City staff want the authority to negotiate to sell the land under Jackson Square.

Mall owners Yale Properties, which has 56 years left on its 99-year lease for the parcel of downtown property, wants to add another 50 years to the deal but is open to talks about buying the property.

Yale says it needs the extension to justify "the extent of the upgrades and renovations contemplated for Jackson Square," according to a staff report coming before the general issues committee Thursday.

The staff report says Yale's request to the city from last fall, said " . many major (and therefore, very costly) building elements require complete replacement. These replacements afford an opportunity to redesign portions of the property to better suit their current and projected uses, while at the same time enhancing the overall downtown environment by addressing long-standing security issues."

Jackson Square is bordered by York Boulevard, Bay, James and King streets and includes the 390,000-square-foot mall and adjacent office towers: Robert Thompson Building, the Standard Life Centre, 100 King St. W. (formerly the Stelco Tower) and 1 James St. N.

Gordon Parker, senior vice-president at Yale Properties, said his company "does not have a strong desire one way or the other" about whether it owns the property. "We want to have a longer lease at the very least."

He says Yale is asking for "housekeeping changes" to the lease and has talked to city staff "about all kinds of eventualities."

Parker declined to talk about Yale's plans for the mall and office towers, saying there are no specifics yet.

"These are long-term investments. We need a longer (lease) term to spread the cost over a longer period."

According to a staff report, "preliminary discussions" have been ongoing with Yale Properties for six months. The city has already completed an appraisal on the value of the land.

"We are asking council to allow us to negotiate," said Neil Everson, the city's director of economic development. "The ultimate decision on a direction will be up to council."

The Spectator has asked for the dollar value of the lease on several occasions and has not been provided the information to date. On Wednesday, a city spokesperson said she was checking to see if the information is confidential.

Jackson Square has attracted some high-profile tenants recently, including Nations Fresh Foods, the Anchor Bar and McMaster's downtown centre.

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By its own estimates, Jackson Square brings in 12 million people a year between 9 a.m. and 5 p.m. Mondays to Fridays. Its website says it has 230 stores and about 27,000 square feet of leasable space.

Yale Properties manages more than 4.5 million square feet of commercial real estate across Canada. Jackson Square is its only retail holding.