendix 4, including agreements related thereto, to Build Toronto, substantially on the terms and conditions set out in Appendices 1 and 4 attached, and on such other and amended terms and conditions as may be approved by the Chief Corporate Officer, in a form satisfactory to the City Solicitor.

4.         City Council grant authority to the Chief Corporate Officer to permit Build Toronto to engage in licensing and leasing activities in respect of properties that are or become the subject matter of executed Transfer Agreements, during the period prior to the closing of the transfer transactions, on terms and conditions as may be approved by the Chief Corporate Officer, in a form satisfactory to the City Solicitor.

5.         City Council grant authority to fund the City’s outstanding expenses related to these properties from the Approved Operating Budgets for Facilities and Real Estate (F&RE), in the year(s) that the expenses are incurred, as necessary and, once these expenses are known, to transfer the funding for these expenses from the Land Acquisition Reserve Fund (LARF), with appropriate adjustments to F&RE’s Approved Operating Budgets, as necessary, through subsequent Quarterly Variance Reports.  

6.         City Council grant authority to make appropriate budget adjustments to F&RE’s Operating Budgets to address the net revenue loss arising from the transfer of 3326 Bloor Street West and the southwest corner of Eglinton Avenue East and Don Mills Road to Build Toronto, beginning in the budget year following the registration of the transfer(s) of these properties to Build Toronto. 

7.         City Council grant authority to make appropriate budget adjustments to the Toronto Transit Commission’s Operating Budget to address the net revenue loss from the termination of TTC parking operations arising from the transfer to Build Toronto of part of 1226 Islington Avenue and 4050 Yonge Street, effective on a date to be agreed upon by the Deputy City Manager and Chief Financial Officer and the TTC.

8.         City Council authorize the termination and removal from the title of the properties to which it applies, including part of 1226 Islington Avenue, of a lease agreement between Metropolitan Toronto and the TTC entered into December 30, 1969, and registered as EB367652, as it now redundant and inconsistent with the intended redevelopment of properties that are to be transferred to Build Toronto.

9.         City Council rescind Recommendation 3 of EX2.10 as approved on February 5, 6, 7, and 8, 2007, regarding sale proceeds from the Bloor/Islington lands and the Westwood lands, so that Build Toronto will be able to derive revenue from its redevelopment of the Bloor/Islington lands and integrate alternatives for the relocation of the Islington bus terminal within its master plan.

10.       City Council declare surplus 253 Markham Road/12 Dunelm Street, as set out in Appendix 5, subject to the retention of those areas and interests required to satisfy operational requirements and subject to the retention of any interests required by by-law as well as those City and other interests required to be protected (“Required Interests”), with the intended method of disposal to be by way of a Transfer to Build Toronto on an “as is” basis, for nominal consideration (with Build Toronto to pay any applicable Land Transfer Tax, HST, registration and other costs).

11.       City Council approve, as the approving authority under the provisions of the Expropriations Act, the transfer to Build Toronto of any property that was acquired by expropriation without giving the original owner from whom the property was expropriated the first chance to repurchase the property. 

12.       City Council rescind, at such time as a property that is to be made available to Build Toronto is no longer being utilized by the Toronto Parking Authority for parking purposes, any prior designation of such property for parking by the Toronto Parking Authority. 

13.       City Council authorize and direct the appropriate City officials to introduce in Council any Bills necessary to give effect to the foregoing.

14.       City Council grant authority severally to each of the Chief Corporate Officer and the Director of Real Estate Services to execute the transfer agreements on behalf of the City.

15.       City Council authorize the City Solicitor to complete the transactions to be provided for in the transfer agreements on behalf of the City, including making payment of any necessary expenses, amending the closing and other dates to such earlier or later date(s), and amending or waiving the terms and conditions, as she may from time to time consider reasonable.

By its adoption of EX32.5, as amended, on May 25, 26, and 27, 2009, City Council, among other matters, declared sixteen properties surplus, with the intended method of disposal to be by way of a transfer to Build Toronto Inc. (Build Toronto).  Those properties included 3326 Bloor Street West and part of 1226 Islington Avenue, and 4050 Yonge Street.  In addition, the Chief Corporate Officer, by his delegated authority, has declared surplus for transfer to Build Toronto the lands located at the southwest corner of Eglinton Avenue East and Don Mills Road.

This report recommends the terms on which three of these surplus properties, the southwest corner of Eglinton Avenue East and Don Mills Road, 3326 Bloor Street West and part of 1226 Islington Avenue, and 4050 Yonge Street, are to be transferred to Build Toronto.

This report further recommends that an additional property, 253 Markham Road/12 Dunelm Street, be declared surplus for the purposes of transfer to Build Toronto.

The transfer/sale of the properties that are the subject of this report to Build Toronto will defer the receipt of proceeds from the disposition of the properties during Build Toronto’s development process. However, the transfer will optimize benefits to the City as a whole and achieve potentially greater returns over time. 

As these properties are being transferred for nominal consideration, no revenue will be available to cover the expenses of effecting the transfers, such as registration charges that would normally be for the account of the vendor in a transaction of purchase and sale, survey fees, appraisal fees, etc.  As the total of the expenses related to these properties is not known at this time, it is recommended that these expenses be accommodated within F&RE’s Approved Operating Budgets, in the year(s) that the expenses are incurred, as necessary, and that, once these expenses are known, funds be provided from the LARF.  Budget transfers to adjust F&RE’s Approved Operating Budgets, as necessary, funded from the LARF through subsequent Quarterly Variance Reports, are also recommended.

The Toronto Transit Commission (“TTC”) is the registered owner of 4050 Yonge Street and has management responsibility for part of 1226 Islington Avenue and receives revenue from parking operations on these properties.  Pursuant to Recommendation 5 of EX32.5 (2009), appropriate adjustments will be required to the TTC Operating Budget, not earlier than 2011, to address the loss of these revenues.

Real Estate Services has management responsibility over 3326 Bloor Street West and the southwest corner of Eglinton Avenue East and Don Mills Road and receives revenue from them, which will become revenue to the account of Build Toronto commencing in 2011.  The 2010 revenue from the properties is estimated to be $7,100 and $40,000, respectively.  Pursuant to Recommendation 5 of  EX32.5 (2009), appropriate adjustments will be required to F&RE’s Operating Budget, not earlier than 2011, to address the loss of these revenues.

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

1.         That the recommendation to declare surplus the land located at Markham Road and Dunelm Street be deferred pending a report from the Director of Planning, Scarborough District, regarding the future land-use designation for this property in the context of the review of the city-owned lands between Markham Road and Scarborough Golf Club Road.

2.         And further that the Director of Facilities and Real Estate confirm an interest by the Y.M.C.A. in acquiring this property for a future facility.

Councillor Brian Ashton submitting a letter respecting identified properties declared as surplus to City requirements and transfer to Build Toronto for disposal.

On March 31 and April 1, 2010, City Council adopted the recommendations in Item EX41.5 of the Executive Committee regarding the reconfiguration of the block bounded by Danforth Avenue, Coxwell Avenue, Rhodes Avenue and the public lane to the south (the “Identified Block”), where the majority of the lands is within Woodgreen Community Services under its affiliated company Woodgreen Settlement Corporation (collectively referred herein as “WCS”) and City ownership, in order to facilitate the establishment of a site for the proposed new Woodgreen Community Services head office and services facility.

This report seeks authority to enter into a Memorandum of Understanding (“MOU”) between the City, Toronto Parking Authority (“TPA”) and WCS regarding the proposed real estate transactions to implement the proposed reconfiguration of the Identified Block and development of the new WCS facility.  The Preliminary MOU is attached as Appendix “A” to this report.  Staff is recommending to City Council the approval of the MOU, substantially on the terms and conditions as contained in Appendix “A”.

This report also seeks authority with respect to financial adjustments between the City and the TPA arising from the City’s role in facilitating the proposed new WCS facility and the acquisition of the First Parliament Site.

WCS will assume all of the costs associated with the reconfiguration of the City’s lands, acquisition costs for additional land required for the reconfiguration, costs to relocate the TPA Carpark and costs to relocate and develop the landscaped area for parks purposes, with the following exceptions:  any yet unknown environmental costs associated with the park relocation will be shared 50/50 with the City and any costs in excess of            $0.250 million to improve and widen the public lane will be paid by the City.  The potential impact to the City as a result of the exceptions noted above cannot be determined at this time.  It is anticipated that these costs will be identified during        2011 and/or 2012 and will be included in various program operating and/or capital budgets for consideration by Budget Committee for the 2012 and/or 2013 budget years.

If City Council approves Recommendation No. 2, the City will forego the proceeds from the TPA in the amount of $0.375 million for the transfer of operational management of 465 Huron Street to them from being allocated into LARF as per Council Proceeds Policy. The fair market value for 465 Huron Street is $0.440 million.  The $0.375 million will be credited to TPA for compensation to TPA for the following:

 The remaining $0.065 million will be allocated into LARF.

In addition, the TPA will receive $0.360 million from WCS representing a repayment of the TPA’s original acquisition price for 1549 Danforth Avenue.

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 recommends that:

1.         City Council grant the General Manager, in conjunction with the Purchasing and Materials Management Division, the authority to issue a Request For Proposals for the operation of the Joy Oil Station until May 9, 2016 for uses other than food and beverage sales.

2.         If the RFP for the operation of the Joy Oil Station, as set out in Recommendation 1 above, is not successful, City Council authorize the General Manager of Parks, Forestry and Recreation to request 505707 Ontario Ltd. to submit a new proposal and negotiate with the Operator for a 15 year extension of the Western Beaches Concession License only, that would include the operation and use of the Joy Oil Station, increased base fees, food and beverage sales rights, the development of the Sunnyside Pavilion, and the construction of a new, year-round restaurant in Sir Casimir Gzowski Park, such extension to be subject to amending the Official Plan, if required; and the successful completion of the City’s disposal process through the Real Estate Services Division.

3.         Should the RFP as set out in Recommendation 1 above not be successful, and Council grant authority to the General Manager, as set out in Recommendation 2 above, then subject to the receipt and review of a detailed business plan, including financial forecasts, evidence of financing, a marketing plan, and a partnership plan between the City and 505707 Ontario Ltd., to the satisfaction of the Deputy City Manager and Chief Financial Officer, and the General Manager, that the General Manager report back to the appropriate Committee and Council on the proposed terms of an amending agreement.

In 2007, the Joy Oil Station, a Heritage Property, was relocated into Sir Casimir Gzowski Park. In the new location adjacent to Lakeshore Blvd., the Joy Oil Station is one of an ensemble of heritage buildings in the Western Beaches along with Sunnyside Pavilion and the Palais Royale. Since its relocation, the Joy Oil Station has remained fenced off from the public and the interior has not been renovated. It is therefore important to the Parks, Forestry and Recreation Division to find a use for this heritage building.

The City sought a proposal from 505707 Ontario Ltd., also known as the Grenadier Group (the “Operator”), who has exclusive food and beverage vending rights in the Western Beaches, to retrofit the interior of the Joy Oil Station at its own expense and operate it as a snack bar. The Operator responded with a broader unsolicited proposal that included a new, year-round restaurant and additional improvements to the Sunnyside Pavilion and the concessions in High Park in exchange for an extension of 15 years to all three of the Operator's agreements with the City, which is not in compliance with City policies.

The City cannot issue a Request for Proposals (RFP) for food and beverage vending rights as the Operator has exclusive food and beverage vending rights in both High Park and the Western Beaches until May 9, 2016. These rights prohibit the City from entering into food and beverage contracts with any other operators during the term of the agreement with the Operator.  The Operator would have to waive these rights in order to proceed with a “Swiss Challenge” and they have declined to waive their right of exclusivity.

Staff considered the options available for the development of the Joy Oil Station and recommend that the General Manager of Parks, Forestry and Recreation (the "General Manager") issue an RFP for the operation of the Joy Oil Station for use other than food and beverage sales until May 2016. This option is compliant with City Procurement policies.

Staff believe that an RFP that excludes food and beverage sales for a five year term will have limited success. If the RFP is not successful, staff is seeking authority to negotiate with the Operator for a 15 year extension of the Western Beaches Concession License only, that would include the operation and use of the Joy Oil Station, increased base fees, food and beverage sales rights, the development of the Sunnyside Pavilion, and the construction of a new, year-round restaurant in Sir Casimir Gzowski Park. The terms of this arrangement would be reported back to Council in 2011.

There is no financial impact at this time. The City will issue an RFP for the operation of the Joy Oil Station for uses other than food and beverage sales until May 9, 2016.  The results of the RFP and related financial implications will be reported back to Council through the appropriate Standing Committee.

If the RFP is not successful, the Operator will be requested to submit a new proposal based only on the extension of the Western Beaches Concession Agreement.  Staff will report back to Council through the appropriate Standing Committee in 2011 on the terms of the revised proposal and its financial implications.

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

Briefing Note submitted by the Director, Revenue Services respecting 268 tax appeal applications for the reduction, cancellation and refund of property taxes pursuant to the provisions of sections 323 and 325 of the City of Toronto Act.