The Toronto Realty Agency, which will launch on January 1, 2018, will manage the City’s real estate portfolio, develop City buildings and lands for municipal purposes and deliver client-focused real estate solutions to City divisions, agencies and corporations. As part of the city-wide real estate model, the Agency will centralize real estate services and facilities management activities across the City.

Budget Note

To manage the City’s real estate portfolio, develop City buildings and lands for municipal purposes and deliver client-focused real estate solutions to City divisions, agencies and corporations.

View the Toronto Realty Agency Program Map in detail.

The first phase of the new Council approved real estate service delivery model includes the establishment of the Toronto Realty Agency (TRA). The Agency consists of an operational consolidation of Build Toronto (BT) and Toronto Port Lands Company (TPLC), and in conjunction with the City’s Facilities Management and Real Estate Divisions, forms the organizational structure of the new real estate delivery model.  The establishment of the full real estate model is expected to take place in a phased approach over three years, considered to be the “incubation period”.  TRA’s mission is to manage the City’s real estate portfolio, develop City building and lands for municipal purposes and deliver client-focused real estate solutions to City divisions, agencies and corporations.

2018 Budget Summary

 

The total cost to deliver these services to Toronto residents is $11.434 million gross and $0 million net.

TRA is self-sufficient and able to fully fund $11.434 million in operating budget requirements for staffing, general administration and ancillary costs needed to fulfill its mandate. Funding is generated through revenue contributions from the existing operations within BT and TPLC.

Fast Facts

  • At its meeting on May 24, 25 and 26, 2017, City Council adopted a new real estate service delivery model for the City government that centralizes all real estate activities City-wide, including all real estate strategy and portfolio planning, major building projects, developments, real estate transactions and facilities management. http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2017.EX25.9
  • The Council approved real estate delivery model has led to the establishment of a City agency (the “Toronto Realty Agency”). The establishment of the full operating model is expected to take place in a phased approach over years 2018 to 2020, considered to be a three year “incubation period”.
  • The organization structure of the new real estate service delivery model includes the new Toronto Realty Agency (currently a consolidation of existing City owned corporations, Build Toronto and Toronto Port Lands Company) along with the Real Estate Services and Facilities Management divisions. These entities will collaborate with the other City Programs, Agencies, and Corporations and be responsible for: the consolidation of all real estate activities; management the City’s real estate portfolio; development of City buildings and lands for municipal purposes; and the delivery of client-focused real estate solutions for client City Programs, Agencies and Corporations.  In addition, the Toronto Realty Agency will leverage a real estate holding corporations with necessary real estate tools and instruments (e.g., to deliver joint ventures, facilitate development of surplus City-owned lands, manage environmentally sensitive properties, etc.).
  • The new real estate service delivery model will encompass all real estate functions across all Agencies, Divisions and Corporations. The consolidation of Build Toronto and TPLC is the first step in this process, The organizational structure will evolve throughout the incubation period as real estate authorities and activities within other City Divisions, Agencies and Corporations are consolidated into the model.
  • The City of Toronto, including all its Program areas, Agencies and Corporations, has one of the most significant real estate portfolios in the country, with holdings conservatively valued at $27 billion including: 6,976 buildings; 106.3 million square feet (9.87 million square metres); and 28,882 acres of leased and owned land.
  • The Toronto Realty Agency will begin operations on January 1, 2018.

Key Service Deliverables for 2018

 

The 2018 Preliminary Operating Budget will enable the TRA to start implementation of operations and work towards:

  • Coordinate stewardship of the City’s real estate assets, and the ability to execute a mandate focused on supporting programs and enabling city-building.
  • A strong accountability and governance structure with the necessary Council oversight, and built in flexibility to operate in the changing marketplace.
  • Provide real estate expertise to modernize and harmonize operations, and to drive service delivery to programs while maintaining a presence at the local / community levels.
  • Maximize real estate value in pursuit of social, economic, environmental, and program benefits, while achieving new revenue and cost savings.

Our Key Issues & Priority Actions

  • Self-sustaining through the three year implementation phase of the new real estate model (2018-2020), funded through recurring lease revenue from Toronto Port Lands Company (TPLC) and proceeds from development sales by Build Toronto (BT).
    • These corporations are key pillars in the new real estate service delivery model and will also be relied upon to fund the new functions required of TRA.
  • Unlocking the Value of the City’s real estate portfolio and maximizing the use of City-owned space while meeting client program requirements.
    • Act on opportunities through detailed review, market research and analysis by qualified staff to ensure City’s Real Estate portfolio meets the needs of City Programs and Agencies.
  • Develop a City-Wide real estate strategy to be presented to City Council in Q1 of 2019.
  • Begin to implement the new real estate service delivery model.
  • Incorporating new functions, such as Customer Relationship Management and Portfolio Strategy Development, within the existing functions of the model.

2018 Operating Budget Highlights

  • The 2018 Preliminary Operating Budget for TRA is $11.434 million gross and $0 million net, comprising:
    • Base expenditure of $11.640 million gross for staffing, general and administration and ancillary costs representing the 2018 consolidated opening position of BT and TPLC general administration and staffing costs;
    • Efficiency savings of $3.038 million gross realized from consolidation of general administration and staffing of Build Toronto (BT) and Toronto Port Lands Company (TPLC); and
    • New and enhanced funding of $2.832 million gross and $0 million net is for new Customer Relationship Management (CRM) and Portfolio Strategy Development functions.
      • Ancillary and one-time costs incurred to transition to the new model and to start-up, establish and ensure operations of TRA will be:
    • Offset with revenue of $11.434 million from contributions BT and TPLC.
  • Staff complement consists of 51 positions in 2018.