May 11, 1998
To:Corporate Services Committee
From:Commissioner of Corporate Services
Subject:John Street Roundhouse - Request for Expressions of Interest
(Ward 24 - Downtown)
Purpose:
To obtain authority to enter into negotiations with TrizecHahn in order to provide Corporate Services Committee with a
firm proposal and clear recommendations that may be presented to City Council, relative to the rehabilitation and reuse of
the John Street Roundhouse.
Financial Implications:
The financial implications will be addressed in a further report on the outcome of negotiations with TrizecHahn, to the
Corporate Services Committee on September 14, 1998.
Recommendation:
It is recommended that:
(1)the Commissioner of Corporate Services, in consultation with Heritage Toronto, be authorized to enter into
negotiations with TrizecHahn in order to arrive at a comprehensive proposal for the rehabilitation and reuse of the John
Street Roundhouse Complex;
(2)in formalizing their proposal, TrizecHahn investigate the possibility of incorporating the Canadian Air Land Sea
Museum and/or the group known as Terminus, as tenants within the Roundhouse;
(3)the Review Committee, convened to assess the submissions received in response to this Request for Expressions of
Interest, be continued for the purpose of providing consultative support in the above-noted negotiations; and,
(4)the Commissioner of Corporate Services report back to the Corporate Services Committee, at its meeting to be held
on September 14, 1998, with details of the negotiations and recommendations on appropriate next steps.
Background:
The Canadian Pacific John Street Roundhouse Complex, known municipally as 222 Bremner Boulevard, is a complex of
historical significance located within Roundhouse Park, a new major urban park. The Roundhouse Complex consists of a
number of structures which have been designated as being of historical significance at the national and municipal levels.
At its meeting held on March 28, 1994, the Council of the previous City of Toronto adopted a report from the
Commissioner of Planning and Development, dated March 14, 1994, granting approval for the expansion of the Metro
Toronto Convention Centre (MTCC). The MTCC expansion is a major subsurface development located below a portion of
the Roundhouse Park and below a portion of the Roundhouse Complex.
As a component of the MTCC development, a portion of the Roundhouse, Bays 1 - 11 was dismantled and stored for
future reassembly. The reassembly work is currently being tendered and it is anticipated that the reconstruction will
commence in June, 1998 and be complete by approximately September, 1998.
The City of Toronto assumed title to the Roundhouse Complex, Roundhouse Park and Bremner Boulevard, in the summer
of 1997, in accordance with agreement made between MTCC and other parties with interests in the Railway Lands East,
and has leased back the portion of the property occupied by MTCC for a term which expires in 2083.
The City=s objectives for the site are to secure the rehabilitation and reuse of the John Street Roundhouse Complex as an
operating rail museum and other uses. To this end, a proposal call was issued in May of 1997. This process produced only
two responses, neither or which was acceptable to the Selection Committee. After examining the reasons for this poor
response, it was determined that issuing a Request for Expression of Interest would be appropriate.
At its meeting held on October 6 and 7, 1997, the Council of the previous City of Toronto, adopted, with amendments,
Clause 9 of Executive Committee Report No. 23, thereby authorizing the Director, Property Services, in consultation with
Heritage Toronto and the City Solicitor, to issue a Request for Expressions of Interest (REI) for the Rehabilitation and
Reuse of the John Street Roundhouse Complex. In addition, the Selection Committee, previously established to serve in an
advisory capacity relative to a proposal call previously issued in connection with the John Street Roundhouse Complex,
was continued under the revised name of the Review Committee. The Review Committee consists of staff representatives
from City Legal, Property Services, Economic Development, Parks and Recreation, Finance, City Planning and Heritage
Toronto, as well as two representatives from the rail heritage community and one member of City Council.
The REI was advertised on December 19 and 29, 1997. A site meeting was held on January 6, 1998 and the REI closed on
January 28, 1998 at noon. A total of five submissions were received.
A copy of the REI is on file with the City Clerk.
Comments:
Submissions were received in response to the REI from Terminus, Axiis Architects, Invacon Development Group Inc., the
Canadian Air Land Sea Museum and TrizecHahn Corporation. The
Review Committee has met with all five proponents. Details of the five submissions received in response to the REI are set
out on the attached Appendix I. A summary of these submissions follows:
Terminus
This group proposed a mixed use facility comprised of a rail museum (25,000 ft2) , meeting and special event space
(40,000 ft.2), a railway themed restaurant facility developed as distinct eating venues (15,000 ft.2) and a performing arts
facility (20,000 ft.2).
The project team consists of an Event Design, Planning and Management firm, hospitality/food and beverage firm,
developer and architect and the consultant team consists of a museum consultant, conservation architect, railroad consultant
and heritage preservation consultant team.
While the ability of this team to provide the proposed uses of event planning, hospitality/food service appears to be sound,
the Review Committee had reservations with respect to this team=s capability to develop a project of this magnitude and to
provide a sustained operating rail museum. Although a number of creative ideas were presented relative to the rail museum,
park programming, etc. the role of this respondent would, more appropriately, be that of a tenant or end user of space
within the Roundhouse.
The Review Committee concluded that this respondent should not be considered further in terms of these deliberations but
could be considered as a possible tenant.
Axiis Architects
The proposed project consists of the ATriennale@ of Toronto/Exhibit Hall (60,000 ft.2), Canadian Museum of Railway
History and Toronto Visitor Centre (20,0000 ft.2), Ecology Centre and Interactive Exhibit for a Sustainable City (exterior
demonstration of active and passive solar energy harnessing) and commercial uses (20,000 ft.2). The commercial tenants
have reportedly already been secured (food service and event planning).
This project team consists of two members of the Design Exchange, two members from the Maison D=Etre Gallery and
two members from the Architectural Literacy Forum and the consultant team consists of a museum consultant, cultural
tourism consultant, conservation planner, conservation architect and railroad consultant.
It is the opinion of the Review Committee that in order to sustain the proposed uses, with the exception of the 20,000 ft.2
of commercial space, it is likely that some form of financial subsidy will be required. The Review Committee is also of the
opinion that the proposed uses will not result in a dynamic use of the complex and will appeal to a limited audience. This
respondent should not be considered further.
Invacon Development Group Inc.
The proposed project consists of an operating rail museum (50,000 ft.2 as per submission and first interview and 30,000 ft.2
of museum plus 20,000 ft2 of common area as per second interview), below ground IMAX theatre (40,000 - 50,000 ft.2) and
commercial uses including retail, dining and entertainment venues (50,000 ft.2).
The project team consists of Invacon Development Group Inc. and the consultant team consists of two architects, a fire
protection consulting engineering firm and a heritage consultant.
This group presented a dynamic reuse of the site that would attract a number of visitors throughout the day and evening
and at all times during the year. The museum concept was not well developed, however, the respondent indicated that a
general manager and museum curator would be hired immediately upon selection as the successful respondent. The
respondent also stated that funds in the amount of $65M (to include approximately $5 - $6M equity) were committed to
proceed immediately with construction. The Review Committee considered this submission to be worthy of serious
consideration.
Accordingly, the Review Committee required that it be satisfied in terms of the respondents development experience and
ability to finance the project. This is a shell corporation, incorporated specifically for the purpose of responding to this REI
and, as such, evidence of financial ability and previous experience in development of the principle was requested.
Information was requested to support the representations made in terms of availability of financing and previous experience
of the principal in developments of this scale. Invacon Development Group Inc. did not provide sufficient evidence that
financing could be secured, and did not provide any evidence that equity funds existed or that the principle had completed
any development projects. In addition, as further interviews were held and investigations made, a number of discrepancies
in information came to light.
It is the opinion of the Review Committee that this respondent should not be given further consideration. Raymond
Kennedy, one of the members of the Review Committee representing the rail heritage community, dissents this opinion.
The Canadian Air Land Sea Museum
This respondent proposes an operating rail museum, the Canadian Air Land Sea Museum, International Vintage Aircraft
exhibition and a ground school.
The project team includes the Canadian Air Land Sea Museum Inc. and the consultant team consists of a curator, rail
consultant, marine consultant, restoration consultant and architect.
The three users, the Canadian Air Land Sea Museum, the International Vintage Aircraft exhibition, and the ground school
are all established enterprises that are seeking a new location. This respondent has not undertaken any major rehabilitation
projects and should not be considered further in the context of rehabilitation and reuse of the John Street Roundhouse
Complex. However, the Review Committee is of the opinion that this respondent could be an end user. Substantial
experience, enthusiasm and creativity in terms of museum/exhibit uses would be brought to any project which included this
respondent. Further, there are obvious ties between the rail industry and other modes of transportation. Inclusion of
programming which is dedicated to these other modes of transportation within the rail museum, or, an independent
museum operating in conjunction with the rail museum, will appeal to a much wider audience and may result in a more
intensive use of the site.
The Review Committee agreed that this respondent should not be considered in the role as developer, but their
involvement on a user level could be encouraged.
TrizecHahn Corporation
The project team consists of TrizecHahn Corporation. The consultant team consists of a museum consultant, railroad
consultant, conservation architect, executive architect and a project management
firm. In addition, the City may have direct representation in the project team, if it so desires. Although no formal
arrangement exists, TrizecHahn advises that they have the support, and possibly the assistance, of Skydome Corporation.
The Review Committee expressed some reservation about certain members of the consultant team and was assured by
TrizecHahn that they are willing to consider changes to their consultant team.
This respondent assumed that the REI process would be followed by a formal proposal call process (which is the case in
most instances). This assumption is evident in the lack of detail within this groups submission. During the interview held
with this group, the Review Committee clarified that it was not necessarily the intent of the City to follow the REI process
with a proposal call. This respondent has asserted that any program of rehabilitation and reuse must be based on the
principle of Apreservation with a purpose@ and a certain degree of market analysis and consultation is necessary prior to
finalizing any development plans. This group has advised that, if entering into negotiations with the City, a firm proposal
could be formulated in approximately six weeks.
The project may be comprised of an operating rail museum, the Toronto Museum School (alternative preparatory school
with a focus on urban studies), a community centre, Cirque de Soleil, retail and event space and railway themed parkland.
TrizecHahn is undertaking a redevelopment project at the base of the CN Tower. This development will consist of an
entertainment complex with a maximum of approximately 385,000ft2. If selected, it is the intention of TrizecHahn to
redevelopment the John Street Roundhouse concurrently with the development at the base of the CN Tower. The
development of these major projects, in such close proximity and by the same developer, will provide cross marketing
opportunities and will lend this emerging neighbourhood a degree of cohesiveness.
Although TrizecHahn did not present a well defined submission for the rehabilitation and reuse use the John Street
Roundhouse, this respondent is considered to be the only respondent with the experience and financial capability to
undertake a project of this magnitude. The manner in which the John Street Roundhouse is redeveloped and reused, could
have a substantial impact on the success of the respondent=s real estate holdings due to their close proximity. It is
anticipated that this vested interest in the rehabilitation and reuse of the John Street Roundhouse Complex, of this particular
respondent, will translate into a project which reflects the City=s objectives for the site in a sustained manner.
It is the opinion of the Review Committee that TrizecHahn should be considered to be the preferred respondent and that
the Commissioner of Corporate Services, in consultation with members of the Review Committee and Heritage Toronto,
should enter into negotiations in order to arrive at a firm proposal, including a long term museum strategy, which will be
suitable for presentation to Corporate Services Committee and City Council and from which a master agreement and lease
agreement can be formulated. Raymond Kennedy, one of the members of the Review Committee representing the rail
heritage community, dissents this opinion.
It is also recommended by the Review Committee that, in formalizing their proposal, TrizecHahn contact the Canadian
Air Land Sea Museum and the group known as Terminus to discuss any interest these groups may have in being tenants
within the rehabilitated Roundhouse.
Conclusion:
Of the five submissions received, only one respondent is considered to have the development expertise and financial
backing to undertake a project of the scale envisioned. Although a number of creative and dynamic ideas were put forward
by other respondents, the sustainability of a project, particularly a museum, is as important as the components of the project
itself. It is the opinion of the Review Committee that entering into negotiations with TrizecHahn for the rehabilitation and
reuse of the John Street Roundhouse, will result in a final product which has been built upon sound business practices and
backed by extensive experience in the development industry.
I concur with the opinions of the Review Committee.
Contact Name:
Bonnie G. Duncan, Telephone No. 392-1861, Fax No. 392-1880, bduncan@city.toronto.on.ca, Report No. cs98071.wpd
Margaret Rodrigues
Commissioner, Corporate Services
