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Staff Report Closed Session PDS25-042 dated April 8, 2025CONFIDENTIAL 100 John West Way Aurora, Ontario L4G 6J1 (905) 727-3123 Town of Aurora Council Closed Session Report No. PDS25-042 Subject: Property Matter – 27 Mosley Street (Victoria Hal) April 2025 Prepared by: Andrew Poray, Manager Economic Development Department: Planning and Development Services Date: April 8, 2025 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. Closed Session Recommendation 1. That Council Closed Session Report No. PDS25-042 be received; and 2. That staff be authorized to negotiate with and enter into a lease agreement with a company operated by for 27 Mosley Street, subject to the approval of the Director of Planning and Development Services and the CAO. Open Session Recommendation 1. That Council Closed Session Report No. PDS25-042 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 lease agreement will include negotiated terms including property and leasehold improvements by both parties. The Town’s portion of any improvement costs are to be allocated through the previously approved Capital Project – AM0258: Victoria Hall Refurbishment. Page 13 of 22 CONFIDENTIAL April 8, 2025 2 of 8 Report No. PDS25-042  A public Request for Expressions of Interest (REOI) closed on March 14, 2025, with one proponent for a restaurant use.  The recommended submission is in line with market value lease rates for the property ranging from /sq.ft., excluding Taxes, Maintenance and Insurance (TMI). 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. Analysis A public Request for Expressions of Interest (REOI) closed on March 14, 2025, with one proponent for a restaurant use. 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 Page 14 of 22 CONFIDENTIAL April 8, 2025 3 of 8 Report No. PDS25-042 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 A Request for Expression of Interest (REOI) was facilitated through the Town’s procurement process with the following schedule:  Issue Date of REOI February 21, 2025  Site Visits (Optional) February 28, 2025 to March 6, 2025  Deadline for Questions 4:00 p.m. on March 10, 2025 Page 15 of 22 CONFIDENTIAL April 8, 2025 4 of 8 Report No. PDS25-042  Deadline for Issuing Addenda 10:00 a.m. on March 12, 2025  Closing Time & Date 10:00:00 a.m. (local time) on March 14, 2025 One submission was received for the Victoria Hall opportunity. The proponent fulfills the qualifications and has met the requirements of the REOI to enable further consideration. As detailed in the REOI, it was anticipated that a proposed restaurant use would animate the building and area and provide opportunities for local economic development, as well as 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 proponent is a former restaurant in Aurora introducing a distinguishable restaurant at Victoria Hall that will help support Town Square and the local vibrancy of the downtown area. The recommended submission is in line with market value lease rates for the property ranging from sq.ft., excluding Taxes, Maintenance and Insurance (TMI). The REOI suggested that a lease would require that the new tenant be responsible for all utilities and day-to-day maintenance. The Town would only be responsible for capital asset management rehabilitation (building and equipment), as required, and no day-to- day maintenance or services. The proponent is agreeable to a five-year lease with options for additional terms and has proposed a lease rate between $22/sq.ft. to $25/sq.ft. Costs associated with negotiated leasehold improvements, maintenance, and changes in the tax classification will further determine the value of the lease rates and TMI. 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. Page 16 of 22 CONFIDENTIAL April 8, 2025 5 of 8 Report No. PDS25-042 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 and subject to the approval of the Director of Planning and Development Services and the CAO. The proponent has indicated that the new restaurant would be operated by a corporate entity, owned by , in which case the lease would be in the name of the corporation. The corporate entity would either be the entity that operated Aqua Grill, or a new company created for the purpose of the operating the Victoria Hall business. By using a corporate entity, it will shield from personal liability, with any risk and liabilities to be borne by the corporation. In case of bankruptcy, the Town’s remedies would be limited to dealing with the business entity, which may not have any assets to pursue. Financial Implications As indicated in PDS24-137, to enable this lease agreement opportunity, multiple building improvements are needed. Any leasehold improvements are to be negotiated and finalized with the proponent and approved by the Director of Planning and Development Services and the CAO. Project Number AM0259 - Victoria Hall Refurbishment with total budget authority of $500,000 which is included as part of the approved 2025 capital budget would be used to facilitate a new tenant in this building. Historically, the average annual operating cost for Victoria Hall has been approximately $13,000 per year. These costs include such items as heating, utilities, repair and maintenance, and pest control. Whereas this property has generated an average annual rental revenue of approximately $12,000, thus operating at an annual loss up until its closure in 2020. Under a lease agreement, the tenant will be responsible for the majority of this facility’s day to day operating costs. The anticipated annual lease rate ranging from Ft. can be used for the recovery the Town’s necessary investment of up to $500,000 in this building’s Page 17 of 22 CONFIDENTIAL April 8, 2025 7 of 8 Report No. PDS25-042 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. Link to Strategic Plan Strengthening the fabric of our community - promoting economic development and adaptive reuse opportunities. Alternative(s) to the Recommendation 1. That Council provide direction Conclusions Staff issued a public Request for Expression of Interest (REOI) seeking proposals by interested parties for the lease of the Town-owned building located at 27 Mosely Street (Victoria Hall). One submission was received by the close of the REOI on March 14, 2025. , the owner of a former restaurant in Aurora, has expressed an interest to enter into a long-term lease agreement at Victoria Hall. Staff seek Council approval to negotiate and enter into a lease agreement with respect to Victoria Hall, as set out in this report. Attachments Attachment 1 – Sketch of restaurant layout Previous Reports PDS24-137 – Property Matter 27 Mosley Street – November 19, 2024 Page 19 of 22 CONFIDENTIAL April 8, 2025 8 of 8 Report No. PDS25-042 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 Page 20 of 22 Page 21 of 22 Page 22 of 22