Item - 2018.CC38.8

City Council on March 26 and 27, 2018, adopted the following:

1.  City Council adopt the confidential recommendations in Confidential Attachment 1 to the report (March 19, 2018) from the City Solicitor.

2.  City Council adopt the confidential recommendations in Confidential Attachment 1 to the supplementary report (March 21, 2018) from the City Solicitor.

3.  City Council authorize the public release of the confidential recommendations in Confidential Attachment 1 and Confidential Appendices A and B to the report (March 19, 2018) from the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to report (March 19, 2018) from the City Solicitor remain confidential.

4.  City Council authorize the public release of the confidential recommendations in Confidential Attachment 1 and Confidential Appendices A and B to the supplementary report (March 21, 2018) from the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to the supplementary report (March 21, 2018) from the City Solicitor remain confidential.

The confidential recommendations in Confidential Attachment 1 to the report (March 19, 2018) from the City Solicitor were adopted by City Council and are now public, as follows:

1.  City Council accept the Settlement Offer set out in Confidential Appendices A and B to Confidential Attachment 1 to the report (March 19, 2018) from the City Solicitor and City Council authorize the City Solicitor to execute Minutes of Settlement as necessary to give effect to a settlement.

2.  City Council authorize the City Solicitor and appropriate City Staff to attend at the Ontario Municipal Board hearing into this matter in support of the settlement, provided the following conditions are met:

a.  prior to issuance of any final order of the Ontario Municipal Board approving the development, the owner shall:

i.  submit an updated Noise Impact Study, in consultation with the owners of 280 King Street East, which will be subject to a peer review arranged by the City, (the cost of which shall be borne by the owner) that provides a noise mitigation strategy as necessary to adequately address noise impact from HVAC equipment and other equipment on the existing office building at 280 King Street East and the planned office building at 25 Ontario Street, to the satisfaction of the Chief Planner and Executive Director, City Planning; the owner shall implement and maintain the approved noise mitigation strategy at their sole expense, the details of which shall be set out in the Site Plan Agreement;

ii.  submit an Air Quality Study, in consultation with the owners of 280 King Street East, which will be subject to a peer review arranged by the City (the cost of which shall be borne by the owner), that determines the impact on air quality from the emissions from existing diesel generator in the existing office building at 280 King Street East; should the study recommend that air quality mitigation measures are necessary to adequately address the impact of air emissions on the proposed development, the owner agrees to implement and maintain the air quality mitigation measures at their sole expense, the details of which shall be set out in the Site Plan Agreement;

iii.  provide an updated Site Servicing and Stormwater Management Report and an updated Hydrogeological Investigation Report, all to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services (the Chief Engineer);

iv.  design and financially secure any improvements to the municipal infrastructure, should it be determined that upgrades are required to support the development, according to the Site Servicing and Stormwater Management Report accepted by the Chief Engineer, all to the satisfaction of the Chief Engineer;

v.  provide an updated Traffic Impact Study and an updated Parking and Loading Study to address the revised vehicular access and reduction in parking spaces, to the satisfaction of the General Manager, Transportation Services;

vi.  submit a draft Zoning By-law in a form satisfactory to the City Solicitor; and

vii.  enter into a Section 37 Agreement with the City, to the satisfaction of the City Solicitor, which secures the following:

A.  a cash contribution of $5,000,000.00 for community benefits on or in the vicinity of the subject lands, to be paid prior to issuance of any above-grade building permit.  The allocation will be determined by Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, and specified in the Section 37 Agreement;

B.  the cash contribution reference above shall be increased by upwards indexing in accordance with the Construction Price Index for the Toronto CMA, reported by Statistics Canada or its successor, calculated from the date the Section 37 Agreement is registered on title to the date payment is made;

C.  provision of a minimum of 10 percent three-bedroom units and a minimum of 30 percent two-bedroom units;

D.  prior to the commencement of any excavation and shoring work, the owner will submit a Construction Management Plan and Community Consultation Strategy, to the satisfaction of the Chief Planner and Executive Director, City Planning, and the General Manager, Transportation Services, in consultation with the Ward Councillor, and thereafter shall implement the plan during the course of construction; the Construction Management Plan will include, but not be limited to, the size and location of construction staging areas, location and function of gates, information on concrete pouring, lighting details, construction vehicle parking and queuing locations, refuse storage, site security, site supervisor contact information, a communication strategy with the surrounding community, and any other matters requested by the Chief Planner and Executive Director, City Planning or the General Manager, Transportation Services, in consultation with the Ward Councillor;

E.  prior to the issuance of the first above-grade building permit for the site, no less than 470.5 square metres of unencumbered parkland shall be conveyed to the City, located on the north side of King Street East between the existing buildings identified as 254 King Street East and 266 King Street East, pursuant to section 42 of the Planning Act; these lands shall be unencumbered and meet Parks, Forestry and Recreations environmental requirements and base park conditions, as set out in the Memorandum to Community Planning and City Legal provided by Planning, Design and Development Parks, Forestry and Recreation dated September 27, 2016, to the satisfaction of the General Manager, Parks Forestry and Recreation; and

F.  prior to the issuance of Site Plan Approval, the owner shall construct, to the satisfaction of the Chief Planner and Executive Director, City Planning, an accessible public pedestrian walkway, on a private sidewalk along the south side of the proposed vehicular driveway through the building, which must abut the proposed public park and will be subject to a pedestrian public access easement extending between Princess Street and Ontario Street; the specific location, configuration and design of the pedestrian walkway shall be determined in the context of a site plan approval pursuant to Section 114 of the City of Toronto Act, 2006, and secured in a Site Plan Agreement with the City; and

b.  the owner acknowledges and agrees that the following design elements may need to be provided and/or revised through the Site Plan approval process:

i.  confirmation that the front wall of the existing heritage buildings facing Ontario Street will be maintained above the opening for the proposed pedestrian walkway;

ii.  revisions to the location and/or width of the proposed east-west pedestrian walkway through the building as may be necessary to meet heritage preservation objectives for the front wall of the existing heritage buildings facing Ontario Street;

iii.  provision of a direct pedestrian connection(s) between the public park and the east-west pedestrian walkway that is publicly accessible at all times of the day and year;

iv.  revisions to the ground floor plan to generally maximize retail frontage facing Adelaide Street East;

v.  revisions to the size of retail units; and

vi.  potential revisions to the extent of the proposed mezzanine level to provide for an appropriate ground floor height, subject to feasibility considering the retained portions of the existing heritage buildings.

The confidential recommendations in Confidential Attachment 1 to the supplementary report (March 21, 2018) from the City Solicitor were adopted by City Council and are now public, as follows:

1.  City Council approve the alterations to the designated heritage properties at 260 King Street East, including the entrance addresses at 254, 256 and 266 King Street East (North and South Building), 427 Adelaide Street East and 157 Princess Street under Section 34 of the Ontario Heritage Act and the demolition of the designated heritage property at 435 Adelaide Street East in accordance with Section 33 of the Ontario Heritage Act, to allow for the construction of two new towers, base building(s) and alterations to the designated heritage buildings identified above, in accordance with the Settlement Offer set out in Confidential Appendices A and B to Confidential Attachment 1 to the supplementary report (March 21, 2018) from the City Solicitor, provided the following conditions are met:

a.  prior to the issuance of any final order of Ontario Municipal Board Order in connection with the Zoning By-law Appeal, the owner shall:

i.  provide a revised Heritage Impact Assessment, prepared by a qualified heritage consultant, consistent with the conservation strategy set out in a Settlement Offer and confirming in situ preservation for all of the conserved elevations, save and except a portion of the South Building at 266 King Street East, which will be subject to reconstruction, all to the satisfaction of the Senior Manager, Heritage Preservation Services;

ii.  provide a Conservation Plan, prepared by a qualified heritage consultant, substantially in accordance with the approved revised Heritage Impact Assessment and in keeping with the Standards and Guidelines for the Conservation of Historic Places in Canada, to the satisfaction of the Senior Manager, Heritage Preservation Services; and

iii.  enter into and register on title to the properties at 260 King Street East, including the entrance addresses at 254, 256 and 266 King Street East (North and South Building), 427 Adelaide Street East and 157 Princess Street, one or more agreements with the City pursuant to Section 37 of the Planning Act and Heritage Easement Agreement(s) for all of the conserved heritage properties to the satisfaction of the City Solicitor, the Chief Planner and Executive Director, City Planning and the Senior Manager, Heritage Preservation Services including securing the matters set forth in Settlement Offer, with such facilities, services and matters to be set forth in the related site specific Zoning By-law Amendment giving rise to the proposed alterations;

b.  prior to Final Site Plan approval and prior to any permit issuing for any of the designated properties 260 King Street East, including the entrance addresses at 254, 256 and 266 King Street East (North and South Building), 427 Adelaide Street East, 435 Adelaide Street East and 157 Princess Street, including a heritage permit, demolition permit or a building permit but excluding permits for repairs and maintenance of the existing heritage building as are satisfactory to the Senior Manager, Heritage Preservation Services:

i.  provide final Site Plan drawings, including drawings for the Development Lands related to the approved Conservation Plan, to the satisfaction of the Senior Manager, Heritage Preservation Services and the Chief Planner and Executive Director, City Planning;

ii.  obtain final approval for the necessary Zoning By-law Amendments required for the subject property, with such Amendments being the subject of an Ontario Municipal Board order, allowing the Zoning By-law Appeals in part and with the support and agreement of the City Council as determined to the satisfaction of the Chief Planner and Executive Director, City Planning, and with such By-laws having come into come full force and effect;

iii.  provide a detailed landscape plan for the site, to the satisfaction of the Senior Manager, Heritage Preservation Services;

iv.  provide a Heritage Lighting Plan that describes how 260 King Street East and specifically the buildings with entrance addresses at 254, 256 and 266 King Street East (South Building), 427 Adelaide Street East and 157 Princess Street will be sensitively illuminated to enhance the prominence of the conserved heritage properties on the site, to the satisfaction of the Senior Manager, Heritage Preservation Services and thereafter implement such plans to the satisfaction of the Senior Manager, Heritage Preservation Services;

v.  provide an Interpretation Plan for 260 King Street East, specifically the buildings with entrance addresses at 254, 256 and 266 King Street East (South Building), 427 Adelaide Street East, 435 Adelaide Street East and 157 Princess Street to the satisfaction of the Senior Manager, Heritage Preservation Services and thereafter shall implement such Plan to the satisfaction of the Senior Manager, Heritage Preservation Services; and

vi.  submit a Signage Plan to the satisfaction of the Senior Manager, Heritage Preservation Services and there shall implement such Plan to the satisfaction of the Senior Manager, Heritage Preservation Services;

c. prior to the issuance of any permit for the designated heritage properties at 260 King Street East, specifically the buildings with entrance addresses at 254, 256 and 266 King Street East (South Building), 427 Adelaide Street East, 435 Adelaide Street East and 157 Princess Street, including a heritage permit, demolition permit or a building permit, but excluding permits for repairs and maintenance of the existing heritage buildings acceptable to the Senior Manager, Heritage Preservation Services, the owner shall:

i.  obtain final approval for the necessary Zoning By-law Amendments required for the subject property, and with such By-laws having come into full force and effect;

ii.  provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan, including a description of materials and finishes, to be prepared by the project architect and a qualified heritage consultant, and confirming in situ preservation and a bracing and shoring strategy for all of the conserved elevations save and except a portion of the South Building at 266 King Street East, which will be subject to reconstruction, all to the satisfaction of the Senior Manager, Heritage Preservation Services;

iii.  provide a Letter of Credit, including provision for upward indexing, in a form and amount and from a bank satisfactory to the Senior Manager, Heritage Preservation Services, to secure all work included in the approved Conservation Plan and the approved Lighting Plan, Signage Plan and Interpretation Plan; and

iv.  provide full documentation of the existing designated heritage property at 435 Adelaide Street West, including two (2) printed sets of archival quality 8" x 10" colour photographs with borders in a glossy or semi-gloss finish and one (1) digital set on a CD in tiff format and 600 dpi resolution keyed to a location map, elevations and measured drawings, and copies of all existing interior floor plans and original drawings as may be available, to the satisfaction of the Senior Manager, Heritage Preservation Services;

d. prior to the release of the Letter of Credit the owner shall:

i.  obtain Site Plan approval for the development, issued by the Chief Planner and Executive Director City Planning;

ii.  provide a letter of substantial completion prepared and signed by a qualified heritage consultant confirming that the required conservation work has been completed in accordance with the approved Conservation Plan and the approved Lighting Plan, Signage Plan and Interpretation Plan, and that an appropriate standard of conservation has been maintained, all to the satisfaction of the Senior Manager, Heritage Preservation Services; and

iii.  provide Heritage Easement Agreement photographs to the satisfaction of the Senior Manager, Heritage Preservation Services;

e.  City Council authorize the City Solicitor to enter into a Heritage Easement Agreement registered on the title for the heritage properties at 260 King Street East, specifically the buildings with entrance addresses at 254, 256 and 266 King Street East (North and South Buildings), 427 Adelaide Street East and 157 Princess Street including that such agreement shall provide for alterations set out in the approved Conservation Plan, in a form and with content satisfactory to the City Solicitor and Senior Manager, Heritage Preservation Services;

f.  the owner shall withdraw its appeal to the St. Lawrence Neighbourhood Heritage Conservation District Plan upon the Ontario Municipal Board issuing a final order related to the Zoning By-law appeal; and

g.  that upon adoption of City Council of the settlement offer of the Zoning By-law Appeal, the owner shall withdraw his objection to the Conservation Review Board of the Amendment to Designating By-law 855-88.

The balance of Confidential Attachment 1 to the report (March 19, 2018) 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 or corporations and it contains advice that is subject to solicitor-client privilege.

The balance of Confidential Attachment 1 to the supplementary report (March 21, 2018) 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 or corporations and it contains advice that is subject to solicitor-client privilege.

Confidential Appendices A and B to the report (March 19, 2018) from the City Solicitor are now public and can be accessed under Background Information (City Council).

Confidential Appendices A and B to the supplementary report (March 21, 2018) from the City Solicitor are now public and can be accessed under Background Information (City Council).