Item - 2011.TE10.6

The Toronto and East York Community Council recommends that:

1.         City Council amend Zoning By-law 438-86 for the lands at 545-565 Sherbourne Street substantially in accordance with the draft Zoning By-law Amendment attached as Attachment No. 7 to report dated September 13, 2011, from the Director of Community Planning, Toronto and East York District.

2.         City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law Amendment as may be required.

3.         Before introducing the necessary Bills to City Council for enactment, City Council require the Owner to enter into an Agreement pursuant to Section 37 of the Planning Act, to be registered on title, to the satisfaction of the City Solicitor, to secure the following:

a.         The community benefits recommended to be secured in the Section 37 Agreement is a financial contribution of $1,000,000 to be paid prior to the issuance of the first above-grade building permit for the development, with such amount to be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for Toronto, calculated from the date of the Section 37 Agreement to the date of payment and is to be paid as follows:

i.          $900,000 for the construction of a community pool at the Wellesley Community Centre; and

ii.         $100,000 for streetscape improvements on Bleecker Street or other public realm improvements as part of the future Community Improvement Plan for the St. James Town neighbourhood.

b.         In lieu of a 1% Public Art contribution, provide an extension of the current lease with Art City in St. James Town, or other appropriate on-site space that is affordable, at a below-market rent rate of $1,000.00 per month plus applicable HST, for a period of 10 years effective March 1, 2012 and with the ability to expand the premises in order to accommodate the increasing enrolment of children and youth in the future at a comparable below-market rental rate.  If Art City and the Owner are unable to come to an agreement, the Owner agrees that it will make a contribution equal to one percent (1%) of the Gross Construction Costs of the Development to the City in accordance with the Public Art program to the satisfaction of the Chief Planner.

            If, at any time, Art City no longer requires the leased premises, the Owner shall pay to the City any remaining balance of the 1% Public Art contribution and the City shall use that money for the purpose of a public art or cultural plan for the area.

c.         The following rental housing matters are also recommended to be secured in the Section 37 agreement to satisfy the Official Plan policies and support development:

i.          Securing of 1,107 existing rental housing units, excluding those to be demolished for a period of 20 years.

ii.         The provision and maintenance on the site of 11 new replacement rental housing units, in the new residential tower for a period of at least 20 years, comprising 7 one-bedroom units, 3 two-bedroom units and 1 three-bedroom unit which units shall generally be of the same type and size as the units proposed to be demolished and existing on the lot at the date of enactment of the by-law amendment, of which all shall have affordable rents, and tenant relocation assistance for tenants in the affected existing units in accordance with the terms as set forth in the draft by-law attached as Attachment 7 to the final zoning report from City Planning dated September 13, 2011.

iii.        A Construction Mitigation and Tenant Communication Strategy which the owner shall prepare, prior to the issuance of the first building permit (including demolition and/or excavation permit), to the satisfaction of the Chief Planner and Executive Director, City Planning.

iv.        Other needed improvements and renovations to the existing rental housing without pass through costs in rents to tenants, to the satisfaction of the Chief Planner and Executive Director, City Planning including improved security and access entry system throughout complex, better access and improvements to podium landscaped space, and programmed amenity rooms and amenity space.

4.         Before introducing the necessary Bills to City Council for enactment, City Council require the applicant to enter into a Site Plan Agreement under Section 41(16) of the Planning Act and Section 114 of the City of Toronto Act to the satisfaction of the Chief Planner and Executive Director and the City Solicitor.

5.         Before introducing the necessary Bills to City Council for enactment, City Council require the applicant to conduct testing by a qualified structural engineer, at the sole expense of the applicant, to verify the integrity of the underground garage under Earl Street, and to provide all necessary improvements and upgrades, at the sole expense of the applicant, to the satisfaction of the Executive Director, Development Engineering, Technical Services Division.

6.         Before introducing the necessary Bills to City Council for enactment, City Council require the applicant to prepare a strata reference plan of survey to illustrate the land occupied by the existing podium and the underground parking structure, at the sole expense of the applicant.

7.         City Council approve the application to demolish the 10 existing residential units located at 555 and 565 Sherbourne Street, pursuant to Municipal Code Chapters 667 and 363, subject to the following conditions under Chapter 667 which provide for the replacement of rental housing:

a.         the owner shall provide and maintain eleven (11) residential rental units on the subject site for a period of at least 20 years, comprising 7 one-bedroom units, 3 two-bedroom units and 1 three-bedroom unit, all of which shall have affordable rents;

b.         the owner shall provide tenant relocation assistance including the right to return to a replacement rental unit in the new residential tower for the eligible tenants to the satisfaction of the Chief Planner and Executive Director, City Planning Division and as further detailed in the draft by-law attached as Attachment 7 to the final rezoning report from City Planning dated September 13, 2011;

c.         the owner shall enter into and register one or more Section 111 Agreement(s) to secure the conditions outlined in a. and b. above and as described in the draft zoning by-law amendment (refer to Attachment 7: Draft Zoning By-law Amendment) to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning Division; and

d.         the owner shall register a Section 118 Restriction under the Land Titles Act (to the satisfaction of the City Solicitor) restricting the registration of a transfer or charge on title to those parts of the lands, comprising the 11 replacement rental units, without the written consent of the Chief Planner and Executive Director, City Planning Division or his designate, to assist with securing the Section 111 Agreement against future owners and encumbrances of the lands.

8.         City Council authorize the Chief Planner and Executive Director, City Planning Division to issue preliminary approval to the application under Municipal Code Chapter 667 after the satisfaction of the conditions in Recommendation 7 above, and after the Zoning By-law amendment referred to in Recommendation 1 above, have come into full force and effect.

9.         City Council authorize the Chief Building Official to issue a Section 111 permit under Municipal Code Chapter 667 after the Chief Planner and Executive Director, City Planning Division has given the preliminary approval referred to in Recommendation 8 above.

10.       City Council authorize the Chief Building Official to issue a permit under Section 33 of the Planning Act no earlier than issuance of the first building permit for the foundation of the development, and after the Chief Planner and Executive Director, City Planning Division has given the preliminary approval referred to in Recommendation 8 above, which permit may be included in the demolition permit for Chapter 667 under 363-11.1, of the Municipal Code, on condition that:

a.         the owner erect the residential tower on site no later than five (5) years from the day demolition of the existing rental units to be demolished has commenced; and

b          should the owner fail to complete the new building within the time specified in condition a., the City Clerk shall be entitled to enter on the collector’s roll, to be collected in a like manner as municipal taxes, the sum of twenty thousand dollars ($20,000.00) for each dwelling unit for which a demolition permit is issued, and that each sum shall, until payment, be a lien or charge upon the land for which the demolition permit is issued.

11.       City Council authorize the appropriate City officials to take such actions as are necessary to implement the foregoing, including execution of the Section 37 and Section 111 Agreements.

The site is located in St. James Town and contains three existing apartment buildings and a commercial podium.  This application proposes the redevelopment of the existing commercial podium at 545, 555 and 565 Sherbourne Street and the addition of a 120 metre high (43-storey) residential rental tower and 2 and 3-storey street-level townhouses along Bleecker Street with a total of 409 new rental units.  The existing podium over Earl Street between Sherbourne Street and Bleecker Street is proposed to be demolished.

This report reviews and recommends approval of the application to amend the Zoning By-law and to demolish and replace rental housing as part of the project.