Item - 2019.PH11.9

The Planning and Housing Committee recommends that:

1. City Council authorize the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat, to enter into Agreements of Purchase and Sale (the "Agreements") with the Owner of 840, 842 and 844 Broadview Avenue to acquire up to 16 condominium dwelling units (the "Affordable Housing") to be developed at 838, 840, 842 and 844 Broadview Avenue (the "Property") for the purchase price outlined in Confidential Attachment 1 to the report (November 26, 2019) from the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management and substantially on the terms and conditions outlined in Appendix C to the report, and on such other or amended terms and conditions as may be acceptable to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat, and in a form satisfactory to the City Solicitor. 

2. City Council authorize the Executive Director, Corporate Real Estate Management, to execute the Agreements, and any ancillary agreements and documents under the Agreements, on behalf of the City of Toronto.

3. City Council authorize the Executive Director, Corporate Real Estate Management, to administer and manage the transaction, including the provision of any consents, approvals, waivers and notices, provided that they may, at any time, refer consideration of any such matters (including their content) to City Council for consideration and direction.

4. City Council authorize the City Solicitor to complete the transaction on behalf of the City of Toronto, including paying any necessary expenses, amending the closing, due diligence and other dates, and amending and waiving terms and conditions, on such terms as they consider reasonable.

5. City Council authorize the public release of the confidential information contained in Confidential Attachment 1 to the report (November 26, 2019) from the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management once the transaction contemplated in this report has been completed.

6. City Council declare the Affordable Housing surplus to the City's requirements, effective as of the date the City acquires ownership, with the intended manner of disposal to be by way of a long-term lease to a not for profit affordable rental housing provider, to be chosen through a competitive process, for the purposes of operating permanently affordable rental housing.

7. City Council authorize all steps necessary to comply with the City’s real estate disposal process, as set out in Chapter 213 of the City of Toronto Municipal Code, be taken in relation to the Affordable Housing.

8. City Council authorize the Executive Director, Corporate Real Estate Management, to allocate funds in the amount indicated in Confidential Attachment 1 to the report (November 26, 2019) from the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management, from the proceeds of the sale of 838 Broadview Avenue to the purchase of the Affordable Housing.

9. City Council authorize the Executive Director, Housing Secretariat, to provide funds up to the amount indicated in Confidential Attachment 1 to the report (November 26, 2019) from the Executive Director, Housing Secretariat and the Executive Director, Corporate Real Estate Management in capital funding from the Development Charges Reserve Fund for Subsidized Housing (XR2116) to 2572344 Ontario Inc. and 2572345 Ontario Inc., or a related corporation, to secure up to 16 affordable rental housing dwellings units to be developed on the Property.

10. City Council approve an increase to the Staff Recommended 2020 Operating Budget for Shelter, Support and Housing Administration, in coordination with the Executive Director, Housing Secretariat, to make any necessary adjustments to accommodate the funds approved in this report from the Development Charges Reserve Fund for Subsidized Housing (XR2116), cost centre FH5417.

11. City Council authorize the up to 16 affordable rental housing units to be developed on the Property to be exempt from the payment of development charges, building, planning and parkland dedication fees.

12. City Council exempt the up to 16 affordable rental homes to be developed on the Property from taxation for municipal and school purposes for the term of 50 years, from the date of first occupancy.

13. City Council authorize City staff to cancel or refund any taxes paid after the effective date of the by-law exempting the property from taxation.

14. City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, a municipal housing facility agreement (the City's "Contribution Agreement") and any other agreements necessary to secure the financial assistance and to set out the terms of the development and operation of the Affordable Housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, in consultation with the Chief Financial Officer and Treasurer and General Manager, Shelter, Support and Housing Administration, in a form approved by the City Solicitor.

15. City Council authorize severally each of the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, any security or financing documents required by 2572344 Ontario Inc. and 2572345 Ontario Inc. or its related corporation, or the successful non-profit proponent under the competitive process for an operator, any security or financing documents to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite agreement, confirmation of status, discharge or consent documents where and when required during the term of the Contribution Agreements, or any other documents required to facilitate the funding process, 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 City Council.

16. City Council authorize and direct the Executive Director, Housing Secretariat to undertake a competitive process for the selection of a not for profit affordable rental housing provider to operate affordable rental housing for up to 16 affordable rental homes at the Property for a minimum period of at least 50 years, under a long term lease with the City, in consultation with the Ward Councillor.

17. City Council authorize the Executive Director, Housing Secretariat to provide any consent necessary, pursuant to the Contribution Agreements to assign the Contribution Agreements and to negotiate and enter into any agreements or other documents required to effect such assignment on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

18.  City Council request the Executive Director, Housing Secretariat and CreateTO to maximize the number of affordable housing units at 838 Broadview Avenue.

The Planning and Housing Committee:

1.  Directed the Executive Director, Housing Secretariat, in consultation with the Chief Executive Officer, CreateTO, to report directly to City Council at its meeting on December 17 and 18, 2019 on how to maximize the number of affordable housing units at 838 Broadview Avenue.

This report seeks City Council authority to enter into an agreement of purchase and sale for the City's acquisition of up to 16 new affordable rental homes, as well as provide Open Door Program funding and incentives for the homes.

The new affordable housing is being made available through the sale and redevelopment of a City-owned property at 838 Broadview Avenue, alongside the mixed-use redevelopment of the adjoining privately-owned properties at 840, 842 and 844 Broadview Avenue. The City lands at 838 Broadview Avenue are currently under the operational management of the Toronto Parking Authority (TPA) and include a retail building and parking lot.

CreateTO, the TPA, the Housing Secretariat, and Corporate Real Estate Management have been working with the owner of the adjoining properties (the "Owner") on the redevelopment plan. The Owner proposes to acquire the City site and redevelop the combined properties as an eight-storey condominium building with commercial uses at grade. The sale of 838 Broadview Avenue enables the City to leverage the value of the property to deliver the 16 new affordable homes. The affordable homes will be constructed by the Owner as part of the larger building and the City will acquire the homes on completion.

The proposed transaction includes the following City contributions to support the development of the affordable housing: proceeds from the sale of the land as outlined in Confidential Attachment 1; funds as outlined in Confidential Attachment 1 from the Development Charges Reserve Fund for Subsidized Housing (XR2116); and Open Door Program incentives in the form of planning fees, development charges and tax relief.

The Housing Secretariat will issue a Request for Proposals (RFP) to select a non-profit housing provider to operate the new affordable homes under a long-term lease with the City. The Housing Secretariat and Corporate Real Estate Management will report to City Council on the results of the RFP process and seek authority to enter into the long-term lease with the successful non-profit group.

 
In addition to affordable rental housing, the development will include the construction of approximately 33 below grade parking spaces, which will be bought back, owned and operated by the TPA. The TPA Board of Directors approved a complementary report at its meeting of November 25, 2019 to support the transaction being recommended to City Council through this report.

The Toronto Parking Authority on November 25, 2019 considered a report from the Acting President, Toronto Parking Authority on Property Transaction/Parking Development at Municipal Car Park 282, 838 Broadview Avenue.