Item - 2018.CC41.7

City Council on May 22, 23 and 24, 2018, adopted the following:

1.  City Council adopt the confidential recommendations in the Confidential Attachment 1 to the report (May 11, 2018) from the City Solicitor.

2.  City Council authorize the public release of the confidential recommendations in the Confidential Attachment 1, and Confidential Attachments 2 and 3 to the report (May 11, 2018) from the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to the report (May 11, 2018) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice that is subject to solicitor-client privilege.

The confidential recommendations in Confidential Attachment 1 to the report (May 11, 2018) from the City Solicitor were adopted by City Council and are now public, as follows:

1.  City Council accept the Settlement Offer dated May 11, 2018 in Confidential Attachment 2 to the report (May 11, 2018) from the City Solicitor and City Council direct the City Solicitor and other appropriate staff to attend the Local Planning Appeal Tribunal in support of the settlement.

2.  City Council authorize the City Solicitor to enter into an agreement pursuant to Section 37 of the Planning Act as follows:

a.  the community benefits recommended to be secured in the Section 37 Agreement are as follows:

i.  a cash contribution in the amount of $2,000,000.00, such funds to be used by the City for capital facilities within proximity of the site within the boundaries of existing Ward 28 as it exists on May 23, 24, and 25, 2018; with the allocation of such funds to be determined between the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor; the improvements will be secured in the Amending By-laws and other matters referred to in City Council's decision and the report (May 11, 2018) from the City Solicitor; and

ii.  in the event the cash contribution referred to Part 2.a.i. above has not been used for the intended purpose within three (3) years of the Amending By-laws coming into full force and effect, the cash contribution may be redirected for another purpose, at the discretion of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, provided that the purpose is identified in the Official Plan and will benefit the community in the vicinity of the lands; and

b.  the $2,000,000.00 cash contribution is to be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for Toronto, calculated from the date of the Local Planning Appeal Tribunal decision to the date of payment; all cash contributions will be payable prior to the issuance of the first above-grade building permit.

3.  City Council direct that, as a legal convenience to support development, if approved by the Local Planning Appeal Tribunal, the Section 37 Agreement will also secure the following matters:

a.  the provision of a knock out panel, or panels, for a potential future PATH connection as part of site plan approval;

b.  the retention of existing street trees along King Street East and submission of landscaping plans to indicate the retention of such trees as part of site plan approval;

c.  a design of the proposal's south wall that is complementary to the existing south wall of the Quebec Bank building, as part of site plan approval;

d.  the provision by the Owner to the City, of a construction management plan prior to the issuance of any permit for the redevelopment of all or any part of the properties at 34-50 King Street East and 2 Toronto Street, including for clarity any heritage permit, building permit, or demolition permit, and thereafter implemented by the Owner, to address such matters as noise, dust, street closures, parking and laneway uses and access; hours of construction; such plan to be to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor;

e.  the provision by the Owner at its expense of a revised Noise Impact Study providing additional analysis of the potential impact from noise emitted by the proposed development on itself and on the surrounding area, to the satisfaction of the Chief Planner and Executive Director, City Planning prior to the issuance of the final Local Planning Appeal Tribunal Order;

f.  the provision by the Owner at its expense of an updated Functional Servicing Report to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Toronto Water prior to the issuance of the final  Local Planning Appeal Tribunal Order;

g.  the provision by the Owner at its expense of an updated Hydrogeological Report based on additional bore hole testing to be carried out on the Lands to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Toronto Water, prior to the issuance of a shoring and excavation permit;

h.  the provision by the Owner at its expense of a revised Functional Servicing Report if necessary based on the findings of the updated Hydrogeological Report required by Part 3.g. above to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Toronto Water, prior to the issuance of a shoring and excavation permit;

i.  the provision by the Owner to the City at no cost to the City of designs and financial securities for any upgrades or required improvements to municipal infrastructure identified in the approved Functional Servicing Report to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services and the General Manager, Toronto Water prior to the issuance of a shoring and excavation permit; and

j.  the provision at no cost to the City of any upgrades or required improvements to municipal infrastructure identified in the approved Functional Servicing Report to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services and the General Manager, Toronto Water prior to the issuance of the first above-grade building permit, including for clarity any conditional above-grade building permit; for clarity, in this instance the provision of such upgrades or required improvements shall mean to construct, complete and make operational the upgrades or required improvements.

4  City Council instruct the City Solicitor to request the Local Planning Appeal Tribunal to withhold its Order on the Amending By-laws until such time as:

a.  the Owner has entered into a Heritage Easement Agreement with the City pursuant to the Ontario Heritage Act in connection with the property municipally known as 2 Toronto Street and 50 King Street East (the “Heritage Property”) to the satisfaction of the Senior Manager, Heritage Preservation Services, including registration of such agreement to the satisfaction of the City Solicitor, which agreement shall:

i.  permit the alterations and construction work substantially in accordance with the Settlement Plans and the Heritage Impact Assessment prepared by ERA Architects Inc. dated October 24, 2016, as revised to reflect the reduction in the horizontal projection (from 6 metres to 4 metres) of the proposed cantilever over the Heritage Property as shown on the Settlement Plans (the “Alterations”); and

ii.  reflect the detailed terms set out in Appendix A to Confidential Attachment 2 to the report (May 11, 2018) from the City Solicitor;

b.  the Owner has withdrawn its appeals of the St. Lawrence Neighbourhood Heritage Conservation District Plan, Official Plan Amendment 352 and By-laws 1106-2016 and 1107-2016,

c.  the  Local Planning Appeal Tribunal has been advised by the City Solicitor that the proposed zoning by-law amendments are in a form satisfactory to the City; and

d.  the City has received an executed Section 37 Agreement securing the benefits outlined in Parts 2 and 3 above, and the Section 37 Agreement has been registered on title to the Subject Property.

5.  City Council direct Staff to take such action as may be necessary to provide relief from the St. Lawrence Neighbourhood Heritage Conservation District Plan, Official Plan Amendment 352 and By-laws 1106-2016 and 1107-2016 as may be required to permit the Proposed Development, or otherwise provide for necessary relief from such instruments in order to permit the Proposed Development to be constructed in a manner that implements the terms of this settlement.

6.  City Council direct Staff to take such action as may be necessary to provide relief from the Downtown Secondary Plan and from any related future municipality-initiated zoning by-law amendment, if necessary, in order to ensure that such amendment(s) do not prevent the Owner from being issued a building permit that implements the terms of this settlement.

The balance of Confidential Attachment 1 to the report (May 11, 2018) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (May 11, 2018) from the City Solicitor will be made public at the discretion of the City Solicitor.

Confidential Attachment 2 and Confidential Attachment 3 to the report (May 11, 2018) from the City Solicitor are now public and can be accessed under Background Information (City Council).