Item - 2019.TE4.13

The Toronto and East York Community Council recommends that:

1. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 545-601 Sherbourne Street and 3-7 Howard Street substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 5 to the report (Janurary 28, 2019) from the Director, Community Planning, Toronto and East York District. 

2. City Council amend Zoning By-law 438-86, for the lands at 545-601 Sherbourne Street and 3-7 Howard Street substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 6 to the report (Janurary 28, 2019) from the Director, Community Planning, Toronto and East York District.

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

4. Before introducing the necessary Bills to City Council for enactment, require the owner to enter into an Agreement pursuant to Section 37 of the Planning Act that is to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning, as follows:

a. The community benefits recommended to be secured in the Section 37 Agreement are as follows:

i. Prior to the issuance of the first above-grade building permit, the owner shall pay to the City the sum of $1,139,000.00 to be allocated towards local area park or streetscape improvements located within Ward 13 and within the vicinity of the subject lands, that comply with the Streetscape Manual and/or are to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor;

ii. Prior to the issuance of the first above-grade building permit, the owner shall pay to the City the sum of $1,139,000.00 to be allocated towards existing and/or new affordable housing that may be owned by Toronto Community Housing, and/or towards existing community facilities, and/or towards recreational space and/or cultural space improvements that may be owned by Toronto Community Housing, all located within Ward 13 and within the vicinity of the subject lands, in consultation with the Ward Councillor;

iii. Prior to the issuance of the first above-grade building permit, the owner shall convey to the City unencumbered parkland of at least 80.9 square metres that covers a portion of 589 Sherbourne Street. This conveyance is in addition to the parkland conveyance being secured under Section 42 of the Planning Act, and is to be made to the satisfaction of the General Manager, Parks, Forestry and Recreation in consultation with the Chief Planner and Executive Director, City Planning;

iv. Prior to the issuance of the first above-grade building permit, the owner shall extend the existing park lease to the City on the lands at 589 Sherbourne Street, known as St. James Town West Park, by an additional 124 years over and above the remaining park lease term.  Alternatively, at the City's discretion, the owner shall enter into a new lease that will have the effect of extending the existing lease by an additional 124 years. Such extension or new lease, as the case may be, shall be on terms and conditions satisfactory to Deputy City Manager, Corporate Services or her designate and the City Solicitor, and shall include any amendments required to give effect to such terms and conditions. Without limitation to the foregoing, the extension or new lease shall provide for the following terms and conditions, unless otherwise agreed to by the Deputy City Manager, Corporate Services, and approved by the City Solicitor, each at her sole discretion, effective as of execution thereof:

- the land at 583 Sherbourne Street and certain other lands, shall be incorporated into the leased premises, and the lands to be included in the development site and to be conveyed to the City as a parkland conveyance under Section 42 of the Planning Act shall be surrendered from the leased premises;

- as in the existing lease, the rent shall be nominal and the landlord shall be responsible for all taxes and utilities;

- the landlord's termination right currently found in the lease shall be deleted;

- the lease shall have priority over all mortgages, charges or other financial encumbrances against the lands forming the leased premises; and

- the owner shall be responsible for, and shall indemnify and save the City harmless from, any land transfer taxes or similar charges payable as a result of the new lease or lease extension.

v. The above-noted cash contributions are to be indexed upwardly with the "Non-Residential Construction Price Index for the Toronto Census Metropolitan Area”, as reported quarterly by Statistics Canada in Building Construction Price Indexes Publication No. 327-0058, or its successor, and calculated from the date that the Section 37 Agreement is registered on title. 

vi. In the event the cash contributions described in Recommendations 4.a.i. and ii. above have not been used for the intended purpose within three (3) years of the date of the issuance of the above-grade building permit, the cash contribution may be directed to another purpose, at the discretion of the Chief Planner and Executive Director, City Planning, in consultation with the local Councillor, provided that the purpose is identified in the Toronto Official Plan and will benefit the community in the vicinity of the subject lands.

b. Other matters are also recommended to be secured in the Section 37 Agreement as a legal convenience to support development, which are listed in Schedule A of the draft Zoning By-law Amendment to Amend By-law 569-2013, attached as Attachment No. 4 to this report, which include provisions to secure parkland dedication, parkland design, an updated wind study for wind mitigation for St. James Town West Park, rental housing, heritage conservation, a construction management and community communication plan, and compliance with Tier 1 of the Toronto Green Standard, among other matters.

5. Before introducing the necessary Bills to City Council for enactment, the applicant/owner is required to:

a. Provide an updated Site Servicing & Stormwater Management Report and updated Hydrogeological Review Summary form, if necessary, to the satisfaction of Development Engineering and Toronto Water;

b. Submit a fee for the preparation of a Section 37 Agreement in accordance with the Fee Schedules for Community Planning Applications in effect at the time the fee is submitted to the Customer Service Planning Consultant in Toronto Building, Toronto and East York District;

c. Enter into a Heritage Easement Agreement with the City for the property at 601 Sherbourne Street in accordance with the plans and drawings dated July 31, 2015 and revised December 7, 2018, prepared by IBI Group, and on file with the Senior Manager, Heritage Preservation Services, the Heritage Impact Assessment prepared by ERA Architects Inc., dated August 13, 2015, and revised December 11, 2018 and in accordance with the Conservation Plan required in Recommendation 6.e. below to the satisfaction of the Senior Manager, Heritage Preservation Services including registration of such agreement to the satisfaction of the City Solicitor;

d. 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 601 Sherbourne Street  prepared by ERA Architects Inc., dated August 13, 2015, and revised December 11, 2018 to the satisfaction of the Senior Manager, Heritage Preservation Services;

6. City Council approve the application for a Rental Housing Demolition permit in accordance with Chapter 667 of the Toronto Municipal Code to allow for the demolition of twenty-four (24) existing rental dwelling units located at 583, 591, 595-597 and 599 Sherbourne Street, subject to the following conditions:

a. the owner shall provide and maintain not less than twenty-four (24) replacement rental dwelling units, comprised of at least ten (10) bachelor, twelve (12) one-bedroom, and two (2) two-bedroom units, within the proposed mixed-use building on the site, for a period of at least 20 years, beginning from the date that each such replacement rental dwelling unit is first occupied, and as generally illustrated in the plans provided to the City Planning Division dated December 21, 2018. Any revision to these plans shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

b. the owner shall provide and maintain at least ten (10) bachelor, eight (8) one-bedroom and two (2) two-bedroom replacement rental dwelling units at affordable rents and four (4) one-bedroom replacement rental dwelling units at mid-range rents, for a period of at least 10 years, beginning from the date that each such replacement rental dwelling unit is first occupied;

c. the owner shall provide and maintain at least five (5) one-bedroom market rental dwelling units within the proposed mixed-use building on the site, for a period of at least 20 years, beginning from the date that each such market rental dwelling unit is first occupied, and as generally illustrated in the plans provided to the City Planning Division dated December 21, 2018. The five (5) market rental dwelling units shall have unrestricted rents;

d. the owner shall provide and maintain a common laundry room on the second floor of the proposed mixed-use building as illustrated in the Architectural Floor Plans dated March 2, 2018. Any changes to the proposed common laundry room shall be to the satisfaction of the Chief Planner and Executive Director, City Planning Division;

e. the owner shall provide tenants of the replacement rental dwelling units with access to all indoor and outdoor amenities in the proposed mixed-use building at no extra charge. Access and use of these amenities shall be on the same terms and conditions as any resident of the non-replacement rental dwelling units without the need to pre-book or pay a fee, unless specifically required as customary practices for private bookings;

f. the owner shall provide six (6) vehicle parking spaces to tenants of the replacement rental dwelling units as detailed in the Draft Terms Sheet Summary for Rental Housing set out in Attachment 7 to the report (Janurary 28, 2019) from the Director, Community Planning, Toronto and East York District;

g. the owner shall provide tenant relocation and assistance to all eligible tenants of the existing rental dwelling units, including the right to return to a replacement rental dwelling unit, as detailed in the Draft Terms Sheet Summary for Rental Housing set out in Attachment 7 of this report, all to the satisfaction of the Chief Planner and Executive Director, City Planning; and

h. the owner shall enter into and register on title to the site one or more Agreement(s) to secure the conditions outlined in a, b, c, d, e, f and g above to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning including an agreement pursuant to Section 111 of the City of Toronto Act, 2006.

7. City Council authorize the Chief Planner and Executive Director, City Planning, to issue Preliminary Approval for the Rental Housing Demolition permit under Chapter 667 of the Toronto Municipal Code for the demolition of the twenty-four (24) existing rental dwelling units at 583, 591, 595-597 and 599 Sherbourne Street after all of the following have occurred:

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

b. the site-specific Zoning By-law Amendments have 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 mixed-use building on the site; and

e. the execution and registration of a Section 37 Agreement pursuant to the Planning Act securing Recommendation 6 a., b., c., d., e., f. and g. and any other requirements of the Zoning-Bylaw Amendment.

8. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue the Rental Housing Demolition permit under Chapter 667 of the Toronto Municipal Code after the Chief Planner and Executive Director, City Planning, has given preliminary approval referred to in Recommendation 7. c. above.

9. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue the Residential Demolition permit under Chapter 363 of the Toronto Municipal Code and Section 33 of the Planning Act no earlier than the issuance of the first building permit for excavation and shoring of the proposed development, and after the Chief Planner and Executive Director, City Planning, has given preliminary approval referred to in Recommendation 7c above, which may be included in the Rental Housing Demolition permit under 363-11.1, of the Toronto Municipal Code, on condition that:

a. the owner remove all debris and rubble from the site immediately after demolition;

b. the owner erect solid construction hoarding to the satisfaction of the Chief Building Official;

c. the owner erect the mixed-use building on the site no later than four (4) years from the day demolition of the existing buildings is commenced; and

d. should the owner fail to complete the proposed mixed-use building within the time specified in Recommendation 9.c. 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 Residential 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. City 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. 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.

12. City Council direct the Chief Planner and Executive Director, City Planning and the applicant, in consultation with City Planning, Transportation Services, Parks, Forestry and Recreation and any other necessary City officials, to create a working group and to consult with the local community as part of the Site Plan process, including the local residents association and other stakeholders, on the following prior to the issuance of Final Site Plan Approval pursuant to Section 114 of the City of Toronto Act:

- a construction and traffic management plan, landscape and public realm plans, building materials and lighting, and

-other issues as identified by the Ward Councillor.

This rezoning application proposes to construct a 51-storey mixed-use building with ground floor retail space and 532 residential rental units above at 591-599 Sherbourne Street. The existing rental buildings at 545, 555, 561, 565, and 601 Sherbourne Street and 3-7 Howard Street will be retained. The designated heritage building located at 601 Sherbourne will be conserved. The proposal includes the reconfiguration and redesign of St. James Town Park West.

The Rental Housing Demolition application proposes the demolition of 24 existing rental dwelling units located at 583, 591, 595-597 and 599 Sherbourne Street and replacement of all demolished units within the proposed 51-storey mixed-use building.

The proposed building respects and reinforces the existing and planned context and is generally consistent with the Tall Building Design Guidelines and the Downtown Plan. The local community will benefit from a consolidated and redesigned version of St. James Town West Park that will be secured on partially city-owned land and partially leased land until at least the year 2162. Rental housing for 1,525 rental units will be secured on the subject site within the existing apartment buildings for at least 20 years. The proposed development is consistent with the Provincial Policy Statement (2014) and conforms with the Growth Plan for the Greater Golden Horseshoe (2017).

This report reviews and recommends approval of the application to amend the Zoning By-law and the application for a Rental Housing Demolition Permit under Chapter 667 of the Toronto Municipal Code and the Residential Demolition Permit under Chapter 363 of the Toronto Municipal Code, subject to conditions.