Authorization to Release Section 42 Funds for Toronto Community Housing Corporation for the St. James Town Open Space Project - by Councillor Chris Moise, seconded by Deputy Mayor Ausma Malik

The project costs are being proportionately shared between Toronto Community Housing Corporation and the City. The St. James Town Open Space project was tendered for construction by Toronto Community Housing Corporation in 2025, and the resulting lowest bid was higher than the construction funding allocated by the City and Toronto Community Housing Corporation. The lowest bidder has slightly reduced their bid in response to a review of the bid against the final cost estimate. However, the lowest bid is still over the project budget. The options are to cancel the procurement and value-engineer the project, with the risk that costs continue to escalate and construction is delayed, or to proceed with the lowest bid and seek additional funding. The report seeks authority to transfer additional funds for construction of Parks and Recreation's share of the project to Toronto Community Housing Corporation. The funds are to cover the differential between the original approved amount and the tendered lowest bid amount. Toronto Community Housing Corporation has allocated funds in the 2026-2035 Capital Budget and Plan for State of Good Repair for this project, which also includes Toronto Community Housing Corporation's costs associated with garage rehabilitation. Toronto Community Housing Corporation's financial contribution to this project is included in the confidential attachment. The construction will be managed by Toronto Community Housing Corporation in coordination with the City and is anticipated to start later in 2026 and last until approximately 2028, pending approval of this additional funding. The project is located within land owned by Toronto Community Housing Corporation and comprises a large open space, a shared walking/cycling corridor (formerly referred to as Ontario Street South) and the public realm surrounding the Toronto Community Housing Corporation buildings located at 275 Bleecker Street and 200 Wellesley Street East. The open space will become a City park under a lease agreement with Toronto Community Housing Corporation. The lease will commence once construction of the park is complete. The future park is designed to increase the amount and quality of green space in the St. James Town neighbourhood and will include a playground, water play, a large open lawn and a stage. Reason for Urgency: This motion is urgent because the contractor award for the project will be presented for approval at the April 28, 2026, Toronto Community Housing Corporation Board of Directors meeting, by which time the City's portion of the project funding must be approved by City Council.

2. City Council authorize the City of Toronto to transfer up to $2.6 million in funding to Toronto Community Housing Corporation on the condition that Toronto Community Housing Corporation must enter into an acceptable Construction Management Agreement, and that within the Agreement there is included a condition that Toronto Community Housing Corporation should be contractually obligated to enter into a lease with the City before the City advances any funding for the project. 3. City Council direct that the information contained in Confidential Attachment 1 is to remain confidential as it contains financial information that belongs to the City of Toronto and has monetary value. 4. City Council authorize the public release of Confidential Attachment 1 following the completion of the project, at the discretion of the General Manager, Parks and Recreation.