June 11, 1998

To: Corporate Services Committee

From: Commissioner of Corporate Services

Re: Appointments to the Toronto Islands Residential Community Trust

Purpose:

To report on the Board structure of the Toronto Islands Residential Community Trust as recommended to the Minister of Municipal Affairs and Housing by the Trust. The structure includes three representatives from the City of Toronto.

Financial Implications:

There are no financial implications to this report.

Recommendations:

It is recommended that:

(a)Council endorse the structure recommended by the Board of the Toronto Islands Residential Community Trust, comprising ten Toronto Island community representatives, three City of Toronto representatives and one provincial representative for a one-year term of appointment;

(b)Council recommend to the Minister of Municipal Affairs and Housing that the Commissioner of Corporate Services, the Commissioner of Economic Development, Culture and Tourism and one member of Toronto City Council from the Downtown Ward be appointed to the Board of the Toronto Islands Residential Community Trust;

(c)Council consider the future structure of the Board before the terms of the recommended appointees expire; and

(d)the appropriate City officials be authorized to take the necessary action to give effect thereto.

Background:

On December 15, 1993, the Toronto Islands Residential Community Stewardship Act, 1993 (the AAct@) came into force. The goal of the Act was to recognize the unique nature of the Island community and normalize the situation in terms of ownership, by-law enforcement, and other community issues. In 1996, the new Provincial government introduced the Toronto Islands Amendment Act, 1996, certain provisions of which came into force July 22, 1996 and August 12, 1996. As result of this legislation, the Toronto Island residential community lands (being the Ward=s Island and Algonquin Island residential communities) were placed under the stewardship of a body known as the Toronto Islands Residential Community Trust Corporation (the ATrust@) and leased to the Trust for 99 years for the purpose of subleasing the residential lands to their present occupants and developing housing on vacant land.

The objects of the Trust are to manage the lands described in the Act, including the houses and other buildings and structures on the land, for the benefit of the residential community on the Island and the public and for such other objects as prescribed by the Lieutenant Governor in Council.

The particular duties of the Land Trust include:

(a)the sales of 99-year land leases to those persons determined to be the owners of the existing houses;

(b)the management of all transactions relating to the Island and the distribution of lease proceeds to the Trust and the City;

(c)the management of in-fill housing on vacant Island lands;

(d)the re-sale of leases on behalf of owners; and

(e)the management of certain public buildings for the benefit of the community and thepublic

The existing avenues, walkways and vacant parklands were vested in the City of Toronto, which is required under the Act to maintain municipal services to the Island lands.

In the original 1993 Act, the affairs of the Trust were to be managed by a Board of Directors which was to consist of fifteen members, of which at least two thirds were to be residents of the Toronto Island=s residential community as nominated by the community. The other five members on the board were two provincial representatives, a City representative, a Metro representative and one other person from the greater Toronto community to be determined. All persons nominated as candidates for the Board are appointed by an order of the Lieutenant Governor in Council for Ontario.

The Commissioner of City Property or designate was originally nominated by Toronto City Council to be the City=s representative on the Trust=s Boards of Directors.

As a result of amendments to the original Act in 1996, the requirement for a majority of Island residents on the Trust=s Board of Directors was removed. The Board was subsequently reduced on the recommendation of the Minister of Municipal Affairs and Housing to include four Provincial representatives and two Islanders. The purpose of the Province taking control of the Trust at that time was to eliminate any Provincial liability and this was achieved when the debt was retired through the sale of 12 in-fill housing lots by the Trust.

The terms of the existing Board members expire on July 22, 1998 and the Trust is seeking the endorsement of the City for a list of nominees to be recommended to the Minister of Municipal Affairs and Housing. In view of the tight time-table, it is understood that the Province may extend the terms of the existing six Board members for a short period to ensure that the Trust can continue to function while new appointments are made.

The last time the City Council of the former City of Toronto considered this issue, it supported the Trust=s proposal that a majority of the Board continue to be Islanders. This position was based upon the concern that a Board which did not have a majority of Islanders would lose the confidence of the community. The importance of control over the Trust Board lies in its role, as landlord, to potentially assist the City with respect to the enforcement of by-law standards for Island properties and other municipal initiatives and its responsibility for the collection and remittance of lease proceeds and charges under the Act which are payable to the City.

Discussion:

The Toronto Island community representatives have recommended to the Minister and to the City that the board be composed of 14 members, broken down as follows:

ten Toronto Island community representatives

three City of Toronto representatives; and

one provincial representative.

The community has elected ten new representatives for consideration as appointees to the Trust board. They have suggested that the City representatives should be one member of City Council and two senior staff of the City. It is proposed that the latter be the Commissioner of Corporate Services and the Commissioner of Economic Development, Culture and Tourism. This would ensure that City Council is represented directly on the Trust and that, from an operational standpoint, the property and parks functions would also be represented at a senior level. Formerly, the only City representation was senior staff appointees. A Councillor from the Downtown Ward would be most appropriate as the City Council representative.

Conclusions:

These recommendations provide a sound basis for governance of the Trust, which will be strengthened in terms of accountability by the inclusion of a City Councillor. In view of the short time frame to have the Order in Council appointments confirmed, it is recommended that Council approve the proposed structure and also approve the Councillor and staff appointments for a one-year term of appointment. Council should consider the future structure of the Board of the Trust before the terms of the recommended appointees expire.

Contact Name:

Michael Brown, Commissioner=s Office

Tel: 392-8654