Authorization to convert a cash-in-lieu Section 37 payment to an in-kind contribution for the construction of a PATH tunnel beneath Simcoe Street by Cadillac Fairview (Frontside Developments LP) - by Councillor Joe Cressy, seconded by Councillor Mike Layton

An indexed payment of $1,776,997.84 was received from the owner. It was the intent that the funds collected would be utilized by the City to undertake the obligatory PATH connection, however the developer Cadillac Fairview has advised that as part of their construction process, they would relieve the City of its responsibility and undertake the requisite PATH improvements as integrating it would be more economical and efficient. Over the past year, Cadillac Fairview has worked with various divisions at the City to advance the design, construction planning, and approvals for the tunnel. It is estimated that the total cost of construction the PATH improvement would be $38 million. In exchange for undertaking the construction this Motion seeks to offset the $1,776,997.84 that was received from the owner, and have it applied against the total construction cost of the PATH tunnel. Prior to the release of the funds, the registered owner of 160 Front Street West (the "Owner") will be entering into an Encroachment Agreement with the City, which will require the Owner to construct, maintain, repair and operate the publicly accessible pedestrian PATH tunnel under Simcoe Street, at the Owner's expense. The Encroachment Agreement to be signed by the Owner will contain provisions requiring the Owner to submit a letter of credit to guarantee that the work within the public right-of-way is completed to the City's satisfaction, and to ensure public access to the pedestrian PATH tunnel.

forwarded to Cadillac Fairview directly, once an Encroachment Agreement has been executed and conditional on receipt of a letter of credit being in place to complete the PATH tunnel to the satisfaction of the General Manager of Transportation Services.