With the magnitude of the City’s unfunded capital program and the cost of generational programs such as the housing plan and climate action initiatives, the Long-Term Financial Plan identified the City’s real estate assets as a source for greater value potential. Specifically, evaluating underutilized real estate and deploying strategies to maximize the long-term value of assets for City benefits and fiscal sustainability. This includes fully leveraging the value from surplus lands no longer required for municipal services and from underutilized City properties with higher and better use and public benefit potential (i.e., for housing or mixed-uses). This report responds to recommendation 5.d. from item 2023.EX7.1 - Updated Long-Term Financial Plan that was adopted by City Council in September 2023: “…to report back in advance of City Council’s consideration of the Mayor’s proposed 2024 budget on a review of all City-wide surplus and underutilized real estate assets with a recommended strategy for disposition or change in use as required, with priority consideration given to opportunities which may: - Be leveraged to support affordable housing initiatives — - Enhance the City’s revenue generating potential and/or contribute to the City’s goals of long-term financial sustainability — or, - Allow for joint ventures or partnerships which benefit the local community”. Through EX9.3 - Generational Transformation of Toronto's Housing System to Urgently Build More Affordable Homes, a list of 92 City-owned properties (both housing ready and with housing potential) were identified to support new affordable housing targets - which responds in part to this recommendation. In terms of additional real estate portfolio opportunities, the vast majority of City-owned real estate is operationally required by City Divisions, Agencies and Corporations to deliver municipal services. The City does not have an abundance of properties deemed 'surplus' that are both no longer required for municipal service delivery and prime for significant real estate development. However, the City does have many opportunities within its broader real estate portfolio of underutilized properties that can be leveraged and/or redeveloped for higher and better uses, including new housing and mixed uses, co-locating municipal services and/or monetization opportunities. Based on the City's real estate model, the mandates for CreateTO and the Corporate Real Estate Management (CREM) division include working together to continuously assess the City's mix of real estate assets (i.e., opportunities to buy, sell, lease, enter into partnerships, attract add-on investments, etc.) to enable the City's evolving service needs, drive 'City building opportunities' and be fiscally prudent. Through initiatives such as the workplace modernization program (ModernTO), the City's housing plan and the plan for a new Etobicoke Civic Centre as a complete community, the City is already making better use of its real estate. These strategies opened opportunities for new affordable housing, complete communities, broad-based partnerships and long-term fiscal sustainability, and there continue to be opportunities to further this work. This report identifies three broad real estate opportunities that could support city building, the City's housing plan and fiscal sustainability: 1. Transit-Oriented Parking Lots — 2. City-Owned Land Adjacent to Provincial Transit Sites — and 3. Intensification of Toronto Transit Commission (TTC) Stations. If approved, the Deputy City Manager, Corporate Services will collaboratively work with partners including the Deputy City Manager, Development and Growth Services, Chief Executive Officer, CreateTO, Chief Executive Officer, Toronto Transit Commission, President, Toronto Parking Authority, Executive Director, Housing Secretariat, Executive Director, Transit Expansion Division and the Chief Planner and Executive Director, City Planning, to identify and consider real estate opportunities that could support Council's housing, community and/or fiscal sustainability goals. This incudes prioritization and a multi-year plan with funding and resource requirements. Determining the best city building outcome for any City-owned property requires significant due diligence, planning analysis, financial analysis, stakeholder engagement and the development of appropriate business cases for a change in use before coming to Council for subsequent approvals. Further details regarding opportunities in the City-wide real estate portfolio are provided in this report.
No projects traced to this item yet.