Item - 2015.MM8.55

City Council on July 7, 8 and 9, 2015, adopted the following:

1.  City Council amend Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor:

a.  by deleting confidential Recommendation 1; and

b.  as outlined in the confidential attachment to motion 2 by Councillor Justin Di Ciano.

2.  City Council adopt confidential Recommendations 2 to 8 in the Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor, as amended by Part 1 above, and delete reference to confidential Recommendation 1 in the balance of the confidential recommendations.

3.  City Council adopt the confidential instructions to staff as outlined in the confidential attachment to motion 1 by Councillor Sarah Doucette.

4.  City Council authorize the public release of the confidential instructions to staff adopted by City Council, as amended, and Appendices A, B and C to Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor remain confidential.

The following confidential instructions to staff were adopted by City Council, as amended, and are now public:

1.  City Council direct the City Solicitor to advise the Ontario Municipal Board that the With Prejudice Plans dated June 29, 2015 for 2114-2130 Bloor Street West for the purpose of the Zoning By-law amendment are acceptable subject to the balance of the instructions set out in Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor, as amended, and subject to further review during the site plan process, with any modifications acceptable to the Chief Planner and Executive Director, City Planning.

2.  City Council direct that arrangements satisfactory to the City are made for the owner to acquire the small triangular portion of land owned by the City and incorporated into the development immediately adjacent to the proposed underground parking garage at 2114 -2130 Bloor Street West (‘2114 Bloor’) including obtaining all approvals from the City including determining through the Property Management Committee that there is no objection in principle to the sale of the land, having the land declared surplus by the City and obtaining necessary approval to sell the land or, alternatively, the plans for 2114 Bloor are modified in a manner to remove the requirement to utilize this small triangular portion of land to the satisfaction of the Chief Planner and Executive Director, City Planning.

3.  Subject to the fulfillment of Part 2 above, City Council authorize the City Solicitor and other appropriate staff to attend the Ontario Municipal Board hearing(s) as necessary in support of a settlement of the Zoning By-law Amendment appeal for 2114 Bloor and the Zoning By-law Amendment and Site Plan Control Approval appeals for 2800 Bloor Street West (‘2800 Bloor’) based on the following:

a.  For 2800 Bloor Street West, the applicant's plans dated June 30, 2015 which incorporate the garage access off of Bloor Street West and revised as follows: to remove primary windows less than 5.5 metres from the side lot line, vents or service elements along the primary Bloor Street West elevation shall be designed to minimize impacts along this primary frontage, remove any encroachments onto City lands with the exception of a pathway only, located at the east end of the building adjacent to the parkette and incorporate the built form revisions cited under the July 31, 2014 letter from the applicant set out in Appendix C to Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor acknowledging additional built form refinements and modifications to on-site amenity space, to the satisfaction of the Chief Planner and Executive Director, City Planning and the General Manager, Transportation Services.

b.  The owner of the lands comprising 2800 Bloor entering into and registering  against such lands, prior to any Order issuing by the Ontario Municipal Board,  an agreement pursuant to section 37 of the Planning Act, and an agreement pursuant to  section 111 of the City of Toronto Act, 2006 (c.667 of the Municipal Code) together with the registration of a section 118 Restriction against  such lands, and  the owner of the lands comprising 2114 Bloor entering into and registering  against such lands, prior to any Order issuing by the Ontario Municipal Board, an agreement pursuant to section 37 of the Planning Act, and an agreement pursuant to section 111 of the City of Toronto Act, 2006 (c.667 of the Municipal Code) together with the registration of a section 118 Restriction against such lands,  to secure the following, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor and prior to any Order issuing by the Ontario Municipal Board in respect of any such appeals:

I.  The provision and maintenance by the owners of 10 residential rental replacement dwelling units all to be provided on either the lands comprising 2800 Bloor and consistent with the zoning by-law amendment supported herein by the City Council for such lands and in accordance with the development supported by City Council herein for such lands and the site plan approval for such lands supported  by City Council and to the satisfaction of the Chief Planner and Executive Director, City Planning or alternatively all  to be provided on the lands comprising 2114 Bloor and within a development consistent with the zoning by-law amendment supported herein by the City Council for such lands  and in accordance with a site plan approval satisfactory to the Chief Planner and Executive Director, City Planning, with all 10 such replacement rental dwelling units  to be provided as a contiguous cluster in a location and with a layout in accordance with plans satisfactory to  the Chief Planner and Executive Director, City Planning composed as follows: 4 two bedroom dwelling units of which 2 shall be provided at affordable rents and 2 shall be provided at  mid-range rents; 6 three bedroom  units of which 1 shall be provided at affordable rents and 5 shall be provided at mid-range rents, and including that:

A.  the two bedroom replacement rental dwelling units shall have an average GFA of not less than 841 square feet, with a total GFA for the 4 two bedroom units being not less than 3,366 square feet, and the three-bedroom replacement rental dwelling units shall have an average GFA of  not less than 1,054 square feet, with a total GFA for the 6 three bedroom units being not less than 6,329 square feet,  and with the interior plans for all of the replacement rental dwelling units to be to the satisfaction of the Chief Planner and Executive Director, City Planning;

B.  the rental replacement dwelling units shall be: maintained as rental units for at least 20 years, beginning with the date that each unit is occupied and until the Owner obtains approval for a zoning by-law amendment removing the requirement for replacement rental units to be maintained as rental units;

C.  the replacement rental dwelling units shall be ready and available for occupancy no later than, if provided at 2800 Bloor:  the date by which not more than 60 percent of the new dwelling units erected on the site of 2800 Bloor are available and ready for occupancy, or if provided at 2114 Bloor: prior to any residential use of any new building erected at 2800 Boor after the date of this Council decision;

D.  the owner of the lands on which the replacement rental units are erected shall provide and maintain affordable rents charged to the tenants who rent the 3 designated affordable replacement rental dwelling units during the first 10 years of occupancy, such that the initial rent shall not exceed an amount based on the most recent Fall Update Canada Mortgage and Housing Corporation Rental Market Report average rent for the City of Toronto by unit type, and, upon turn-over, the rent charged to any new tenant shall not exceed the greater of the most recently charged rent or the most recently reported Rental Market Report average rent for the City of Toronto by unit type and over the course of the 10 year period, annual increases shall not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases;

E.  rents charged to tenants occupying the 3 designated affordable replacement rental dwelling units at the end of the 10 year period shall be subject only to annual increases which do not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases, so long as they continue to occupy their dwelling unit or until the expiry of the rental tenure period set forth in Part 3.b.I.B above with a phase-in period of at least three years for rent increases;

F.  the owner of the lands on which the rental replacement units are erected shall provide and maintain mid-range rents charged to the tenants who rent the 7 designated mid-range replacement rental dwelling units during the first 10 years of occupancy, such that the initial rent shall not exceed one and a half times the amount of  the most recent Fall Update Canada Mortgage and Housing Corporation Rental Market Report average rent for the City of Toronto by unit type, and, upon turn-over, the rent charged to any new tenant shall not exceed the greater of the most recently charged rent or one and a half times the most recently reported Canada Mortgage and Housing Corporation Rental Market Report average rent for the City of Toronto by unit type and over the course of the 10 year period, annual increases shall not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases;

G.  rents charged to tenants occupying the 7 midrange replacement rental dwelling unit at the end of the 10 year period shall be subject only to annual increases which do not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases, so long as they continue to occupy their dwelling unit or until the expiry of the rental tenure period set forth in Part 3.b.I.B above with a phase-in period of at least three years for rent increases;

H.  after the completion of the 10 year period set forth in Parts 3.b.I.D and F. above, rents charged to tenants newly occupying a replacement rental dwelling will not be subject to any rent restrictions that may be set out in any agreement(s) entered pursuant to section 37 of the Planning Act, or pursuant to section 111 of the City of Toronto Act, 2006; and

I.  tenants of replacement units shall have access to indoor and outdoor amenity space on the site at no additional charge and on the same basis as other residents of the building, and shall have laundry facilities (in unit or access to shared facilities) and shall have access to vehicle parking and bicycle parking facilities; and

II.  In addition to the matters in Part 3.b.I. above the Section 37 Agreement for 2800 Bloor shall secure the following, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor and prior to any Order issuing by the Ontario Municipal Board:

A.  Cash contribution of $200,000.00 to be paid to the City prior to the issuance of any building permit for the lands at 2800 Bloor, to be used towards capital improvements for community services and facilities in the vicinity of the lands at 2800 Bloor, at the discretion of the Chief Planner and Executive Director, City Planning in consultation with the Ward Councillor.  Such amount to be indexed upwardly in accordance with the Statistics Canada Non-Residential building Construction Price Index for Toronto, calculated from the date of the Section 37 Agreement to the date the payment is made.

B.  And with provision that in the event the payment required in Part 3.b.II.A. above has not been used for the intended purpose set out within three (3) years of the date of the By-law coming into full force and effect, such cash contribution may be redirected for other capital improvement purposes at the discretion of the Chief Planner and Executive Director, City Planning in consultation with the local Councillor, provided such purpose(s) are identified in the Toronto Official Plan and will benefit the community in the vicinity of the site.

c.  The City Solicitor to request that the Ontario Municipal Board withhold its Order(s) on the Zoning By-law Amendment appeals for 2800 Bloor and 2114 Bloor pending:

i.  Receipt of confirmation from the City Solicitor that the final form of the amendments to the former City of Etobicoke Zoning Code for such properties are  to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, including securing the matters in Parts 3.b.I and II above;

ii.  Receipt of confirmation from the City Solicitor of the satisfactory execution and registration of the Section 37 Agreements required in Part 3.b. above, on the lands comprising 2800 Bloor and the lands comprising 2114 Bloor; and

iii.  Receipt of confirmation from the City Solicitor that the owner has submitted Functional Servicing Reports for 2800 Bloor and 2114 Bloor satisfactory to the Executive Director of Engineering and Construction Services and that the owner has made satisfactory arrangements with the City's Engineering and Construction Services for the construction of any improvements to the municipal infrastructure should it be determined that upgrades are required to the infrastructure to support this development, according to the Functional Servicing Reports accepted by the Executive Director of Engineering and Construction Services.

d.  The City Solicitor to request that the Ontario Municipal Board withhold its Order on the Site Plan Control appeal for 2800 Bloor pending the following:

i.  Receipt of confirmation from the City Solicitor that the site plan application for such lands has been revised to incorporate the built form revisions cited under the July 31, 2014  letter from the applicant set out in Appendix C to Confidential Attachment 1 to the City Solicitor’s Request for Directions Report (July 9, 2015) acknowledging additional built form refinements and modifications to on-site amenity space, the 10 replacement rental dwelling units unless such units are to be provided at the owners election, in the herein City Council supported development for  2114 Bloor, driveway access off of Bloor Street West, to remove any encroachments onto City lands, to remove windows less than 5.5 metres from the side lot line, to remove vents or service elements along the primary building elevation along the Bloor Street West elevation and to reflect the most recent plans referred to in Part 3.a. above, all  to the satisfaction of the Chief Planner and Executive Director, City Planning and in regards to the driveway access to the satisfaction of the General Manager, Transportation Services;

ii.  Receipt of confirmation from the City Solicitor that any pre-approval Conditions of Site Plan Approval for 2800 Bloor set out in Attachment 10 to the Request for Directions report (August 1, 2014) from City Planning, amended to the satisfaction of the Chief Planner and Executive Director, City Planning, to reflect the most recent City Council authorized plans and any conditions related to Part 3.d.i. above, have been fulfilled to the satisfaction of the Chief Planner Executive Director, City Planning; and

iii.  Receipt of confirmation from the City Solicitor that the Applicant has entered into and registered a Site Plan Agreement for 2800 Bloor pursuant to section 114 of the City of Toronto Act, 2006 and section 41 of the Planning Act, with such agreement to include the Conditions of Site Plan Approval set out in Attachment 10 to the Request for Directions Report of City Planning dated August 1, 2014 and as may be amended to reflect the latest City Council authorized plans and Part 3.d.ii. above, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor.

4.  City Council approve the application to demolish the existing residential building at 2800 Bloor that includes 10 affordable and mid-range, 2 and 3 bedroom residential rental dwelling units, pursuant to Municipal Code Chapter 667, subject to the following conditions:

a.  The owners of the lands comprising 2800 Bloor and 2114 Bloor shall each enter into and register one or more Section 111 Agreements on the respective lands comprising 2800 Bloor and 2114 Bloor, to secure the conditions of rental demolition approval and replacement rental, and including provisions requiring future owners and encumbrancers of such lands to assume the obligations contained therein, and shall each register a Section 118 Restriction to assist with securing such matters, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning, and as outlined below.

b.  The Owner shall provide and maintain not less than 10 new replacement rental dwelling units, comprising: 4 two bedroom dwelling units of which 2 shall be provided at affordable rents and 2 shall be provided at  mid-range rents; 6 three bedroom dwelling units of which 1 shall be provided at affordable rents and 5 shall be provided at mid-range rents and including that the two bedroom replacement rental dwelling units shall have an average GFA of not less than 841 square feet, with a total GFA for the 4 two bedroom units being not less than 3,366 square feet, and the three-bedroom replacement rental dwelling units shall have an average GFA of not less than 1,054 square feet, with a total GFA for the 6 three bedroom units being not less than 6,329 square feet,  and with the interior plans for all of the replacement rental dwelling units all to the satisfaction of the Chief Planner and Executive Director, City Planning, subject to the following:

i.  The 10 replacement rental dwelling units shall be provided entirely on the lands comprising 2800 Bloor and within a building erected in accordance with a zoning by-law amendment and site plan approval authorized by City Council as set out in Part 3 above or alternately at 2114 Bloor and within a building erected in accordance with a zoning by-law amendment authorized by City Council as set out in Part 3 above and in accordance with a site plan approval satisfactory to the Chief Planner and Executive Director, City Planning, all with such replacement units being in accordance with interior plans, locations and contiguously clustered all to the satisfaction of the Chief Planner and Executive Director, City Planning;

ii.  The replacement rental dwelling units shall be maintained as rental dwelling units for at least 20 years, beginning with the date that each unit is occupied and until the Owner obtains approval for a zoning by-law amendment removing the requirement for replacement rental units to be maintained as rental units;

iii.  The replacement rental dwelling units, if provided at 2800 Bloor, shall be ready and available for occupancy no later than the date by which not more than 60 percent of the new dwelling units erected on the site of 2800 Bloor are available and ready for occupancy, or, alternatively if the replacement rental dwelling units are provided at 2114 Bloor Street West, shall be ready and available for occupancy prior to any residential use of any new building at 2800 Bloor;

iv.  The Owner shall provide and maintain affordable rents charged to the tenants who rent the 3 designated affordable replacement rental dwelling units during the first 10 years of occupancy, such that the initial rent shall not exceed an amount based on the most recent Fall Update Canada Mortgage and Housing Corporation Rental Market Report average rent for the City of Toronto by unit type, and, upon turn-over, the rent charged to any new tenant shall not exceed the greater of the most recently charged rent or the most recently reported Rental Market Report average rent for the City of Toronto by unit type and over the course of the 10 year period, annual increases shall not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases;

v.  The Owner shall provide and maintain mid-range rents charged to the tenants who rent the 7 designated mid-range replacement rental dwelling units during the first 10 years of occupancy, such that the initial rent shall not exceed an amount based on one and a half times the most recent Fall Update Canada Mortgage and Housing Corporation Rental Market Report average rent for the City of Toronto by unit type, and, upon turn-over, the rent charged to any new tenant shall not exceed the greater of the most recently charged rent or one and a half times the most recently reported Rental Market Report average rent for the City of Toronto by unit type and over the course of the 10 year period, annual increases shall not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases;

vi.  Rents charged to tenants occupying a replacement rental dwelling unit at the end of the 10 year period set forth in Parts 4.b.iv. and v. above shall be subject only to annual increases which do not exceed the Provincial rent guideline and, if applicable, permitted above guideline increases, so long as they continue to occupy their dwelling unit or until the expiry of the rental tenure period set forth in Part 4.b.ii. above with a phase-in period of at least three years for rent increases commencing at the expiry of that period;

vii.  After the completion of the 10 year period set forth in Parts 4.b.iv. and v. above, rents charged to tenants newly occupying a replacement rental dwelling unit will not be subject to any rent restrictions that may be set out in any agreements entered into pursuant to section 37 of the Planning Act or section 111 of the City of Toronto Act, 2006;

viii.  Tenants in each of the 10 replacement rental dwelling units will have access to laundry facilities within the building, and will be given access at no charge and on the same basis as residents of the remainder of the building to indoor and outdoor amenity space, bicycle parking spaces, storage lockers (where applicable), visitor parking, and other common areas, utility and mechanical areas (as appropriate); and

ix.  Tenants in each of the 10 replacement rental dwelling units will have access to renting at least 1 parking space on the replacement rental site for a total of at least 10 parking spaces on the same basis as residents of the remainder of the building, subject to maximum parking charges consistent with the City's practices on parking for replacement rental dwelling units, all to the satisfaction of the Chief Planner and Executive Director, City Planning.

5.  City Council authorize the Chief Planner and Executive Director, City Planning to issue a preliminary approval to the application under Municipal Code Chapter 667 after all of the following have occurred:

a.  Prior to the Board Order issuing, the Owners of the lands comprising 2800 Bloor and 2114 Bloor shall each have entered into and registered the respective Section 37 Agreements and the Section 111 Agreements  and have registered the respective Section 118 Restrictions, as required in Parts 3.b. and 4.a. above on the lands comprising 2800 Bloor and the lands comprising 2114 Bloor Street West, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor;

b.  The zoning by-law amendments for the lands comprising 2800 Bloor and for the lands comprising 2114 Bloor as agreed to by City Council herein, as determined to the satisfaction of the Chief Planner and Executive Director, City Planning, have come into full force and effect;

c.  The Owner has submitted a Letter of Credit satisfactory to the Chief Planner and Executive Director City Planning in the amount of $1,500,000.00 to secure the provision of the rental replacement dwelling units, such Letter of Credit to be subject to the following:

i.  the Letter of Credit shall be reduced by 50 percent once the first above-grade building permit has been issued for 2114 Bloor for  the development as agreed to by City Council herein, provided such permit requires and includes all 10 replacement rental dwelling units to be provided at 2114 Bloor and with such replacement units being in accordance with interior plans, locations and clustered all to the satisfaction of the Chief Planner and Executive Director City Planning,  and all as determined to the satisfaction of the Chief Planner and Executive Director, City Planning, or alternatively the Letter of Credit shall be returned once all 10 replacement rental dwelling units are provided at 2800 Bloor, whichever first occurs;

ii.  the Letter of Credit shall be retained by the City until all 10 rental replacement dwelling units are ready and available for occupancy, but can be cashed by the City at the discretion of the Chief Planner and Executive Director, City Planning and used towards the provision of affordable and/or mid-range rental housing which does not relieve or replace the obligation of the owner(s) to provide and maintain the 10 required  replacement rental dwelling units and associated rents,  if all or any of the 10 required rental replacement units are not ready and available for occupancy prior to the earlier of:

A.   the date the first new dwelling unit erected at 2800 Bloor is available for occupancy; and

B.  4 years from the earlier of the date of issuance of the first demolition permit  for all or any portion of the existing rental building at 2800 Bloor or the date of issuance of any permit pursuant to Chapter 667 of the Municipal Code for 2800 Bloor,

subject to such extensions as may be reasonably requested by the owner and may be agreed to by the City in the sole discretion of the City;

iii.  once the 10 replacement rental dwelling units are ready and available for occupancy to the satisfaction of the Chief Planner and Executive Director, City Planning, the City shall return any unused portion of the Letter of Credit;

iv.  the Letter of Credit will be indexed and increased annually to the satisfaction of the Chief Planner and Executive Director, City Planning; and

v.  in the event any demolition or building permit has issued under the Building Code Act, 1992 for the lands comprising 2800 Bloor, other than for repairs or maintenance to the existing building on the lands at the date of this decision, the Letter of Credit shall have been provided to the City prior to the earlier of the issuance of any such permit, to the satisfaction of the Chief Planner and Executive Director, City Planning;

d.  The Owner has obtained Site Plan Approvals for the  developments  agreed to by City Council herein for each of 2800 Bloor and 2114 Bloor, to the satisfaction of the Chief Planner and Executive Director, City Planning and for 2800 Bloor such approval is in accordance with a zoning by-law amendment and site plan approval authorized by City Council as set out in Part 3, herein, and for 2114 Bloor such approval is in accordance with a zoning by-law amendment authorized by City Council as set out in Part 3, herein and in accordance with a site plan approval satisfactory to the Chief Planner and Executive Director City Planning, all with the required  replacement rental dwelling units being in accordance with interior plans, locations and contiguously clustered all to the satisfaction of the Chief Planner and Executive Director City Planning; and

e.  The Owner has obtained the foundation building permit for the development which is to contain the replacement rental dwelling units, substantially in accordance with the plans agreed to herein  by City Council and the Zoning By-law Amendment and Site Plan Approval agreed to herein by City Council,  and respecting Site Plan Approval in the case of 2114 Bloor in accordance with a site plan approval satisfactory to the Chief Planner and Executive Director, City Planning, all to the satisfaction of the Chief Planner and Executive Director, City Planning.

6.   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 has provided preliminary approval.

7.   City Council authorize City staff to take such other actions as are necessary to implement Council's decision.

8.  City Council authorize the Chief Building Official to issue a permit under section 33 of the Planning Act for 2800 Bloor no earlier than the  issuance of a Section 111 permit  under Municipal Code Chapter 667 as provided for in Part 6 above for 2800 Bloor and including amongst other matters  that the Owner has obtained the foundation building permit for the development to contain the replacement rental dwelling units, substantially in accordance with the plans agreed to herein by City Council and the Zoning By-law Amendment and Site Plan Approval agreed to herein by City Council or respecting Site Plan Approval in the case of 2114 Bloor in accordance with a site plan approval satisfactory to the Chief Planner and Executive Director, City Planning, all to the satisfaction of the Chief Planner and Executive Director, City Planning.

Such section 33 permit may be included in the permit for Chapter 667 and under Chapter 363 of the Municipal Code, on condition that:

a.  The owner construct and substantially complete  a residential building on the site no later than four (4) years from the day demolition of the building at 2800 Bloor is commenced; and

b.  Should the owner fail to complete the new building containing the replacement rental dwelling units within the time specified in Part 8.a., the City Clerk shall be entitled to enter on the collector's roll, to be collected in a like manner to municipal taxes, the sum of twenty thousand dollars ($20,000) 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.

Appendices A, B and C to Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor are now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (July 9, 2015) from the City Solicitor remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it pertains to litigation or potential litigation that affects the City or one of its agencies, boards and commissions and it contains advice or communications that are subject to solicitor-client privilege.