Gibraltar Point Centre for the Arts (Downtown - Ward 24)

The Economic Development Committee recommends that:

(1)the report (March 18, 1999) from the Commissioner, Economic Development, Culture and Tourism be adopted; and

(2)the Toronto District School Board be requested to set aside the $45,000 funds for demolition of the former Toronto Island School for a period of two years and, in the event that the building is determined to be demolished after that period, that the City assume any additional demolition costs.

The Economic Development Committee submits the following report (March 18, 1999) from the Commissioner of Economic Development, Culture and Tourism:

Purpose:

To consider a proposal by Toronto Artscape Inc. to establish the Gibraltar Point Centre for the Arts ("GPCA") at the former Toronto Island School.

Source of Funds:

The proponent would assume all costs associated with operation and maintenance of the Gibraltar Point Centre for the Arts along with required renovation and tenant improvement works. There are funding issues related to the contractual arrangements between the Toronto District School Board ("School Board") and the contractor for the new school, respecting the demolition of the former school which are discussed in the report to follow.

Recommendations:

It is recommended that:

(1)Council authorize an amendment to the Agreement dated August 29, 1997 between the former Municipality of Metropolitan Toronto and the former Board of Education for the City of Toronto which calls for demolition of the former Toronto Island School, to allow for retention of the main school building and demolition of some, all or none of the surrounding buildings, fencing and other exterior structures;

(2)Council approve in principle that the former Toronto Island School be leased to Toronto Artscape Inc. ("Artscape") for $1.00 per annum plus operating costs and taxes, to be operated as an arts centre;

(3)authority be granted to enter into negotiations with Artscape for a long term lease of the former Toronto Island School property on terms and conditions satisfactory to the Commissioner of Economic Development, Culture and Tourism and the City Solicitor, with the result of such negotiations to be the subject of a further report to Committee and Council; and

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

Council Reference:

The Toronto Island School is a combination public and natural science school, located on City of Toronto parkland on the Toronto Islands. The school has been operated by the Toronto District School Board since the early 1900s. In 1995, the school board decided to build a new the facility on lands adjacent to the old school to meet their programme needs for a day and nature school, which was approved by the former Metropolitan Toronto Council, at its meeting on April 5, 1995.

A new island site was made available for the construction of a new facility by lease agreement dated August 29, 1997. This agreement provided that the existing school would be demolished, and the grounds restored to parkland condition acceptable to the Commissioner. The new school is expected to be completed in early 1999 with demolition scheduled later this spring.

Economic Development, Culture and Tourism has received a proposal from Toronto Artscape Inc., working in cooperation with the Gibraltar Point Centre for the Arts Committee, proposing the establishment of an arts centre at the existing Toronto Island School to be called the "Gibraltar Point Centre for the Arts". The centre is envisioned as a multi-use, not-for-profit arts facility at which artists of different disciplines would rent affordable studio, rehearsal and performance space. Economic Development, Culture and Tourism has since been presented with a business plan and renovation programme for the existing school as well as a request that demolition of the school be delayed until the proposal is considered by the Toronto City Council. Details of this proposal and issues associated with it are described in the body of this report.

The proponent for the proposal has changed from what was originally a group of Toronto Island residents to Toronto Artscape Inc., following Artscape's full endorsement of the project. Toronto Artscape Inc. is a not-for-profit organization that enables artists and arts organizations to secure low cost work and live/work space in the city. The organization has been operating since 1985 and is considered a model for pioneering new modes in art facility development in Canada. Artscape is renowned for championing community-driven arts facility development. Artscape manages a portfolio of five properties including 98 workspace studios and 130 work and live/work studios in downtown Toronto.

Discussion:

The proposed Gibraltar Point Centre for the Arts will be a year-round facility that will make use of the entire former Island School (including the portables, for a total of approximately 26,000 square feet). With the intention of operating much like a small-scale version of the Banff Centre for the Arts, the centre will strengthen the arts community in Toronto by providing workspace, which may be rented for studio time, forums, workshops, rehearsals, retreats, conferences and special events. At the same time, this facility will provide an environment in which communities and ideas come together.

Artscape has a proven record of accomplishment in arts facility development and is committed to creating a self-sustaining operation on the island. Other sites operated by the agency are filled to 100% capacity and collectively have a waiting list of more than 100 artists. There is a strong support for the creation of the centre among island and other artists who have already expressed interest.

Artscape has proposed a governance model similar to one of their existing properties (1313 Queen St. W.) which is also owned by the City. Artscape proposes that the Centre will be governed by a 12-person advisory board, made up of at least six island residents and two Artscape board members. The proponent has expressed an interest in Economic Development, Culture and Tourism staff representation on such a board.

This proposal also includes a business plan which indicates that the GPCA operate at a surplus after the first half-year of operation (July to December, 1999) and thereafter. This is based on calculations incorporating occupancy rates (75% occupancy during the start up phase, 90% occupancy during the first full year of operations) and a one-time capital grant of $75,000 from the Trillium Foundation. Space will be rented hourly, weekly or by the square foot on an annual basis, depending on the function and size of space desired.

Artscape believes that their estimates for grant monies, operating budget and occupancy are quite conservative, and that it is very likely that actual revenues will be higher than estimated. We have also been informed that Artscape has been encouraged by the Trillium Foundation to apply for $75,000 more than is reflected in the budget. Moreover, other funding sources (e.g., corporate, Ontario Arts Council, Canada Arts Council) are likely over time, given the unique nature of this project.

Expenses for the Centre have been projected based on actual costs incurred in the operation of the old school. The annual cost to operate the Centre including two full time staff is projected at $252,370 during the first full year of operations. This amount includes property taxes, maintenance and repairs beyond the initial investment, contribution to a capital reserve account and contribution to Artscape overhead. The Centre's revenues are expected to grow to $306,164 by the end of its third full year of operations.

Artscape's proposal and complete financial projection is attached for further review (Appendix A).

Artscape's leading role in this project certainly heightens the centre's opportunity for success and sustainability. Having reviewed their proposal we believe it presents a number of exciting opportunities. The arts facility would meet an apparent demonstrated need for low-cost studio space in a unique and stimulating environment, allow for re-use of an existing building, further educational opportunities for island school students and the public, provide a unique public attraction, and increase off-season use of the Toronto Islands. Most importantly, the centre would promote arts and culture in the City of Toronto.

While the Toronto Island presents a number of important opportunities, it also presents several challenges. These include environmental concerns, the structural integrity of the buildings, and the obtaining of adequate security by the proponent.

Issues for Consideration

Impact of Amending Board's Agreement with the City

It should be noted that the amending of the School Board's lease without the benefit of any credit from the School Board or its contractor nor security posted by the proponent leaves the City potentially responsible for 100% of the cost of demolishing the former Toronto Island School unless the City enters into a new lease for the building.

Environmental Impact

There are environmental and natural heritage concerns associated with the continued presence of a building on this site. The location of the proposed arts centre is located adjacent to an Environmentally Sensitive Area (ESA #115, Hanlan's Area). The ESA is noted for its beach strand and willow beach communities and is the largest naturally vegetated area on the Toronto Islands. The ESA designation information is attached for further review (see Appendix B).

We are in receipt of an unsolicited letter from the president of the Toronto Ornithological Club stating that the proposal should not be considered due to the environmental sensitivity of the site (see Appendix C).

The former island school is also within an area that is subject to erosion. Earlier studies by engineering consultants have indicated this is not an immediate problem but will be in the 50-100 year period.

We have discussed this matter with the proponents and have their assurance that they are aware of the sensitivity of the site. They are prepared to work with Economic Development, Culture and Tourism and others to ensure that their activities will be compatible with the ESA, the dynamic shoreline, and the natural setting of this area of the island. Artscape has stated that they would like to naturalize their building surroundings and work to integrate the building into the natural setting.

Structural Integrity of the Building

The structural soundness of the building raises several concerns. Further to requesting additional information relating to analysis of the existing building condition, likely repairs, conformance to codes etc., the department was supplied with three reports (a Structural Assessment, Architectural Inspection, and Heating and Ventilating) from the proponent. This information generally confirmed that the building could be retrofitted but would require certain work immediately and other work phased in over time (3 years). Some of the most pressing concerns with the condition of the building are:

-wood rot evidenced in the 1909 section of the building, which has resulted in settlement;

-possible asbestos in piping insulation;

-no supply ventilation and no air conditioning; and

-perceived immediate need for conversion of heating system from oil to natural gas.

Toronto Artscape has estimated that the cost to address all the repairs and purchase necessary items and supplies is $71,350 in the start-up phase (July to December 1999), $18,000 in the second year of operation, and $28,600 in the third year of operation.

The cost of repair work and timing of such repairs may not be sufficient or soon enough. The submitted reports, although helpful, contain some qualifiers (e.g., visual inspection, no destructive testing, no life-cycle costing) which have prompted our request for more detailed information from the authors or other experts. Details of structure, architectural and other costs should be confirmed before entering a lease agreement with Artscape. It is essential to have accurate estimates, as this will relate directly to the level of financial security the proponent must provide before undertaking repairs.

Sewer Capacity

Given that the former school building was supposed to be demolished, it has not been assessed whether the capacity exists for servicing the two buildings, particularly with respect to sewer capacity. An engineering study needs to be carried out to make this determination. The School Board has been approached concerning this matter, recognizing the work carried out by their consultants in investigating sewer requirements for the new school.

Winter Conditions

Winter weather and harbor ice conditions are also a matter of concern. The ferries to and from the Island operate on a restricted schedule during the winter and only go to Ward's Island and Hanlan's Point. Harbour ice conditions may also effect ferry service schedules and in some cases, cause cancellations. The proponents have been made aware of our concerns in this regard and are willing to acknowledge that the ferry schedule may be somewhat unpredictable during the winter.

Distance from Ferry Terminal

Once having arrived on the Island, the Centre's visitors would then be required to travel to the school, which is approximately 2.5 km from Ward's Island docks. The proponent informs us that they are strongly committed to finding a solution and have identified options to make arrangements with school bus or marina shuttle operators, minimizing as much as possible any additional vehicle presence on the island.

Cost Security

Equally significant are the ramifications regarding the possibility that the project proves unsuccessful. The City of Toronto as owner of a building would then be faced with an asset that in all likelihood would have to be demolished. While it may be possible for the City to obtain some credit back from the School Board through their contract, there will still be escalation and remobilization related costs. This would have to be secured from the proponent at its expense. To date, the school board notes that they will not postpone the demolition unless another group assumes full responsibility for the demolition costs. However, there may be opportunities for credit from the school board, which have yet to be explored.

Conditions of Agreement

Recognizing the nature of the proposal, it is critical that the City be protected and not be required to assume any costs of renovations or in a worst case scenario, demolition of the existing facility. Accordingly, one condition of approval will be the requirement for Artscape to provide a Letter of Credit in an amount and on terms suitable to the Commissioner, the Treasurer and the City Solicitor. This requirement will be reduced as the project evolves and a stable and successful program emerges. The City Solicitor may have other issues that need to be addressed in an operating agreement.

Given Artscape's proven record of accomplishment, its partnership with the GPCA Committee, and the current demand for affordable, unique studio space, it is reasonable to expect long-term success. In conclusion, we believe that the proposal to create an arts facility that is in need and provides nurturing space for arts community, makes use of existing buildings and promotes arts and culture for the City is positive and one that should be embraced and supported.

Contact Names

Beth HannaFrank Kershaw

392-5225392-8199

John MacintyreTeresa Bosco

397-4451392-8810

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A copy of the following material was forwarded to all Members of Council with the March 29, 1999 and April 6, 1999 agenda of the Economic Development Committee and a copy thereof is on file in the office of the City Clerk:

-Appendix A - Gibraltar Point Centre for the Arts Proposal and Executive Summary;

-Appendix B - Environmentally Significant Areas Study;

-Appendix C - (February 22, 1999) from Don Barnett, Conservation Committee, Toronto Ornithological Club;

-(February 12, 1999) from Councillor Bussin, East Toronto - Ward 26;

-(March 29, 1999) from Jessica Fraser, Executive Director, Toronto Theatre Alliance, requesting the Committee to endorse Artscape's request for the Gibraltar School for the purpose of turning into an arts and conference centre;

-(April 6, 1999) from Susan Serran, Project Coordinator, Gibraltar Point Centre for the Arts, forwarding a sampling of letters in support for Artscape's proposal to transform the former Island Public School into the Gibraltar Centre for the Arts;

-Julie Stone, Toronto Islands, submitting three letters in support for the proposed Gibraltar Point Centre for the Arts; and

-Toronto Artscape submitting three sketches.

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The following persons appeared before the Economic Development Committee in connection with the foregoing matter:

-Tim Jones, Executive Director, Toronto Artscape;

-Jini Stolk, President, Board of Directors, Toronto Artscape;

-Julie Stone, Toronto Islands; and

-Michael C. Jones, Design Services, Toronto Board of Education.