That the Rules of Procedure be suspended to consider the following motion due to the emergency nature of the situation, to advance the work being done by the Emergency Shelter Crisis Taskforce.
WHEREAS On October 26, 2023, Mayor Sutcliffe and Councillor Dudas launched an Emergency Shelter Crisis Taskforce, alongside Councillors Carr, Hubley, Kavanagh, Plante and Troster, to raise awareness and our collective commitment to address the unprecedented demand and shortage of shelter beds in Ottawa; and
WHEREAS the Integrated Transition to Housing Strategy (ITHS), approved by Council on July 13, 2023, projected that by the end of 2024, there would be a need for up to 293 new shelter beds for single adults to address demands for shelter placements; and
WHEREAS the demand surpassed projections in December 2023 and is now at an all-time high with 450 clients being served at temporary locations; and
WHEREAS Ottawa has made the commitment that any resident in need is able to access a shelter bed; and
WHEREAS three City-owned recreational facilities are being used as Physical Distancing - Emergency Overflow Centres and these facilities need to be returned to their intended recreational use as quickly as possible; and
WHEREAS the City of Ottawa has an opportunity to enter into a lease agreement at 230 Queen Street and to convert 29,634 square feet of office space to provide transitional housing for up to 130 individuals.
WHEREAS the Corporate Real Estate Office (CREO) has confirmed that the basic rent consideration noted below is supported by a market value estimate and an external appraisal, and is within fair market rates.
WHEREAS the General Manager, Planning, Real Estate, and Economic Development has delegated authority to approve the acquisition of real property when the total value of the transaction is $2,000,000 or less as per Delegation of Authority (Bylaw No. 2023-67), Schedule I, Section 63 (4), and the proposed business parameters contemplate a value that exceeds this upset limit.
WHEREAS a motion is being brought to City Council for approval to expedite the process.
WHEREAS Finance and Corporate Services Department has confirmed the budget for basic rent, building operating expense and capital fit-up expenses related to this proposed lease, as described in the business parameters.
THEREFORE BE IT RESOLVED that City Council approve the following business parameters that will serve as the basis for a lease agreement between The City of Ottawa and ÉDIFICE 230 QUEEN INC./230 QUEEN BUILDING INC. for use of 230 Queen Street:
- The lease structure is to be net to the landlord, where the City pays a Base Rent, as well as Operating Expenses which include property taxes, building insurance, maintenance and utilities;
- The City will use the facility for the purpose of providing transitional housing which is considered a Residential Care Facility and permitted under the City of Ottawa Zoning Bylaw;
- The lease term will be for 10 years with two, five-year renewal options;
- The total base rent consideration has been negotiated to be $4.38M over the initial term with a capital inducement for fit-up improvements of $1.48M; and
- The landlord has provided concurrence to allow the City to seek a municipal capital facility designation for realty tax exemption on the subject space;
BE IT FURTHER RESOLVED that City Council Delegate authority to the Acting Director, Corporate Real Estate Office to negotiate, enter into, conclude, execute, amend, and implement a Lease Agreement for the facility in accordance with the business parameters in principle of this motion;
BE IT FURTHER RESOLVED that City Council direct Corporate Real Estate Office (CREO) staff to report back on the delegated actions of this motion as part of its semi-annual reporting of all CREO delegated actions to the Finance and Corporate Services Committee.