CreateTO
The full agenda, as filed
All 6 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
RA8.1adopted
ModernTO: City-Wide Real Estate Strategy and Office Portfolio Optimization
The purpose of this report is twofold: 1. To receive feedback and endorsement on the strategic framework to optimize the city-wide real estate portfolio. CreateTO has developed a City-wide Real Estate Portfolio Strategy (Appendix 1) which is a foundational and over-arching framework on how the City can optimize its portfolio, unlock value and deliver new efficiencies for municipal government. 2. To apply this framework to the City's office portfolio, which involves launching an Office Optimization Plan ("ModernTO") as outlined in this report. The plan is expected to accelerate the City's transition to a modern work environment through a self-funded asset management strategy, while reducing the overall capital and operating costs by $30 million per year across the City-wide office portfolio. As a City board, CreateTO was established to provide oversight and direction for the City's real estate portfolio, develop lands for city purposes, and deliver real estate solutions to City divisions, agencies and corporations. To achieve this, advice provided by CreateTO must be consistent with the City's broader asset management policies, corporate objectives and strategic plans. The City-wide real estate strategy aims to make the best use of real estate within this context, applying strategic principles to maximize resources and achieve the City's service deliverables. Due to the size of the City's real estate portfolio, advice will be brought forward to the CreateTO Board and City Council over a multi-year period based on a review of 11 real estate asset types. Recommendations will outline opportunities to improve the City's real estate mix and City building outcomes, starting with the City's office portfolio. The direct application of the City-wide Real Estate Strategy is the Office Optimization Plan, developed to address a large, outdated and inefficient office footprint. The proposed plan aims to reduce total office locations from 52 to 20 over a 5-year period (2020-2025), while modernizing municipal work environments. This report recommends CreateTO and City staff initiate a detailed planning and engagement process to unlock lands and develop a new accommodation plan for City employees, with an execution plan requested for City Council and CreateTO Board approval in Q3 2020. The engagement process over the next 12 months will include extensive consultations with City divisions, agencies and corporations, local Councillors and impacted occupants to inform the implementation plan and City building directions for unlocked real estate.
The Board of Directors of CreateTO recommends that: 1. City Council adopt Appendix 1 to the report (September 18, 2019) from the Chief Executive Officer, CreateTO, "The City-wide Real Estate Portfolio Strategy", as the strategic framework to best utilize the City's real estate assets to drive better value and services for the municipality. 2. City Council direct the Chief Financial Officer and Treasurer and the Executive Director, Financial Planning, in consultation with the Deputy City Manager, Corporate Services and the Chief Executive Officer, CreateTO, to establish a consolidated list of City-wide real estate needs and financial commitments on an annual basis, including funded and unfunded City-wide real estate requirements for a 10-year period to inform long-term, strategic portfolio planning. 3. City Council direct the Deputy City Manager, Corporate Services, in consultation with the Chief Executive Officer, CreateTO, to report through the 2021 budget process with an appropriate funding request to develop a City-wide data and information platform for all City real estate holdings to centrally manage the City's real estate information and integrate various real estate systems, to an extent required to measure the current utilization, cost and potential of each asset and to support the delivery industry standard asset management services. Office Portfolio Optimization 4. City Council adopt the following guidelines to facilitate the delivery of an efficient and modernized office portfolio: a. Identify the following assets as "primary office buildings" in need of long-term modernization investments to enable a more effective Toronto Public Service, serving as transit-oriented civic hubs for government administration: -City Hall -Metro Hall -Scarborough Civic Centre -North York Civic Centre -Etobicoke Civic Centre; b. Identify the following assets as underutilized and as opportunities to unlock value and address City needs and City building objectives, such as affordable housing, employment uses and community infrastructure: -277 Victoria Street (Appendix 3a) -33 Queen Street East (Appendix 3b) -610 Bay Street (Appendix 3c) -931 Yonge Street (Appendix 3d) -1900 Yonge Street (Appendix 3e) -75 Elizabeth Street (Appendix 3f) -95 The Esplanade - Ground Floor (Appendix 3g) -18 Dyas Road (Appendix 3h); c. Direct the Deputy City Manager, Corporate Services, in consultation with the Chief Executive Officer, CreateTO and the Chief Financial Officer and Treasurer to report to the CreateTO Board and City Council in the third quarter of 2020 with a detailed business case and an execution plan, including an assessment of costs, savings/revenues and a 5-year implementation and funding plan for completing Office Optimization in primary office buildings, including a master accommodation plan for staff and recommended directions and city building opportunities for properties identified in recommendation 4b, and that the development of such business cases be guided by the following principles: 1. Consulting local Councillors, City Planning, local communities and impacted occupants regarding relocation requirements and appropriate mix of City outcomes for the properties identified as underutilized assets; 2. Develop recommendations to relocate office space occupants in underutilized assets to the "primary office buildings" or other suitable facilities, with the City acting as property manager, where appropriate, plus relocate occupants in office leases into City-owned space. 5. City Council direct the Deputy City Manager, Corporate Services to include $4.4 million in the 2020 Corporate Real Estate Management (CREM) operating budget to be used over a 12 month period to establish a detailed implementation and funding plan, including funding for a multi-disciplinary project team, change management activities, and to conduct site due diligence and community consultations with respect to unlocked properties. 6. City Council direct the Deputy City Manager, Corporate Services to procure a workplace consultant to determine location requirements for all impacted occupants via a master accommodation plan; determine appropriate mobility ratios for City operations; establish a project schedule, timelines and sequencing of moves over a 5-year period; and provide financial projections for recommended investments in physical spaces, technology, and change management activities.
Staff recommendation as filed
The Chief Executive Officer recommends that the Board of Directors of CreateTO: 1. Request City Council adopt Appendix 1, "The City-wide Real Estate Portfolio Strategy", as the strategic framework to best utilize the City's real estate assets to drive better value and services for the municipality. 2. Request City Council to direct the Chief Financial Officer and Treasurer and the Executive Director of Financial Planning, in consultation with the Deputy City Manager, Corporate Services and the Chief Executive Officer of CreateTO, to establish a consolidated list of City-wide real estate needs and financial commitments on an annual basis, including funded and unfunded City-wide real estate requirements for a 10-year period to inform long-term, strategic portfolio planning. 3. Request City Council to direct the Deputy City Manager, Corporate Services, in consultation with the Chief Executive Officer of CreateTO, to report through the 2021 budget process with an appropriate funding request to develop a City-wide data and information platform for all City real estate holdings to centrally manage the City's real estate information and integrate various real estate systems, to an extent required to measure the current utilization, cost and potential of each asset and to support the delivery industry standard asset management services. Office Portfolio Optimization 4. Request City Council to adopt the following guidelines to facilitate the delivery of an efficient and modernized office portfolio: a. Identify the following assets as "primary office buildings" in need of long-term modernization investments to enable a more effective Toronto Public Service, serving as transit-oriented civic hubs for government administration: -City Hall -Metro Hall -Scarborough Civic Centre -North York Civic Centre -Etobicoke Civic Centre b. Identify the following assets as underutilized and as opportunities to unlock value and address City needs and City building objectives, such as affordable housing, employment uses and community infrastructure: -277 Victoria Street (Appendix 3a) -33 Queen Street East (Appendix 3b) -610 Bay Street (Appendix 3c) -931 Yonge Street (Appendix 3d) -1900 Yonge Street (Appendix 3e) -75 Elizabeth Street (Appendix 3f) -95 The Esplanade - Ground Floor (Appendix 3g) -18 Dyas Road (Appendix 3h); c. Direct the Deputy City Manager, Corporate Services, in consultation with the Chief Executive Officer, CreateTO and the Chief Financial Officer and Treasurer, City of Toronto to report to the CreateTO Board and City Council in the third quarter of 2020 with a detailed business case and an execution plan, including an assessment of costs, savings/revenues and a 5-year implementation and funding plan for completing Office Optimization in primary office buildings, including a master accommodation plan for staff and recommended directions and city building opportunities for properties identified in recommendation 4b, and that the development of such business cases be guided by the following principles: i. Consulting local Councillors, City Planning, local communities and impacted occupants regarding relocation requirements and appropriate mix of City outcomes for the properties identified as underutilized assets; ii. Develop recommendations to relocate office space occupants in underutilized assets to the "primary office buildings" or other suitable facilities, with the City acting as property manager, where appropriate, plus relocate occupants in office leases into City-owned space. 5. Request City Council to direct the Deputy City Manager, Corporate Service to include $4.4 million in the 2020 CREM operating budget to be used over a 12 month period to establish a detailed implementation and funding plan, including funding for a multi-disciplinary project team, change management activities, and to conduct site due diligence and community consultations with respect to unlocked properties. 6. Request City Council to direct the Deputy City Manager, Corporate Services to procure a workplace consultant to determine location requirements for all impacted occupants via a master accommodation plan; determine appropriate mobility ratios for City operations; establish a project schedule, timelines and sequencing of moves over a 5-year period; and provide financial projections for recommended investments in physical spaces, technology, and change management activities.
RA8.2amended
On January 31, 2019, City Council approved a signature affordable housing initiative, "Housing Now," to leverage City-owned land for the purpose of creating new mixed-use, mixed-income communities. Through the initiative, 11 properties were identified for development, with the potential to create a total of 10,000 new residential units. City Council set development targets for these properties of at least one-third affordable rental, one-third market rental, and no more than one-third ownership housing. The Housing Now initiative is coordinated through a Steering Committee comprised of senior staff from the Housing Secretariat, City Planning and CreateTO. The first four properties deemed most ready for market offering by the Steering Committee are: 140 Merton St., 777 Victoria Park Ave, 705 Warden Ave., and 50 Wilson Heights Blvd. On January 31, 2019 Council delegated approval of the business case and market offering process for each property to the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer provided that the Executive Director, Housing Secretariat and the Board of Directors of CreateTO concur with the proposed business case and market offering process. This report recommends the CreateTO Board of Directors endorse the business cases market offering process for the first four properties. The recommended approach leverages City contributions and partnerships with experienced housing developers and operators to deliver affordable housing and complete communities at key locations in the city. The priority four sites leverage approximately $100 million in land value and $71 million in incentives to create over 1,900 new rental units - half of which will be affordable. The City's contributions in the first four sites are estimated to attract and leverage over $750 million in third party investment and development activity. The recommended creation of a Reserve Account will enable the City to capture any value generated from individual sites and cross-subsidize across the portfolio. Following the market offering process, City and CreateTO staff will report to the CreateTO Board prior to finalizing sale or lease agreements. The CreateTO Board will review for approval the terms and conditions for the proposed agreements with the successful proponents.
The Board of Directors of CreateTO: 1. Endorsed the business cases as presented in Attachment 1 and Confidential Attachments 1 and 2 to the report (September 19, 2019) from the Chief Executive Officer, CreateTO, and, subject to further approvals required by the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer, direct CreateTO management to: - Proceed to market with the first four sites (140 Merton Street, 50 Wilson Heights Boulevard, 705 Warden Avenue, 777 Victoria Park) in the fourth quarter 2019 including entering into agreements conditional on approval by relevant City authorities; - Utilize brokerage services to effectively engage the market; - Maximize affordability and target a 40% one bedroom, 40% two bedroom, and 20% three bedroom unit mix on the affordable units, all within the context of project feasibility; - Maintain consistency with staff-recommended development permissions and concept plans; - Work with the Chief Financial Officer and Treasurer to establish a Reserve Account to cross-subsidize across the portfolio, where possible; - Include additional community benefits, where possible; - Work with the Chief Financial Officer and Treasurer and relevant City divisions to address capital funding for community infrastructure and other City Building requirements; and - Continue to engage with local Councillors and community members regarding project updates. 2. Directed that the information in Confidential Attachments 1 and 2 to the report (September 19, 2019) from the Chief Executive Officer, CreateTO remain confidential at this time, as they relate to a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO, and direct that the information be made public at the discretion of the Chief Executive Officer following the execution of the agreements. 3. Directed that the information in Confidential Attachment 3 to the report (September 19, 2019) from the Chief Executive Officer, CreateTO remain confidential in its entirety as it contains financial information that belongs to the Board of Directors of CreateTO and has monetary value or potential monetary value.
Staff recommendation as filed
The Chief Executive Officer recommends that: 1. The Board endorse the business cases as presented in Attachment 1 and Confidential Attachments 1 and 2 of this report, and, subject to further approvals required by the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer, direct CreateTO management to: - Proceed to market with the first four sites (140 Merton Street, 50 Wilson Heights Boulevard, 705 Warden Avenue, 777 Victoria Park) in the fourth quarter 2019 including entering into agreements conditional on approval by relevant City authorities; - Utilize brokerage services to effectively engage the market; - Maximize affordability within the context of project feasibility; - Maintain consistency with staff-recommended development permissions and concept plans; - Work with the Chief Financial Officer and Treasurer to establish a Reserve Account to cross-subsidize across the portfolio, where possible; - Include additional community benefits, where possible; - Work with the Chief Financial Officer and Treasurer and relevant City divisions to address capital funding for community infrastructure and other City Building requirements; and - Continue to engage with local Councillors and community members regarding project updates. 2. The Board direct that the information in Confidential Attachments 1 and 2 remain confidential at this time, as they relate to a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO, and direct that the information be made public at the discretion of the Chief Executive Officer following the execution of the agreements. 3. The Board direct that the information in Confidential Attachment 3 remain confidential in its entirety as it contains financial information that belongs to the Board of Directors of CreateTO and has monetary value or potential monetary value.
RA8.3adopted
CreateTO Second Quarter Financial Statements
For the quarter ending June 30, 2019, CreateTO gross expenditures are $0.54 million favourable compared to budget. Annual expenditures are expected to be in line with the approved budget of $12.8 million gross and $0 net.
The Board of Directors of CreateTO: 1. Received the report (September 6, 2019) from the Chief Executive Officer, CreateTO for information.
Staff recommendation as filed
The Chief Executive Officer recommends that: 1. The Board of Directors of CreateTO receive this report for information.
RA8.4adopted
In 2020 CreateTO will continue to identify, evaluate and provide strategic real estate solutions to meet the needs of the City of Toronto. CreateTO continues to deliver on its mandate of City Building by delivering value through affordable housing (Housing Now Program), revitalizing neighbourhoods (Danforth Garage, Etobicoke Civic centre, Fort York Bridge), optimizing real estate through a City wide portfolio strategy, and providing real estate solutions to City agencies and divisions to support program needs. The 2020 budget requests the addition of four Full Time Employees (FTE), two development leads and two financial analysts. These roles will help create additional capacity to advise on and deliver City priorities.
The Board of Directors of CreateTO: 1. Recommends that City Council approve CreateTO's 2020 Budget request of $14.41 million gross, and $0 net. 2. Directed that the confidential information contained in Confidential Attachment 1 (September 10, 2019) to the report from the Chief Executive Officer, CreateTO remain confidential in its entirety, as it deals with personal matters about identifiable persons and labour relations.
Staff recommendation as filed
The Chief Executive Officer recommends that: 1. The Board of Directors of CreateTO recommend that City Council approve CreateTO's 2020 Budget request of $14.41 million gross, and $0 net. 2. The Board of Directors of CreateTO direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it deals with personal matters about identifiable persons and labour relations.
RA8.5amended
Strategic Disposition of City Property to Fund City Building and Property Acquisition
The purpose of this report is to provide the Board of CreateTO with an update on the strategic disposition of City owned property located within Ward 10 - Spadina-Fort York and the corresponding acquisition of an adjacent piece of property, as outlined in the Confidential Attachment to this report. The City of Toronto ("the City") is the owner of a property located within Ward 10 - Spadina-Fort York (the "Subject Property"). The Subject Property represents a significant city building opportunity due to its location and corresponding property value. For a number of years the Subject Property has been identified as a significant redevelopment opportunity for the City. CreateTO, working with their colleagues in City Real Estate Management ("CREM") and City Planning have developed a business case to strategically leverage its value to achieve significant city building on the Subject Property along with purchasing an adjacent piece of property. Unlocking the value of the Subject Property will work to fund significant city building. It will also fund the acquisition of the adjacent piece of property which itself could be used for significant city building opportunities. In addition to the acquisition, any residual value realized could be used to fund additional City building objectives including affordable rental housing, state of good repair of City infrastructure, new parks, a child care centre or other investments, as may be determined appropriate by City Council. Properties in the downtown with significant redevelopment potential are becoming increasingly rare. The value of the Subject Property will allow for strategic redeployment of stranded capital to acquire one of the few remaining significant pieces of property.
The Board of Directors of CreateTO: 1. Endorsed the proposed plan for the strategic disposition of the City owned property and acquisition of the adjacent property identified in Confidential Attachment 1 to the report (September 17, 2019) from the Chief Executive Officer, CreateTO and directed the Chief Executive Officer, CreateTO to work with the Deputy City Manager, Corporate Services to take appropriate next steps to advance these transactions. 2. Directed the Chief Executive Officer, CreateTO, to report back to the Board of CreateTO in the first quarter of 2020 on a business and funding plan for the property to be acquired, which will include which City of Toronto Divisions, Agencies or Corporations will activate the site and the proposed funding plan. 3. Directed the Chief Executive Officer, CreateTO, working with the Executive Director, Housing Secretariat to report back in 2020 with a plan, including the financial implications to deliver affordable housing as a portion of any development in a manner that is consistent with the approach used in Housing Now, including funding and financial incentives, at the Subject Property. 4. Directed the Chief Executive Officer, CreateTO, to report back in 2020 on a "Precinct Plan" for the combined Subject Property along with the adjacent property to be acquired, including how these sites will be activated with City uses such as affordable housing, parks, Toronto Parking Authority, childcare, and any other uses that may be suitable on these two properties. 5. Directed the Chief Executive Officer, CreateTO to consult with owners of adjacent properties on how their properties might contribute to any city building as a part of the "Precinct Plan", the results of these consultations to be included in that Plan. 6. Authorized the public release of Confidential Attachment 1 to the report (September 17, 2019) from the Chief Executive Officer, CreateTO following the closing of any purchase transaction. November 26, 2019 - Confidential Attachment 1 to the report (September 17, 2019) from the Chief Executive Officer, CreateTO is now public in its entirety. Confidential Attachment 1 can be accessed under Background Information
Staff recommendation as filed
The Chief Executive Officer, CreateTO recommends that: 1. The Board of CreateTO endorse the proposed plan for the strategic disposition of the City owned property and acquisition of the adjacent property identified in Confidential Attachment 1 and direct the CEO, CreateTO to work with the Deputy City Manager, Corporate Services to take appropriate next steps to advance these transactions; 2. The Board of CreateTO direct the Chief Executive Officer, CreateTO, to report back to the Board of CreateTO in the first quarter of 2020 on a business and funding plan for the property to be acquired, which will include which City of Toronto Divisions, Agencies or Corporations will activate the site and the proposed funding plan; 3. The Board of CreateTO direct the Chief Executive Officer, CreateTO, working with the Executive Director, Housing Secretariat to report back in 2020 with a plan to deliver affordable rental housing as a portion of any new residential development, including funding and financial incentives, at the Subject Property. 4. The Board of Directors of CreateTO authorize the public release of Confidential Attachment 1 following the closing of any purchase transaction.
RA8.6adopted
Proposed 2020 Schedule of Board of Directors of CreateTO Meetings
In accordance with By-law 1-2018 to Govern the proceedings of the Board of Directors of CreateTO, regular meetings of the Board are determined by the Board and a schedule of those meetings shall be publicly available by the first meeting of the Board in each calendar year. City Council on July 16, 17 and 18, 2019 approved the 2020 schedule of meetings for City Council and its Committees. The proposed schedule of meetings for CreateTO has been developed to avoid dates, whenever possible, that conflict with the approved City Council schedule; and to avoid meetings on days of cultural or religious significance.
The Board of Directors of CreateTO: 1. Approved the following meeting dates for 2020: Monday, January 27, 2020 - 1:30 p.m. in Committee Room 1, City Hall Friday, March 13, 2020 - 9:30 a.m. in Committee Room 1, City Hall Friday, April 24 , 2020- 9:30 a.m. in Committee Room 1, City Hall Friday, June 12 , 2020 - 9:30 a.m. in Committee Room 1, City Hall Tuesday, July 21 , 2020 - 9:30 a.m. in Committee Room 1, City Hall Tuesday, September 29 , 2020 - 9:30 a.m. in Committee Room 1, City Hall Friday, December 4 , 2020 - 9:30 a.m. in Committee Room 2, City Hall
Staff recommendation as filed
The Board Secretary in consultation with the Chair, recommends that the Board of Directors of CreateTO approve the following meeting dates for 2020: Monday, January 27, 2020 - 1:30 p.m. in Committee Room 1, City Hall Friday, March 13, 2020 - 9:30 a.m. in Committee Room 1, City Hall Friday, April 24 , 2020- 9:30 a.m. in Committee Room 1, City Hall Friday, June 12 , 2020 - 9:30 a.m. in Committee Room 1, City Hall Tuesday, July 21 , 2020 - 9:30 a.m. in Committee Room 1, City Hall Tuesday, September 29 , 2020 - 9:30 a.m. in Committee Room 1, City Hall Friday, December 4 , 2020 - 9:30 a.m. in Committee Room 2, City Hall