Leveraging City-Owned Real Estate to Support City Council Objectives - Long-Term Financial Plan Update

City-Owned Land Adjacent to Provincial Transit Sites; and 4. Intensification of Parks & Recreation facilities for housing co-location. This report presents analysis conducted by CreateTO, the City of Toronto's strategic real estate agency, working with Parks & Recreation, Toronto Parking Authority, City Planning and other divisions regarding opportunities to make better use of City-owned real estate, including repurposing assets towards alternative City needs and priorities directed by City Council through the Long-Term Financial Plan. It is important to note that this report does not seek decisions on any specific site. Determining the best city building outcome for any City-owned property requires significant due diligence, planning analysis, financial analysis, stakeholder engagement, including the local Councillor, and the development of appropriate business cases for a change in use before coming to Council for subsequent approvals. With and on behalf of the City, CreateTO leads an ongoing process of evaluating City-owned real estate and City service needs, or the matching of supply and demand, enabling opportunities to intensify land uses, promote co-location, repurpose underperforming assets, and/or redevelop lands for higher and better uses, including a range of housing and community outcomes. For example, over 50 City-owned parking lots have already been identified to be repurposed for other City uses, including affordable housing, new parks, and City infrastructure needs. As directed by City Council through item 2024.EX12.4, staff have evaluated the utilization and financial performance of additional City-owned parking lots, and prioritized consideration of facilities functioning at a net operating loss. As a result of this analysis, 21 parking lots met both criteria for underperformance, including: (1) generating a net financial loss, and (2) having a utilization rate that was below target or underutilized. An initial subset of 10 parking lots (of the 21) have been prioritised for evaluation and will be assessed for other City priorities. Additional due diligence is required for each site to identify specific future uses, in consultation with local Councillors and Divisions, Agencies and Corporations (DACs). Repurposing the 10 prioritized parking lots could potentially deliver a mix of housing, community and financial sustainability outcomes, consistent with Council's Long-Term Financial Plan direction. Subject to due diligence and specific, future decisions on how to proceed on each site, potential benefits from repurposing these sites may include: - $100+ million in land value from 10 underperforming parking lots potentially redirected to other City needs and program priorities; - New community infrastructure and parkland potential in high-priority areas identified by Parks & Recreation; - New opportunities to support City Council's urgent need for affordable housing, supportive housing, and new rental supply; - Up to approximately $2 million in annual parking operating and capital costs savings; - Alignment to Planning policies, including the Official Plan and Provincial Planning Statement, 2024; and - Supporting the City's Long-Term Financial Plan, HousingTO 2020-2030 Action Plan, and other City strategies and plans promoting complete communities. This report also identifies an initial list of five (5) City recreation facility sites where the co-location of housing can be further explored. These sites were identified based on a series of principles and will be advanced through the current 5-Year Review of the City's Parks and Recreation Facilities Plan. Any co-location of housing with community recreation facilities would address the legislative and municipal objectives of these sites for parks and public recreation purposes and avoid impacts to the parkland itself through site-specific design solutions, while addressing the housing needs of current and future residents of Toronto. The remaining two portfolios under review, including Intensification of Toronto Transit Commission (TTC) Stations and City-Owned Land Adjacent to Provincial Transit Sites have no immediate opportunities to report at this time and will be advanced through future reporting to City Council, as site specific opportunities become available.

2. City Council direct the Confidential Attachment 1 and Confidential Attachment 2 remain confidential at this time as they pertain to proposed or pending acquisition or disposition of land by the City or local board, and commercial or financial information that belongs to the City or local board and has monetary value or potential monetary value. 3. City Council authorize the release of information in Confidential Attachment 1 and Confidential Attachment 2 as transactions related to each site are brought forward, and at the discretion of the Deputy City Manager, Corporate Services.