November 4, 1999

To: Administration Committee

From: Acting Commissioner of Corporate Services

Subject: Proposed Amendments to the City of Toronto Lease(s) to The Riverdale Hospital

(Ward 25 - Don River)

Purpose:

To obtain authority for the amending of the City of Toronto Lease(s) to the Board of Governors of The Riverdale Hospital.

Funding of Sources, Financial Implications and Impact Statement:

There is no financial impact.

Recommendations:

It is recommended that:

(1) authority be granted to enter into a new lease agreement, being an amended and restated lease with the Board of Governors of The Riverdale Hospital, based on the terms and conditions contained herein and in a form acceptable to the City Solicitor; and

(2) the appropriate City Officials be directed and authorized to take the necessary action to give effect thereto.

Background:

The Riverdale Hospital occupies a site it acquired pursuant to a ground lease between the Board of Governors of The Riverdale Hospital and the former Municipality of Metropolitan Toronto which was approved by Metropolitan Welfare and Housing Committee Report No. 9, Clause No. 4 on October 8, 1963, and as amended by Executive Committee Report No. 23, Clause No. 13 on August 10, 1979. Metropolitan Council authorized a lease for a term of 99 years, commencing April 26, 1964, at a nominal rent of $1.00 per annum, with the Board responsible for all costs associated with the operation of the Hospital.

By adoption of item No. 95 of Report No. 25 of the Executive Committee on September 8, 1987, the former City of Toronto Council authorized the lease of a strip of adjacent land to the Board of Governors of The Riverdale Hospital, at a nominal rent of $1.00 per annum and co-terminus with the Metro Lease.

Comments:

Changes to health care introduced by the government of the Province of Ontario will result in the nature of the care offered at The Riverdale Hospital no longer being defined, for most purposes, as a public hospital. Driven in part by the Province's changes, The Riverdale Hospital is proposing to restructure the way it delivers services to the community and has requested amendments to the use, alteration and termination provisions in the leases and an option to extend the lease for a further 36 years. Discussions have ensued and agreement has been reached on the following amendments to the leases:

(1) The permitted uses under the lease will be, in addition to the current permitted use as a public hospital, a long term care facility and ancillary facilities or services (such as laboratories, research facilities, pharmacies, and dispensaries), and in addition may include premises for persons requiring nursing care and residences for elderly and/or incapacitated people, and support services relative thereto, such as recreation, social, cultural and/or educational activities;

(2) This expanded list of permitted uses will continue for so long as The Riverdale Hospital holds a licence from the Province of Ontario to operate a non-profit nursing home and/or public hospital and/or long term care facility, failing which the lease will terminate upon 90 days' prior written notice which may be delivered by either party to the other;

(3) The restriction contained in the lease requiring the City's prior approval of any alterations to the premises will be removed with respect to any construction by The Riverdale Hospital for alterations and construction of new premises for the purpose of the permitted uses. It is understood and agreed, however, that any such improvements will be conducted in a lawful manner, shall be constructed of materials and workmanship of a suitable quality and shall be completed in a timely fashion. Moreover, any improvements shall be subject to all of the normal planning processes and approvals necessary to obtain a building permit for the alterations and/or construction, and in this regard, the City as municipal authority shall in no way be construed to have acquiesced to or approved of any such alterations and/or additions, and the City shall not in any way have fettered its discretion in the manner in which it reviews any and all applications relating to the alterations and/or construction;

(4) The right of either party to terminate the lease on one year's prior written notice to the other will be deleted;

(5) The Riverdale Hospital will have an option to renew the lease for a further 36-year period, on the same terms and conditions as the lease save and except that there will be no further right to renew, upon expiry of the current term of the lease in 2063. The option to renew must be exercised not more than twelve (12) months nor less than six (6) months prior to the expiry of the current term; and

(6) The parties will enter into a new agreement, being an amended and restated lease. Both parties will endeavour to finalize and execute the amended and restated lease by January 31, 2000.

The Riverdale Hospital has also agreed to participate on a working committee with City of Toronto councillors, staff of the Urban Planning and Development Services Department, representatives of neighbourhood/community stakeholders and individuals with respect to the development of a long-term planning process for all the properties related to The Riverdale Hospital area and Riverdale Park, including considerations of the impact on the surrounding neighbourhood.

Conclusion:

The Riverdale Hospital provides a valuable service to the citizens of the City of Toronto. The requested changes are reasonable and consistent with the Hospital's ongoing mandate and should be approved.

Contact:

Tony Pittiglio, Manager - Leasing and Site Management

Telephone No. (416) 392-8155 , Fax No. (416) 392-1880

E-mail address anthony-pittiglio@toronto.ca

(ac99165)

Brenda Glover

Acting Commissioner of Corporate Services