City-wide Real Estate - Next Phase of Implementation

 2. City Council direct that any City Agencies or Corporations that are created in the future be required to operate in accordance with the City's centralized Real Estate Service Delivery Model, unless expressly exempted from doing so by City Council. 3. City Council amend Municipal Code Chapter 279, Toronto Transit Commission substantially in the form as set out in Attachment 2 to the report (October 13, 2021) from the Deputy City Manager, Corporate Services, effective upon approval, subject to such stylistic or technical amendments as may be required by the City Solicitor. Strategic Investment and Property Acquisitions/Transfers 4. City Council adopt the following Principles to guide strategic real estate investment: a. the City's real estate assets are to be optimized for City-wide benefit as part of the City-wide Real Estate Model and capital investment in real estate, including state-of-good-repair investments, will be prioritized with a City-wide lens; b. existing real estate assets that are unlocked through portfolio optimization will be repurposed to meet program needs and City building opportunities as a first priority; c. in the event that City Council determines that a sale of a real estate asset is the best way to maximize its value to the City, net proceeds will be reinvested into real estate assets to support the current and future ability to deliver City programs, either to fund the purchase of new real estate assets and expanded capacity, or to invest in state-of-good-repair as part of life-cycle asset management; and d. the City may, from time to time, proactively acquire real estate assets where lands become available through unforeseen circumstances and/or without identified and/or immediate program requirements; such strategic real estate acquisitions will be consistent with the City-Wide Real Estate mandate to enable city building and support the City's corporate priorities. 5. City Council adopt the Strategic Acquisition Policy set out in Attachment 3 to the report (October 13, 2021) from the Deputy City Manager, Corporate Services, and rescind the framework for Strategic Property Acquisitions approved by City Council on August 25, 26, 27, and 28, 2014 in Item 2014.EX44.22 and City Council amend General Condition (D) of Appendix B of Toronto Municipal Code Chapter 213, Real Property, to reflect this change. 6. City Council direct that a minimum of 20 percent of the land value that is unlocked or generated from portfolio optimization initiatives, as determined by the Chief Financial Officer and Treasurer on a recommendation from the Chief Executive Officer, CreateTO, in consultation with the Deputy City Manager, Corporate Services, be deposited in the Land Acquisition Reserve Fund. 7. City Council exempt the sites identified by City Council as part of the Housing Now Program from the direction in Part 6 above. 8. City Council amend the "Policy Governing Land Transactions Among City Agencies, Boards, Commissions and Departments and Proceeds from Sale of Surplus City-Owned Real Property" (Clause 1 of Report 9 of the Policy and Finance Committee, as adopted by City Council on June 18, 19 and 20, June 2002) as follows: a. delete clause (7) so that all proceeds from future sales of any real estate assets are directed to the Land Acquisition Reserve Fund to fund future City-wide future real estate capital requirements, and b. delete clause (9) so that if there is a jurisdictional transfer or sale of land under the jurisdiction of the Toronto Parking Authority which was purchased by the City with parking revenues, the land will no longer be valued at fair market value with all net proceeds going to the Parking Reserve Fund, and the Toronto Parking Authority will no longer be required to pay fair market value if it is receiving a jurisdictional transfer of land. 9. City Council amend the purpose for the Land Acquisition Reserve Fund in the Toronto Municipal Code, Chapter 227, Reserves and Reserve Fund to read: "Provides funding for various capital projects involving acquisitions of real estate assets and/or significant capital improvements to existing real estate assets to support City Programs and the City's city building objectives." Financial Matters 10. City Council direct the Chief Executive Officer, CreateTO and the Chief Financial Officer and Treasurer in collaboration with the Deputy City Manager, Corporate Services to identify and implement a new funding model, both operating and capital, for CreateTO as part of the 2022 Budget process. 11. City Council direct the Chief Executive Officer, CreateTO, in collaboration with the Executive Director, Corporate Real Estate Management, the Deputy City Manager, Corporate Services, and the Chief Financial Officer and Treasurer to identify net new revenues sources to support CreateTO's operating budget. 12. City Council direct the Deputy City Manager, Corporate Services, the Chief Financial Officer and Treasurer, the Executive Director, Corporate Real Estate Management, and the Chief Executive Officer, CreateTO, in consultation with the City's Divisions, Agencies and Corporations to establish a City-wide view of real estate capital needs, and governance for prioritization of real estate capital expenditures on a City-wide basis for consideration by the Budget Committee and City Council, starting with land acquisitions and new construction as part of the 2023 Budget process and continuing on to state-of-good-repair investment needs in subsequent budgets. General 13. City Council direct the Deputy City Manager, Corporate Services, in consultation with the Chief Executive Officer, CreateTO and the Executive Director, Housing Secretariat, to report back to the Executive Committee in the first quarter of 2022, as part of the next phase of implementation of the real estate model, with a process and selection criteria for identification of future sites for the Housing Now Program. 14. City Council direct the City Manager to establish a working group of relevant City divisions and agencies for the purpose of developing a coordinated, long-term view of the City of Toronto's operational needs for industrial lands, to do so in consultation with the Chief Executive Officer, CreateTO to advise on opportunities to co-locate, consolidate, relocate and/or modernize the City's current portfolio of yards and to report back to City Council in the fourth quarter of 2022. 15. City Council direct the Deputy City Manager, Corporate Services and the Chief Executive Officer, CreateTO to engage with local Councillors regarding the use of the lands for yard and industrial requirements of City divisions, agencies and corporations and the potential for alternative city-building opportunities at City-owned industrial sites, where operational requirements can be addressed through business cases for alternative site solutions. 16. City Council direct CreateTO, in consultation with the Executive Director, Transit Expansion Office and the Chief Planner and Executive Director, City Planning to explore opportunities for further city-building opportunities at the City of Toronto property known municipally as 891 Morningside Avenue, along with all other City-owned properties in the immediate area, to explore options to rationalize current and future uses to maximize the use of the properties.