June 17, 1998

 To:Budget Committee

 From:Commissioner of Corporate Services

 Subject:Toronto City Hall Renovations

 Purpose:

 To provide the Budget Committee with a copy of the report titled AToronto City Hall Renovations - Recommended Actions in Response to Committee and City Council Motions and Additional Phase 1 Budget Requirements@, dated June 16, 1998.

 Source of Funds:

 N/A

 Recommendations:

 It is recommended that this report be received for information.

 Council Reference/Background/History:

 At its meeting on June 3 and 4, 1998, City Council approved the design concept plans for the Phase 1 renovations to City Hall. At that time, City Council also adopted motions requesting that I, in consultation with the Project Architect, review and report further to the Sub-committee on the Relocation of All Members of Council to City Hall on certain design modifications Council requested for Phase 1 of the project.

Comments and/or Discussion and/or Justification:

 The attached report discusses the additional project design modifications requested by Council which were studied by the Project Team and Project Architect to determine the technical feasibility, implementation potential and costs related to these modifications. The report outlines recommended actions and additional budget requirements over and above the $5.2 million previously approved by City Council. It will be considered by the Relocation Sub-Committee at its meeting on June 26, 1998.

 Another report titled "Funding Sources for Renovations to Toronto City Hall", dated June 16, 1998, requesting approval of funding sources to cover additional costs for the Phase 1 renovations of City Hall has been submitted to the Budget Committee for its June 25, 1998 meeting.

 Conclusions:

 The attached report is being forwarded to the Budget Committee for information.

 Contact Name:

 Cathie Macdonald, Project Executive and Interim Lead, Facilities and Real Estate: Phone 392-0449 and fax 392-0029 (bc98098.wpd)

  Commissioner of Corporate Services

 Attach.

 June 16, 1998

 To:Sub-Committee for the Relocation of All Members of Council to City Hall

 From:Commissioner of Corporate Services

 Subject:Toronto City Hall Renovations - Recommended Actions in Response to Committee and City Council Motions and Additional Phase 1 Budget Requirements

 Purpose:

 To recommend actions to be taken in Phase 1 of the City Hall renovations project and in other phases, in response to motions which were referred to or adopted by the Sub-Committee for the Relocation of All Members of Council to City Hall, the Special Committee to Review the Final Report of the Toronto Transition Team and City Council, and to identify additional budget requirements for the Phase 1 renovations.

 Source of Funds:

 $554,000 to be approved by the Budget Committee in addition to amounts already approved by City Council.

 Recommendations:

 It is recommended that:

1. the Action Nos. 1 to 13 pertaining to the City Hall renovations, listed in attached Appendix A and discussed in this report be endorsed.

1. the budget schedule attached in Appendix B, showing the additional costs associated with the Phase 1 renovations to City Hall, be endorsed.

 Background:

 The Relocation Sub-Committee and Special Committee adopted motions requesting that I report further on various aspects of the City Hall renovations project. Most of these matters were addressed in the design concept plans for the Phase I renovations to City Hall approved by City Council, at its June 3 and 4, 1998 meeting.

 At that time, City Council adopted motions requesting that I, in consultation with the Project Architect review and report further on certain design modifications Council requested for Phase 1 of the project. City Council also requested that I report back, through the Corporate Services and Budget Committees, on the source of funding over and above the $5.2 million previously approved by Council to accommodate all additional items requested.

 Discussion:

 The Project Team and Project Architect studied the additional project design modifications requested by City Council, in terms of whether they are technically feasible and can be accommodated in the Phase 1 renovations and what the cost implications are. These issues are discussed below, along with recommended actions (see Appendix A for a consolidated list) and additional budget requirements above the 5.2 million (see Appendix B). Also discussed are certain other items referred by the Relocation Sub-Committee and Special Committee for me to report on to the Relocation Sub-Committee.

 1.DESIGN IDEAS RAISED IN CITY COUNCIL MOTIONS

 1.1Council Chamber Floating Wall and Councillors= Seating

 Motion:That the Project Architect be requested to investigate the cost of moving back the wall in the Council Chamber in order to:

(a)allow for two rows of Councillors= seats;

(b)maintain, as close as possible, the size of the Councillors= desks in the Council Chamber to the size of the desks currently in use in the Council Chamber at Metro Hall.

Comment:

 The floating wall in its current location is a major design feature. The narrow steps beside the wall are part of the design and not to be used as stairs. The Historical Board does not support the relocation of the wall. The technical feasibility of moving the wall has been explored in detail. The wall contains major mechanical systems and would cost at least $750,000 to demolish and rebuild. Mechanical air balancing may be difficult to achieve with the wall in a new position (i.e. getting air to the centre of the room).

 The floating wall cannot be moved more than 5 feet without requiring rebuilding of the stairs to the Members= Lounge, and creating structural stability problems with the Amushroom@ which could be costly to resolve. Moving the wall up to 5 feet will still not permit two rows of seats nor will it maintain functional breaks in the rows, public deputation podium and staff seating locations.

 The proposed desk is 3 feet wide and designed to be more efficient than the 4 foot wide Metro desk. The current City Hall desks are only 2.5 feet wide. The proposed new desks will incorporate technology in a space saving way, including keeping the desk surface free of any computer screens.

 Recommended Actions:

 Action No. 1:That the floating wall in the Council Chamber be retained in its current location.

 Action No. 2:That the Project Architect's proposed design for the Council Chamber to accommodate three rows of Councillors' seating be reaffirmed.

 1.2Media Accommodation

 Motion:That the Project Architect be requested to review the issue of accommodation for the media, including the possibility of the installation of glass partitions and a second level to provide a total of 20-24 seats; and the permanent office space for the media on the first floor be completed in Phase 1.

 Comment:

 Proposals for office accommodation for the media at City Hall are being developed by the Project Team in consultation with the media.

 Adding a glass separation in front of the media space in the Council Chamber is possible and will add to the overall costs by $20,000. Consultation on this proposal will take place with the media.

 Temporary seating at the top of the Council Chamber can be added when there is demand, as is the current practice. Under the new plan, part of the space is proposed to be allocated for wheelchairs. Only about 10 to 15 additional permanent seats can be added under the limits of the Ontario Building Code for occupancy of the Chamber. The amount of additional funding needed will depend on whether the space is to be used for the media or the public, with media space requiring greater additional funding because of the need to add communications systems.

 The Project Architect does not support the creation of a second tier Press Gallery seating area at the top of the Council Chamber, given that the additional space would block continuous pedestrian movement at the upper level of the Chamber and would have to be raised substantially to achieve adequate sight lines. Also, it would become a dominant feature in the Chamber and detract from the integrity of the space.

 Recommended Actions:

 Action No. 3:That the Commissioner of Corporate Services consult with the media and report further on the plan for media office accommodation at City Hall and on the feasibility and cost implications of adding a glass partition in front of Press Gallery space in the Council Chamber.

 Action No. 4:That no further consideration be given to creating a second tier Press Gallery seating area at the top of the Council Chamber.

 1.3Projection Screen and Corporate Logo in Council Chamber

 Motion:That the Project Architect be requested to incorporate, in his reconsideration of this project, a projection screen which is not fixed and which can be hidden when not in use, so that the corporate logo can be seen prominently on the back wall.

 Comment:

 The Project Team has investigated sources for a motorized, retractable projection screen for the Council Chamber and has been advised that this type of screen, at the size required for the Chamber, cannot be obtained. The Project Team is, therefore, exploring other options for an appropriate screen

and logo installation for the Council Chamber.

 Recommended Actions:

 Action No. 5:That the Commissioner of Corporate Services report back on options for the projection screen and corporate logo installations in the Council Chamber, together with the associated costs.

 1.4Microphone Light on Councillors' Desks in Council Chamber

 Motion:That the Project Architect be requested to ensure that a light is installed on the microphone on the Councillors= desks to indicate when the microphone is >live=.

 Comment:

 This is included already in the plan.

 1.5Equity in Size of Second Floor Offices

 Motion:That the Project Architect be requested to re-examine the second floor layout to ensure more equity in office space.

 Comment:

 There are only two Councillors= offices that are significantly larger than the rest - at the northwest and northeast corners. These offices are existing configurations and due to their location, they are difficult to reduce in size. Any space removed from these areas would go to increasing the area of exit stairs. The design already makes adjustments to the extent possible to create offices of the same size in response to the unavoidable changes in the floor plate and the need to line up partitions with window mullions.

 Recommended Actions:

 Action No. 6:That the size and configuration of the Councillors= offices, as shown on the design concept plans approved by City Council, be reaffirmed.

 1.6Humanizing Outside Podium Level

 Motion:That the Commissioner of Corporate Services, together with the appropriate staff, be requested, as soon as possible, to develop plans to "humanize" the outside roof area surrounding the Council Chamber, especially the area to the north of the proposed links to the East and West Towers.

 Comment:

 Although this is already part of Phase 2, interim improvements will now be explored by staff.

 Recommended Actions:

 Action No. 7:That the Commissioner of Corporate Services report back in September, 1998 on interim measures and proposals for Phase 2 of the City hall renovations project, to "humanize" the outside roof area surrounding the Council Chamber.

 1.7Toronto City Centre Project

 Motion:That the Commissioner of Corporate Services, together with the appropriate staff, be requested, as soon as possible, to develop plans for the Civic Centre, such plans to be submitted as soon as possible to Council, through the Special Committee to Review the Final Report of the Toronto Transition Team.

 Comment:

 This is part of Phase 3 of the project and a report on the proposed process will be submitted by staff next month.

 1.8Aesthetic Lighting for Council Chamber, First and Second Floors and Sound Proofing Office Windows

 Motions:That the Commissioner of Corporate Services be requested to consider aesthetic lighting for the Council Chamber and second and main floors, as well as additional sound barriers for the offices facing Nathan Phillips Square.

 That sound proofing of windows for offices overlooking Nathan Phillips Square, to ensure that the affected offices are useable, be added to the project.

 Comment:

 Improvements to lighting are part of the current proposals for the Council Chamber. Additional funds will be required for the second floor. The main floor lighting improvements, including improvements to the Hall of Memory will be part of Phase 2, but some improvements should be made this year as part of ongoing operational improvements to the building.

Sound-proofing office windows facing Nathan Phillips Square is possible and would cost an additional $80,000. This work should be incorporated into the scheme currently being explored by the Project Team, in consultation with the Energy Efficiency Office, to replace all City Hall windows with more energy efficient windows. The window replacement scheme would be undertaken in stages to coincide with the phased renovations of City Hall, beginning this year with the second and first floors and the other floors accommodating the offices of the CAO and Commissioners and their support staff. The Project Team, in consultation with the Energy Efficiency Office, will explore mechanisms for funding which may include support from the Toronto Atmospheric Fund.

 Recommended Actions:

 Action No. 8:That the lighting on the second floor of City Hall be upgraded as part of Phase 1 of the project and additional funds in the amount of $200,000 be allocated for this purpose.

 Action No. 9:That the Commissioner of Corporate Services report on a staged program to replace the existing windows at City Hall with more energy efficient windows as part of the City Hall renovations project, including sound proofing the windows for Councillors= offices overlooking Nathan Phillips Square during the Phase 1 renovations, and report on mechanisms for funding which may include support from the Toronto Atmospheric Fund.

 1.9Podium Level Meeting Rooms in Phase 1

 Motion:That plans for the additional podium floor to house new committee rooms, media offices and other needed facilities be moved forward to Phase 1 from Phase 2 and that the Commissioner of Corporate Services be requested to report thereon, through the Mayor's office, to the Budget Committee.

 Comment:

 There is insufficient time to make this major change by the end of the year. A proposal for the scope of Phase 2 will be submitted to the Relocation Sub-Committee and Budget Committee shortly.

 Recommended Actions:

 Action No.10:That the Commissioner of Corporate Services report on the proposals with associated costs to construct new committee meeting rooms on the podium level of City Hall, as part of the Phase 2 renovations to City Hall.

 1.10Adding Second Floor Meeting Rooms

 Motion:That:

(1)the space on the second floor currently proposed for the City Clerk's staff be relocated to the first floor;

(2)the space on the second floor currently proposed for the Mayor's support staff, as shown on the sketch in a separate area away from the Office of the Mayor, be relocated to the first floor below the Mayor's office, and an interior connecting staircase be incorporated into the layout; and the space made available on the second floor, as a result of this change, be used for additional committee rooms of various sizes;

(3)in the event that Recommendation No. (2) above fails, the space on the second floor currently proposed for the Mayor's support staff be reduced to the same size as the space allocated to the Councillors' support staff, thereby reducing the space from 2650 sq. ft. to 1700 sq. ft., and the remaining 950 sq. ft. of space be used for additional meeting rooms for Councillors.

 Comment:

 The proposal is to continue to use meeting rooms at Metro Hall until additional meeting rooms are added at City Hall as part of Phase 2.

 The allocation of second floor office space for the City Clerk's support staff is based on the City Clerk's program needs related to the operation of City Council. It may be possible to reallocate this space for meeting rooms in the future, once the City Clerk's overall space needs are assessed in the context of the corporate space planning strategy currently being developed to determine "who goes where" at City Hall and the other civic centres. In the meantime, it is advisable to proceed with the plan to locate this function on the second floor.

 The Mayor's Office is above both the main entrance to City Hall and an adjacent space that is potentially allocated for a cafe, and thus relocation to the main floor is not possible. In any case, the functionality of the main floor of City Hall, including the provision of services to the public and necessary renovations will be examined as part of Phase 2.

 The Project Team and Project Architect discussed the office space requirements for the Mayor's support staff with the Mayor's Office and are satisfied with the proposed space allocation.

 Recommended Actions:

 Action No.11:That the allocation of office space on the second floor of City Hall for the City Clerk's staff be reaffirmed.

 Action No.12:That the allocation of office space on the second floor of City Hall for the Mayor's support staff be reaffirmed.

 1.11Demountable Partitions for Councillors' Offices

 Motion:That interior walls of the Councillors' offices be constructed of demountable partitions.

 Comment:

 This approach is preferred for cost and flexibility reasons and is one of the options available to Councillors. The additional cost for all offices ($314,000) has been added to the project budget.

 1.12First Floor Escalator

 Motion:That the provision of an escalator between the ground and second floors to allow easy and proper access to the second floor also be approved.

 Comment:

 This is possible and will be looked at in Phase 2. The additional cost for an escalator is approximately $150,000. Alternatively, the Project Architect suggests constructing another curved stair that would be a strong architectural element more in keeping with the existing character of the rotunda. It would also utilize less ground floor space than an escalator. The stair together with the necessary structural supports would cost approximately $95,000.

 Recommended Actions:

 Action No.13:That the Commissioner of Corporate Service explore mechanisms such as an escalator or additional curved stair to provide better access from the first floor to the second floor of City Hall, as part of the Phase 2 renovations to City Hall, and report on this matter in September, 1998.

 1.13Countdown Clocks in Council Chamber

 Motion:That a countdown clock be installed in the Council Chamber in a location visible to all Members of Council.

 Comment:

 Two countdown clocks are included in the plan.

1. OTHER CITY COUNCIL MOTIONS

 2.1Allocation of Councillors' Offices

 Motions:That Councillors presently located in offices at City Hall can remain in their offices if they so choose, and that those Councillors who choose to remain in their offices be excluded from the lottery.

 That a lottery take place at Council on June 4, 1998 and Members of Council be given the opportunity to select their own ballot.

 That Members of Council be permitted to negotiate an office trade with another Member of Council and that such trades take place within one week of the lottery for offices.

 Comment:

 The lottery on allocating Councillors= offices at City Hall took place on June 4, 1998, followed by the Project Team surveying all Councillors on the layout design they want for their offices. The lottery results and the outcome of the office layout survey will be the subject of a separate report to the Relocation Sub-Committee.

 2.2Additional Budget Requirements

 Motion:That the Budget Committee be requested to report to Council, through the Corporate Services Committee, on the source of funding over and above the budget of $5.2 million previously approved by Council, to accommodate all of the additional items requested.

 Comment:

 The budget schedule attached in Appendix B provides a breakdown of the cost estimates to accommodate new items in the Phase 1 renovations, over and above the $5.2 million approved by City Council. Additional funds in the amount of $1.7 million are needed as a result of recent program adjustments, additional needs identified by Councillors and staff, emerging design refinements unforeseen in the original budget submission, and design modifications to implement the additional items recently requested by City Council.

 As an example, Council Chamber costs were increased to better accommodate all Councillors and senior staff, create a better public deputation area, and provide an adequate separation between the Council Chamber floor and public gallery seating areas. The IT costs were increased to accommodate additional needs identified by the City Clerk and Councillors and are the result of further modifications to the Councillors= seating areas. Cost increases are also attributable to lighting upgrades on the second floor, new wayfinding signage, elevating the two pedestrian links for better accessibility, and adding washrooms on a new 3^rd floor mezzanine level.

 The additional costs related to the final design concept for the Phase 1 renovations to City Hall can be accommodated with funds from the Equity Program and Access Improvements for City Owned Buildings Account and Transition Reserve Fund, as recommended in a separate report to the Budget Committee. Funding included in the Operations Budget can be adjusted to cover such matters.

 Recommended Actions:

 Action No.14:That the budget schedule attached in Appendix B, showing the additional costs associated with the Phase 1 renovations to City Hall, be endorsed.

 It should be noted that the motion adopted by City Council at its June 3 and 4, 1998 meeting, to include the $314,000 for the Councillors= offices as part of the $5.2 million was required in order that work on the Councillors= offices could begin as soon as possible. The enclosed office option means a different demolition plan. The budget proposal in this report supercedes this motion.

 3.ITEMS RAISED BY RELOCATION SUB-COMMITTEE AND SPECIAL COMMITTEE

 3.1Councillors= Parking at City Hall

 The Relocation Sub-Committee requested that the Chair and I review the security and parking issues related to the underground parking garage at City Hall with the Toronto Parking Authority. The Sub-Committee also requested that consideration be given to the possibility of an additional parking space being made available for Councillor=s staff. The security needs at City Hall, including the underground parking garage will be assessed in a separate building security study now underway. At the completion of the study, I will report on a security plan for City Hall together with recommendations on any security improvements necessary and the budget implications. A corporate strategy to allocate parking spaces to City officials (in addition to Councillors) will also be recommended and will be the subject of a report in the near future.

 3.2Relocation of Urban Affairs Library

 The Relocation Sub-Committee and Special Committee requested that I, in consultation with the appropriate officials of the Urban Affairs Library, report on the issue of relocating the Urban Affairs Library from Metro Hall to support the new City Council at City Hall. Discussions have been held with the Chief Librarian who advised that the Toronto Public Library is reviewing its programs, including assessing the functionality of both the Urban Affairs Library and City Hall Public Library and their accommodation needs at City Hall. The amount of ground floor space that can be allocated for library purposes will be considered in proposals for the ground floor in Phase 2 of the project. I will continue to consult with the Chief Librarian and will report further on this matter in September of this year.

 3.3Status of Old City Hall Negotiations

 The Relocation Sub-Committee and Special Committee requested that I report on discussions to date respecting the lease of Old City Hall. Attached in Appendix C, for the Sub-Committee=s information, is a separate report titled "Old City Hall - Lease Agreement", dated June 11, 1998, which has been submitted to the Corporate Services Committee in order to seek City Council's direction on renewal of the lease of Old City Hall.

Conclusions:

 Establishing a fully functional seat of government at Toronto City Hall is a multi-phase project to be undertaken over the next few years. City Council's recent approval of the final design concept plans for the Phase 1 renovations to City Hall will enable renovations to begin on schedule, so that Councillors= offices and City Council operations can be relocated to City Hall by the end of 1998.

Many of the issues raised by the Relocation Sub-Committee and Special Committee have been addressed in the design concept for Phase 1 approved by City Council. As discussed in this report, many of the additional items raised by City Council either require additional funding for implementation in Phase 1 of the project or will be reported on in connection with the work plans for Phases 2 and 3 of the project.

 Contact Name:

 Cathie Macdonald, Project Executive and Interim Lead, Facilities & Real Estate, phone 392-0449, fax 392-0029

 Commissioner of Corporate Services

APPENDIX A

 LIST OF RECOMMENDED ACTIONS FOR CITY HALL RENOVATIONS PROJECT

 Action No. 1:That the floating wall in the Council Chamber be retained in its current location.

 Action No. 2:That the Project Architect's proposed design for the Council Chamber to accommodate three rows of Councillors' seating be reaffirmed.

 Action No. 3:That the Commissioner of Corporate Services consult with the media and report further on the plan for media office accommodation at City Hall and on the feasibility and cost implications of adding a glass partition in front of Press Gallery space in the Council Chamber.

 Action No. 4:That no further consideration be given to creating a second tier Press Gallery seating area at the top of the Council Chamber.

 Action No. 5:That the Commissioner of Corporate Services report back on options for the projection screen and corporate logo installations in the Council Chamber, together with the associated costs.

 Action No. 6:That the size and configuration of the Councillors' offices, as shown on the design concept plans approved by City Council, be reaffirmed.

 Action No. 7:That the Commissioner of Corporate Services report back in September, 1998 on interim measures and proposals for Phase 2 of the City hall renovations project, to "humanize" the outside roof area surrounding the Council Chamber.

 Action No. 8:That the lighting on the second floor of City Hall be upgraded as part of Phase 1 of the project and additional funds in the amount of $200,000 be allocated for this purpose.

 Action No. 9:That the Commissioner of Corporate Services report on a staged program to replace the existing windows at City Hall with more energy efficient windows as part of the City Hall renovations project, including sound proofing the windows for Councillors= offices overlooking Nathan Phillips Square during the Phase 1 renovations, and report on mechanisms for funding which may include support from the Toronto Atmospheric Fund.

 Action No.10:That the Commissioner of Corporate Services report on the proposals with associated costs to construct new committee meeting rooms on the podium level of City Hall, as part of the Phase 2 renovations to City Hall.

 Action No.11:That the allocation of office space on the second floor of City Hall for the City Clerk=s staff be reaffirmed.

Action No.12:That the allocation of office space on the second floor of City Hall for the Mayor=s support staff be reaffirmed.

 Action No.13:That the Commissioner of Corporate Service explore mechanisms such as an escalator or additional curved stair to provide better access from the first floor to the second floor of City Hall, as part of the Phase 2 renovations to City Hall, and report on this matter in September, 1998.

 Action No.14:That the budget schedule attached in Appendix B, showing the additional costs associated with the Phase 1 renovations to City Hall, be endorsed.

 APPENDIX B

 BUDGET SCHEDULE

REVISED COSTS ABOVE $5.2 MILLION FOR PHASE 1 CITY HALL RENOVATIONS

APPENDIX C

 Report from Commissioner of Corporate Services, titled AOld City Hall - Lease Agreement@, dated June 11, 1998, to Corporate Services Committee

 APurpose:

 To seek direction from City Council relating to the renewal of the lease of Old City Hall.

 Funding Sources, Financial Implications and Impact Statement:

 N/A.

 Recommendations:

 It is recommended that:

 (1)the Commissioner of Corporate Services be authorized to commence negotiations with the Ontario Realty Corporation to extend the term of the lease and report to Council on the negotiated terms and conditions; and

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

 Council Reference/Background/History:

 By the adoption of The Metropolitan Executive Committee Report No. 8, Clause No. 4, on March 1, 1989 and The Parks, Recreation and Property Committee Report No. 16, Clause No. 2 on November 7 and 8, 1990, the former Metropolitan Council authorized the lease of Old City Hall to Her Majesty the Queen in right of Ontario for a term of ten (10) years. The gross square foot rates for the first five (5) years were similar to those rates paid at the time by former Metropolitan Toronto to the former City of Toronto for the tower space in the new City Hall which were set as follows:

 April 1, 1989 to December 31, 1989 $24.00 per square foot per annum

January 1, 1990 to December 31, 1990$25.00 per square foot per annum

January 1, 1991 to December 31, 1991$29.50 per square foot per annum

January 1, 1992 to December 31, 1992$32.00 per square foot per annum

January 1, 1993 to December 31, 1993$32.50 per square foot per annum

 For the years 6 to 10, the rental rates were adjusted according to the annual Consumer Price Index for Metropolitan Toronto. It was also agreed that the rent will be paid monthly, in advance, on a gross basis, subject to an escalation clause under which the landlord may charge up to the amount of $0.50 per square foot in each and every year of the agreement, payable commencing April 1, 1989, such additional charges being accumulative to cover increases in such operating costs and charges over the base year of 1986.

By further agreement, in the event that the aforementioned escalation provisions were found by Metropolitan Toronto, in any year or years within the lease term, to be insufficient to cover the actual costs of operation of Old City Hall, the Municipality shall provide to the Province a statement of the operating costs and charges actually incurred for the immediately preceding twelve (12) month period and upon presentation to the Province of such statement, the Province shall forthwith pay to The Municipality of Metropolitan Toronto, such deficient amount.

 The initial total rentable area of 181,107 square feet and the maintainable area is 206,000 square feet on which any additional escalation charge is applied.

 By the adoption of The Corporate Administration Committee Report No. 19, Clause No. 13, the former Metropolitan Council, on June 14, 1995, authorized an amendment to the lease to provide for additional space. Old City Hall which has been absorbed by the Attorney General=s Department as a result of changes to the interior of the building brought about by the recent Life-Safety Upgrade. The net additional area is 3,318 square feet. Therefore, the total rentable area was increased to 184,425 square feet from 181,107 square feet and the total maintainable area is increased to 209,318 square feet from 206,000 square feet. The 1998 rent for the Old City Hall is $6,447,473.00 and Maintenance Adjustment is $1,046,590.00.

 By the adoption of Report No. 1, Clause No. 2 of the Special Committee to Review the Final Report of the Toronto Transit Team as amended, the Council of City of Toronto, on February 4, 5, and 6, 1998, approved the following recommendations:

 (12)that the Province of Ontario be served notice to vacate Old City Hall at the end of the present lease agreement; however, they be advised that the City of Toronto is prepared to extend the lease for a one-year period at $7.2 million, and that the money be used to offset the renovation at Toronto City Hall; and

 (13)that the Province of Ontario be offered the opportunity to lease the former Police Headquarters on Jarvis Street to house the Provincial Courts.

 Comments and/or Discussion and/or Justification:

 By a letter dated March 12, 1998, the Ontario Realty Corporation has been notified according to the recommendations as adopted by the Council of City of Toronto. Subsequently, the Ontario Realty Corporation has responded by a letter dated March 20, 1998, and indicated the following:

 "The Province is willing to work with you to achieve an orderly transition in vacating the Old City Hall. The logistics involved in relocating such a specialized use make it impossible for us to facilitate the relocation within the time frame that you have proposed. The Courts must continue to operate until new premises are ready for occupancy.

 To ensure an orderly transition, we would require a minimum 4-year extension and would prefer for planning purposes, 5 years. We are working diligently to minimize the time frame and intend to vacate as soon as the new premises are ready. During the extension period, the Province would of course pay fair market rental and we would work with you to arrive at a mutually acceptable rate.

 The former Police Headquarters, in ORC's opinion, would not meet our client's requirement. However, we are prepared to have our technical staff conduct a review of that facility."

 Subsequently, I was further advised by the Ontario Realty Corporation that the Attorney General=s Department is not interested in the property at 590 Jarvis Street.

 Conclusions:

 The existing lease will expire on December 31, 1998 and contains no provision to overhold. However, the Ontario Realty Corporation by way of the Province may exercise its authority to remain if not given an appropriate time frame to relocate its Courts function. Our Facilities section has advised that the minimum time required to design, renovate and relocate to this facility for City=s use is approximately 3 years taking into consideration its historical designation and the amount of work to be performed on the building to bring it up to standards.

 In order to expedite the transitional move into Old City Hall it is anticipated that as soon as space is secured by the Province for its use, in whole or in part, an earlier phased move in may be achieved.

 In view of the current use of the Old City Hall and the difficulty of such relocation to another new facility, I am of the opinion that an extension of the lease term is reasonable and should be subject to negotiation all of which when completed will be reported to Council for approval.

 Contact Name:

 Mr. Tony Pittiglio, Manager of Property Services; Telephone No. (416)-392-8155; Fax No.:  (416)392-4828; E-mail Address: anthony_pittiglio@metrodesk.metrotor.on.ca