Item - 2018.CC44.36

City Council on July 23, 24, 25, 26, 27 and 30, 2018, adopted the following:

1.  City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (July 17, 2018) from the City Solicitor, as amend by motion 1 by Councillor Lucy Troisi.

2.  City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1, as amended by motion 1 by Councillor Lucy Troisi and Confidential Appendices A and B  to the report (July 17, 2018) from the City Solicitor and City Council direct that the balance of Confidential Attachment 1 to the report (July 17, 2018) from the City Solicitor remain confidential at the discretion of the City Solicitor.

The confidential instructions to staff in Confidential Attachment 1 to the report (July 17, 2018) from the City Solicitor, as amended by motion 1 by Councillor Lucy Troisi, were adopted by City Council and are now public, as follows:

1.  City Council accept the settlement offer as set out in Confidential Appendix A to the report (July 17, 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 Local Planning Appeal Tribunal hearing of this matter to advise that City Council supports a settlement in principle of the Official Plan Amendment and Zoning By-law Amendment applications related to 245-285 Queen Street East, 348-410 Richmond Street East, 88-106 Ontario Street and 8-12 Brigden Place, as generally shown in the Sweeny & Co. architectural plans dated July 6, 2018 attached as Confidential Appendix B to the report (July 17, 2018) from the City Solicitor, subject to modifications to the satisfaction of the Chief Planner and Executive Director, City Planning, and subject to the following:

a.  the gross floor area shall not exceed 142,351 square metres, with a maximum residential gross floor area of 96,244 square metres and a maximum retail and service uses gross floor area of 14,289 square metres;

b.  the size of each individual retail unit above the first storey shall not exceed 3,500 square metres;

c.  a minimum of 31,818 square metres of the development shall be used for office and/or hotel uses, where a minimum of 10,000 square metres shall be used for office uses, with such uses' locations within the building envelopes to be determined to the satisfaction of the Chief Planner and Executive Director, City Planning;

d.  a minimum of 40 percent of the dwelling units in the development shall be 2 bedroom units or larger, and within that, a minimum of 10 percent of the dwelling units shall be 3 bedroom units or larger;

e.  the full replacement of the existing rental dwelling and live/work units and a Tenant Relocation and Assistance Plan, including the right of tenants to return to the new rental units in accordance with the Official Plan, to the satisfaction of the Chief Planner and Executive Director, City Planning, where the rental housing replacement proposal shall meet the following parameters:

i.  the average unit size for the two bedroom rental replacement units shall be no less than 73 square metres and the average unit size of the three bedroom rental replacement units shall be no less than 100 square metres;

ii.  the overall gross floor area of the replacement rental dwelling units shall not be less than 5,042 square metres;

iii.  the rental tenure for replacement rental dwelling units shall be secured for no less than 20 years and replacement rental dwelling units with affordable or mid-range rents shall have rents secured for no less than 10 years;

iv. residents of replacement rental dwelling units shall have the same shared access to all amenities and facilities in their building on the same basis as all other residents within the proposed development;

v.  rents of the replacement rental dwelling units shall reflect the rent categories of the existing rental dwelling units at the time of application, in proportion to the existing distribution of gross floor area by rent category;

vi.  the replacement rental dwelling units shall be provided in the first phase of any proposed redevelopment, and if possible, 90 Ontario Street shall not be demolished until replacement rental dwelling units are ready for occupancy;

vii.  an acceptable Tenant Relocation and Assistance Plan shall include provisions allowing for existing tenants to return to replacement rental dwelling units, and additional compensation for tenants with special needs, among other matters;

viii.  a Tenant Communication Plan and a Construction Mitigation Strategy shall be provided, including information on the proposed phasing of the development, information on tenants' eligibility for a replacement rental dwelling unit, and the process for tenants returning to replacement rental dwelling unit and the rents to be charged; and

ix.  the live/work units currently proposed shall be provided generally in the same configuration as shown on plan A111 prepared by Sweeny & Co. dated July 6, 2018, unless otherwise approved by the Chief Planner and Executive Director, City Planning;

f.  bicycle parking shall be provided in accordance with the standards in Zoning By-law 569-2013;

g.  indoor amenity space shall be provided at a rate of 2.0 square metres per residential dwelling unit and outdoor amenity space will be provided at a rate of 1.7 square metres per residential dwelling unit, with such ratios to be distributed in each building to the satisfaction of the Chief Planner and Executive Director, City Planning;

h.  loading requirements and vehicular parking ratios shall be provided as set out in Part B of the May 7, 2018 letter from Engineering and Construction Services; the resident parking ratio for the site may be further reduced based on consideration of proxy parking utilization surveys, recent City approvals, and other relevant transportation planning rationale provided in a Transportation Impact Report Addendum, subject to the satisfaction of the General Manager, Transportation Services;

i.  the dedication of no less than 1,400 square metres of parkland on-site pursuant to Section 42 of the Planning Act be conveyed and constructed to base-park condition at no cost to the City, all to the satisfaction of the General Manager, Parks, Forestry and Recreation; the land to be conveyed as parkland shall be free and clear, above and below grade, of all physical obstructions and easements, encumbrances and encroachments, including surface and subsurface easements, unless otherwise approved by the General Manager, Parks, Forestry and Recreation;

j.  the remaining parkland dedication required to satisfy the Owner’s parkland dedication requirement for the Lands pursuant to Section 42 of the Planning Act shall be made by a cash in lieu payment, to be paid prior to the issuance of the first Above Grade Building Permit;

k.  all park-related work and timing of such work, including conveyance of the on-site parkland dedication as well as the build out of the park to Base and Above Base Park Improvements, shall be completed to the satisfaction of the General Manager, Parks, Forestry and Recreation;

l.  the designated Christina Lauder Buildings at 263-265 Queen Street East, the former S. Price & Sons Dairy Building at 245-251 Queen Street East, and the complex of the industrial buildings on the southeast corner of the site at 90 Ontario Street, 384 and 410 Richmond Street East shall be incorporated into the new construction; all other low-scale existing buildings will be removed as part of the proposed development; all of the buildings with cultural heritage value on the site shall be partially retained and integrated with new construction, with the exception of the later two-storey addition at 88 Ontario Street; the interior floor levels of 263-265 Queen Street East shall be maintained; the demising walls of 263-265 and 245-251 Queen Street East shall be maintained or rebuilt, the extent of which shall be finalized in the forthcoming Conservation Plan; and the conservation strategy is generally as described in the revised Heritage Impact Assessment and elevations prepared by ERA Architects Inc. dated July 6, 2018, and based on further direction received from City of Toronto Heritage Preservation Services staff during recent meetings and discussions;

m.  prior to the issuance of the final Order from the Local Planning Appeal Tribunal:

i.  the draft Official Plan Amendment and Zoning By-law Amendment reflecting the foregoing shall be finalized to the satisfaction of the parties;

ii.  the Owner shall address all outstanding items in Part A of the May 7, 2018 letter from Engineering and Construction Services, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

iii.  the Owner shall prepare a revised Functional Servicing Report, a revised Stormwater Management Report and revised Hydrogeological Assessment to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

iv.  the Owner shall enter into a financially secured agreement for the construction of any improvements to the municipal infrastructure, should it be determined that upgrades are required to support the development, according to the Functional Servicing Report accepted by the Chief Engineer and Executive Director, Engineering and Construction Services;

v.  the Owner shall prepare a Pedestrian Wind Study Addendum to the satisfaction of the Chief Planner and Executive Director, City Planning and any required mitigation measures to be secured in the Section 37 Agreement, with a more detailed wind study to be completed at the site plan approval stage;

vi.  the Owner shall enter into a Heritage Easement Agreement with the City for the properties at 245-251 Queen Street East, 263-265 Queen Street East, 90 Ontario Street and 384 and 410 Richmond Street East in accordance with the plans and drawings dated July 6, 2018 prepared by Sweeny & Co. Architects and on file with the Senior Manager, Heritage Preservation Services, the Heritage Impact Assessment, prepared by ERA Architects Inc., dated July 6, 2018, and in accordance with the approved forthcoming Conservation Plan to the satisfaction of the Senior Manager, Heritage Preservation Services, including registration of such agreement to the satisfaction of the City Solicitor;

vii.  the Owner shall provide a detailed Conservation Plan, prepared by a qualified heritage consultant, that is consistent with the conservation strategy set out in the Heritage Impact Assessment for 245-251 Queen Street East, 263-265 Queen Street East, 90 Ontario Street and 384 and 410 Richmond Street East prepared by ERA Architects Inc. dated July 6, 2018, to the satisfaction of the Senior Manager, Heritage Preservation Services;

viii.  the Owner shall enter into and register on the properties at 245-251 Queen Street East, 263-265 Queen Street East, 90 Ontario Street and 384 and 410 Richmond Street East one or more agreements with the City pursuant to Section 37 of the Planning Act to the satisfaction of the City Solicitor, the Chief Planner and Executive Director, City Planning, and the Senior Manager, Heritage Preservation Services with such facilities, services and matters to be set forth in the related site specific Official Plan and Zoning By-law Amendments giving rise to the proposed alterations;

ix.  the Owner shall withdraw the appeal to the Conservation Review Board of the Part IV (Ontario Heritage Act) heritage designation of the properties municipally known as 245 Queen Street East, 384 and 410 Richmond Street East and 78 and 90 Ontario Street;

x.  the Owner shall retain a consultant archaeologist, licensed by the Ministry of Tourism, Culture and Sport under the provisions of the Ontario Heritage Act (R.S.O 1990 as amended) to carry out a Stage 2 archaeological resource assessment of the subject property and follow through on recommendations to mitigate, through preservation or resource removal and documentation, adverse impacts to any significant archaeological resources found (i.e. Stage 3-4); should the archaeological assessment process continue beyond a Stage 2 assessment, any recommendations for Stages 3- 4 mitigation strategies shall be reviewed and approved by Heritage Preservation Services prior to commencement of the site mitigation; and the Owner shall submit a copy of the relevant assessment report(s) to Heritage Preservation Services staff in both hard copy format and as an Acrobat PDF file on compact disk;

xi.  City Council shall make a decision on the Rental Housing Demolition and Conversion Application under Chapter 667 of the Toronto Municipal Code, pursuant to Section 111 of the City of Toronto Act to demolish the 58 rental units on the site and all appropriate conditions associated with the Section 111 Permit have been satisfied, including the execution of any necessary agreements;

xii.  the Owner shall submit an application to Transportation Services for the closure of Brigden Place and the unnamed north-south Lane west of Ontario Street and north of Richmond Street East (the "Lanes") and shall enter into an agreement to purchase the Lanes from the City, conditional upon City Council approving the permanent closure of the Lanes, and subject to the necessary approvals being granted by the appropriate City authorities to declare the Lanes surplus and authorize the sale of the Lanes to the Owner;

xiii.  the Owner shall withdraw, or shall enter into Minutes of Settlement with the City agreeing to withdraw, its appeal to the Local Planning Appeal Tribunal of Official Plan Amendment 352, By-laws 1106-2016 and 1107-2016 in relation to the subject site;

xiv.  the Owner and the City shall enter into a Section 37 Agreement to the satisfaction of the City Solicitor to secure the following benefits:

A. a cash contribution of eleven million dollars ($11,000,000 CAD) to be paid to the City prior to the issuance of the first above grade building permit towards capital facilities in the vicinity of the subject site, with the allocation as follows:

1. two million five hundred thousand dollars ($2,500,000 CAD) to be used for capital improvements to Toronto Community Housing Corporation properties in the vicinity of the subject site, including Moss Park Apartments (275, 285 and 295 Shuter Street), to the satisfaction of the Chief Executive Officer, Toronto Community Housing Corporation, or designate and subject to Toronto Community Housing Corporation signing an Undertaking governing the use of the funds and the financial reporting requirements; and

2. eight million five hundred thousand dollars ($8,500,000 CAD) towards capital facilities to be determined by the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor;

B.  the payment amount referred to in Part 2.m.xiv.A. above shall be increased by upwards index in accordance with the apartment Construction Price Index for the Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Building Construction Price indexes Publication 327-0058, or its successor, calculated from the date of the execution of the Section 37 Agreement to the date each such payment is made; and

C.  in the event the cash contribution referred to in Part 2.m.xiv.A. above has not been used for the intended purpose(s) within three (3) years of the zoning by-law coming into force and effect, the cash contribution may be redirected for another purpose(s), provided that the purpose(s) is identified in the Toronto Official Plan and will benefit the community in the vicinity of the lands;

xv.  the Section 37 Agreement shall also secure the following matters as a legal convenience to support the development:

A.  a pedestrian walkway easement to be registered on title of the lands, with a right-of-way width of a minimum 6 metres connecting Queen Street East to the on-site parkland to the satisfaction of the Chief Planner and Executive Director, City Planning prior to final site plan approval;

B.  a Construction Management Plan to the satisfaction of the Chief Planner and Executive Director, City Planning prior to the issuance of the site plan notice of approval conditions;

C.  the Owner shall enter into Agreement(s) to secure the conditions of the Section 111 permit and any related conditions;

D.  the Owner shall construct the Above Base Park improvements for the on-site park to the satisfaction of the General Manager, Parks, Forestry and Recreation;

E.  matters related to the Owner's parkland dedication requirement for the Lands pursuant to Section 42 of the Planning Act, to the satisfaction of the General Manager, Parks, Forestry and Recreation;

F.  matters related to the required archaeological resource assessment to the satisfaction of the City's Planning Division, Heritage Preservation Services Unit;

G.  prior to final Site Plan approval for the proposed development at 245-251 and 2-63-265 Queen Street East, 90 Ontario Street and 384 and 410 Richmond Street East as shown in the plans and drawings dated July 6, 2018 prepared by Sweeny & Co., the Owner shall:

1.  provide final site plan drawings substantially in accordance with the approved Conservation Plan required in Part 2.m.vii. above, to the satisfaction of the Senior Manager, Heritage Preservation Services;

2.  have obtained final approval for the necessary Official Plan and Zoning By-law Amendments required for the subject property, such Amendments having come into full force and effect;

3.  provide a Heritage Lighting Plan that describes how the exterior of the heritage properties will be sensitively illuminated to enhance their heritage character 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;

4.  provide an Interpretation Plan for the subject properties, 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;

5.  provide a detailed Landscape Plan for the subject property satisfactory to the Senior Manager, Heritage Preservation Services; and

6.  submit a Signage Plan to the satisfaction of the Senior Manager, Heritage Preservation Services;

H.  prior to the issuance of any permit for all or any part of the properties at 245-251 and 263-265 Queen Street East, 90 Ontario Street and 384 and 410 Richmond Street East, including a heritage permit or a building permit but excluding permits for repairs and maintenance and usual and minor works for the existing heritage building as are acceptable to the Senior Manager, Heritage Preservation Services, the Owner shall:

1.  have obtained final approval for the necessary Official Plan and Zoning By-law Amendments required for the subject properties, such Amendment having come into full force and effect;

2.  provide building permit drawings, including notes and specifications for the conservation and protective measures keyed to the approved Conservation Plan required in Part 2.m.vii. above, including a description of materials and finishes, to be prepared by the project architect and a qualified heritage consultant to the satisfaction of the Senior Manager, Heritage Preservation Services;

3.  provide a Letter of Credit, including provision for upwards 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, Heritage Lighting Plan, and Interpretation Plan; and

4.  provide full documentation of the existing heritage properties, 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;

I.  prior to the release of the Letter of Credit required in Part 2.m.xv.H.3. above, the Owner shall:

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

2.  provide replacement Heritage Easement Agreement photographs for the properties at 245-251 and 263-265 Queen Street East, 90 Ontario Street and 384 and 410 Richmond Street East to the satisfaction of the Senior Manager, Heritage Preservation Services; and

J.  any other items in order to secure the matters identified in Part 2 above, to the satisfaction of the Chief Planner and Executive Director, City Planning.

3.  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 Amendment, amending Zoning By-laws and other related planning instruments in accordance with the above conditions.

4.  City Council defer making a decision on the application under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act to demolish the 58 existing residential rental dwelling units at 90 Ontario Street and 267 Queen Street East (File 17 160339 STE 28 RH), until such time as a decision is made on the Official Plan and Zoning By-law Amendment application and a Tenant Consultation meeting has been held.

5.  City Council approve a development charge credit against the Parks and Recreation component of the Development Charges for the design and construction by the owner of the Above Base Park Improvements to the satisfaction of the General Manager, Parks, Forestry and Recreation; the development charge credit shall be in an amount that is the lesser of the cost to the owner of designing and constructing the Above Base Park Improvements, as approved by the General Manager, Parks, Forestry and Recreation, and the Parks and Recreation component of development charges payable for the development in accordance with the City's Development Charges By-law, as may be amended from time to time.

Confidential Appendices A and B to the report (July 17, 2018) 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 17, 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 or communications that are subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (July 17, 2018) from the City Solicitor will be made public at the discretion of the City Solicitor.