Staff Report Closed Session PDS24-137 dated November 19, 2024CONFIDENTIAL
100 John West Way
Aurora, Ontario
L4G 6J1
(905) 727-3123
Town of Aurora
Council Closed Session Report
No. PDS24-137
Subject: Property Matter – 27 Mosley Street (Victoria Hall)
Prepared by: Lisa Hausz, Manager, Economic Development
Department: Planning and Development Services
Date: November 19, 2024
This report is being considered by Council in Closed Session as the subject matter
involves:
a proposed or pending acquisition or disposition of land by the municipality or
local board as per Section 239(2)(c) of the Municipal Act, 2001.
a position, plan, procedure, criteria or instruction to be applied to any
negotiations carried on or to be carried on by or on behalf of the municipality or
local board as per Section 239(2)(k) of the Municipal Act, 2001.
Closed Session Recommendation
1. That Council Closed Session Report No. PDS24-137 be received; and
2. That staff be authorized to negotiate and enter into a lease agreement with the owner
of a former restaurant in Aurora on the terms outlined in this report.
Open Session Recommendation
1. That Council Closed Session Report No. PDS24-137 be received; and,
2. That the confidential direction to staff be confirmed.
Executive Summary
This report seeks to update Council regarding the Town-owned property located at 27
Mosley Street (Victoria Hall), and to seek authority to negotiate a lease agreement with
the owner of a former restaurant in Aurora, following the completion of leasehold
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November 19, 2024 2 of 7 Report No. PDS24-137
improvements as approved through Capital Project – AM0258: Victoria Hall
Refurbishment. Staff have begun researching options regarding the property
improvements required to secure a tenant and potential terms of a commercial lease.
The property’s location is conducive to a proposed new use as a commercial
space.
Market value lease rate for the property is in the range of sq.ft.
excluding Taxes, Maintenance and Insurance (TMI).
Costs associated with the leasehold improvements, negotiated maintenance, and
changes in the tax classification will further determine the value of the lease
rates.
Lease is proposed for a 5-year term, with two further optional 5-year extensions.
Background
Victoria Hall was constructed in 1883 to house the local Disciples of the Christ
congregation. By 1922, the property was sold to the Trustees of the Aurora Public
School, where it became a health hall and centre for public health activities. In 1945, the
building transitioned to a library, which remained open until approximately 1963, while
the property was transferred to the Town in 1951. Since then, the building has been
used for a variety of purposes and programming opportunities and remains under the
ownership of the Town.
Victoria Hall was designated under the Ontario Heritage Act in 2008, as a fine example
of a smaller church building built in the Gothic Revival style. Notable architectural
elements include heritage features such as the steep Gothic pitch gabled roof, the
gothic windows, brick, and side buttresses fronting onto Victoria Street. Interior
wainscoting is also noted as a heritage feature. A small rear addition was added to the
building circa the 1970s.
The property has remained vacant since the construction of Town Square. Due to the
location of the property as part of the downtown and Town Park area, opportunities for
adaptive re-use would be encouraged, in support of the established mixed-use function
defined for the area under the Aurora Promenade Secondary Plan.
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November 19, 2024 3 of 7 Report No. PDS24-137
Analysis
The property’s location is conducive to a proposed new use as a commercial space.
The property is located at 27 Mosley Street, at the southwest corner of Victoria Street
and Mosley Street. The current zoning and Official Plan designation for the property are
reflective of its status as part of the Aurora Promenade downtown area. Specifically, the
“Promenade Downtown – PD1” zoning for the property permits restaurants, as part of
supporting the planned function of the area as a vibrant, mixed-use, and pedestrian-
oriented destination.
Victoria Hall has an interior floor space of approximately 1,650 sq.ft. Location mapping
and property photos are provided below for additional context and reference:
Figure 1 – Location Map (27 Mosley Street indicated in yellow)
Figure 2 – Property Photos
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November 19, 2024 4 of 7 Report No. PDS24-137
It is anticipated that a restaurant use would animate the building and area and provide
opportunities for local economic development, resident and visitor enjoyment. While the
property itself is limited regarding parking, due to the relatively small capacity of the
space and location within the walkable downtown where on-street and other parking
opportunities are also available, there are no significant impacts expected.
The owners of a former restaurant in Aurora have expressed an interest in returning
operations to the downtown Aurora Promenade area, and the introduction of a
distinguishable restaurant at Victoria Hall will help support the local economic
development and vibrancy of the area.
The owner of the former restaurant proposes to construct a patio on the Victoria Street
frontage.
Market value lease rate for the property is in the range of sq.ft. excluding
Taxes, Maintenance and Insurance (TMI).
It is Staff opinion that the tenant be responsible for all utilities and maintenance, the
Town would only be responsible for capital asset management rehabilitation, no day-to-
day maintenance or services. Costs associated with the leasehold improvements,
negotiated maintenance, and changes in the tax classification will further determine the
value of the lease rates. Lease is proposed for a 5-year term, with two further optional 5-
year extensions.
To ensure that the Town’s expenses are covered for the 5-year term and to provide
funds to allocate to the payback period of the acquisition of the leasehold, the proposed
lease agreement would be based on approximately $9,400 per year in Property Tax.
Advisory Committee Review
Since Victoria Hall is an individually designated heritage property (By-law 5081-08), any
proposed works and alterations would require review and approval through the Heritage
Permit process. When detailed plans are available, they will be presented to the Heritage
Advisory Committee and Council for review and approval. Staff across multiple
departments can work in collaboration through the design and leasehold improvements
phase to ensure the heritage elements of the property are maintained and protected
through any proposed alterations.
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Legal Considerations
Authority of staff with respect to dealing with lease agreements is limited to short-term
occupation. Therefore, Council direction is required to enter into any long-term lease
agreement. If the proposed staff recommendation is approved, staff will be authorized
to negotiate and enter into a new lease for the Victoria Hall property, as described in this
report. Staff authority will be limited to the scope outlined in this report.
Financial Implications
It should be noted that a significant portion of the estimated $500,000 improvement
costs would be required to repurpose Victoria Hall for any use in order to modernize and
restore the heritage building.
To enable this potential lease agreement opportunity, a total Town investment of
approximately $501,500 for multiple building improvements is needed.
The total anticipated improvement costs are outlined below:
Base cost (August 29, 2024)
Brick Masonry $90,000
Roof Replacement $20,000
Building Interior & Exterior Rehab $250,000
Window replacement $30,000
Mechanical & Electrical Upgrades/ Repairs $20,000
Total Estimate (prior to revisions) $410,000
Revisions based on sketch (October 11, 2024)
Commercial Hood $6,500
Commercial Millwork $85,000
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November 19, 2024 6 of 7 Report No. PDS24-137
Revised Total Cost Estimate 501, 500
An Asset Management Project with a total budget authority of $500,000 has been
included in the 2025 capital budget for this purpose.
Historically, the average annual operating cost for this facility has been approximately
$13,000 per year. These costs include such items as heating, utilities, repair and
maintenance, and pest control.
In the past, the Town received an average, annual rental revenue of approximately
$12,000 (until 2020) from Victoria Hall.
Should the Town proceed with this lease opportunity, the tenant will be required to take
full responsibility for this facility’s operating costs. Consequently, the town will forego
its historical permit revenues but will also save its historical operating costs for this
building.
The Town would strive to fully recover the anticipated operating costs for this facility
through the proposed lease agreement for this building. Further the proposed
agreement will ensure a payback of the Town’s initial required investment within 15
years, which is in alignment with the average useful life of this investment’s resultant
assets.
Communications Considerations
None.
Climate Change Considerations
The adaptive reuse of Victoria Hall enables the efficient use of a currently vacant
property. The proposed investment will also support the overall, long-term sustainability
of the building.
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Link to Strategic Plan
Strengthening the fabric of our community - promoting economic development and
adaptive reuse opportunities.
Alternative(s) to the Recommendation
That Council provide direction.
Conclusions
The owner of a former restaurant in Aurora has expressed an interest to enter into a
long-term lease agreement at Victoria Hall. The repurposing and leasehold
improvements to Victoria Hall to accommodate a restaurant use would be appropriate
and provide opportunities for economic development in complement to the Aurora
Town Square and downtown Promenade Area.
Attachments
None.
Previous Reports
None.
Pre-submission Review
Closed Session report reviewed by Director of Planning and Development, Legal,
Finance, Communications and the Chief Administrative Officer.
Approvals
Approved by Marco Ramunno, Director, Planning and Development Services
Approved by Doug Nadorozny, Chief Administrative Officer
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