Completion of City-owned site at 5200 Yonge Street to allow for successful launch of City-initiated Food Incubator Program - by Councillor Lily Cheng, seconded by Councillor Shelley Carroll

Before it is appropriate to charge the full rent for the space, the selection of a not-for-profit organization should occur in order that the food hall is optimally prepared to attract customers and poise the vendors, collectively known as FLIP Kitchens, for business success. The graduated rent abatement anticipates the selection of a not-for-profit operator during Q2-23 as well as an on-boarding period for the new operator to implement the program during Q3-23. In compliance with existing lease obligations, the vendors will be required to provide sales reports to Corporate Real Estate Management to substantiate the level of financial impact to which the absence of a not-for-profit operator has contributed and in order to qualify for rent abatement. Bunhaus Eats Inc abandoned the tenancy in March, 2023, citing an inability to service the rent obligations given the lack of business. The delay in completing the space, the termination of the previous not-for-profit operator and subsequent time it will take to select a new one are significant contributing factors to the failure of the tenant's business. As such, it is appropriate to extend rent abatement and permit the termination of the agreement.

2. City Council authorize the General Manager, Economic Development and Culture and the Executive Director, Corporate Real Estate Management to provide a 75 percent rent abatement for the rent payable from January 1, 2023 to March 30, 2023 in the total amount of $8,811.03 by Bunhaus Eats Inc. at 5200 Yonge Street and permit Bunhaus Eats Inc to terminate the lease agreement, effective March 30, 2023.