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HomeMy WebLinkAboutCS 33-25Report to Executive Committee Report Number: CS 33-25 Date: November 3, 2025 From: Laura Gibbs Director, Community Services Subject: Post Manor Feasibility Study Update 1970 Brock Road File: A-1440-001 Recommendation: 1.That Report CS 33-25 regarding Post Manor Feasibility Study Update be received; 2.That staff be directed to take no further action in regard to the feasibility of repurposing the Post Manor as an art gallery /studio; and 3.That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The purpose of this report is to provide an update on the Post Manor property . As per Resolution #280/23, staff were directed to enter into discussions with Brock and Kingston Holdings Inc. to conduct a f easibility study for an art gallery/studio in the heritage building Post Manor, located at 1970 Brock Road, and to consult with relevant cultural organizations as part of the f easibility study (Attachment 1). At the Executive Committee meeting of September 3, 2024, through Report CS 28-24, staff recommended further disc ussions on the possibility of leasing or purchasing the space for use as a public art gallery, anticipating occupancy in 2029, and report back to Council in Q4, 2025 (Resolution #574/24). Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of Foster an Engaged & Informed Community. Financial Implications: Brock and Kingston Holdings Inc. have identified an estimated lease rate of $40 per square foot, for the Post Manor at approximately 3,800 square feet. The City’s estimated cost of the annual lease is $152,000.00. As per Report CS 28-24, the feasibility study identified an estimated net operating cost of approximately $336,318.00. In addition, one-time lease improvements were estimated to cost between $285,000.00 to $380,000.00. CS 33-25 November 3, 2025 Page 2 Therefore, the estimated net annual operating expense to operate the Post Manor as a public art gallery is $488,318.00, with one time fit out costs averaging around $332,500.00. Discussion: The purpose of this report is to provide an update on the feasibility of leasing the Post Manor property to operate as a public art gallery . 1. Project Background Brock and Kingston Holdings Inc. has submitted applications for an Official Plan Amendment (OPA 20-008/P) and a Zoning By -law Amendment (A 13-20) to support a high-density, mixed- use development at 1970 Brock Road. As part of the proposal, the developer plans to retain the designated heritage building known as the Post Manor, with the intent of repurposing it for non-residential use. To explore the viability of using the Post Manor as an art gallery or studio space, the City engaged cultural consulting firm Nordicity in April 2024 to conduct a f easibility study. Nordicity engaged with 22 stakeholders and cultural organizations, completed an environmental scan, needs analysis, review of the Heritage Impact Study, and provided recommendations. The study revealed strong community interest in transforming the Post Manor into a creative community hub. Report CS 28-24 shared the findings of the feasibility study at the Executive Committee Meeting of September 3, 2024 (Attachment 2). Brock and Kingston Holdings Inc. confirmed their interest to lease or sell the Post Manor to the City for use as an art gallery. Public engagement led by Nordicity demonstrated support for the use of the Post Manor as an art gallery and community hub, however several challenges were identified through the feasibility study including the building’s relatively small size, the duplication of an art gallery with the new John E. Anderson Exhibit Gallery located at the Dorsay Community & Heritage Centre, long planning timeline for the development of the site, and unknown costs related to fit-out and ongoing maintenance of the historic building. 2. Project Update Since the last update on the feasibility study was provided to Council in September, 2024 the following information has been confirmed: A. 1970 Brock Road Design Development The design for the 1970 Brock Road development has been substantially revised since the approval of the site-specific Zoning By -law 8006/26. Investigations of the site revealed a high- water table, making the construction of deep underground parking expensive. This has resulted in a change of building form and the proposed removal of the at-grade townhouses. To address parking concerns, the lowest underground level has been removed. Now, parking includes one larger underground level, with two above-ground lev els that include approximately 55 at-grade parking spaces that are dedicated for commercial/retail use only . CS 33-25 November 3, 2025 Page 3 During initial discussions with Brock and Kingston Holdings Inc., a new , full basement of approximately 2,000 square feet was to be constructed to support the Post Manor building. The basement would support moving the building from its current location to a new location on the site. Brock and Kingston Holdings Inc. have since eliminated plans to construct a basement for the Post Manor , making room for more parking below -grade to meet the City’s site-specific parking standards for the property . The latest plans (June 19, 2025) which remove the basement provide 0.70 spaces/unit while the Zoning By-law 8006/23 requires 0.85 spaces/unit. The elimination of the basement removes 2,000 square feet from the building and eliminates multiple key amenities required for the successful operation of an art gallery including a kitchen, storage spaces for collections or program materials, exhibition preparation areas, office space, and mechanical equipment storage. B. Post Manor Lease Assessments Brock and Kingston Holdings Inc. estimate a lease rate of $38–$40 per square foot for the Post Manor building. As a comparison, staff reviewed recent market reports for the Greater Toronto Area (GTA). • Durham Region retail rents range from $32–$38 per square f oot, with newer properties at the higher end. • Suburban GTA areas like Pickering and Vaughan show rents between $35–$45 per square foot, with top locations reaching $50 per square foot. • Market trends show a 3–5% increase in retail rents in early 2025 due to rising construction costs and strong demand for accessible ground-floor retail. Overall, the proposed lease rate is in line with current market conditions. C. Project Timing Based on the latest project update, the Post Manor w ould not be available for public use in the next five years. a) A formal site plan submission for the development at 1970 Brock Road has yet to be submitted to the City. b) Based on low market demand, occupancy for the site is no longer estimated for 2029. c) Given that the project remains in the pre-approval phase, with planning applications under review , it will be subject to further refinement based on community feedback and technical studies. d) Infrastructure servicing, heritage conservation requirements, and parking compliance are expected to influence final site plan approvals and construction timelines. CS 33-25 November 3, 2025 Page 4 e)Any municipal tenancy within the Post Manor building would be contingent on lease negotiations, fit-out planning, and Council approval, which would occur closer to the construction phase. D.John E. Anderson Gallery set to open April 2026 While Brock and Kingston Holdings Inc. remain interested in leasing the Post Manor property to the City of Pickering for use as an arts gallery or arts hub, the City is currently focused on launching its first municipal gallery space at the Dorsay Community & Heritage Centre in spring 2026. This purpose-built exhibit venue, with the necessary support spaces including a basement, will feature a rotating schedule of exhibitions, highlight local and regional artists, and include complementary programming such as workshops, talks, and community -led initiatives. Therefore, staff recommend no further action be taken on repurposing Post Manor for an art gallery/studio. Attachment: 1.Resolution #280/23 2.Report CS 28-24 Prepared By: Approved/Endorsed By: Original Signed By Original Signed By Krystal Roberts Laura Gibbs, MBA, MSc. Manager, Cultural Services Director, Community Services LG :kr Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Attachment 1 to Report CS 33-25 Legislative Services Division Clerk’s Office Directive Memorandum September 25, 2024 To: Laura Gibbs Director, Community Services From: Carol Redmond (Acting) Deputy Clerk Subject: Direction as per Minutes of the Meeting of City Council held on September 23, 2024 Director, Community Services, Report CS 28-24 Post Manor Feasibility Study Council Decision Resolution #574/24 1. That Report CS 28-24 regarding the Post Manor Feasibility Study be received; 2. That staff be directed to continue discussions with Brock and Kingston Holdings Inc. on acquiring the Post Manor building, for lease or purchase for use as a public art gallery, anticipating an occupancy date in 2029, and report back with an update to Council by Q4, 2025; and, 3. That the appropriate City officials be authorized to take the necessary actions as outlined in this report. Please take any action deemed necessary. CR:am Copy: Chief Administrative Officer Attachment 2 to Report CS 28-24 Report to Executive Committee Report Number: CS 28-24 Date: September 3, 2024 From: Laura Gibbs Director, Community Services Subject: Post Manor Feasibility Study -File: A-1440-001 Recommendation: 1. That Report CS 28-24 regarding the Post Manor Feasibility Study by received; 2. That staff be directed to continue discussions with Brock and Kingston Holdings Inc. on acquiring the Post Manor building, for lease or purchase for use as a public art gallery , anticipating an occupancy date in 2029, and report back with an update to Council by Q4, 2025; and 3. That the appropriate City officials be authorized to take the necessary actions as outlined in this report. Executive Summary: The purpose of this report is to present a feasibility study regarding the use of the Post Manor as a public art gallery. At the Council Meeting on September 25, 2023, Council directed staff to enter into discussions with Brock and Kingston Holdings Inc. to conduct a Feasibility Study for an art gallery /studio in the heritage building Post Manor, located at 1970 Brock Road, and to consult with relevant cultural organizations as part of the Feasibility Study; and that staff report back to Council with recommendations no later than Q3, 2024 (Resolution #280/23). Staff contracted consulting group, Nordicity, specializing in cultural planning, in April 2024 to undertake the Feasibility Study (Attachment 1). Through the feasibility study it is identified that, based on existing preliminary understanding of the current state of the Post Manor building, there is significant appetite from the creative community for Post Manor to be used as a community creative hub and art gallery space. The Post Manor development could be feasible provided continued engagement with the community, a clear commitment and vision for the space, and eventual initiation of start-up and operations. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priorities of Champion Economic Leadership & Innovation; Advocate for an Inclusive, Welcoming, Safe & Healthy Community ; Advance Innovation & Responsible Planning to Support a Connected, Well-Serviced Community ; and Strengthen Existing & Build New Partnerships. CS 28-24 September 3, 2024 Subject: Post Manor Feasibility Study Page 2 Financial Implications: The feasibility study identified that the cost of fit-out is estimated, at a minimum, approximately between $285,000 and $380,000. If more extensive capital repairs and upgrades are required on the building, the capital costs are estimated to be as high as $800,000. The annual net operating cost for the facility is estimated to be between $250,000 and $340,000. The annual operating cost does not include lease costs. Since the development at 1970 Brock Road is not expected to be completed until at least 2029, there are no financial impacts associated with the recommendations in this report at this time. Further discussions are required with Brock and Kingston Holdings Inc. to refine the full scope of financial implications. Discussion: The purpose of this report is to provide an update on Resolution #280/24 regarding the feasibility of an art gallery /studio in the designated heritage building Post Manor , located at 1970 Brock Road. Brock and Kingston Holdings Inc. submitted applications for an Official Plan (OPA 20-008/P) and Zoning By -law Amendment (A 13-20), proposing a high density, mixed-use development on the lands municipally known as 1970 Brock Road. This development includes the retention of a designated heritage building, known as the Post Manor, which is intended to be used for non-residential use. On March 27, 2023, Council approved site-specific Official Plan Amendment 47 and Zoning By-law Amendment 8005/23, to facilitate the proposed development, which includes an ‘art gallery/studio’ as a permitted use on the subject lands. 1. There is interest from Kingston Holdings Inc. in the City leasing or purchasing the Post Manor building for use as an art gallery The City contracted consulting group, Nordicity in April 2024, to undertake the Feasibility Report. Shortly after contracting, staff coordinated a meeting with Nordicity, Brock and Kingston Holdings Inc., and their associates: The Biglieri Group Inc. and ERA Architects Inc ., on May 10, 2024 to review the designated heritage building Post Manor site plans, dimensions, and determine how the space could be used. At this meeting it was confirmed that current plans including moving the Post Manor on the site and setting it on a new foundation, which will include a full basement. Currently the lease tenants extend into 2029, after such lease agreements end, there are construction activities such as relocation of the house, basement upgrade and excavation of the parking garage and other construction activities. While meetings with Brock and Kingston Holdings Inc. demonstrated interest in the City operating the Post Manor as an Art Gallery , further discussions are required to determine the following: CS 28-24 September 3, 2024 Subject: Post Manor Feasibility Study Page 3 a) The conditions of the possession of the building. This includes further discussion of lease costs and conditions, and a purchase price for the building. In recent discussions with Brock and Kingston Holdings Inc. it was determined to be too early in the process to determine the conditions of possession. b) The state of the building for occupancy. Further discussion is required to ascertain if the Post Manor would be available to the City in good condition, and if the process to move the building would result in any enhancements that would support its use as an art gallery. This includes the provision for moving the building to a new, full basement, upgraded electrical, and capital repairs to the building (like accessibility improvements etc.). c) The consideration of adjacent outdoor grounds. The feasibility study explored options to use adjacent grounds and gardens surrounding the Post Manor in providing public space or outdoor programs. The adjacent outdoor space should be included in further discussions with Brock and Kingston Holdings Inc . 2. Community Consultation demonstrated support for use of the Post Manor as an Art Gallery and community hub Nordicity met with 22 stakeholders and relevant cultural organizations in one-on-one and small group meetings to conduct outreac h and consultations. These stakeholders included local artists and creators, Pine Ridge Arts Council, members of the Indigenous Relationship Building Circle, the Cultural Advisory Committee, and school boards. In addition to outreach c onsultations, Nordicity compared 24 similar facilities for operation information, features and offerings. Information gathered from the feasibility study (based on existing preliminary understanding of the Post Manor building) identified there is significant appetite from the creative community for this space to be used as a “community hub and art gallery space”. Based on community input, Nordicity has recommended the following vision for this space, “a community -based, local space for artists to create, network and exhibit their work. In this vision, The Post Manor evolves beyond ‘just a gallery’ – it would be a place to create and exhibit art, to teach or participate in workshops, to host events and engage with the community (both fellow artists and the public).” The consensus from the community is that such a space would respond to the priority needs of emerging and established artists in Durham Region. Nordicity reporting that they repeatedly heard that residents ‘don’t have a space like this in Pickering.’ Some interviewees described the ease with which they could imagine telling their friends and fellow artists, ‘see you at the Manor’ or ‘m eet me at the Manor’, as it could become a go to spot for engagement and interaction. CS 28-24 September 3, 2024 Subject: Post Manor Feasibility Study Page 4 3. The feasibility study identified some challenges to operating an art gallery in the space a. The Post Manor is constrained by an approximately 3,600 square foot size. As the building was originally designed as a residential facility, it is relatively small for use as a public community space. b. The City is constructing the first public gallery space at the Pickering Heritage & Community Centre. Distinguishing the Post Manor from this space will require clear communication of its unique mandate and operations. c. The long planning timeline for the construction of the site and anticipated occupancy of the space may result in decreased buy -in from the local arts community. Operation of this space as an art gallery is not expected before 2029. d. Capital and fit-out costs require further research and discussions with Brock and Kingston Holdings Inc. to determine the state of the building on commencement of a lease or purchase. As this is an historic building, dating from 1842-1843, there are additional considerations, including preserving the heritage value of the building, which may add costs to the fit-out and ongoing operations of the facility. 4. Further consideration and consultation in the operation of the space is recommended The intent of the feasibility study was to assess whether the Post Manor is an appropriate or feasible community art gallery. Based on consultations, the greatest enthusiasm from the local arts and culture community is for re-invigorating the Post Manor as a community arts hub. This hub would include the capacity for a community gallery and exhibition space. The Study recommends the following next steps: • At this preliminary stage, it is recommended that the City undertake further consultations to build a stronger vision, governance model and more concrete assumptions for costs and demand or usage. • Some stakeholders were not able to fully engage with the study and should be engaged in future consultations. This includes the 55+ population, the post-secondary institutions, and deeper engagement with cultural communities. • Further discussions with regard to ownership model, for example investigating whether a long-term lease at below market rates would be feasible, or whether the City could purchase the facility for a nominal figure. • More detailed costing is required on the capital and fit-out expenses for this facility. As part of this feasibility study, Brock and Kingston Holdings Inc. confirmed that they are open to further discussions about upgrading mechanical systems, moving the building and constructing new foundations/basement; however, the details of at what point the fit-out expenses would be carried by the next owner or operator need to be clarified. CS 28-24 September 3, 2024 Subject: Post Manor Feasibility Study Page 5 Attachment: 1. Feasibility Study: Post Manor Prepared By: Approved/Endorsed By: Original Signed By Original Signed By Krystal R oberts Laura Gibbs, MBA, MSc. Manager, Cultural S ervices Director, Community Services LG :kr Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Attachment 1 to Report CS 28-24 'Nordicity Executive Summary Background and Objectives The City of Pickering engaged Nordicity to undertake a Feasibility Study for the Post Manor Building to explore the suitability of the building as an art gallery space. This report represents the findings, modelling, and recommendations as to next steps based on the research, consultations, and analysis conducted between April to August 2024. The purpose of the study was to 1) understand current Post Manor property and how it fits into the proposed development, 2) assess potential demand for a gallery by holding preliminary consultations with local arts, culture and creative sector stakeholders, 3) scan similar spaces and galleries to examine what facilities and programs they offer and how they are funded, 4) define the emerging vision for the future Post Manor, based on the consultations and analysis, and 5) perform preliminary research into how the Post Manor could be run and its approximate costs. The term "feasibility study" can represent a wide range of expected activities and outcomes. Nordicity understood that the City's decision to undertake this study was driven by a proposed major redevelopment where the Post Manor building sits and a previous heritage impact assessment conducted for the site, with many details of the overall redevelopment and how the Post Manor building will fit into the overall completion of the site still yet to be known. Therefore, this report represents the initial first step in exploring future use of the Post Manor building. Considering factors such as the capacity and location of the Post Manor building, it was found that certain scenarios align with the City's objectives. Therefore, feasibility depends on c ertain conditions being met, namely: continued engagement with the community as the redevelopment of the site progresses, a clear vision and sound execution, and successful marketing and communications to foster and retain community users. On this basis, this study found that based on existing preliminary understanding of the current state of the Post Manor building, there is significant appetite from the creative community for Post Manor to be used as a community creative hub and art gallery space. The Post Manor development could be feasible provided continued engagement with the local community, a clear vision for the space, and further commitments towards start-up and operational responsibilities. Approach Nordicity's approach to the work centred on being pragmatic, flexible, and collaborative. A review of background materials leading up to this project highlighted the significant role of arts and culture in the City and underscored the City's commitment to supporting this sector. From this rationale, the project team undertook the following steps in our approach: an analysis of property meeting with the City of Pickering, Biglieri Group, Brock and Kingston Holdings Inc., CMV Group and ERA Architect Inc. representatives; an environmental scan of over 20 local and regional facilities and focus on 3 major case studies; stakeholder outreach and consultations engaging some 22 local stakeholders; and development of one core operating model. In the analysis, the project team adopted a conservative and exploratory lens based on research (desk research and group discussions), analysis of comparatives, operating and business model considerations, and capital cost and revenue estimates. At the same time, we acknowledge the energy and enthusiasm within the arts community for the appetite to see more arts facilities in Pickering. Emerging Vision for the Post Manor Building It was found that in preliminary, pulse-check consultations with the creative community in Pickering, enthusiasm for a "pure" art gallery at the Post Manor site was only moderate. The excitement of the Post Manor Feasibility Study Final Report 2 of 31 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 'Nordicity 1. Context for this Report The Post Manor is a Greek revival-s tyle farmhouse in Pickering that was built in 1842-1843 for Jordan and Matilda Post. The house served as a residence and passed through different owners until 1985, when the house and surrounding site were redeveloped as a low-rise commercial plaza. Today, the Post Manor is designated under the Ontario Heritage Act and is recognized as a landmark by the local community. In 2022, ERA Architects (ERA) conducted and presented a Heritage Impact Assessment to the Pickering Heritage Advisory Committee. The motivation for this assessment is a proposed major new development at the location of the Post Manor. ERA were tasked to assess the impact of the proposed development on The Post Manor. ERA proposed that the Post Manor be retained, relocated and rehabilitated. The relocation takes the Post Manor slightly northeastwards on the site. The suggested rehabilitation would make the Post Manor fit for public-facing, commercial use -including accessibility and other upgrades in keeping with today's demands. [> Figure 11970 Brock Road, Pickering- Landscape Concept, by ERA Architects (2022) The Post Manor space itself is approximately 3,800 sq. ft., with 2,335 sq. ft. on the main floor and 1,500 sq. ft. on the second floor and a future planned basement of aproximately 2,000 sq ft. Notably, this measurement excludes a potential basement, which could be constructed upon relocation of the building. Regarding its placement on the property, the plan is to move the building slightly northeast of its current location, closer to the street, to maintain visibility. If acquired, the building will largely remain as is, with some potential for various upgrades in the long­term. While minor alterations may be made to adapt the space for public use, there are no plans for major extensions or revitalization efforts. For example, the mechanical system will be updated during the move. Accessibility is also a key consideration for the study, and there are plans to make the building accessible, such as adding a ramp. However, details about these accessibility measures are currently limited. Post Manor Feasibility Study Final Report 7 of 31 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ o ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪