June 2, 1999
To:Economic Development and Parks Committee
From:Joe Halstead, Commissioner Economic Development, Culture & Tourism
Subject:Expansion of Victoria Village Arena - Agreement with the Canadian Macedonian Federation (Ward 11, Don
Parkway)
Purpose:
To provide requested supplemental information related to the report on this subject (dated 19 May 1999), first dealt with by
this Committee at its meeting held 21 May 1999. A copy of the 19 May 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 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 in to 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
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 2,3,4 March 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 publically 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 Committee is to obtain authority
to proceed to finalize the joint development agreement.
A question arose at the 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 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 new
project and has been subject to the rigours of the review process leading up to the approval of the 1999-22003 Capital
Works Program by City Council.
Conclusion:
The letter of intent included with the 19th May 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 Name:
Glenn Garwood
395-7424
Neil R. Zaph
395-6065
Joe Halstead
Commissioner Economic Development, Culture and Tourism
May 19, 1999
To:Economic Development Committee
From:Joe Halstead Commissioner of Economic Development, Culture and Tourism
Subject:Expansion of Victoria Village Arena - Agreement With The Canadian Macedonian Federation - Ward 11 -
Don Parkway
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 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 in to 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 in to 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
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 08 December 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 on-going discussions about this project that have been effected 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 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
and 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. 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. 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 Name:
Glenn Garwood
395-7424
Neil R. Zaph
395-6065
