A Toronto committee debated turning a century-old heritage building into a mall, museum or learning centre on Monday.

The city's Government Management Committee looked at options for future tenants of Old City Hall at its monthly meeting.

Located at the corner of Bay and Queen Streets, the former hub of city government has served as a municipal and provincial courthouse since 1972.

The courts' lease will not be renewed past Dec. 31, 2016.

At the meeting Monday, the committee considered several possible options for what to do next with the building, outlined in a report published last month.

A background report compiled by the city's Chief Corporate Officer Josie Scioli recommended that the lease be extended for a term of five years, until the province builds a new court facility. Scioli's report recommends the courts be given a new lease which would expire on Dec. 31, 2021.

The province estimates its new facility will be completed by 2023, and has requested an extension to bridge part of the time between the end of their current lease and the occupancy of the new building.

The city was asked to authorize the expansion so the provincial government can be given notice of the extension and new expiration date. The provincial government will be charged a base rent of $41 per square foot of rentable space, and another $16.10 per square foot per year for maintenance and operating expenses. The new lease is $9.7 million per year, or approximately $48.5 million over five years.

At the end of the extension, the report said that the "highest and best use" for the building would be a retail centre, with space to be used for food service, leisure and events.

"The arrangement could be similar in concept to the city's long-term lease agreement for retail at Union Station," the report said.

"The recommended term for the lease would be 50 years with the rental rate to be re-negotiated at each 10-year mark."

The report also suggested using the building for international trade, arts and culture, innovation and technology or post-secondary education. The space could also be used to house a bank or a corporate office.

The building's courtyard may be used by the Toronto Museum Project, though officials have yet to say what type of exhibits may be installed. The report also proposes reserving a section of the lobby as publicly accessible space that could include a museum.

The proposed rent for the space is recommended at $40 to $41 per square foot of rentable area, or between $9.5 million and $9.7 million per year.

The report recommends that the city's real estate services division begin seeking potential renters for the long-term lease of the property.

"In order to generate and maintain market interest in Old City Hall, the plan should be implemented within a time period not exceeding five years," the report said.

Brief history of Old City Hall

Old City Hall took nearly 20 years to plan and build, according to the City of Toronto. The building was completed in 1899, and cost $2.5 million, more than four times its original budget of $600,000.

The grey and brown stone used to build the hall was ground in from the Credit River Valley and New Brunswick quarries.

The building served as the meeting place for municipal politicians between 1899 and 1966. It also housed offices and courts for York County until the 1950s, when the county moved its base to the Newmarket Town Hall.

The 116-year-old building was nearly demolished when the Eaton Centre was built in the '60s, but a group of citizens convinced the city to preserve the landmark.

In the early 70s, it was converted into a courthouse used by municipal and provincial judges.