Lease Renewal at 605 Rogers Road

6th Floor - Area Welfare Office "E",

Social Services Division

Community and Neighbourhood Services

Department (Ward 27 - York Humber)

The Corporate Services Committee recommends the adoption of the following report (June26, 1998) from the Commissioner of Corporate Services:

Purpose:

To enter into a rental agreement of the subject property with Landawn Shopping Centres Limited, as per attached location and site maps.

Funding Sources, Financial Implications and Impact Statement:

Funds to cover the expenditures identified in this report are part of 1998 Social Services Operating Budget. The Commissioner of Finance, in accordance with Provincial regulations, has certified that financing for the expenditure in the amount of $240,000.00 is within the Updated Financial Debt and Obligation Limit.

Recommendations:

It is recommended that:

(1)financing in the amount of $240,000.00 be approved;

(2)the City of Toronto enter into a lease with Landawn Shopping Centres Limited on the terms and conditions outlined in this report, and in a form acceptable to the City Solicitor; and

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

Council Reference/Background/History:

Metropolitan Council, on September 15 and 16, 1993, by the adoption of Clause No. 13 of the Management Committee Report No. 37, approved the lease renewal of the 6th floor of 605 Rogers Road, for a term of 5 years commencing December 1, 1993 at a basic rent of $21.53 per square meter ($2.00 per square foot), net, per annum. The proportionate share of realty taxes and operating costs for 1998 are estimated to be $10.39 per square foot. The total rentable area is 1774.11 square metres (19,097 square feet).

Comments and/or Discussion and/or Justification:

A Space Rationalization Team is currently dealing with various buildings brought into amalgamation and are in the process of identifying if there is any space available in these facilities that can accommodate various City of Toronto departments that are currently occupying leased premises as tenants. As a result, a canvass has been conducted based on the criteria and catchment area established by the Community and Neighbourhood Services. The survey revealed no suitable City-owned space to accommodate this operation at this time.

By a letter dated February 6, 1998, Community and Neighbourhood Services Department requested the lease be renewed for a one year term. Negotiations were conduced with Mr.GlennJ.Featherstone, Vice President, Retail Leasing, O&Y Properties Real Estate and Management Services, 2 First Canadian Place, Suite 2900, Toronto, Ontario, M5X 1B5, property management for the Landlord. It has been agreed that the lease of the subject be renewed for a one (1) year term commencing December 1, 1998, subject to the same terms and conditions of the existing lease, including the rent.

Conclusion:

In my opinion, these terms and conditions are fair and reasonable, and I have been advised that they are acceptable to the Community and Neighbourhood Services Department. Another search for suitable City-owned space will be conducted prior to the expiry of the renewal term.

Contact Name:

Mr. Tony Pittiglio, Manager of Property Services; Telephone No. (416)-392-8155; Fax No.:(416)392-4828; E-mail Address: anthony_pittiglio@metrodesk.metrotor.on.ca (cs98113.wpd)

(A copy of the maps attached to the foregoing report was forwarded to all Members of Council with the July 20, 1998, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)