The filed record
Recovery of Costs - 650 Parliament Street
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The decision
2020-01-29 · Toronto City Council · amended
As filed
City Council on January 29, 2020, adopted the following: 1. City Council authorize the City Solicitor to commence a civil action to recover the City's costs of providing emergency human services to the displaced residents of the Property from the Property Owner. 2. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor. 3. City Council
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direct that the confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor remain confidential at the discretion of the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor remain confidential as it pertains to potential litigation and it contains advice that is subject to solicitor-client privilege. 4. City Council request the City Solicitor to report back to City Council at the earliest available opportunity on the outcome of the confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor. Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to potential litigation and it contains advice that is subject to solicitor-client privilege. The confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor will be made public at the discretion of the City Solicitor.
On the agenda
As the city filed it
There is a 22 storey residential rental building with 570 apartment units at 650 Parliament Street, Toronto (the "Building" and "Property"). At 12:51 PM on August 21, 2018, Toronto Fire Services were dispatched to a reported fire at the Property. Fire crews arrived and identified smoke in the lobby area and residents trapped on their balconies. Initial information indicated some sort of failure had occurred in the Building's hydro vault.
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That failure resulted in localized fires at various electrical panels. Fire crews extinguished the fires and evacuated all of the apartment units with residents transported to local shelter nearby, with the assistance of Toronto Police Service. Approximately 1,500 residents were displaced from their homes. At the time of writing this report, residents have not returned to the Property. Parwell Investments Inc. and Bleeman Holdings Ltd. own the Property (the "Property Owner"). The Property Owner has stated that they were not immediately equipped to respond to the emergency, including the provision of interim shelter, food, wares, and transportation for all of the displaced residents of the Building. City officials advised the Property Owner that it was their responsibility to provide for the displaced residents. Mr. Samuel Grosz, President of the Property Owner, indicated that the Property Owner did not have the staff or resources to provide emergency assistance to the displaced residents but agreed to make the City whole if the City would provide those services. The City incurred significant costs in providing and facilitating the delivery of emergency human services (accommodation, clothing, food, access to medical aid, transportation etc.). The bulk of the costs incurred by the City were known and tabulated by October 10, 2018. At that time, the City Manager wrote to the Property Owner and provided them with an interim invoice. Since that time, the Property Owner's representatives have sought time to review and consider the City's demand for reimbursement. Through the City Solicitor's office, the City provided the Property Owner's lawyers with an updated accounting and detailed records (hundreds of pages of documentation) supporting all of the costs the City was seeking to recover. The Property Owner has failed to remit any payment to reimburse the City for the costs incurred. The Property Owner has been given documentation that supports the City's claim for reimbursement and ample time to consider the matter. A logical next step is to commence a civil action to recover the monies owed to the City. Confidential Attachment 1 contains legal advice from the City Solicitor relating to the proposed civil action.
Staff recommended
The City Solicitor recommends that: 1. City Council authorize the City Solicitor to commence a civil action to recover the City's costs of providing emergency human services to the displaced residents of the Property from the Property Owner. 2. City Council adopt the confidential instructions to staff in Confidential Attachment 1. 3. City Council direct that the confidential instructions in Confidential Attachment 1 remain
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confidential at the discretion of the City Solicitor and that the balance of Confidential Attachment 1 remain confidential in its entirety, as it pertains to potential litigation and contains advice that is subject to solicitor-client privilege.
On the record
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