HomeMy WebLinkAboutCAO 07-26
Report to
Executive Committee
Report Number: CAO 07-26
Date: June 8, 2026
From: Marisa Carpino
Chief Administrative Officer
Subject:
Brougham Hall
Lease Update
File: A-1440-001
Recommendation:
1. That Report CAO 07-26 regarding Brougham Hall be received;
2. That the lease agreement with the Brougham Recreation Society for Brougham Hall, set
out in Attachment 1, be terminated with 30 days-notice provided to the Brougham
Recreation Society by the Director, Community Services;
3. That the lease agreement with the Government of Canada for Brougham Hall, set out in
Attachment 2, be terminated with 30 days-notice provided to the Government of Canada -
Transport Canada by the City Solicitor; and,
4. That the appropriate officials of the City of Pickering be authorized to take the actions
necessary to implement the recommendations in this report.
1.0 Executive Summary:
The purpose of this report is to recommend that Council authorize the termination of existing
lease agreements with both the Brougham Recreation Society and Transport Canada for
Brougham Hall, providing each with 30 days’ notice.
Over the past two years, City staff have undertaken extensive discussions with
Transport Canada to renegotiate lease terms for Brougham Hall that would mitigate the City’s
financial and capital obligations. Despite these efforts, mutually satisfactory terms could not be
reached—particularly regarding the removal of the maintenance and repair clause that
continues to pose fiscal risk to the City.
CAO 07-26 June 8, 2026
Page 2
The recommendations to terminate the lease agreements are grounded in four key
considerations:
• Ownership: The City does not own Brougham Hall; it remains a federal asset under
Transport Canada’s jurisdiction.
• Financial Responsibility: The current lease structure imposes ongoing maintenance
and capital obligations on the City for a facility it does not own, creating an
unsustainable fiscal burden.
• Strategic Prioritization: The City’s capital investment priorities, including the new
Seaton Recreation Complex & Library and the need to maintain aging municipal assets,
require that resources be directed toward City‑owned facilities. Asset management data
show Brougham Hall’s facility condition index at 93% (poor), with required capital repair
costs estimated at $795,000.
• Continuity of Use: Transport Canada has confirmed that, upon lease termination, it will
work directly with existing community users to ensure a seamless transition. Facility
users will continue their activities without disruption, coordinated by Transport Canada
rather than the City.
Taken together, these factors support staffs’ recommendation that Council authorize
termination of the lease agreements with both the Brougham Recreation Society and
Transport Canada, each with 30 days’ notice, enabling the City to redirect resources toward its
own infrastructure priorities while maintaining community continuity through federal
coordination.
2.0 Relationship to the Pickering Strategic Plan:
The recommendations in this report respond to the Pickering Strategic Plan Priorities of
Advocate for an Inclusive, Welcoming, Safe & Healthy Community; Advance Innovation &
Responsible Planning to Support a Connected, Well-Serviced Community; Strengthen Existing
& Build New Partnerships; and Foster an Engaged & Informed Community.
3.0 Financial Implications:
The terms of the City's lease with Transport Canada requires that the tenant (the City) is
responsible for all maintenance and repairs at Brougham Hall. This presents a financial risk to
the City. This cost of deferred maintenance is approximately $795,000.00 (2026 dollars).
The City has spent over $50,000 in 2024/2025 to complete a number of repairs to Brougham
Hall to return the building to Transport Canada in a satisfactory condition. Since the City has
CAO 07-26 June 8, 2026
Page 3
completed these repairs, no additional costs are anticipated due to the termination of the lease
agreement.
4.0 Discussion:
The purpose of this report is to recommend that Council authorize the termination of existing
lease agreements with both the Brougham Recreation Society and Transport Canada for
Brougham Hall, providing each with 30 days’ notice.
4.1 History of the Building
Brougham Hall (Former Pickering Township Hall)
Constructed in 1854 through a community-led initiative undertaken by local residents, the
Former Pickering Township Hall at 3545 Mowbray Street (formerly Brock Road), commonly
known as Brougham Hall, is one of the oldest surviving civic buildings within the former
Township of Pickering. Built shortly after the passage of the Municipal Act of 1849, the building
was purpose-built to accommodate the emerging municipality of Pickering and subsequently
became the first town-owned building and initial centre of local government. As one of the
oldest surviving buildings in the area, the hall illustrates the significant period of community
development that occurred in Brougham and Pickering during the 1850s and 1860s. The
property is also associated with important public meetings and gatherings related to the federal
CAO 07-26 June 8, 2026
Page 4
government’s proposed Pickering Airport expropriations in the 1970s, reflecting its
longstanding role as a place of civic engagement and community advocacy.
The building holds architectural significance as a representative example of a modest mid-19th
century rural civic building. The Former Pickering Township Hall consists of a one-storey wood
frame structure resting on a stone foundation and features a front-gable roof, symmetrical
three-bay façade, large divided-lite windows, and restrained classical detailing. The building’s
simple form and materials reflect the functional and vernacular design approach commonly
associated with early township halls constructed in rural Ontario during the pre-Confederation
period.
The property also possesses associative value through its direct connection to the early civic
and political development of the Former Township of Pickering. The hall served as the centre
of municipal governance and public decision-making beginning in 1858 and functioned as an
important venue for Township Council meetings, civic administration, public gatherings, and
community events. The building additionally accommodated religious services and broader
social functions when not required for municipal purposes, reflecting the multifunctional role
township halls played within developing rural communities.
Contextually, the former Pickering Township Hall is significant as a longstanding civic
landmark within the historic hamlet of Brougham. Prominently located along Brock Road, the
building maintains strong historical and visual associations with the surrounding community
and continues to contribute to the historic character of the hamlet. The hall is also significant
as a rare surviving example of a pre-Confederation single-room township hall in Ontario and
represents the broader transition of rural settlements into socially and politically organized
municipalities during the mid-19th century. The property is recognized as a Federal Heritage
Building and is also listed on the City of Pickering’s Municipal Heritage Register.
4.2 Facility Use
Brougham Hall has been operated by the Brougham Recreation Society for many years,
through a lease agreement with the City. The following is a summary of the building use over
that past ten years, as reported by the Brougham Recreation Society:
Year Paid uses Unpaid uses Revenue Expense Net Revenue
2015 12 0 $3,050 $2,014 $1,036
2016 12 13 $4,175 $2,771 $1,404
2017 10 14 $2,250 $1,237 $1,013
2018 8 11 $2,381 $1,140 $1,241
2019 16 12 $3,230 Not reported $3,230
2020 - 2024 Closed due to Covid-19 and then due to the presence of airbourne mould.
CAO 07-26 June 8, 2026
Page 5
2025 1 Not reported $60 $989.74 ($929.74)
The primary uses for Brougham Hall include meeting rentals by Land over Landings
comprising 42% of total use, private celebrations like birthday parties, showers/anniversaries,
memorial services, etc., comprising 23% of total use, and rented by movie production
companies primarily for space for crew use, comprising 11% of use. The remaining 24% of
usage is for church suppers, training for the gun safety program, and use by groups like the
clog dancers.
The facility was closed in 2020 during the Covid-19 Pandemic due to provincial requirements
and remained closed until 2025 due to a 2023 air quality test that discovered the presence of
mould spores that needed to be remediated before the building could be reopened to the
public. The City’s repairs to the building that were completed in 2024 and 2025 remediated the
mould issue, and the facility reopened to the public in spring, 2025.
City staff have met with the Brougham Recreation Society and discussed the
recommendations of this report. Transport Canada staff have committed to a seamless
transition of current facility users upon the City’s termination of its lease agreement, providing
access to the facility as needed. This provides the Brougham Recreation Society with the
option to continue their operation out of Brougham Hall.
4.3 Facility Condition
The Brougham Community Hall was included in the Facilities Renewal Study (Report OPS 02-
24). The Report, which evaluated 23 facilities to determine their viability for long-term retention,
was endorsed by Council on January 22, 2024 (Resolution #389/24). The study identified a
short-list of facilities as contenders for disposal, renewal, or replacement, and evaluated asset
ownership considerations with a long-term view premised on sound asset management
principles in alignment with related City policies and strategic directions.
Each facility was assigned a Facility Condition Index (FCI) score, which is calculated as a ratio
of the total cost of identified building repairs and renewals (i.e. component replacement) over a
defined period (the City uses 5 years) divided by the assets’ total estimated replacement cost.
The FCI score breakdown is as follows:
CAO 07-26 June 8, 2026
Page 6
The Brougham Community Hall received an FCI score of 93%, meaning without any upgrades
that it would almost cost more to repair than to rebuild. Based on this score alone, it would be
appropriate for the City to consider terminating their lease on the building due to significant
repair requirements, low utilization rates, lack of accessibility requirements, and high financial
risks.
City staff have met with Transport Canada on numerous occasions over the last several years
to review the building condition and potential future use of the facility. The following is a
summary of major work that has been completed at Brougham Hall:
• In 2017, the City completed a Building Condition Audit, prepared by Peto MacCallum,
that identified a backlog of $245,000.00 (2017 dollars) of maintenance and a further
$60,000.00 required over the following five years.
• Transport Canada completed a roof replacement in 2019 ($80,000.00), and in the same
year, Transport Canada completed asbestos remediation, at their own cost.
• In 2022, the City completed a structural review of the building that highlighted the need
for significant additional repairs to building components likely within the next five years.
This information was shared with Transport Canada.
• In 2023, the City completed a structural review of the building and found it to be a “fair
to poor” structural condition that highlighted the need for additional structural repairs
likely within the next five years. This information was shared with Transport Canada
• In 2023, the City completed an air quality test that discovered the presence of mould
spores inside the building. This information was shared with Transport Canada. The
presence of mould spores resulted in the City closing the building to the public until the
issue could be resolved.
• In 2024, discussion between the City and Transport Canada had included a fulsome
review of the lease, including the provision that the City return the building in a condition
suitable to the Landlord. In order to meet this condition and determine what repairs were
required, Transport Canada completed their own building condition audits to
independently assess the condition of the building and identify any urgently required
repairs. Building assessments were completed in summer/fall, 2024. From late 2024 to
March 2025, staff coordinated the following repairs to Brougham Hall The City:
• Removed and disposed of siding on the east gable above the porch area. Wasp
nesting and animal burrowing was removed and repaired. Interior drywall was
replaced, taped and painted.
• Replaced existing base flashing and installed new through wall flashing.
• Installed new moisture barrier on existing sheathing.
o Existing sheathing was damaged beyond repair and a portion of this needed
to be replaced.
CAO 07-26 June 8, 2026
Page 7
o Contractors noticed that there was no existing vapor barrier in the ceiling,
there was little to no insulation in the ceiling, and they noticed moisture and
condensation already existing in the attic space.
o Contractors resolved these issues by replacing a portion of the sheathing,
vapor barrier, and re insulating with R-40 in between the joist cavities, along
with 6mm vapor barrier.
• Removed all fixtures and partitions in women’s washroom.
• Replaced the floor, trim, and drywall, in the women’s washroom. Painted the
washroom and reinstalled existing fixtures.
• Removed and disposed of exterior stairs. Supplied new set of pressure treated
stairs, and handrail to match existing.
While the repairs completed in 2024 satisfied Transport Canada’s lease condition that the
building be returned in satisfactory condition, the building still requires significant repairs and
lifecycle replacements in order to preserve it for ongoing public use.
4.4 City’s Lease of Brougham Hall with The Government of Canada
The City of Pickering entered into a lease agreement with the Government of Canada
(Transport Canada) approximately 30 years ago. The lease agreement between the two
parties was renewed in 2007, with the term ending on January 31, 2012. The current lease
agreement has expired, and the City currently leases the building on a month-to-month basis
under the same terms that were set forth in the 2007 lease agreement. Staff initiated a review
of the lease agreement and identified that Section 10.01 of the lease states that, the Premises
are leased in “as is” condition, and the Landlord shall not be obligated to make any repairs or
perform any maintenance to the Premises. City staff engaged in multiple discussions with
Transport Canada in attempts to remove the provision that requires the City to fund and
complete capital maintenance of the facility, however, though multiple draft lease provisions
and discussions, City staff were not successful in fully lifting the provision. With a continued
financial risk of an estimated $795,000 to complete the deferred maintenance required on the
building, staff recommend terminating the lease agreement.
The lease includes a condition that the City return the facility in a similar condition to which
existed prior to the City’s tenancy. In 2024, Transport Canada staff completed various
assessments which are included in section 4.3 to determine what repairs were required to
return the building in a condition to the satisfaction of Transport Canada, the Landlord. The
City completed the necessary repairs, and in spring, 2025, Transport Canada staff confirmed
that the completed repairs were satisfactory and would allow for the City to terminate the lease
agreement by providing notice to Transport Canada.
CAO 07-26 June 8, 2026
Page 8
As the existing agreement with Transport Canada is on a month-to-month basis, Transport
Canada has confirmed that a 30 day notice of termination of the lease agreement is
acceptable.
4.4.1 City's Lease with the Brougham Recreation Society
In 2015, the City of Pickering entered into a five-year written lease agreement with the
Brougham Recreation Society (Report CR 04-15). This agreement made them responsible for
coordinating facility rentals and performing facility cleaning at Brougham Community Hall. The
facility rentals included private functions, special events and meetings. The lease was renewed
for the term from July 1, 2020 to June 30, 2025 (Report CS 25-20). Before 2015, the lease
arrangement between the City of Pickering and the Brougham Recreation Society (formerly
called Brougham Recreation Association) for Brougham Community Hall was verbal. Under
this agreement, the City remained responsible for the repairs and maintenance of the facility.
City staff met with the Brougham Recreation Society in July, 2025, on the expiration of the
lease agreement and notified the Brougham Recreation Society members that the lease
agreement transitioned to a month-to-month arrangement, under the same terms as the lease
at that time.
As the existing lease agreement is on a month-to-month agreement, a 30 day notice provided
to the Brougham Recreation Society, that coincides with the termination of the City’s lease is
recommended. The Brougham Recreation Society has been notified of the City’s
recommendation and has expressed interest in continuing their use of Brougham Hall, working
directly with Transport Canada.
4.5 Community Engagement on Brougham Hall
Alexis Whalen, Chair of Land Over Landings and John Sabean, Founder of the Pickering
Township Historical Society delegated at the HPAC meeting held on March 27, 2024. Ms.
Whalen and Mr. Sabean spoke about the Brougham Community Hall, noting its historical
significance as the historic seat of municipal government in Pickering, the building’s current
condition, and the lease that the City of Pickering has with Transport Canada. This delegation
prompted a response from City staff who spoke with interested stakeholders and commenced
discussions with Transport Canada regarding Brougham Hall.
Staff meet with representatives of the Brougham Recreation Society annually to discuss
annual use of the facility and review any outstanding issues with the building. Communications
occur throughout the year if issues arise. Staff met with the Board of the Brougham Recreation
Society on July 24, 2025 to inform them that the Brougham Recreation Society lease had
CAO 07-26 June 8, 2026
Page 9
ended on June 30, 2025 and that the lease agreement had transitioned to a month-to-month
agreement.
Community stakeholders have been updated on discussions between the City and Transport
Canada over the past 24 months.
City staff held a meeting on May 12, 2026 with MP Nathan, Pickering Ward 3 Councillors,
Perry Papadatos of TC, Alexis Whalen of Land over Landings and Cris Miller of the Brougham
Recreation Society. The purpose of the meeting was for City staff to advise that the
negotiations with Transport Canada have concluded, and staff will be providing Council with a
staff recommendation that Brougham Hall be returned to Transport Canada.
At the May 13, 2026, meeting of the Heritage Pickering Advisory Committee, staff provided an
update about Brougham Hall based on correspondence provided prior to the meeting by the
CAO. The Committee had no comment regarding the information.
4.6 Conclusion
Over the past two years, City staff have held multiple meetings in attempts to negotiate
agreement terms with Transport Canada which would mitigate the City’s substantial financial
capital obligation. Despite best efforts, the City and Transport Canada were not able to
negotiate terms to an agreement to the satisfaction of both parties. Transport Canada did not
agree to remove the maintenance/repair clause from the agreement, thereby addressing the
City’s concerns.
In making the recommendations included in this report, City staff considered the following
factors:
• The City does not own Brougham Hall, the Government of Canada does.
• The terms of the lease continue to present a financial exposure to the City, for a building
the City does not own.
• The City’s financial commitment to undertake its new construction capital program,
including the new Seaton Recreation Complex & Library, is considerable, which has
required that capital investments be prioritized. The City’s financial commitment to
maintain its current aging city owned assets is also considerable. Transport Canada
indicated that, if the City returned Brougham Hall to them, they would work directly with
existing users of Brougham Hall to facilitate their current uses. Transport Canada
committed to a “seamless transition” and current users of Brougham Hall would not
experience any difference; they would just work with Transport Canada instead of the
City to coordinate their use.
Therefore, City staff recommend to Council that the month-to-month arrangement with
Transport Canada be terminated and that the City return Brougham Hall back to The
CAO 07-26 June 8, 2026
Page 10
Government of Canada. Subsequently, staff also recommend that the month-to-month
arrangement with the Brougham Recreation Society be terminated, in conjunction with the
termination of the City’s lease agreement.
Attachments:
1. Lease Agreement for Brougham Hall with Brougham Recreation Society
2. Lease Agreement for Brougham Hall with Transport Canada
Prepared By: Vince Plouffe, OAA, MRAIC, Division Head Facilities Management &
Construction
Prepared By: Matthew Somerville, MCIP, RPP, CAHP, Senior Planner, Heritage
Prepared By: Nilesh Surti, MCIP, RPP, Division Head, Development Review & Urban Design
Prepared/Approved/Endorsed By: Laura Gibbs, MBA, MSc., Director, Community Services
Approved/Endorsed By: Kyle Bentley, P. Eng., Director, City Development & CBO
Approved/Endorsed By: Paul Bigioni, Director, Corporate Services & City Solicitor
MC:lg
Recommended for the consideration of Pickering City Council By:
Marisa Carpino, M.A.
Chief Administrative Officer
Attachment 1 to Report CAO 07-26
Attachment 2 to Report CAO 07-26