Lease Agreement (New Owner) -

1860 Wilson Avenue

(Ward 6 - North York Humber)

The Corporate Services Committee recommends the adoption of the following report (February11, 1999) from the Commissioner of Corporate Services:

Purpose:

To seek Council's concurrence to conclude leasing arrangements with the new owner of 1860Wilson Avenue on terms previously authorized.

Financial Implications:

As set out in Clause No. 19 of Report No. 17 of The Corporate Services Committee, adopted by Council on November 25, 26 and 27, 1998, and attached as Appendix A.

Recommendations:

It is recommended that:

(1)a leasing arrangement with 364511 Ontario Limited or its successors ("364511") be concluded, on the terms and conditions set out in and in accordance with Appendix "A" herein; and

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

Background:

By its adoption of Clause No. 19 of Report No. 17 of The Corporate Services Committee on November 25, 26 and 27, 1998, Council authorized a lease agreement with the Banca Commerciale Italiana of Canada ("Banca"), the Mortgagee then in Possession of the property located at 1860Wilson Avenue for approximately 23,194 square feet of space, at a rent of $6.00 per square foot, net, plus a minimum of 80 parking spaces for use as a welfare office for a term of five years commencing November 1, 1998, with a provision allowing the City the right to terminate the lease by giving the Landlord six months' written notice after the end of the third year.

On December 1, 1998, the representative of Banca provided written notice that the property had been sold to 364511, effective as of that date. Concurrence has now been received from 364511 to continue to lease the premises to the City on the same terms and conditions as previously approved by Council with respect to Banca for a term of 4 years, 11 months, commencing December 1, 1998.

Comments:

To document the existing leasing arrangement with 364511 as the new owner, a Council authority is required. In order for this report to be simultaneously considered, with Councillor Mammoliti's notice of motion to re-open the previously approved authority contained in Appendix "A", which is scheduled to be considered by Council on March 2, 1999, makes it sufficiently urgent to request that this report be included on the Corporate Services Committee's Agenda on Monday, February15, 1999. The Commissioner of Community and Neighbourhood Services has been advised of the sale and continues to approve of the leasing arrangements at this location.

Contact Name:

Mr. Glen Hamilton, Valuator-Negotiator; Telephone No. (416) 392-5838; Fax No.: (416) 392-4828; E-mail Address: glen_hamilton@metrodesk.metrotor.on.ca.

(A copy of Clause No. 19 of Report No. 17 of The Corporate Services Committee which was attached to the foregoing report was forwarded to all Members of Council with the February 15, 1999, agenda of the Corporate Services Committee, and a copy thereof is also on file in the office of the City Clerk.)