40 York Street (Municipal Carpark 52)
Easement Agreement
The Corporate Services Committee recommends the adoption of the following report (June15, 1998) from the
President, Toronto Parking Authority:
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 $110,000.00 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:
(1)City 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 70University Avenue. Hammerson will pay $110,000.00 for the right of the
easement and pay all associated construction costs;
(2)the Easement Agreement be satisfactory in form to the City Solicitor; and
(3)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. Based on this calculation, we are asking for $110,000.00 as compensation for the Easement.
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