146 Crescent Road - Rosedale-Moore Park

Association, Extension to Lease

(Midtown - Ward 23)

 The Corporate Services Committee recommends the adoption of the following report (April 8, 1998) from the Commissioner of Corporate Services:

 Purpose:

 To provide the Corporate Services Committee with additional information regarding the report submitted by Councillor John Adams, Midtown, on the lease extension to Rosedale-Moore Park Association.

 Financial Implications:

 A lease extension to April 30, 2007, will result in a commitment from Rosedale-Moore Park Association to invest $200,000.00 in capital improvements over the term of the lease. The City, pursuant to the terms of the lease, would continue to be responsible for realty taxes. The 1997 realty taxes were $22,856.67 and based upon the current value assessment of $3,858,000.00 and the projected residential/farm mill rate of 1.243403, the 1998 realty taxes are projected at $47,970.49.

 Recommendations:

 It is recommended that:

(1)an extension to the lease with Rosedale-Moore Park Association to April 30, 2007 for 146 Crescent Road, under the same terms and conditions as the current lease and conditional on Rosedale-Moore Park Association fulfilling its commitment to undertake and complete certain improvements to the property in the minimum amount of $200,000.00, over the term of the lease, be approved;

 (2)the lease extension be in a form satisfactory to the City Solicitor; and

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

 Background:

 The Rosedale-Moore Park Association has leased 146 Crescent Road since 1949 for use as a non-profit community centre. In 1997, the Association advised it wished to invest in capital repairs to the buildings but, in order to justify the expenditures, required a lease extension from April 30, 1999, the then expiry of the lease, to April 30, 2007. At is meeting held on September 22 and 23, 1997, the former City of Toronto Council approved a lease extension to April 30, 2007, subject to the Association committing to a $200,000.00 investment in capital repairs over the term of the lease and subject to Financial Advisory Board approval.

 The Financial Advisory Board approved the request for an extension, but limited the extension to April 30, 2002. The Association, through Councillor John Adams, has requested City Council to reconsider its request for a lease extension to April 30, 2007.

 Comments:

 As set out in my report to the former City of Toronto Council, the City is responsible for capital repairs. Due to budgetary constraints, repairs to the structures at 146 Crescent Road have been deferred over the last number of years and the Rosedale-Moore Park Association has invested approximately $310,000.00 in capital repairs since 1989.

 The Association which operates a needed community service in this facility at no cost to the City other than the taxes and capital repair requirements in the lease, is prepared to formally agree to invest $200,000.00 in capital repairs provided the lease is extended to April 30, 2007. This capital investment will assist the City=s budgetary process and allow the Rosedale-Moore Park Association to undertake needed repairs to the facility with assured security of tenure.

 Conclusion:

 Concurrence to the Rosedale-Moore Park Association=s request for a lease extension to April 30, 2007 will result in a firm commitment from the tenant to invest in needed capital repairs to this City-owned facility.

 Contact Name:

 Vinette Brown 392-7138, Fax No. 392-1880. vbrown @ city.toronto.on.ca (cs98050.wpd)

 The Corporate Services Committee submits the following communication (February 17, 1998) from Councillor John Adams, Midtown:

 Purpose:

 The purpose of this letter is to resolve the matter of a lease extension, given that the Financial Advisory Board did not approve an extension for ten years as requested and approved by the former City of Toronto Council.

 Recommendations:

 It is recommended that: (1)the Toronto City Council recommend that an extension to the lease with Rosedale-Moore Park Association to April 30, 2007, for 146 Crescent Road, under the same terms and conditions as the current lease and conditional on the Association fulfilling its commitment to undertake and complete certain improvements to the property in the minimum amount of $200,000.00, over the term of the lease, be approved;

 (2)the lease extension be in a form satisfactory to the City Solicitor;

 (3)the appropriate officials be authorized to execute the documentation and take the necessary actions to implement the foregoing; and

 (4)this item be scheduled for public deputations.

 Background:

At its meeting on September 22, 1997, the then City of Toronto Council adopted recommendations in a report from the Commissioner of Corporate Services dated September 8, 1997, providing this ten year lease extension, subject to approval from the Financial Advisory Board. The Board limited the extension to a period of three years from the end of the existing lease.

 The Association has reiterated its request for the ten year lease indicated its desire for security of tenure for this period of time if it is to honour its commitment to raise $200,000.00 of private capital to improve the City-owned building which it occupies.

 I attach the relevant Council clause which includes the staff report, a recent letter from the Association dated February 13, 1998, and a city letter dated December 2, 1997, reported the three-year-only extension approved by the Financial Advisory Board.

 (A copy of the sketch attached to the report (April 8, 1998) from the Commissioner of Corporate Services; and the attachments to the report from Councillor John Adams, Midtown, was forwarded to all Members of Council with the April 27, 1998, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)