Expansion of Victoria Village Arena -

Agreement with the Canadian Macedonian

Federation (Ward 11, Don Parkway)

 The Economic Development and Parks Committee recommends:

(1) the adoption of the report (June 2, 1999) from the Commissioner of Economic Development, Culture and Tourism;

(2)the adoption of the Victoria Village Expansion - Supplementary Agreement (October 4, 1999) from the Commissioner of Economic Development, Culture and Tourism, the Greek Community of Metropolitan Toronto Inc. and the Canadian Macedonian Federation (CMF), subject to adding:

"that the Commissioner of Economic Development, Culture and Tourism be requested to assist the Macedonian and Greek communities to create a dispute mechanism upon which this mandate can be realized, the said mechanism to include a means to protect the City with regard to censorship or its authorization of the material being displayed in the Community Centre; and further that the mechanism include a disclaimer that the City does not sanction materials or actions, and that the City be held harmless for any initiated actions"; and

(3)that the City encourage public and private partnerships with business and multicultural groups in the establishment of community centres and other City facilities.

The Economic Development and Parks Committee submits the following report (June 2, 1999) from the Commissioner of Economic Development, Culture and Tourism:

Purpose:

To provide requested supplemental information related to the report on this subject (May 19, 1999) first dealt with by this Committee at its meeting held May 21, 1999. A copy of the May 19, 1999 report is attached for reference purposes.

Funding Sources/Financial Implications/Impact Statement:

The project is included in the approved 1999-2003 Capital Works Program. The overall projected cost is $8.5 million dollars for the expansion with the City providing a total of $2.0 million dollars ($500,000.00 in 1999 and $1.5 million in 2000), with the Canadian Macedonian Federation (CMF) responsible for the balance.

Funding raised by the CMF will be deposited to the City's capital account that exists for the project. There are precedents for this approach and it is similar to that used in other projects in former cities for example - Harbourfront Square Park.

Recommendations:

It is recommended that:

(1)the appropriate City officials be authorized to enter into negotiations with the Canadian Macedonian Federation for an agreement based on the key points of the letter of intent referred to in this report; and

(2)upon successful completion of the negotiations, such agreement be brought forward to the Economic Development and Parks Committee and City Council for review and consideration, and not be executed until approval has been obtained.

Comments:

The Victoria Village expansion project was approved by Council as part of the 1999-2003 Capital Works Program at its meeting of March 2, 3 and 4, 1999. The former City of North York had been approached by the CMF regarding the possibility of working together to develop a community facility. The former City of North York was in need of facilities in an under-served area and agreed that a joint development was mutually beneficial. The benefits to the City are that the CMF will raise funds to provide a needed publicly accessible community facility that is more comprehensive than could have been provided in one opportunity solely from City coffers. The reason the report is before the Economic Development and Parks Committee is to obtain authority to proceed to finalize the joint development agreement.

A question arose at the Economic Development and Parks Committee meeting related to the acceptance and accounting of the funds received from the CMF. We contacted the Finance Department when preparing the report, and were advised that as this is an approved capital project with a capital account number, funds raised by the CMF can be deposited directly to the capital account as revenue. This is the preferred method, as the CMF has to raise their full $6.5 million prior to the project starting.

A second question that came forward at the meeting related to why this specific project with a specific group was being recommended at this time. The project is one of many across the city that were approved by former municipalities prior to amalgamation and later confirmed by the new Toronto City Council through the capital budget process. It is not a new project and has been subject to the rigours of the review process leading up to the approval of the 1999-2003 Capital Works Program by City Council.

Conclusion:

The letter of intent included with the May 19, 1999 report (copies of both documents are attached to this report) provides a clear outline of the project and will form the basis for the final agreement negotiations. The agreement will result in needed facilities for the City of Toronto through a joint development arrangement.

The CMF will raise the first $6.5 million of the total $8.5 million estimated project cost. The City has approved and committed $2.0 million in the 1999-2003 Capital Works Program, but will not spend its funds until the CMF's funds are totally collected and available. The fund raising will commence upon the signing of the agreement. The CMF will have eighteen months to raise its share from the date of signing the agreement, unless the time line is extended by City Council.

Contact Names:

Mr. Glenn Garwood, 395-7424, Mr. Neil R. Zaph, 395-6065.

The Economic Development and Parks Committee also submits the following Victoria Village Expansion - Supplementary Agreement (October 4, 1999) from the Commissioner of Economic Development, Culture and Tourism, the Greek Community of Metropolitan Toronto Inc. and the Canadian Macedonian Federation (CMF):

Background:

The Canadian Macedonian Federation (CMF) desires to enter into an agreement with City of Toronto to develop a facility addition to the existing Victoria Village Arena. City of Toronto requires a facility to provide leisure opportunities to an under-serviced part of the City.

CMF will provide the first $6.5 million of the total $8.5 million facility. City of Toronto will provide $2.0 million and the land.

In consideration of this funding, City of Toronto will allow the CMF to develop a cultural facility not to exceed 7,350 square feet (the "cultural facility") of total 42,445 square feet addition. The cultural facility will include an exhibition gallery, a donor's lounge, meeting rooms, a kitchenette, a library room including archives, and an administrative office, and an exterior courtyard. CMF will receive a 25-year lease for the cultural facility and the City will not be responsible for any expenses under the lease.

A lease agreement is yet to be finalized, pending acceptance of the concept of the joint development project by the Economic Development and Parks Committee, and City Council.

Supplementary Data:

The CMF, in addition to agreeing to other enters pertaining to the lease, agree to the following supplementary conditions:

(1)To name the cultural facility in such a way as to clearly identify the CMF in a uniquely identifiable way. The name will include a prominent individual (living or deceased) within the Canadian Macedonian Community, the name of the donor, or the name of a Canadian priest. The CMF will submit the name to the City but the wording and manner must be acceptable to the Commissioner of Economic Development, Culture and Tourism for the City of Toronto and the President of the Greek Community of Metropolitan Toronto Inc.

(2)The CMF cultural facility or library holding will not contain, and no person may disseminate, literature that is deemed to be inflammatory or under dispute between the CMF or Canadian-Greek-Macedonian Community. This paragraph shall be a term of the lease.

(3)CMF will abide by City of Toronto policies, rules and regulations governing use of City facilities which include, but are not limited to, the following:

-No user is denied access on the basis of creed, colour or religion.

-All requests for use are made by application to the City and a permit is issued to successful applicants.

-Access is on a first served basis to all residents, including CMF members.

-Priority is given to Toronto residents over people from other communities.

The Economic Development and Parks Committee also submits the following report (May 19, 1999) from the Commissioner of Economic Development, Culture and Tourism:

Purpose:

This report provides information on an agreement to be negotiated with the Canadian Macedonian Federation (CMF) for the funding and development of community and cultural facilities at the expansion of the Victoria Village Arena, 190 Bermondsey Avenue.

Funding Sources/Financial Implications/Impact Statement:

The project is included in the approved 1999-2003 Capital Works Program. The overall projected cost is $8.5 million dollars for the expansion with the City providing a total of $2.0 million dollars ($500,000.00 in 1999 and $1.5 million in 2000), with the CMF responsible for the balance.

The Finance Department indicates that, as this is an approved capital project with a capital account number, funds raised by the CMF can be deposited directly to this capital account. This is the preferred method, as the CMF has to raise their full $6.5 million prior to the project starting. Once they have the funding in place, they would deposit same with the City.

By way of information, should the CMF request to schedule their payments, although this is unlikely and is not the preferred method, the City would then require a letter of credit to protect its interests should the CMF run into difficulties in meeting their payments. The letter of credit will be an irrevocable, unconditional standby letter of credit in the amount of $6.5 million or such lesser amount representing any outstanding payments to be made to the City. As payments are made by CMF, the balance remaining on the letter of credit will decrease accordingly until all payments have been made. The letter of credit is to be in a form satisfactory to the Chief Financial Officer and Treasurer of the City. Either payment method can be accommodated. Regardless of the method used, all funds raised by CMF must be provided to the City within eighteen months from the signing of the agreement between the City and CMF, unless this time line is extended by the City.

Recommendations:

It is recommended that:

(1)the appropriate City officials be authorized to enter into negotiations with the Canadian Macedonian Federation for an agreement based on the key points of the letter of intent referred to in this report; and

(2)upon successful completion of the negotiations, such agreement be brought forward to the Economic Development and Parks Committee and City Council for review and consideration, and not be executed until approval has been obtained.

Council Reference/Background/History:

The former City of North York and the CMF signed a "letter of intent" dated December 8, 1997, wherein the two parties agreed to work together to develop an agreement for the joint development of a facility adjoined to the existing Victoria Village Arena. The letter of intent outlines the principles both parties wish to see in the final agreement. This project will provide facilities in an under-served area. A copy of the letter of intent is attached to the report as Schedule "A".

There have been ongoing discussions about this project that have been affected by the process of amalgamation, resulting in an extended time. However, the parties have now come to a point where they are ready to move ahead and are submitting the key points as outlined in the letter of intent for consideration and approval.

It is essential that the agreement be executed as soon as it is possible so that the CMF can commence fund raising initiatives. The CMF will have eighteen months from the time the agreement is signed to raise their share of the funding. The time limit may be extended with Council's approval.

Comments:

The letter of intent provides a clear outline of the project and will form the basis for the final agreement negotiations. The following summarizes some of the key points in the letter of intent for the Committee's information:

(1)the approved project will be a facility with a total area of 42,445 square feet consisting of: a connection to the existing arena; a gymnasium including an elevated running track; a 25 metre instructional/leisure pool with slide, quality finishes, and generous deck space; change rooms for the pool and gymnasium; fitness rooms including aerobics/dance studio and cardiovascular/weight training rooms; community facilities including activity room, meeting rooms and a servery/teaching kitchen; cultural facilities not to exceed 7,350 square feet of the total 42,445 square feet building total which will include an exhibition gallery, a donor's lounge, meeting rooms with kitchenette, a library room including archives and an administrative office; and an exterior court yard;

(2)all the community facilities, fitness and recreational facilities will be available to the general public and operated, maintained and programmed by the City much like any other City facility, and be subject to the usual City policies for pricing and permitting;

(3)the CMF will be responsible for raising, through its own fund raising efforts, the first $6.5 million of the estimated $8.5 million dollar project; the City will provide the land and will pledge $2.0 million; and the project will not proceed until the CMF has first raised all of their required $6.5 million;

(4)if the project does not proceed for any reason, the CMF is solely responsible for return of the funds raised;

(5)the CMF is responsible for hiring the architect and is responsible for any cost over runs;

(6)the CMF will receive a 25 year lease (nominal cost of $2.00 per year), for the cultural component (approximately 7,350 square feet) and will be responsible for its own operation and any property/other applicable taxes for this area; at the end of the lease the City will have the option to renew it on such terms and conditions as it considers appropriate at the time; and the City will not be responsible for any expenses under the lease;

(7)the CMF will have the right to name the addition and its major components or any of them, but only in a wording or manner acceptable to the City;

(8)the CMF is entitled to use the addition exclusively for four special events per year, the timing of which is planned in conjunction with the City's requirements;

(9)an Advisory Committee will be established consisting of area residents, user groups and the CMF to advise the City and its staff on user needs and operational issues; and

(10)the City will be responsible for the overall management of the project during all phases and will assign a project manager to act on behalf of the City, including managing the architect and contractor.

Conclusion:

This agreement will result in needed facilities for the City of Toronto through a joint development arrangement. The CMF will raise the first $6.5 million of the total $8.5 million estimated project cost. The City has approved and committed $2.0 million in the 1999-2003 Capital Works Program, but will not spend its funds until the CMF's funds are totally collected and available. The fund raising will commence upon the signing of the agreement. The CMF will have eighteen months to raise its share from the date of signing the agreement, unless the time line is extended by City Council.

Contact Names:

Mr. Glenn Garwood, 395-7424; Mr. Neil R. Zaph, 395-6065.

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Letter of Intent

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Letter of Intent

The Economic Development and Parks Committee also had before it the following communications, and copies thereof are on file in the office of the City Clerk:

(a)(June 21, 1999) from Mr. James. G. Karas, President, Pan-Macedonian Association of Ontario Inc., requesting to make a presentation to the Economic Development and Parks Committee and requesting a postponement for the hearing of deputations;

(b)(undated) from Mr. Michael Papadouris, AHEPA, requesting to make a presentation to the Economic Development and Parks Committee and to have the matter deferred to the North York Community Council meeting;

(c)(September 30, 1999) from Mr. Glenn Cuthbertson, Vice-President, Victoria Village Community Association, advising of his support to endorse the construction of a new community recreational centre on the site presently occupied by the Victoria Village Arena;

(d)FAX (September 30, 1999) from the Residents of the Community of Parkview Hills submitting a Petition with 34 signatures in support of the foregoing matter;

(e)FAX (September 30, 1999) from the Residents of the Community of Parkview Hills submitting a further Petition with 47 signatures in support of the foregoing matter; and

(f)(October 3, 1999) from Ms. Margaret Boersma and Mr. Steve Carroll, Toronto, Ontario, in support of the foregoing matter.

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

-Mr. Spero Bassil, President, Canadian Macedonian Federation;

-Dr. Tasos Karantonis, Greek Community of Metropolitan Toronto Inc.;

-Mr. Michael Dosman, President, Victoria Village Community Association; and filed a copy of a petition containing approximately 70 names in support of the foregoing matter;

-Councillor Denzil Minnan-Wong, Don Parkway.