Item - 2017.CC27.2

City Council on March 28 and 29, 2017, adopted the following:

1.  City Council adopt the confidential recommendations contained in Confidential Attachment 1 to the report (March 21, 2017) from the City Solicitor.

2. City Council authorize the public release of the confidential recommendations contained in Confidential Attachment 1 to the report (March 21, 2017) from the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to the report (March 21, 2017) remain confidential as it contains information that is subject to solicitor-client privilege.

The following confidential recommendations contained in Confidential Attachment 1 to the report (March 21, 2017) from the City Solicitor were adopted by City Council and are now public:

1. City Council authorize the City Solicitor to advise the Ontario Municipal Board that City Council supports a settlement in principle of the Official Plan Amendment and rezoning appeal related to 60 Mill Street substantially in accordance with the following principles, and all subject to the approval by City Council of the necessary alterations under the Ontario Heritage Act and the Heritage Easement Agreement:

a. 60 Mill Street shall be developed generally in accordance with the plans and drawings by Saucier + Perotte dated March 20, 2017, subject to revisions as required in relation to these resolutions;

b. the development will consist of: a maximum height of 40 metres including the mechanical penthouse; building setbacks of a minimum 3 metres from the west, south and east property lines above the existing Rack House D; and a maximum gross floor area of 12,750 square metres for a hotel or residential use; and a maximum 10,100 square metres for an office use;

c. the zoning by-law will be amended to permit office, hotel, retail, restaurant, and/or residential uses, subject to the following:

i. primary windows (living room and bedroom windows of dwelling units) do not directly face primary windows in 70 Mill Street; and

ii. hotel uses may be permitted subject to ensuring satisfactory vehicular pick-up and drop-off arrangements for the hotel, including accommodations for a taxi stand, are secured within proximity of the site;

d. the zoning by-law shall require non-contiguous amenity space (both indoor and outdoor) in an appropriate amount based on the number of dwelling units for the development, to the satisfaction of the Chief Planner and Executive Director, City Planning, with the amount of indoor amenity space close to conforming to the requirements of the zoning by-law and the amount of outdoor amenity space being less than the requirements of the zoning by-law to reflect the heritage constraints on the site;

e. the zoning by-law shall require bicycle parking ratios that conforms to Zoning By-law 569-2013;

f. prior to the issuance by the Ontario Municipal Board of its final Order, the owner shall prepare a Transportation Impact Report Addendum, including updated traffic surveys from 2016, vehicular parking justification, and loading requirements to the satisfaction of the General Manager, Transportation Services. The number of vehicular parking spaces may deviate from the standards of Zoning By-law 569-2013, provided a justification is made in the revised Transportation Impact Study, all subject to the acceptance of the General Manager, Transportation Services. Required parking may be provided off-site within the Distillery District or surrounding areas, provided a satisfactory justification is made in the Report Addendum;

g. the Ontario Municipal Board's final Order shall be withheld until Official Plan Amendment 394 is approved by the Province, or alternatively have the Province confirm that it has no objections to the proposal, or such alternative arrangements as may be acceptable to the Chief Planner and Executive Director, City Planning;

h. a portion of the ground floor shall serve as a publicly-accessible heritage interpretation area. The size of the heritage interpretation area, inclusive of circulation areas, and the configuration and design thereof will be to the satisfaction of the Senior Manager, Heritage Preservation Services;

i. in the event that permission is granted to alter the heritage resource, the existing heritage easement agreement will be amended to authorize the development and to reflect public access to the heritage interpretation area. Provisions respecting the heritage interpretation area will also be secured in the Section 37 Agreement;

j. during redevelopment, the east, west and south walls of the existing heritage resource will be maintained on site and in situ, while the north wall (except for a portion of the first return on each side) may be dismantled and rebuilt, subject to plans to be submitted to the satisfaction of the Senior Manager, Heritage Preservation Services, should City Council approve the settlement and heritage alterations, and subject to the approval of any permits necessary for the required temporary support structures for the facades; and

k the owner will prepare a set of plans, drawings and a revised Conservation Plan for the building and addition to the satisfaction of the Senior Manager, Heritage Preservation Services, so that an alteration report under Section 33 of the Ontario Heritage Act, and under the terms of the existing heritage easement agreement, can be prepared for the Toronto Preservation Board and City Council.

2. City Council authorize the City Solicitor to advise the Ontario Municipal Board that City Council supports a settlement in principle of the Official Plan Amendment and rezoning appeal related to 31R Parliament Street, 370 and 370R Cherry Street substantially in accordance with the following principles:

a. 31R Parliament Street, 370 and 370R Cherry Street shall be developed generally in accordance with the drawings by KPMB dated March 28, 2017, subject to revisions as required in relation to these resolutions;

b. the development will consist of: a tower with a maximum height of 165.7 metres (including mechanical penthouse); a maximum tower floorplate of 910 square metres and a podium extending eastward toward Cherry Street (referred to as the Ribbon Building) with a maximum height of 23.7 metres and a maximum gross floor area of 67,400 square metres;

c. office, hotel, retail and residential uses shall be permitted. If a hotel is constructed in the podium of the tower at 31R Parliament Street, the ceiling heights in the podium above the ground floor may be reduced in order to permit an additional floor and an interior courtyard in the podium; however, the massing, gross floor area and height of both the base building and the tower may not increase;

d. the zoning by-law shall require amenity space (both indoor and outdoor) in an amount based on the number of dwelling units for the development, close to conforming to the requirements of the zoning by-law to the satisfaction of the Chief Planner and Executive Director, City Planning;

e. a café/retail component may be permitted within the open space area bordered by Rack House G, Rack House J, Cherry Street and the Ribbon Building, subject to the owner’s landscape architect submitting landscaping plans for review by the City's Design Review Panel and subject to the approval of the Chief Planner and Executive Director, City Planning, with such plans incorporating a Wheel Trans transportation analysis, open space areas for sitting, potential public art, and demonstrating an appropriate size and configuration of the café/retail space;

f. with respect to the area within the development contemplated to be adjacent to and to facilitate future installation by the City of a pedestrian walkway under the rail corridor to the south, the Section 37 Agreement shall reflect the requirement that the view from within the subject lands south to the entrance of the pedestrian underpass from the north side of Trinity Square shall not be obstructed by permanent structures to the satisfaction of the Chief Planner and Executive Director, City Planning;

g. the owner will construct the underground garage beneath the Ribbon Building and any required crash wall for the Ribbon Building in conjunction with the garage and crash wall for the tower proposed at 31R Parliament Street. The design and materiality of the crash wall facing north shall be subject to approval by the Director, Community Planning, Toronto and East York District during the site plan application process. In addition, the owner will use commercially reasonable efforts to lease and finance the Ribbon Building such that it can be constructed in conjunction with the tower proposed at 31R Parliament Street. If the owner can achieve a 60 percent leasing threshold and secure financing, the owner agrees to construct the Ribbon Building in conjunction with the tower proposed at 31R Parliament Street;

h. prior to the issuance by the Ontario Municipal Board of its final Order, the owner shall prepare a Transportation Impact Report Addendum, including updated traffic surveys from 2016, vehicular parking justification, and loading requirements to the satisfaction of the General Manager, Transportation Services. The number of vehicular parking spaces may deviate from the standards of Zoning By-law 569-2013, provided a justification is made in the revised Transportation Impact Study, all subject to the acceptance of the General Manager, Transportation Services;

i. the zoning by-law shall require bicycle parking ratios that conforms to Zoning By-law 569-2013;

j. the Section 37 Agreement will reference the requirement that, as part of its site plan application, the owner shall prepare a revised Pedestrian Wind Impact Study to be submitted and reviewed to the satisfaction of the Chief Planner and Executive Director, City Planning, with any recommended mitigation measures to be implemented through the site plan approval process;

k. the Ontario Municipal Board’s final Order shall be withheld until comments from Metrolinx are provided to the satisfaction of the Chief Planner and Executive Director, City Planning in respect of the environmental impacts of the adjacent rail corridor upon the development and fulfillment of Metrolinx’s standard requirements, which may include requirements with respect to the proposed crash wall; and

l. the Ontario Municipal Board's final Order shall be withheld until Official Plan Amendment 394 is approved by the Province, or alternatively have the Province confirm that it has no objections to the proposal, or such alternative arrangements as may be acceptable to the Chief Planner and Executive Director, City Planning.

3. City Council authorize the City Solicitor to advise the Ontario Municipal Board that City Council supports a settlement in principle of the Official Plan Amendment and rezoning appeal related to each of 60 Mill Street and 31R Parliament Street, 370 and 370R Cherry Street subject to the following principles which relate generally to the consolidated development proposals:

a. the owner shall prepare a revised Functional Servicing Report to the satisfaction of the Executive Director, Engineering and Construction Services. The parties will request that the Ontario Municipal Board’s final Order on each development proposal be withheld until such time as the Functional Servicing Report is accepted by City staff. If a Functional Servicing Report submitted to the satisfaction of the City identifies infrastructure capacity issues with respect to sewer or water, including groundwater management, the zoning shall only be approved with a holding (H) symbol, which shall be lifted when sufficient infrastructure is in place;

b. the owner agrees to have both site plan applications considered by the City's Design Review Panel;

c. the requirement for the contribution of community benefits in return for increased height and density shall consist of the following:

i. the owner shall provide a contribution of $3.2 million dollars, indexed upwardly in accordance with the Statistics Canada Non-residential Construction Price Index for Toronto, calculated from the date of the final Order of the Ontario Municipal Board order and payable upon the issuance of the first above-grade building permit, to be directed to the following:

1. $1,066,667 to be used by the City in its sole discretion with respect to improvements of the First Parliament site;

2. $1,066,666 to be provided, under the supervision of the City with respect to improvements to the Toronto Aboriginal Hub in the West Don Lands;

3. $1,066,666 to be contributed towards streetscaping and open space improvements, of which $533,333 shall be spent on streetscaping and open space improvements within the Distillery District; and $533,333 shall be spent on streetscaping and open space improvements at the intersection of Trinity Street and Mill Street and on the streets along the perimeter of the Distillery District. In the event that the City requests and the owner agrees to provide such improvements directly (to the satisfaction of the City) in lieu of a financial contribution, the owner shall, at the time of issuance of its first above-grade building permit, provide a letter of credit with respect to the value of such proposed works;

4. $200,000 is established as a minimum expense to be paid by the owner for the heritage interpretation area to be installed within Rack House “D”. The owner shall, at the time of issuance of its first above-grade building permit, provide a letter of credit with respect to the value of such proposed works. In the event that the expense of the heritage interpretation area is less than $200,000 the owner shall spend the remaining funds on capital improvements as directed by the Chief Planner and Executive Director, City Planning within the publically accessible areas of the Distillery District, having regard to its role as a public cultural heritage and tourism destination; and

5. a contribution of $850,000 towards the commissioning of public art, including a public art proposal to be approved by the Chief Planner and Executive Director, City Planning where a portion of the contribution may be directed towards the relocation of "Still Dancing" by Dennis Oppenheim to a publicly accessible space subject to:

i. any relocation of the public art shall be in accordance with the Distillery District's contractual arrangements with the Dennis Oppenheim estate and shall be subject to a relocation plan satisfactory to the City; and

ii. a reasonable cost estimate be provided, based on third party reviews of the relocation, with the actual cost not to exceed $100,000 all subject to the satisfaction of the Chief Planner and Executive Director;

d. matters are to be secured in the Section 37 Agreement as legal convenience to support the developments include the following:

i. the owner shall provide 10 percent of the total number of dwelling units as 3-bedroom dwelling units or larger, or their equivalents;

ii. prior to the issuance of the first building permit, the owner shall submit a Construction Management Plan to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor;

iii. the owner shall consult with the area residents in respect to the site plan applications for the development proposals, including meeting with area residents to present the site plans, in coordination with City Planning staff, and in consultation with the Ward Councillor;

iv. the fourth and fifth storeys of the Ribbon Building shall be constructed in a different exterior material than the first three storeys, to be determined through the site plan approval process; and

v. prior to the issuance of the first building permit, the owner shall submit a strategy to document and preserve archaeological remains on the site of 31A Parliament Street, to the satisfaction of the Senior Manager, Heritage Preservation Services; and

e. the owner agrees to enter discussions with City Planning to revise the Section 37 Agreement, as amended for the Distillery District to delineate the publicly accessible open spaces.

4. City Council authorize the City Solicitor, in consultation with the Chief Planner and Executive Director, City Planning to finalize the elements of the settlement, including the final form of the official plan amendments, amending zoning by-laws and other related planning instruments generally in accordance with Council's decision.

The balance of Confidential Attachment 1 to the report (March 21, 2017) from the City Solicitor remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice or communications that are subject to solicitor-client privilege.