Feasibility of Entering into a Long-term Nominal Lease Agreement with Toronto Fire Fighters Charities Inc., - 641 Eglinton Avenue West

The Property, former Toronto Fire Services' Fire Hall 135, was most recently utilized by Metrolinx during the construction of the Eglinton Crosstown Light Rail Transit. A preliminary review has identified limited potential for the Property to support City objectives such as housing or other program needs. City staff evaluated the feasibility and financial implications of adaptively reusing the Property to accommodate the Program and ultimately inform the viability of entering in a Prospective Lease. The feasibility study concludes that establishing the Program at the Property (the "Project") is achievable and can largely be accommodated within the existing structure, subject to careful design and funding. Given the age and vacant status of the Property, the extent of deterioration introduces significant risks, and early-stage hazardous materials and structural assessments are critical to inform design and cost certainty. Addressing these risks is essential to ensure the safety, compliance, and long-term viability of the Project. Staff have determined a preliminary estimate of the total capital cost for the Project is approximately $12 million. This includes an allocation of $8 million for base building rehabilitation and $4 million for programmatic interior development. The City's capital budget includes $2 million to support immediate stabilization of the building, mitigate building failure and address urgent health and safety issues. This work is scheduled for design in 2025 and implementation in 2026. This is distinct from the approximately $12 million of unfunded capital work required to improve and fit-out the Property to be able to accommodate the Program. City staff have had ongoing preliminary discussions with the Prospective Tenant, who has demonstrated interest and willingness to secure funding to support the additional work required to fit-out the Property. City staff are committed to continue productive discussions on the Prospective Lease, including progress on the Prospective Tenant's funding / fundraising efforts, for which, at this point in time, no additional requests for the City's support have been made. Entering into the Prospective Lease for the Property requires City Council approval, and staff will seek authority from City Council as required.