February 24, 1998

To: Corporate Services Committee

From: Commissioner of Corporate Services

Subject: Renewal of Land Lease Agreement with the Toronto Transit Commission

for a Child Care Centre at No. 1125 Danforth Avenue,

East Toronto, Ward 26

Purpose:

To renew the captioned Land Lease Agreement with the Toronto Transit Commission for a Child Care Centre at No. 1125 Danforth Avenue, Toronto, as per attached location map.

Funding Sources, Financial Implications and Impact Statement:

Funds to cover the expenditures identified in this report are part of Children=s Services 1998 Operating Budget Request.

The Commissioner of Finance, in accordance with Provincial regulations, has certified that financing for these expenditures in the amount of $174,062.00 is within the Updated Financial Debt and Obligation Limit.

Recommendations:

It is recommended that:

(1) financing in the amount of $174,062.00 be approved;

(2) authority be granted to renew the Land Lease Agreement with the Toronto Transit Commission for a term of 5 years commencing April 1, 1998 and expiring on March 31, 2003, on the terms and conditions herein below and in a form acceptable to the Toronto Solicitor; and

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

Council Reference/Background/History:

Metropolitan Council, by its adoption of Clause No. 3, Report No. 11 of The Parks, Recreation and Property Committee on September 29, 1993, authorized the renewal of the Lease for two parcels of land at the above-noted location, having a combined area of 2,340 square metres (25,183 square feet), for a term of 5 years commencing April 1, 1993 and expiring on March 31, 1998, at a rental of $1.00 per annum, net, plus estimated operating costs of $190,000.00 over the term of the Lease. All other terms and conditions are to remain the same as or similar to those in the current Lease.

Comments and/or Discussion and/or Justification:

By a letter dated November 19, 1997, Community and Neighbourhood Services Department has informed me that it wished to renew the Lease on the same terms and conditions, but with a 60-day notice to terminate.

Negotiations were conducted with Mr. Graham H. Tulett, Superintendent of Property Management, Toronto Transit Commission, 1900 Yonge Street, Toronto, Ontario, M4S 1Z2, and agreement has been reached to renew the captioned Land Lease Agreement for another 5-year term, commencing April 1, 1998 and expiring on March 31, 2003, with Tenant=s option to terminate the Lease on a 60-day notice. All other terms and conditions are to remain the same as or similar to those in the current Lease, including the rental of $1.00 per annum, net. The estimated operating costs over the term of the Lease is estimated at $174,062.00.

Conclusions:

In my opinion, these terms and conditions are fair and reasonable and I have been advised that they are acceptable to the Community and Neighbourhood Services Department.

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

Commissioner of Corporate Services