Item - 2018.TE32.3

The Toronto and East York Community Council recommends that:

1. City Council amend Zoning By-law 438-86, as amended, for the lands at 25 and 35 Liberty Street, 58 Atlantic Avenue, and 51, 61 and 65 Jefferson Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 8 to the report (April 9, 2018) from the Acting Director, Community Planning, Toronto and East York District;

2. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law Amendment as may be required;

3. Before introducing the necessary bills contemplated in Recommendation 1 above to City Council for enactment, City Council require the owner(s) to:

a. Enter into Heritage Easement Agreements with the City for the properties at 25 Liberty Street, to the satisfaction of the Senior Manager, Heritage Preservation Services and the City Solicitor, and in accordance with the recommendations of the report (April 6, 2018) from the Chief Planner and Executive Director, City Planning to the Toronto Preservation Board [TE32.4], with such agreement to be registered on title to the subject properties prior to the earlier of  the coming into force of the Zoning By-law Amendments giving rise to the proposed alterations, or the issuance of any permit for all or any part of the properties, including a heritage permit or a building permit, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Preservation Services; and;

b. Provide a Conservation Plan, prepared by a qualified heritage consultant, that is consistent with the conservation strategy set out in the Heritage Impact Assessment for the properties at 25 Liberty Street, all to the satisfaction of the Senior Manager, Heritage Preservation Services, in accordance with the report (April 6, 2018) from the Chief Planner and Executive Director, City Planning to the Toronto Preservation Board [TE32.4].

4. Before introducing the necessary bills contemplated in Recommendation 1 above to City Council for enactment, City Council require the owner(s) to enter into an Agreement(s) with the City  pursuant to Section 37 of the Planning Act satisfactory to the City Solicitor, together with satisfactory provisions in the amending By-laws, to secure the following, at the owner's expense, in connection with 25 and 35 Liberty Street, and 58 Atlantic Avenue and 51, 61 and 65 Jefferson Avenue (the development lands), all to the satisfaction of the Acting Director, Community Planning, Toronto and East York District and the City Solicitor, with such agreement to be registered to the satisfaction of the City Solicitor prior to the earlier of the bills coming into force, or the issuance of any permit for all or any part of the properties, including a heritage permit or a building permit, including conditional permits and permits for excavation and shoring, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Preservation Services:

a. The following matters are recommended to be secured in a Section 37 Agreement:

i. A financial contribution by the owner of $1,250,000.00 towards the provision of affordable rental housing within Ward 14 in the vicinity of the site including provision for upwards in accordance with the Statistics Canada Non-Residential Construction Price Index for Toronto for the period from the date of the execution of the Section 37 Agreement to the date of payment;

ii. The entering into of a Three Party Agreement between the City, the owner of the development lands, and the owner of the 11 and 25 Ordnance Street property (the Ordnance rental replacement lands), all  to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor to provide for and  secure among other matters, the off-site replacement  at the Ordnance Street rental replacement lands, of the rental units to be demolished on the development lands, and at the prescribed rent levels, and with timing and other conditions as set out in Recommendations 6.a. to i. below,  and with provision for with such agreement to be registered to the satisfaction of the City Solicitor prior to the earlier of the bills coming into force, or the issuance of any permit for all or any part of the development lands, including a heritage permit or a building permit, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Preservation Services;

iii. The owner of the development lands to provide tenant relocation and assistance to all eligible tenants, including securing  the right to return to the off-site replacement rental dwelling units and at restricted rents;

iv. That prior to final Site Plan Approval for the proposed Zoning By-law Amendment by City Council for the property located at 58 Atlantic Avenue (25 Liberty Street), the owner shall:

A. provide final site plan drawings substantially in accordance with the approved Conservation Plan to the satisfaction of the Senior Manager, Heritage Preservation Services.

B. have obtained final approval for the necessary Zoning By-law Amendment required for the development lands, such Amendment to have come into full force and effect.

C. provide a Heritage Lighting Plan that describes how the exterior of the heritage property will be sensitively illuminated to enhance its heritage character to the satisfaction of the Senior Manager, Heritage Preservation Services and implement such Plan to the satisfaction of the Senior Manager, Heritage Preservation Services.

D. provide an Interpretation Plan for the heritage property, 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.

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

v. That prior to the issuance of any permit for all or any part of the property at 58 Atlantic Avenue, including a heritage permit or a building permit, and including conditional permits,  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:

A. have obtained final approval for the necessary Zoning By-law Amendment required for the alterations to the property at 58 Atlantic Avenue, such amendment to have come into full force and effect in a form and with content acceptable to City Council, as determined by the Chief Planner and Executive Director, City Planning, in consultation with the Senior Manager, Heritage Preservation Services.

B. 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 to the satisfaction of the Senior Manager, Heritage Preservation Services.

C. 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, Lighting Plan, and Interpretation Plan.

vi. That prior to the release of the Letter of Credit required the owner shall 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 approved Conservation Plan, Approved Lighting Plan and Approved Interpretation Plan and that an appropriate standard of conservation has been maintained, all to the satisfaction of the Senior Manager, Heritage Preservation Services and shall provide replacement Heritage Easement Agreement photographs to the satisfaction of the Senior Manager, Heritage Preservation Services.

b. The following maters of convenience are recommended to be secured in a Section 37 Agreement at the owners expense and thereafter implemented to the City's satisfaction:

i. Implementation of wind mitigation measures as determined through a satisfactory wind tunnel analysis undertaken prior to the issuance Site Plan Approval, to the satisfaction of the Chief Planner and Executive Director, City Planning;

ii. Design and construction of public realm improvements on Liberty Street, Jefferson Avenue and Atlantic Avenue, to the satisfaction of the Chief Planner and Executive Director, City Planning;

iii. Design and construction prior to the issuance of the first above-grade building permit for all or any part of the development lands,  of required improvements to municipal infrastructure identified in the Functional Servicing and Stormwater Management should it be determined that improvements or upgrades are required to support the development, according to the accepted Functional Servicing and Stormwater Management Reports; and

iv. Submission of a Construction Management Plan for the development lands, to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services, and the Chief Building Official and Executive Director, Toronto Building, in consultation with the Ward Councillor, prior to the issuance of any permit, including a heritage permit or a building permit, and including conditional permits,  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,  and implement the plan during the course of construction. 

5. Before introducing the necessary bills contemplated in Recommendation 1 above to City Council for enactment, City Council require the owner of the development lands  to enter into a Three Party Agreement with the City and the Owner of the Ordnance rental replacement lands, all to the satisfaction of the Chief Planner and Executive Director, City Planning and City Solicitor as required in Recommendation 4. a. ii. above, with such agreement to be registered to the satisfaction of the City Solicitor prior to the earlier of the bills coming into force, or the issuance of any permit for all or any part of the development lands, including a heritage permit or a building permit, but excluding permits for such repairs and maintenance and usual and minor works for the existing heritage buildings as are acceptable to the Senior Manager, Heritage Preservation Services.

6. City Council approve the application for a Rental Housing Demolition permit in accordance with Toronto Municipal Code Chapter 667 to allow the demolition of  42 existing rental dwelling units located at 25 and 35 Liberty Street and 51, 61 and 65 Jefferson Avenue to subject to the following conditions:

a. The owner of the Ordnance rental replacement lands shall provide and maintain not less than fifty-one (51) replacement rental dwelling units, comprised of 35 one-bedroom units and 16 two-bedroom units, on the lands within the development at 11 and 25 Ordnance Street, as illustrated on the plans submitted to the City Planning Division dated November 16, 2017, for a period of at least twenty years beginning from the date that the final replacement rental dwelling unit is first occupied.  Any revision to these plans must be to the satisfaction of the Chief Planner and Executive Director, City Planning; 

b. The owner of the Ordnance rental replacement lands shall provide and maintain at least 2 one-bedroom replacement rental dwelling units at affordable rents and at least 17 one-bedroom or larger and 1 two-bedroom replacement rental dwelling units at mid-range rents for a period of at least ten years beginning from the date that each replacement rental dwelling unit is first occupied. The owner of the Ordnance rental replacement lands shall provide and maintain at least 16 one-bedroom and 15 two-bedroom replacement rental dwelling units which may be offered at unrestricted rents;

c. The owner of the development lands shall provide tenant relocation and assistance to all eligible tenants, and together with the owner of the Ordnance rental replacement lands shall provide the right to return to a replacement rental dwelling unit on the Ordnance rental replacement lands, to the satisfaction of the Chief Planner and Executive Director, City Planning;

d. The rental replacement dwelling units on the Ordnance rental replacement lands shall be ready and available for occupancy on or before the occupancy of seventy percent of the dwelling units in the Ordnance rental replacement building and before the non-residential use of any new buildings erected on the development lands on or after the date of enactment of the zoning by-law amendments for the development site;

e. The owner of the Ordnance rental replacement lands shall provide tenants of the replacement rental dwelling units with access to all indoor and outdoor amenities as illustrated on the plans submitted to the City on November 16, 2017 for such lands, together with access to bicycle parking and visitor parking and all other parts of the Ordnance rental replacement lands as other residents of such lands, on the same terms and conditions as other residents of such lands and at no cost,  and any revisions to such amenities shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

f. The owner shall provide at least 14 vehicle parking spaces for a predetermined monthly fee to the satisfaction of the Chief Planner and Executive Director, City Planning to tenants of the replacement rental dwelling units;

g. The owner shall provide at least 44 storage lockers for a predetermined monthly fee to the satisfaction of the Chief Planner and Executive Director, City Planning, to tenants of the replacement rental dwelling units;

h. The owner of the development lands shall have entered into with the City and the owner of the Ordnance rental replacement lands and registered, one or more Three Party Agreements pursuant to Recommendation 4 above,  on title to the development lands and the Ordnance rental replacement lands  to secure the conditions outlined in Recommendation 6.a., b., c., d., e., f.  and g. above, all to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning with such registration to occur on or before the date set out in Recommendation 5 above; and

i. The owner of 11 and 25 Ordnance agrees in the event it applies for and obtains any minor variance pursuant to Section 45 of the Planning Act,  for all or any part of such lands, that should the City seek the imposition by the Committee of Adjustment or of any Tribunal on appeal there from, of a condition(s) to help to secure the obligations associated with provision of the replacement rental dwelling units, as set out in Recommendation 4 above and Recommendation 6 above,  including amongst other matters, the requirement to retain such units as residential rental units, the rent requirements, the type of units, and the requirement to provide such 51 replacement rental units as set out in this Recommendation 6 above, including to returning tenants from the development site, as part of any minor variance application, the owner of 11 and 25 Ordnance lands shall not oppose such condition and shall assist with its implementation.  In addition, in the event that such variance is not constructed by the time the Three Party Agreement are registered on the 11 and 25 Ordnance lands, the owner of 11 and 25 Ordnance shall enter into and register on title to the 11 and 25 Ordnance lands (the Ordnance rental replacement lands) a Section 118 Restriction under the Land Titles Act, to the satisfaction of the City Solicitor agreeing not to transfer or charge those parts of the lands, comprising the 51 replacement rental dwelling units, without the written consent of the Chief Planner and Executive Director, City Planning or designate, to assist with the securing the conditions of this approval on the Ordnance rental replacement lands until such time as the City Solicitor determines that its registration on title is no longer required to secure the provision of the replacement rental housing on the Ordnance rental replacement lands following receipt of confirmation of the completion and occupancy of all such 51  replacement rental dwelling units at the rents required in this Recommendation 6 above, and including provision of the right to return  eligible  tenants, all to the satisfaction of the Chief Planner and Executive Director, City Planning.

j. The owner of the Ordnance rental replacement lands shall enter into and register on title one or more Agreement(s) pursuant to s.111 of the City of Toronto Act, 2006 to secure the conditions outlined in Recommendation 6. a. to i. above to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

7. City Council authorize the Chief Planner and Executive Director, City Planning to issue the Preliminary Approval for the application under Toronto Municipal Code Chapter 667 for the demolition 42 existing rental dwelling units located at 25 and 35 Liberty Street and 51, 61 and 65 Jefferson Avenue after all the following have occurred:

a. Satisfaction or securing of the conditions in Recommendation 6 above;

b. The Zoning By-law Amendment referred to in Recommendation 1 above has come into full force and effect;

c. The issuance of the Notice of Approval Conditions for Site Plan approval by the Chief Planner and Executive Director, City Planning or designate, pursuant to Section 114 of the City of Toronto Act, 2006;

d. The issuance of excavation and shoring permits for the approved development on the site;

e. The issuance of the first above grade permit at 11 and 25 Ordnance Street; and

f. The execution and registration of one or more Section 37 Agreements and the Three Party Agreement, pursuant to the Planning Act securing Recommendation 6.a., b., c., d., e., f., g.  and h. above and any other requirements of the Zoning-Bylaw Amendment.

g. The execution and registration of an agreement pursuant to s.111 of the City of Toronto Act, 2006.

8. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue the Rental Housing Demolition Permit under Municipal Code Chapter 667 after the Chief Planner and Executive Director, City Planning has issued the Preliminary Approval referred to in Recommendation 7 above.

9. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a Residential Demolition Permit under Section 33 of the Planning Act no earlier than the issuance of the first building permit for excavation and shoring of the development, and after the Chief Planner and Executive Director, City Planning has issued the Preliminary Approval referred to in Recommendation 2 above, which permit may be included in the demolition permit for Toronto Municipal Code Chapter 667 under section 363-11.1 of the Municipal Code, on condition that:

a. The owner erects an office building on site no later than three (3) years from the day demolition of the buildings is commenced; and

b. Should the owner fail to complete the new building within the time specified in Recommendation 8.a. above, the City Clerk shall be entitled to enter on the collector’s roll, to be collected in a like manner as municipal taxes, the sum of twenty thousand dollars ($20,000.00) 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.

10. Council authorize the appropriate City officials to take such actions as are necessary to implement the recommendations above, including execution of the Section 111 Agreement.

11. Before introducing the necessary bills contemplated in Recommendation 1 above to City Council for enactment, City Council require the owner(s) to submit revised Functional Servicing, Geotechnical and Stormwater Management Reports, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, that address the comments in the memo (February 22, 2018) from the Manager, Development Engineering Toronto and East York District.

The Toronto and East York Community Council held a statutory public meeting on May 2, 2018, and notice was given in accordance with the Planning Act.

The Zoning By-law Amendment application proposes the development of a 10-storey (49 metres, including the mechanical penthouse) 25,700 square metre commercial office building at 25 Liberty Street and 58 Atlantic Avenue. The proposed development incorporates the existing three storey heritage building on the northeast corner of the site.

The application for Rental Housing Demolition and Conversion proposes to demolish 42 existing live/work units at 25 and 35 Liberty Street and 51, 61 and 65 Jefferson Avenue and replace them as 51 new residential dwellings units within two new rental apartment buildings currently under construction at 11 and 25 Ordnance Street. The off-site location is within the same general neighbourhood of 25 Liberty Street and provides for the replacement rental units to be mixed throughout the new rental buildings.

 This report reviews and recommends approval of Zoning By-law Amendment and Rental Housing Demolition and Conversion Applications to permit the proposed development.