June 9, 1998
CORPORATE SERVICES COMMITTEE:
City Council, at its meeting held on June 3, 4 and 5, 1998, had before it Clause No. 1 of
Report No. 7 of The Corporate Services Committee, headed "John Street Roundhouse -
Request for Expressions of Interest (Ward 24 - Downtown)".
Council directed that the aforementioned Clause be struck out and referred back to the
Corporate Services Committee for further consideration; and the Commissioner of Corporate
Services be requested to continue negotiations with the two leading proponents in order to
obtain additional information and submit a further report to Council for its meeting to be held
on October 1, 1998, through the Corporate Services Committee, once more substantive
information is available.
City Clerk
J.A.Abrams/dcm
Encl.
Sent to:Corporate Services Committee
Commissioner of Corporate Services
Clause embodied in Report No. 7 of the Corporate Services Committee, which
was before the Council of the City of Toronto at its meeting held on June 3, 4
and 5, 1998.
1
John Street Roundhouse - Request for
Expressions of Interest (Ward 24 - Downtown)
(City Council on June 3, 4 and 5, 1998, struck out and referred this Clause back to the
Corporate Services Committee for further consideration; and the Commissioner of Corporate
Services was requested to continue negotiations with the two leading proponents in order to
obtain additional information and submit a further report to Council for its meeting to be held
on October 1, 1998, through the Corporate Services Committee, once more substantive
information is available.)
The Corporate Services Committee recommends the adoption of the following report
(May11, 1998) from the Commissioner of Corporate Services; and, further, that the
position of City Council be communicated to TrizecHahn that any proposal must
include an operating railway museum:
Purpose:
To obtain authority to enter into negotiations with TrizecHahn in order to provide The
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.
Recommendations:
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 of 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 No.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 "Triennale" 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 "preservation 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 redevelop 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 of 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 The 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
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The Corporate Services Committee reports, for the information of Council, having also had
before it the following communications from concerned individuals respecting the
recommendations contained in the report (May 11, 1998) from the Commissioner of
Corporate Services:
(i)(May 24, 1998) from Ms. Peggy Kurtin, President, Cabbagetown Preservation Association;
(ii)(May 23, 1998) from Mr. Bob Trueman;
(iii)(May 24, 1998) from Mr. John L. Males; and
(iv)(May 23, 1998) from Mr. Jack Bell, President, Canadian Railroad Historical Association,
Toronto and York.
Mr. Doug Stewart, Interim Lead, Facilities and Real Estate, gave a presentation to the
Corporate Services Committee in connection with the foregoing matter, and filed a copy of
his briefing notes in regard thereto.
The following persons appeared before the Corporate Services Committee in connection with
the foregoing matter:
-Mr. Doug Lister, on behalf of Mr. Don Lister, and filed a submission in regard thereto;
-Mr. Don Lister, and filed a written submission in regard thereto;
-Mr. Phillip Garforth, Invacon 98', and filed a written submission in regard thereto;
-Ms. Jane Beecroft, CHP Heritage Centre, and filed a written submission in regard thereto;
-Mr. Raymond Kennedy;
-Mr. Melvin, on behalf of Mr. Jack, Bell, President, Canadian Railroad Historical
Association, Toronto and York; and
-Mr. William Phillips.
(A copy of Appendix "A", detailing the five submissions received in response to the REI,
referred to in the foregoing report, was forwarded to all Members of Council with the May 25,
1998, agenda of the Corporate Services Committee, and a copy thereof is also on file in the
office of the City Clerk.)
(City Council on June 3, 4 and 5, 1998, had before it, during consideration of the foregoing
Clause, the following report (June 3, 1998) from the Commissioner of Corporate Services:
Purpose:
To respond to questions set out in a communication from Councillor Ila Bossons, dated May
25, 1998, addressed to the Corporate Services Committee.
Financial Implications:
Not Applicable
Recommendation:
That this report be received.
Background:
Councillor Ila Bossons has requested that certain information be provided as set out in Item
2(b) to be considered by City Council, in conjunction with Clause No. 1 of Report No. 7 of
The Corporate Services Committee. Councillor Bossons has requested information regarding
the possibility of obtaining direct rail access from the John Street Roundhouse Complex to the
main line tracks and has requested that a detailed financial analysis of all materials provided
by the respondents to the above-noted Request for Expressions of Interest be provided to
members of Council.
Comments:
Direct Rail Access:
It is not possible to achieve direct rail access to the main rail line. The attached sketch has
been provided by Carruthers and Wallace, Structural Engineers. The portion of the site which
has been reinforced to withstand loads from rolling stock is limited to the area between the
sand/coal loader and the turntable. Direct rail access to the main line would require a spur
line extending in a north-easterly fashion from the turntable, over Bremner Boulevard and
arcing just south east of the CN Tower to the main line. This spur line is no longer possible
due to the fact that the redevelopment project located at the base of the CN Tower will occupy
lands that would be required to accommodate the spur line.
Financial Issues:
The Review Committee included within it's membership appropriate staff of the City Finance
Department who analysed financial information provided by the respondents. It was
concluded by staff that the financial information available with respect to Invacon was not
sufficient to warrant further negotiations and that the financial information available with
respect to TrizecHahn Corporation was sufficient to warrant further negotiation and
members of the Review Committee were so advised.
Contact Name:
Bonnie G. Duncan, 392-1861; Fax: 392-1880; bduncan@city.toronto.on.ca, (cn98089.wpd).)
(A copy of the sketch, referred to in the foregoing report, is on file in the office of the City
Clerk.)
(City Council also had before it, during consideration of the foregoing Clause, the following
communication (May 25, 1998) from Councillor Ila Bossons, Midtown:
(1)Rail Access: Feasible or Not??
Subsequent to your May 25, 1998 meeting, I've been given to understand by members of the
heritage community that sufficient reinforcements do exist which would make it feasible to
bring engines and cars by RAIL rather than by CRANE to the Roundhouse site.
I would request that the necessary engineering reports be provided so that, once and for all,
we can find out whether rail access is feasible or not. Direct access would allow historical
train excursions, which would have a major impact on the feasibility of any site development
proposal.
(2)Financial Information Provided by INVACON vs. Information Provided by Other
Proponents.
I would request that Members of Council be provided with a detailed financial analysis of all
materials provided. The evaluation provided on May 25, 1998 is insufficient.)
(City Council also had before it, during consideration of the foregoing Clause, the following
communications in opposition to the recommendations of the Corporate Services Committee,
and requesting that the matter be referred back to the Corporate Services Committee for
further consideration:
(i)(June 1, 1998) from Mr. John L. Males, Willowdale, Ontario;
(ii)(May 31, 1998) from Mr. Raymond L. Kennedy, Old Time Trains; and
(iii)(May 28, 1998) from the Chair, The Society of Heritage Associates.)
(Mayor Lastman, at the meeting of City Council on June 3, 4 and 5, 1998, declared his
interest in the foregoing Clause, in that the applicant's solicitor is a partner at the same law
firm as his son.)