June 15, 1998
To:Corporate Services Committee
From:President, Toronto Parking Authority
Subject:40 York Street (Municipal Carpark 52) - Easement Agreement
Purpose:
The purpose of the Easement Agreement is to create a pedestrian connection between
Municipal Carpark 52 and 70 University Avenue.
Funding Sources, Financial Implications and Impact Statement:
Hammerson Canada Inc. will pay to the Parking Authority for the right of the Easement and
will pay for all construction costs related to the building of the underground connection.
Recommendations:
It is recommended that:
- Council approve an Easement Agreement with Hammerson Canada Inc., the tenant by
way of a ground lease of 70 University Avenue, and with the owners of the said property,
for the purpose of creating a pedestrian connection between Municipal Carpark 52 and 70
University Avenue. Hammerson will pay for the right of the easement and pay all
associated construction costs.
- The Easement Agreement be satisfactory in form to the City Solicitor.
- The appropriate Civic Officials be authorized to take the necessary steps to implement the
foregoing.
Council Reference/Background History:
The Parking Authority has been approached by the ground tenant of 70 University Avenue,
Hammerson Canada Inc., to obtain permission to create a pedestrian walkway between 70
University Avenue and Municipal Carpark 52. The carpark is a 323 space garage located
below University Avenue between King Street West and Front Street. The subject building
is located on the western side of the garage and the pedestrian walkway will be used by
office employees and visitors to that building. Hammerson wants to create the connection in
order that their building will be connected to the "Path System". Carpark 52 is already linked
to the Path System via 145 King Street West. The garage is on land which had been leased
by the City from the former Municipality of Metropolitan Toronto and the TTC from
October 22, 1962 to October 21, 2012. Rent is $2.00 per year. The lease for the garage
contains an option clause to extend the term for an additional 20 years if TPA gives six (6)
months notice in writing. The Easement Agreement that has been negotiated will be
coterminous with the lease arrangement. The owners of 70 University Avenue will be parties
in the Easement Agreement, and will assume Hammerson's future obligations if for any
reason the ground lease terminates prior to the end of the Easement Agreement.
Comments and/or Discussion and/or Justification:
In order to build the underground connection, the Parking Authority will lose one (1) space
located on the first level of the garage. As compensation for losing one space, we have
calculated on a net present value basis the loss future income stream until 2032. In the event
that the TPA does not renew its lease so that the garage ceases to operate in 2012, the
unamortized portion of the compensation will be returned to Hammerson.
Hammerson will be responsible for paying all construction costs related to the building of
the underground connection and will indemnify and insure the Parking Authority and the
City against liabilities or claims during and after construction.
Conclusions:
Although the Parking Authority will be losing one space, this pedestrian walkway will make
the garage more accessible to the west side of University Avenue, and more specifically, the
office building located at 70 University Avenue. As part of the agreement, Hammerson has
agreed to promote use of the garage within the office building.
Contact Names:
Maurice J. Anderson
President
Telephone:(416)393-7276
Facsimile:(416)393-7352
Lorne Persiko
Director, Real Estate & Development
Telephone:(416)393-7294
Facsimile:(416)393-7352
Maurice J. Anderson, President
