Item - 2019.RA8.2

The Board of Directors of CreateTO:

1.  Endorsed the business cases as presented in Attachment 1 and Confidential Attachments 1 and 2 to the report (September 19, 2019) from the Chief Executive Officer, CreateTO, and, subject to further approvals required by the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer, direct CreateTO management to:

-  Proceed to market with the first four sites (140 Merton Street, 50 Wilson Heights Boulevard, 705 Warden Avenue, 777 Victoria Park) in the fourth quarter 2019 including entering into agreements conditional on approval by relevant City authorities;
-  Utilize brokerage services to effectively engage the market;

-  Maximize affordability and target a 40% one bedroom, 40% two bedroom, and 20% three bedroom unit mix on the affordable units, all within the context of project feasibility;
-  Maintain consistency with staff-recommended development permissions and concept plans;
-  Work with the Chief Financial Officer and Treasurer to establish a Reserve Account to cross-subsidize across the portfolio, where possible;
-  Include additional community benefits, where possible;
-  Work with the Chief Financial Officer and Treasurer and relevant City divisions to address capital funding for community infrastructure and other City Building requirements; and
-  Continue to engage with local Councillors and community members regarding project updates.

2.  Directed that the information in Confidential Attachments 1 and 2 to the report (September 19, 2019) from the Chief Executive Officer, CreateTO remain confidential at this time, as they relate to a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO, and direct that the information be made public at the discretion of the Chief Executive Officer following the execution of the agreements.

3.  Directed that the information in Confidential Attachment 3 to the report (September 19, 2019) from the Chief Executive Officer, CreateTO remain confidential in its entirety as it contains financial information that belongs to the Board of Directors of CreateTO and has monetary value or potential monetary value.

The Chief Executive Officer, CreateTO, the Executive Director, Housing Secretariat, and the Senior Vice President, Development, CreateTO gave a presentation on Housing Now - Business Case Overview.

The Board of Directors of CreateTO met in closed session to consider this item as it pertains to a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the Board of Directors of CreateTO, and financial information that belongs to the Board of Directors of CreateTO and has monetary value or potential monetary value.

 On January 31, 2019, City Council approved a signature affordable housing initiative, "Housing Now," to leverage City-owned land for the purpose of creating new mixed-use, mixed-income communities. Through the initiative, 11 properties were identified for development, with the potential to create a total of 10,000 new residential units. City Council set development targets for these properties of at least one-third affordable rental, one-third market rental, and no more than one-third ownership housing.

The Housing Now initiative is coordinated through a Steering Committee comprised of senior staff from the Housing Secretariat, City Planning and CreateTO. The first four properties deemed most ready for market offering by the Steering Committee are: 140 Merton St., 777 Victoria Park Ave, 705 Warden Ave., and 50 Wilson Heights Blvd.  

On January 31, 2019 Council delegated approval of the business case and market offering process for each property to the Deputy City Manager, Corporate Services and the Chief Financial Officer and Treasurer provided that the Executive Director, Housing Secretariat and the Board of Directors of CreateTO concur with the proposed business case and market offering process.

This report recommends the CreateTO Board of Directors endorse the business cases market offering process for the first four properties.

The recommended approach leverages City contributions and partnerships with experienced housing developers and operators to deliver affordable housing and complete communities at key locations in the city. The priority four sites leverage approximately $100 million in land value and $71 million in incentives to create over 1,900 new rental units - half of which will be affordable. The City's contributions in the first four sites are estimated to attract and leverage over $750 million in third party investment and development activity.

The recommended creation of a Reserve Account will enable the City to capture any value generated from individual sites and cross-subsidize across the portfolio.

Following the market offering process, City and CreateTO staff will report to the CreateTO Board prior to finalizing sale or lease agreements. The CreateTO Board will review for approval the terms and conditions for the proposed agreements with the successful proponents.