Item - 2019.EX3.6

The Executive Committee recommends that:  

1.  City Council authorize the City to accept the Letter of Intent from Magellan Community Charities and to enter into a lease (the "Lease") for the portion of 640 Lansdowne Avenue (being Parts 1, 2 and 4 in Appendix A to the report (March 12, 2019) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services) substantially on the terms and conditions outlined in Appendix B to the report (March 12, 2019) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services, and on such other or amended terms and conditions acceptable to the Deputy City Manager, Corporate Services, or designate, and in a form satisfactory to the City Solicitor.

 
2.  Council authorize the Deputy City Manager, Corporate Services to approve the lease, transfer or other form of property transaction with respect to the balance of the 640 Lansdowne Avenue site (being Part 3 on Appendix A to the report (March 12, 2019) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services), on terms and conditions satisfactory to the Deputy City Manager, Corporate Services, in consultation with the local Councillor, and to engage in discussions with Magellan to identify opportunities for it to participate in the development of the remainder of the site, provided that Magellan Community Charities presents a proposal that is complementary to the affordable housing and long-term care uses on the designated Mixed Use portion of the site, and meets the development objectives articulated by the community.

 
3.  City Council authorize the City to enter into such ancillary agreements with Magellan Community Charities, for nominal consideration, as may be necessary to enable construction on Parts 1, 2 and 4 (see Appendix A to the report (March 12, 2019) from the Deputy City Manager, Community and Social Services and the Deputy City Manager, Corporate Services) (such as a tie-back or crane swing agreement) on such terms as may be acceptable to the Deputy City Manager, Corporate Services, or designate and in a form satisfactory to the City Solicitor.

 
4.  City Council authorize the Deputy City Manager, Corporate Services, or designate, to administer and manage the Lease, including the provision of any amendments, assignments, consents, approvals, waivers, notices and notices of termination, provided that the Deputy City Manager, Corporate Services may, at any time, refer consideration of such matters (including their content) to City Council for its determination and direction.

 
5.  City Council consider the Lease to be in the interests of the City.

 
6.  City Council authorize the Director, Affordable Housing Office, to offer the Open Door incentives for the affordable rental housing component of the development for up to 65 homes to be developed at 640 Lansdowne Avenue.

 
7.  City Council authorize an exemption from taxation for municipal and school purposes for up to 65 affordable rental housing units to be developed at 640 Lansdowne Avenue for the term of the municipal capital facility agreement, being 99 years.

 
8.  City Council authorize that the affordable rental housing component of the development be exempt from the payment of development charges and that all planning, building permit and parkland dedication fees be waived.

 
9.  City Council authorize the Director, Affordable Housing Office, to negotiate and execute, on behalf of the City, a municipal housing facility agreement (the City's "Contribution Agreement") with Magellan Community Housing, or such other corporation related to Magellan Community Housing, formed to operate the affordable rental housing, to secure the financial assistance, being provided and to set out the terms of the development and operation of the up to 65 new affordable rental homes on terms and conditions satisfactory to the Director, Affordable Housing Office and in a form satisfactory to the City Solicitor.

 
10.  City Council authorize severally each of the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, any security or financing documents required by Magellan Community Housing or its related not for profit corporation operating the affordable housing units to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by Council.

 
11.  City Council authorize severally each of the Director, Affordable Housing Office and the General Manager, Shelter, Support and Housing Administration to provide any consent necessary, pursuant to the Contribution Agreement to assign the Contribution Agreement and to negotiate and enter into any agreements or other documents required to effect such assignment on terms and conditions satisfactory to them and in a form satisfactory to the City Solicitor. 

 
12.  City Council request the Director, Affordable Housing Office to support Magellan Community Housing or a related corporation's request for funding, from the National Housing Co-Investment Fund, including confirming availability of City incentives, as well as liaising with Canada Mortgage and Housing Corporation to facilitate the approval of funding for the new affordable housing project proposed at the site.

 
13.  City Council authorize the Director, Affordable Housing Office to designate the affordable rental component of the property as alternative housing for the purpose of allowing all or part of the property relief from normal parking standards.

 
14.  City Council authorize the Director, Affordable Housing Office and any other member of staff of whom it is requested, to enter into a non-disclosure or similar agreement with the Province of Ontario or federal government to allow  information with respect to the project at 640 Lansdowne Avenue to be provided to City staff.

The number of people in Toronto aged 65 and over is expected to almost double by 2041. This growing population of seniors will spur a demand for more affordable housing as well as long-term care homes to be developed specifically to address the evolving needs of seniors in our city.

In recognition of the growing urgency to provide both affordable rental and long-term care homes for seniors, at its meeting on May 22, 23 and 24, 2018, City Council requested the Director, Affordable Housing Office, in consultation with CreateTO, to include the opportunity for development of long-term care beds within the affordable housing development planned for a portion of the Toronto Transit Commission property at 640 Lansdowne Avenue.

On August 2, 2018, CreateTO, on behalf of the Affordable Housing Office, issued a Request for Proposals ("RFP") for Developing and Operating Affordable Housing Services at 640 Lansdowne Avenue. The Request for Proposals offered the one-third, Mixed Use designated portion of the site under a lease arrangement for 99 years at nominal rent to stimulate development of the site and ensure long-term affordability for seniors. The Request for Proposals closed on September 6, 2018 and four submissions were received. 

Since September 2018, CreateTO and City staff have been in discussions with Magellan Community Charities, the proposed proponent, and this report recommends that the City enter into a Letter of Intent ("LOI"), outlining the terms and conditions of the lease and the City's Open Door incentives being provided for the up to 65 affordable rental homes being proposed.

The balance of the 640 Lansdowne Avenue site is zoned as Employment Lands and the development of the whole site will make the most of public investment in transit infrastructure in line with City Council direction in report EX33.1 Implementation of the SmartTrack Stations Program and the Metrolinx Regional Express Rail Program adopted by City Council on April 24, 25, 26 and 27, 2018.