Toronto City Hall - Accommodation of Press Gallery
(Ward 24 - Downtown)
The Corporate Services Committee recommends that:
(1)the financial terms of the occupancy for office space at City Hall by Members of the Press be phased-in as
follows:
Year one:$10.00 per square foot;
Year two:$15.00 per square foot; and
thereafter 50 percent of the then current market rate; and
(2)the Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and/or such legal entities which may be
determined to be appropriate.
The Corporate Services Committee reports, for the information of Council, having directed that the funds required to
cover the cost of construction of the Press Gallery at City Hall not be taken from the Equity Account which was
established to create the new women's washrooms, specifically in Public Works Facilities in the former City of Toronto,
but be found elsewhere; and that the Budget Committee be advised accordingly, and requested to report thereon directly
to Council for its meeting scheduled to be held on October 28, 1998.
The Corporate Services Committee submits the following report (September 8, 1998) from the Commissioner of
Corporate Services:
Purpose:
To obtain a decision from City Council with respect to the financial terms of the occupancy of office space in City Hall
by members of the press.
Financial Implications:
The financial implications associated with the recommended option, being Option 2, is that the City will incur out of
pocket renovation costs of $285,000.00 and this amount, together with all ongoing operating costs, will be recovered from
the Toronto Municipal Press Gallery and The Globe and Mail over ten years. In addition, the City will forego net rent in
the amount of $48,500.00 per annum and provide parking free of charge.
Recommendation:
It is recommended that:
(1)City Council adopt Option 3 as set out in this report; and
(2)the Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and with the Globe and Mail on the basis of Option 3.
Background:
The proceedings of City Council and the various Committees are reported on by the press. In order to facilitate this
reporting, space which takes the form of either gallery or office space is provided to members of the press. The gallery
space is that which is located within the same room as the Council and/or Committees where the press gathers first hand
knowledge of proceedings, obtains quotations, film footage, audio clips etc. The office space is that which is actual
"working" space where information gathered is prepared and edited for news reporting. This is a location that houses
staff, telephones, fax machines and computers where the press can file their reports to their respective media outlets in
privacy. The purpose of this report is to discuss the provision of press office space.
On June 7, 1972, the former Toronto City Council endorsed the following resolution contained in Clause No. 33 of the
City of Toronto Executive Committee Report No. 25:
"That the Corporation of the City of Toronto, recognizing the right of the press to examine and report on the political and
governmental process, and the obligation of the government in a free society to encourage the dissemination of
information about its activities, hereby recognizes "The Toronto Municipal Press Gallery" as representing the Press and
directs that the working space currently used by the Press in the New City Hall be under the jurisdiction of the Toronto
Municipal Press Gallery with respect to the allocation of space, subject to the concurrence of the Metropolitan
Corporation in the same arrangements."
The provision of space within the former Toronto City Hall has been provided to members of the Toronto press, including
local newspapers and radio stations, through the Toronto Municipal Press Gallery (the "Press Gallery") as set out in the
above resolution. This space has been provided free of charge. The exception is that the Toronto Globe and Mail
Newspaper and the Toronto Star Newspaper, have been making financial contributions through donations to the City. The
amount donated by the Globe and Mail is $1,787.52 per annum and the amount donated by the Toronto Star is $3,727.68
per annum.
Historically, records also indicate the press paid for minor renovations to their own private office space.
Space has also been provided free of charge to the press at Metro Hall.
The space which was occupied in the former Toronto City Hall by the press, is located on the main and second floors of
City Hall. The use of City Hall space by the press has been disrupted due to the renovation work taking place on the
second floor of City Hall and members of the press now use only their space in Metro Hall.
The second floor renovations are underway in order to accommodate the relocation of all City Councillors to City Hall.
These renovations will be complete in December of 1998 in order that all Councillors may be relocated to their permanent
offices prior to the first meeting of City Council in 1999. In order to facilitate the provision of the public service which
the press provides, it is prudent to coordinate this relocation plan for the press with the Council move. A number of
accommodation scenarios have been explored by staff and the press and a plan satisfactory to the press, has now been
developed.
Capital costs will be incurred by the City in carrying out the renovations necessary in order to accommodate the press in a
permanent location and the manner of dealing with these costs must be addressed. Further, given that this is a new
Council of a new City, the manner of dealing with other costs, including ongoing operating costs, realty taxes (if
applicable) and a market rental rate must also be addressed. Accordingly, the purpose of this report is to present available
options and secure Council approval of the financial terms of occupancy by the press, in consideration of all of the stated
costs.
Comments:
A number of meetings have been held with the press and various options explored. The preferred, space to be allocated is
set out on Attachment 1. This option allows for the occupation of 4,850contiguous square feet. All, but a portion of this
area can be made available at the present time. The portion of the space, shown cross hatched, is currently occupied by the
City of Toronto main frame fire suppression system. It is anticipated that this system can be relocated in approximately
one to two years.
An interim solution has been developed as set out on Attachment 2, which allows for 3,363 square feet of contiguous
square feet in the permanent location and 1,147 total square feet in temporary locations. Once the main frame fire
suppression system has been relocated, the press can amalgamate into their permanent location as shown on Attachment
1.
The estimated renovation costs associated with providing this space includes a renovation cost for the permanent space of
$285,000.00 and a cost for the temporary space of $34,000.00. This equates to a cost of approximately $5.45 per square
foot per annum to recover these costs over a ten year period. The total, approximate costs per square foot which could
apply to this space are summarized as follows:
Recovery of construction costs$ 5.45
Operating Costs 17.00
Taxes (if applicable) 7.00
Net Rent 10.00
Total$39.45 per square foot
Based on a 4,850 square foot area, this equates to an annual cost of approximately $191,332.50. In addition, the press has
requested 15 parking spaces in the underground parking garage and based on the Parking Authority's monthly rate, this
cost would total $32,130.00 per annum for a grand total of $223,462.50.
A decision by Council is required respecting the amount to charge the press for the occupancy of the space and parking.
Three options are set out below:
Option 1 - Provide the space to the press and charge all costs as detailed above.
While this option relieves the City of all financial liability associated with accommodating the press in City Hall, the
inclusion of a rental rate does not reflect the historical relationship between the City and the press or provide recognition
of the importance of the public service which the press provides.
Option 2 -Provide the space to the press gallery free of all charges.
This option would result in the City being out of pocket approximately $285,000.00 for the renovation cost, the yearly
ongoing operating costs and realty taxes (if applicable).
Option 3 -Provide the space to the press free of net rent and parking charges, but at a rate which will recapture the City's
actual expenses including the costs of renovation, ongoing operating costs and realty taxes (if applicable) as follows:
Recovery of construction costs$ 5.45
Operating Costs 17.00
Taxes (if applicable) 7.00
Total$29.45 per square foot
This rate per square foot applied to the total permanent area equates to $142,832.50 per annum. It is noted that after ten
years, renovation costs will have been fully recovered. At that time, it is recommended that only current operating costs
and taxes, if applicable, be passed on to the Press Gallery.
Conclusion:
Given the historical relationship between the City and the press, and recognizing the right of the press to examine and
report on the political and governmental process, and the obligation of the government in a free society to encourage the
dissemination of information about its activities, as set out in the above quoted resolution while ensuring that the City is
not out of pocket in providing this space, it is recommended that Option 3 be selected by Council.
Contact Name:
Lawrence Quinn, 392-0486, Fax No. 392-0029, lquinn@city.toronto.on.ca,
Greg Wallans, 392-7135, Fax No. 392-1880, gwallans@city.toronto.on.ca.
Attachment 1
Attachment 2
The Corporate Services Committee submits the following report (September28, 1998) from the Commissioner of
Corporate Services:
Purpose:
To provide the Corporate Services Committee with further information with respect to present and best practices of other
municipalities and other levels of government to aid in determining the appropriate financial terms for occupancy of
office space in City Hall by members of the press.
Financial Implications:
The costs associated with providing Media space have been detailed in the report dated September8, 1998 and this report
advises that funds can be utilized from Capital Account 216965 (see Funds section).
Recommendation:
It is recommended that this report be received for information purposes.
Background:
The Corporate Services Committee on September 14, 1998, had before it a report (September 8, 1998) from the
Commissioner of Corporate Services, respecting the financial terms of the occupancy of office space in City Hall by
members of the press which recommended that:
(1)City Council adopt Option 3 as set out in that report; and
(2)The Commissioner of Corporate Services be directed, in consultation with the City Solicitor, to enter into an
occupancy agreement with the Toronto Municipal Press Gallery and with the Globe and Mail on the basis of Option 3.
The Corporate Services Committee deferred consideration of the aforementioned report, pending the hearing of
deputations; and requested a further report be submitted that detailed present practices and best practices.
Comments:
As indicated in my September 8, 1998 report, the former City of Toronto and Metro Toronto provided office space and a
press viewing area to the Media. With the exception of the City of North York, all of the other five former municipalities
provided only a press viewing area to report on Council proceedings. North York had previously rented one small office
to a daily newspaper. For ease of reference this information has been compiled in a table as set out in Appendix 1.
Further research has been conducted with other municipalities, as well as the Provincial and Federal legislatures, to
determine present practices and best practices in the provision of space to the Media. This research has been compiled as
set out in Appendix 2, and is summarized below.
Best Practices
Most cities and other levels of government provide Media access to government proceedings by allowing the Media
general access or some other form of assigned seating arrangements from which they may view and report on the
legislative process. Many of the larger government entities have some form of Media Centre Space for general shared use
by members of the press from which they may file their reports. In many instances, private offices for Media outlets are
not generally available. In circumstances where the space needs of a particular Media outlet exceeds what is provided by
way of a general use Media Centre Space, then independent office space may be obtained off site, on a commercial basis.
Media space, provided in this format is in use by the press at the Federal level, as well as in other Canadian cities.
Provincially, Media space is administered through a Press Gallery which has a common electronic distribution centre, a
press lounge area and private offices for the Media which are all provided free of charge by the Government of Ontario.
A further meeting between members of the Press Gallery and City Staff was held on September 22, 1998, to discuss the
various financial options as set out in the September 8, 1998 report, and to determine if the Press Gallery had formulated a
preferred response to the alternatives presented in the aforementioned report. A memo dated September 25, 1998 has been
received from John Spears representing the Press Gallery and expressing their concerns and is attached as Appendix 3 to
this report.
Space requirements for the proposed new Media Centre Space were developed through consultation with the Press
Gallery. Formerly, Media space within City Hall was approximately 3,558 sq. ft., and as outlined in the aforementioned
report of September 8, 1998 , it has now been determined that an increase to 4,850 sq. ft. is preferred by the Media to
accommodate their office requirements.
Funds
Should Council adopt the recommendations contained in this report regarding construction of the Media Centre Space a
construction budget of $285,000.00 is required. Funding for this project is presently available in the Equity Account
(Capital Account 216965). This account was established to create new women's washrooms specifically in Public Works
facilities in the former City of Toronto, which were historically populated predominantly by males. The yards
rationalization process is underway. It is likely the need for these funds will be reduced as a result of the rationalization
and, in any case, the funds will not be required for a significant period of time.
In the event Council adopts either of Options 1 or 3 contained in this report, the capital amount of $285,000.00 required
for construction could be reimbursed to the Capital Account over the ten year cost recovery period. If Council adopts
Option 2 then the reimbursement of this Capital Account needs to be addressed.
Conclusion:
It is generally concluded that in most instances the Media Centre Space provided at other locations is more modest than
that being proposed for Toronto City Hall and the Media Centre Space is provided free of charge.
Contact Name:
Greg Wallans, telephone 392-7135, fax 392-1880, gwallans@city.toronto.on.ca (cs98189.wpd)
Appendix 1
Provision of Space to the Press - Practices of Former Cities
Provision of Space to the Press - Practices of Other Cities and other Levels of Government
Councillor Ron Moeser, from Mr. John Spears, Toronto City Hall Press Gallery)
Thank you for meeting the executive of the City Hall Press Gallery on September 23, 1998. Your staff requested that we
summarize our position in writing.
Members of the gallery appreciate the work that is proceeding in City Hall. Most of the gallery members have reviewed
the September 8, 1998, report to the Corporate Services Committee; some members have had preliminary responses from
their head offices on the options outlined in the report.
Gallery members would prefer that the current terms on which they occupy space be maintained. The changes in
accommodation have come at the initiative of the City, not the gallery. Since most gallery members are getting less total
space in the new gallery than they formerly occupied at City and Metro Halls, it seems unrealistic of the City to impose
ore onerous terms.
Substantial rents may discourage some current gallery members from taking space in the new press gallery. High rents
may also effectively bar small, non-commercial print and broadcast outlets from access to the gallery.
We have noted that the Corporate Services Committee will hear deputations on October 9, 1998. Managers of some
gallery members may want to appear before the Committee.
We have also noted your suggestion that gallery members might pay the renovation costs outlined in the September 8,
1998, report, or a portion of the renovation costs, amortized over a period of up to 20 years.
Thank you for your attention.
Mr. Fred Kuntz, Deputy Managing Editor, Toronto Star, appeared before the Corporate Services Committee in connection
with the foregoing matter.
