Update on TO Live Capital Projects Transition

Corporate Real Estate Management in collaboration with City staff from Purchasing and Materials Management Division (PMMD) and Legal Services, has worked closely with TO Live staff to develop a process to transition the oversight and delivery of TO Live's 2025-2034 Capital Budget and Plan and future capital plans, from TO Live to Corporate Real Estate Management. This includes the development of a governance framework that defines roles and responsibilities between TO Live and Corporate Real Estate Management in alignment with EX19.20 and the City's centralized capital delivery model. The framework is expected to be completed and implemented by the end of the third quarter of 2025. In the meantime, there are a number of projects that were planned or initiated by TO Live that require an evaluation and determination of whether, when, and how to proceed. As a starting point, an assessment was conducted by Corporate Real Estate Management, in collaboration with TO Live staff, to determine which of these projects are critical and must continue to progress in 2025. An interim strategy has been established to mitigate the risk of costly delays and operational disruptions, while ensuring appropriate Corporate Real Estate Management oversight as directed in EX19.20. In-flight projects with critical timelines that must proceed are categorized into one of three groups, with defined approval pathways and authority structures identified for each. The total projected 2025 capital budget identified by TO Live in CT15.9 was $17.8 million. Corporate Real Estate Management has since worked closely with TO Live to validate and reconcile this figure and confirmed that the total value of the critical projects that must progress in 2025 is $8.9 million. This reconciled amount represents a realistic estimate of the capital work that can be advanced through 2025, as Corporate Real Estate Management and TO Live navigate a transition process that includes aligning complex business functions, such as procurement, to support effective capital project delivery. The remaining $8.9 million of capital work from TO Live's original 2025 capital budget has been deemed non-critical and will be deferred to 2026 through an in-year adjustment in a future Council-approved quarterly variance report. The total deferred value includes $2.9 million originally allocated to the redevelopment of St. Lawrence Centre for the Arts (Council direction in EX17.17a). These funds will be reallocated to support critical state of good repair work needed at this facility in 2026 and beyond. Corporate Real Estate Management and TO Live will continue to collaborate to reevaluate and define 2026 and future year capital budgets and plans through the City's standard budget process, in accordance with the Capital Prioritization Framework. Attachment 1 provides Corporate Real Estate Management's detailed reconciliation of the 2025 and 2026 capital spending against the figures previously presented by TO Live through CT15.9. Moving forward, the TO Live Board of Directors will receive all updates on the TO Live capital program from the City's Executive Director of Corporate Real Estate Management.

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