2299 Dundas Street West - Termination of Unit 306 Lease - by Councillor Gord Perks, seconded by Councillor Kristyn Wong-Tam

As part of the purchase, a lease to Dr. Lakshmi R. Jain, Dentistry Professional Corporation, operating as Cherry Blossom Dentistry, and two billboard leases were assumed. While vacant possession of the interior of the building was desired, City staff knew at the time the offer was submitted that the Tenant had the right to remain until July 31, 2019 and also had an option to renew for an additional 5 years until July 31, 2024. The Tenant exercised the right to renew in January 2019. Currently, construction of the George Street Revitalization Project is planned for 2021 and replacement sites must be ready by the end of 2020. Given the limited property options, and time constraints for the George Street Revitalization Project, staff determined that rather than forego the site, they would assume the Tenant's lease, and if absolutely necessary, construct the shelter around the Tenant's premises. While it would be mutually advantageous for the Tenant to vacate the Property before the commencement of construction, this would require that the Tenant temporarily shut down their practice while the Tenant locates, renovates and moves into a new location. As such, staff are recommending that in exchange for vacating by August 9, 2019, the City pay to the Tenant the amount of $400,000 as compensation for the Tenant's projected loss of income from August 2019 to March 2020 and the cost to maintain staff during this time, which is within the range estimated by the City's business loss consultant. Funding is available in the 2019-2028 Council Approved and Capital Budget and Plan for Shelter, Support and Housing Administration under the capital account CHS040-01. This matter is deemed urgent as the Tenant requires 2 months after entering into an agreement with the City to make preparations to shut down their practice and vacate the Property, and every month that substantial construction is delayed at the Property affects the timeline of the George Street Revitalization Project, resulting in additional costs to that project. Additionally, there will be incremental construction costs at the Property if the City were to renovate around the Tenant.