Toronto/Toronto Catholic District School Board

Proposed Joint Facility Within the Former Lakeshore Hospital Site/

Humber College Complex (Lakeshore-Queensway)

The Etobicoke Community Council recommends that City Council authorize staff and the City Solicitor to finalize an extension up to the end of 1999 of a current agreement between the City and the Toronto Catholic District School Board, involving the development of a joint school/community centre facility on Lots 5 and 6, Plan 66M-2319.

The Etobicoke Community Council submits the following report (March12, 1999) from Reble, Green & Ketcheson, Barristers and Solicitors:

Purpose:

The purpose of this report is to secure instructions concerning a proposed extension of an agreement covering the possible development of a joint school/community centre facility on lands located within the former Lakeshore Hospital Site/Humber College complex in south Etobicoke.

Funding Sources, Financial Implications and Impact Statement:

There are no funding requirements related to this matter. Potential financial implications and impacts are discussed in the body of the report.

Recommendation:

It is recommended that the municipality authorize staff and the City Solicitor to finalize an extension up to the end of 1999 of a current agreement between the City and the Toronto Catholic District School Board, involving the development of a joint school/community centre facility on Lots 5 and6, Plan 66M-2319.

Council Reference / Background / History:

In 1995 an agreement was executed between the former City of Etobicoke and the then Metropolitan Separate School Board involving the development of a proposed joint-use facility on lands comprising part of the former Lakeshore Hospital site/Humber College complex. This agreement was styled as the "Interim Agreement". The history related to this matter is summarized below.

Pursuant to the Interim Agreement the City and the School Board agreed to jointly design and develop a multi-purpose building with related facilities for use principally as a community centre/secondary school. This agreement was entered into as part of the implementation of a larger settlement of an Ontario Municipal Board hearing involving the Lakeshore Hospital site and the south Humber College campus. The purpose of the Interim Agreement was to establish a process whereby the City and the School Board could collaborate in the design and development of this proposed facility, utilizing lands that were to be acquired by the City and the School Board as part of the overall settlement agreement. The lands subject to the agreement are now described as Lots 5 and 6 on Plan66M-2319. Lot 5 was acquired by the Metropolitan Separate School Board (now the Toronto Catholic District School Board) in March 1998. Lots 6 was acquired by the City of Toronto on April24, 1998.

At the time the settlement agreement was negotiated in connection with the Municipal Board proceedings, it was anticipated that these properties would be used by the municipality and the School Board for a combination of an Elementary School, Secondary School and Community Centre. Pursuant to the Interim Agreement provision was made to develop a combined secondary school/community centre on Lot 6 and a portion of Lot 5 as required. The agreement also recognizes the potential for the School board to proceed separately with the design and construction of an elementary school on the balance of their lands comprising Lot 5.

Under the executed Interim Agreement, it was stipulated that the City and School Board would proceed to negotiate a series of project agreements required for the implementation of this project. The agreements to be negotiated were specified to include a Development Agreement which would govern the design, development and construction of the joint use facility.

The timing related to the negotiation of the project agreements was also addressed in Section 4 of the Interim Agreement. This section stipulated that the project agreements were to be negotiated, executed and delivered within twelve months following the satisfaction of the last of a series of conditions specified under Part 5 of the Interim Agreement. All of these conditions have now been fulfilled, with the last condition having been satisfied by the acquisition by the City of Lot 6 on April24, 1998.

In accordance with the terms of the Interim Agreement, once these conditions were fulfilled both parties were required to negotiate and finalize for execution the various project agreements referred to above. These agreements were to have been signed and negotiated within twelve months following the fulfillment of the condition; in other words, pursuant to the Interim Agreement the project agreements are to be signed by no later than April 23, 1999.

The Interim Agreement also specified that if the project agreements were not completed within that time frame then either the City or the School Board would have the right, upon the provision of not less than sixty days written notice to the other party, to terminate the Interim Agreement. In the event of termination both parties were granted separate options to purchase the lands controlled by the other party.

In the case of the School Board, it was entitled under the Interim Agreement to purchase all or a portion of Lot 6 at a purchase price calculated on the basis of institutional use. This Option to Purchase could be exercised within ten years from the date of termination of the Interim Agreement, by provision of written notice from the Board to the City. However, the City is entitled to notify the Board, within ninety days of the date of termination of the Interim Agreement if it intends to construct a Community Centre on the lands, independent of the construction of the Secondary School. In such an event the Board's option to purchase the City lands would only apply to that portion of Lot 6 which would reasonably be required to accommodate the proposed Secondary School and associated facilities. In the event that the City and Board could not agree as to how much of the site would be subject to the option, the agreement provides for the arbitration of that issue.

With respect to the City's option to purchase the Board's lands, this option may only be exercised if the School Board wishes to dispose of its lands or if the Board proposes to rezone its lands or any part thereof for non-institutional purposes. This option may be exercised by the municipality for a period of ten years following the date of termination of the Interim Agreement. Once again, the purchase price for the lands is to be determined on the basis of fair market value for institutional use.

To summarize, the last of the conditions to the implementation of the Interim Agreement was fulfilled on or about April 24, 1998 pursuant to the City's acquisition of Lot 6. The City and the School Board have until April 23, 1999, to finalize and execute the various project agreements referred to in the Interim Agreement. In the event that the parties have not executed the project agreements within this time frame, then either party may by written notice to the other terminate the agreement. In the event of termination both parties have separate rights by option to acquire all or portions of the property controlled by the other.

Comments and/or Discussions and/or Justification:

City staff have recently been contacted by representatives of the School Board in connection with this matter. Board staff have advised that as a result of the provision of new school funding by the province, the Board wishes to proceed with the development and construction of a Secondary School on this site. We understand that later this month the Board will be considering a capital plan that will assign a high priority to the development of this school. Board staff have indicated that the new school should be ready for occupancy by no later than the fall of 2003. Accordingly, staff from the School Board have indicated that they wish to proceed to negotiate the various project agreements referred to under the Interim Agreement.

At the present time no provision for the development of the community centre has been included within the municipality's approved 1999 capital budget. We understand that City staff are currently reviewing, with the assistance of a consultant, a number of areas with respect to potential community centre development within the City of Toronto including this south Etobicoke site. It is anticipated that the consultant's report dealing with these options will be available for presentation to the City of Toronto Council by mid-summer of this year. It is apparent that any decision with respect to the City's participation under the Interim Agreement should be considered within the context of the current study.

City staff through discussions with School Board representatives have been advised that the School Board is likely prepared to extend the time frames for completion of the project agreements to the fall of 1999. This extension has been discussed in the context of the Board proceeding to finalize certain decisions related to the provision of capital funding and associated timing related to the construction of the joint use facility. In order for such an extension to be mutually agreed upon, instructions from City Council will be required.

Given the timing requirements related to the City's consideration of the ongoing community centre study, it is our opinion that the extension of the Interim Agreement should be to the end of this year. This would not only afford additional time for completion of the City's ongoing review of the Community Centre issue but would also enable staff to explore various alternatives with respect to protecting the municipality's interest under the Interim Agreement.

Accordingly, we would recommend that the municipality authorize the City Solicitor and staff to secure an extension of the Interim Agreement up to the end of 1999.

Contact:

Bruce C. Ketcheson

Tel: 622-6601