June 3, 1999
To:Administration Committee
From:Commissioner of Corporate Services
Subject:5 Bathurst Street - Canada Malting Complex
(Ward 24 - Downtown)
Purpose:
To obtain authority to extend the milestone dates set out in the Agreement to Lease dated March 30, 1999 between the City
and Metronome Canada Inc ("MCI") as shown in the chart in the body of this report and to declare the subject property
surplus to the needs of the City for the lease term of ninety-nine (99) years.
Financial Implications:
There are no financial implications to this report.
Recommendations:
It is recommended that:
(1)authority be granted for the extension of the milestone dates set out in the Agreement to Lease dated March 30, 1999
between the City and Metronome Canada Inc. ("MCI") as set out herein;
(2)Council declare surplus the property known as number 5 Bathurst Street for the purposes of, and to the extent required
by the lease and that the appropriate City Officials take all steps necessary to give effect to By-law No. 551-1998; and
(3)the appropriate City officials be authorized and directed to take the necessary action to give effect to the foregoing.
Background:
At its meeting of October 6, 1997, City Council adopted a report from the previous City of Toronto Board of Management
to which was attached, a relatively detailed Term Sheet, as amended, setting out the basic terms and conditions of the
agreement between the City and MCI including a number of milestone dates. It was anticipated that the City and MCI
would enter into a Master Agreement governing the rehabilitation and reuse of the Canada Malting Complex which would
incorporate the terms, conditions and milestone dates contained within the Term Sheet, as amended.
As the signing of the Master Agreement was delayed, City Council, at its meeting of February 2, 3 and 4, 1999 (Clause 10
embodied in Report No. 1 of the Corporate Services Committee), adopted the report authorizing the extension of the
milestone dates as set out in the Term Sheet, as amended, by the previous Council of the former City of Toronto. This
extension related to the delay in Council's approval of the fixed link to the Toronto Island Airport.
Comments:
The Agreement to Lease between the City and MCI has been fully executed both by the City and MCI on March 30, 1999.
The solicitor for MCI, in a letter dated May 26, 1999, is requesting that certain milestone dates be extended by up to six
months as set out in the following chart. MCI has had difficulty finalizing its financial support without charitable status.
MCI obtained its Charitable Registration Number on May 26, 1999. Attached as Appendix "A" is a copy of an executive
summary of MCI's campaign for this project. The extension would allow MCI sufficient time to secure financial
commitments and to facilitate the planning and design process for the rehabilitation and reuse of the Canada Malting
Complex.
A schedule of the current milestone dates as contained in the Agreement to Lease dated March 30, 1999, and the requested
extension dates is shown below:
| Existing Date |
Section |
Action |
Status/MCI Request |
| April 30, 1999 |
3.2(a) |
MCI to provide satisfactory evidence of
commencement of capital campaign program. |
Met |
| April 30, 1999 |
3.2(b) |
MCI to provide satisfactory status report
respecting the raising of capital. |
Met |
| May 31, 1999 |
3.3(c) |
MCI being satisfied re availability of utility
services with adequate capacities |
Waived |
| May 31, 1999 |
3.3(d) |
MCI being satisfied respecting environmental soil
conditions, geotechnical conditions and depth of
water table. |
Waived |
| May 31, 1999 |
4.2.2 |
Decision re retention of 1928 and 1944 Bin Floors |
Met
MCI to retain 1928 as
part of exhibit and 1944
as offices |
| May 31, 1999 |
4.1.3 |
Parties to agree as to whether Music Education
Centre to be included in Phase I or Phase II. |
Met
MCI to include it in
Phase II |
| May 31, 1999 |
4.2.3 |
MCI to decide whether to retain Plant Office Bldg.
At No. 5 Bathurst |
Met
MCI not to retain |
| May 31, 1999 |
11.1 |
MCI to submit title requisitions |
August 31, 1999 |
| June 30, 1999 |
3.1(b) |
MCI to submit OPA, rezoning and site plan
approval applications together with full payment
of prescribed application fees |
December 31, 1999 |
| August 31, 1999 |
3.2(c)(i) |
City Treasurer being satisfied that MCI has
obtained adequate financing commitments in the
amount of not less than $10 million. |
Feb. 29, 2000 |
| November 30, 1999 |
3.1(a) |
City compliance with Section 193 of the
Municipal Act. |
May 31, 2000 |
| December 31, 1999 |
4.2.5 |
City and MCI to agree on preservation and display
of original building artifacts |
June 30, 2000 |
| Sept. 1, 2000 |
9.1 |
Parties to resolve sub-lease terms for swimming
pool facility if City exercises option |
March 1, 2001 |
| November 1, 2000 |
14.1 |
Outside date for closing |
May 1, 2001 |
By-law 551-1998 establishing procedures governing the sale of real property, requires City Council to declare as surplus all
lands that it proposes to sell or to lease for 21 years or more. Council has not yet declared the lands in this transaction as
surplus for the purposes of the 99 year lease and should do so at this time.
It is noted that City ownership of this asset is being maintained, and the property will revert back to the City at the end of
the 99-year lease.
Conclusion:
MCI's request for the extension of the milestones dates is reasonable as MCI just received its Charitable Registration
Number.
Contact Name:
Erlinda Bala, Telephone No.392-1852, Fax No. 392-1800, e-mail:ebala@toronto.ca, Report No. ac99096.wpd
Margaret Rodrigues
Commissioner of Corporate Services
