Save Union Station - Background

Background

Decisions of the city’s Administration Committee, January 29, 2003

These minutes will be before Toronto City Council on February 4, 2003.

ADMINISTRATION COMMITTEE

DECISION DOCUMENT

JANUARY 29, 2003

1. UNION STATION REQUEST FOR PROPOSALS - STATUS REPORT

NEGOTIATIONS WITH UNION PEARSON GROUP

(WARD 28 - TORONTO CENTRE-ROSEDALE).

The Administration Committee recommends:

(I) the adoption of the following Recommendations Nos. (4) and (5) contained in the report (January 22, 2003) from the Commissioner of Corporate Services:

"(4) the Public Advisory Group initiated by Councillors Holyday, Sutherland and Ashton be continued to provide public input as part of the ongoing review process for the revitalization of Union Station and be formalized as part of the governance structure for Union Station;

(5) the retainer of Davies Ward Phillips & Vineberg be continued to complete this transaction with costs, not to exceed $250,000, to be paid out of revenues from Union Station;";

(II) that the Commissioner of Corporate Services be requested to release, publicly, all of the RFP submissions and evaluation documentation, subject to the obligations of MFIPPA given that their release will protect the City's financial and public interest; and

(III) that the process undertaken in the Union Station RFP be reviewed by an independent reviewer to determine if the process has been undertaken properly in accordance with City standards of integrity, and that one of the following persons be requested to be the reviewer:

(i) the Provincial Ethics Commissioner, Mr. Justice Osborne; or

(ii) the City's Auditor General.

The Administration Committee reports, for the information of Council, having:

(I) deferred consideration of the following Recommendations Nos. (1), (2), (3) and (6) contained in the report (January 22, 2003) from the Commissioner of Corporate Services, to a special meeting of the Administration Committee to be arranged at the call of the Chair:

"(1) a Master Agreement to Lease Union Station to the Union Pearson Group be approved on terms and conditions set out in the body of this report and be in a form satisfactory to the City Solicitor;

(2) the proposal deposit in the amount of $50,000 be refunded to LP Heritage + Union Station Consortium;

(3) revenues to the City generated from the lease of Union Station to the Union Pearson Group be placed in a reserve account to be used solely for Union Station capital requirements, any post-closing adjustments and transaction costs, and outside legal, accounting or other consultants' fees necessary to finalize this transaction, pending a determination of the status of the Walks and Gardens Trust; and

(6) appropriate City staff be authorized and directed to take all necessary actions to give effect thereto."

(II) requested the Commissioner of Corporate Services to:

(a) negotiate further with Union Pearson Group with the intent of removing the second 50 year term of the lease or otherwise reducing the length of the lease or redefining the triggering mechanisms that afford greater control to the City;

(b) produce the lease and any agreements related to future density rights over Union Station lands to Council for consideration, through the Administration Committee;

(c) review further the design issues raised by the deputants appearing at the January 29, 2003, Special Meeting of the Administration Committee, particularly pedestrian flow, east west, north and south connections, the GO concourses and the location of retail and report on potential improvements; and

(d) provide a public report to the Special Meeting of the Administration Committee to be arranged at the call of Chair of the Committee:

(i) comparing the financial arrangements negotiated with Union Pearson Group with the original financial proposals of Union Pearson Group and LP Heritage + Union Station Consortium and with a "public sector comparator"; and

(ii) on what extent the City is encumbered or specific rights assigned to the proponent of reciprocal rights regarding the upper area of Union Station; and

(III) referred the submissions and concerns raised by the deputants appearing at the Special Meeting of the Administration Committee held on January 29, 2003, specifically the issues raised by Mr. Art MacIlwain, President, Urquhart, Mr. John Sewell, Save Union Station Committee; Mr. Wayne Olson, Architect, OAA MRAIC, the Toronto Railway Historical Society, and the Toronto Preservation Board, to the Commissioner of Corporate Services for report thereon to the Special Meeting of the Administration Committee to be arranged at the call of the Chair.