John Street Roundhouse (222 Bremner Boulevard)
(Ward 24 - Downtown)
The Policy and Finance Committee recommends the adoption of the following report (September 10, 1999) from the
Chief Financial Officer and Treasurer:
Purpose:
To report on the provision of capital funding for the proposed rehabilitation and reuse of the John Street Roundhouse
(Phase 1).
Financial Implications:
As outlined in a supplementary report to Policy and Finance Committee on June 23, 1999, the estimated gross capital funds
required for the base building standards including the environmental abatement, building services, access road and fire
suppression systems are in the amount of $1,822,920.00. This amount to be offset by an outstanding payment from the
Metro Toronto Convention Centre of at least $100,000.00 associated with an expired letter of credit against re-assembly of
roundhouse bays 1 - 11, and $63,184.00 in the Planning capital account 216994, Roundhouse Renovation, previously
identified for close-out, for a total offset of $163,184.00. The estimated net capital funding required is therefore
$1,659,736.00.
The proposal from Steam Whistle Brewing Partnership Limited (SWBPL) which was included in the June 15, 1999, report
to Policy and Finance Committee referenced a loan to the City in the amount of $250,000.00 to be repaid with interest at 8
percent in the form of net free rent over the first five year period. Because the City is able to borrow funds at a rate
significantly lower than 8 percent, this report recommends that the proposed loan not be accepted as a funding source. If
the loan is not accepted, the net amount of funding required for Phase I development activities is $1,659,736.00
An additional as yet undetermined amount of funding will be required to fully develop the site as a mixed
use/museum-based facility. Options for securing these funds such as corporate sponsorships, are to be investigated and
identified in a subsequent report.
The restoration of this site has not been included in the approved 1999-2003 capital program. Funding in the amount of
$1,659,736.00 can be arranged by amending the City's capital program and issuing a corresponding amount of debentures
which have been certified not to exceed the City's updated debt and financial obligation limit. The annualized debt service
impact on the 2000 operating budget will be approximately $250,000.00 as a result of this arrangement.
Council Reference:
Clause No. 6 of Report No. 1 of the Policy and Finance Committee, was adopted by Council July 6, 7 and 8, 1999,
amended so as to allow the Phase I Rehabilitation and Reuse undertaking to proceed. However, an outstanding request
from the Policy and Finance Committee exists for the Chief Financial Officer and Treasurer to report on the capital funding
required for this project, and respecting the report (June 23, 1999) from the Chief Financial Officer.
Recommendations:
It is recommended that:
(1)the net capital funds required in Phase I for the rehabilitation of Bays 1-11 in the amount of $1,659,736.00 be
provided by amending the City's capital program;
(2)the proposed loan from SWBPL not be accepted;
(3)the proposed Board of Directors to be established during Phase I (as set out in the June 15, 1999, report to Policy and
Finance Committee) be requested to co-ordinate efforts to raise funding for the development and restoration of the site with
the City's Corporate Sponsorship Program currently under development;
(4)the Commissioner, Economic Development, Culture and Tourism report back to Economic Development and Parks
Committee on the total impact that this project will have on the 2000 Operating Budget; and
(5)the appropriate City officials be authorized to take the necessary actions to give effect thereto.
Background:
The Administration Committee at its meeting of June 15, 1999, dealt with the report dated June 10,1999, relative to the
phased reuse and rehabilitation of the John Street Roundhouse (Item No. 18). The June 23, 1999, report to Policy and
Finance Committee provided a detailed estimate of the total capital funds required to bring the building to base standards
in Phase I. This revised estimate was for $1,412,920.00 after offsetting funding of approximately $160,000.00 in the
MTCC's Letter of Credit and Planning Capital Account and a further loan of $250,000.00 from Steam Whistle Brewing
Partnership Limited (SWBPL).
Comments:
Costs to restore the remaining Bays 12-32 to base building standards and the estimated costs to restore and rehabilitate
ancillary facilities amount to an additional $4,877,000.00 which have been itemized by the City's facilities staff. In
addition, the transformation of a portion of the building in future phases into a museum and artefact viewing area will also
require new capital and operating expenditures. As it has not yet been determined whether or not there will be any
additional sources of capital funds to offset these costs, City staff have been requested to examine other financing
alternatives such as corporate sponsorship possibilities to secure the balance of the funds. The City's finance staff are
developing a proposal for a Corporate Sponsorship Program subject to Council's approval in the fall. If the program is
approved, the proposed governance body for the Roundhouse (i.e. Board of Directors) would be requested to integrate the
remaining phases of the rehabilitation and reuse plan within the parameters of the new Sponsorship Program so as to secure
optimum benefits for the facility.
Conclusions:
This report recommends an amendment to the 1999 approved capital budget of $1,822,920.00 gross and $1,659,736.00 net
to provide funding to bring Bays 1-11 of the facility (Phase I) up to base building standards.
Contact Name:
Rob Hatton, Manager, Financial Planning, Treasury and Financial Services, Telephone No. 392-9149 Fax No. 397-4555;
e-mail: rhatton@mta1.metrodesk.metrotor.on.ca
________
(Mayor Lastman declared his interest in the foregoing matter in that the applicant's solicitor is employed by the same law
firm as his son who is not a real estate lawyer and does not personally act on this file.)
