Item - 2019.TE7.15

The Toronto and East York Community Council recommends that:

1. City Council amend Zoning By-law 438-86, for the lands at 55-61 Charles Street East substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 8 to the report (June 13, 2019) from the Director, Community Planning, Toronto and East York District.

2. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 55-61 Charles Street East substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 9 to the report (June 13, 2019) from the Director, Community Planning, Toronto and East York District.

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

4. City Council instruct the City Solicitor to enter into an Agreement 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 the development at 55-61 Charles Street East, all to the satisfaction of the Chief Planner and Executive Director, City Planning, the Executive Director, Housing Secretariat and the City Solicitor, with such agreement to be registered to the satisfaction of the City Solicitor:

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

i. The owner of 218 Carlton Street, shall transfer to the City the property at 218 Carlton Street, renovated and furnished at no cost to the City, for use as affordable rental housing units prior to the earlier of December 31, 2021 or registration of a plan of condominium for 55-61 Charles Street East substantially on the terms and conditions outlined in Attachment 10 to this report and to the satisfaction of the Executive Director, Housing Secretariat, the value for which shall be $6,400,000.00;

ii. Prior to February 12, 2020, the owner shall pay to the City the sum of $200,000.00 to be allocated towards the Capital Revolving Reserve Fund for Affordable Housing (XR1058) for pre-development funding at 218 Carlton Street, to the satisfaction of the Executive Director, Housing Secretariat;

iii. City Council authorize the Executive Director, Housing Secretariat, to provide capital funding from the Capital Revolving Reserve Fund for Affordable Housing (XR1058) to a not for profit housing provider, in an amount not to exceed $200,000.00 for pre-development funding, at 218 Carlton Street;

iv. City Council approve an increase to the 2019 Approved Operating Budget for Shelter, Support and Housing Administration, in coordination with the Executive Director, Housing Secretariat, cost centre FH5795, of $200,000.00 gross, $0 net for affordable housing at 218 Carlton Street, funded from the Capital Revolving Reserve Fund for Affordable Housing (XR1058);

v. Prior to the issuance of the first above-grade building permit, the owner shall pay to the City the sum of $1,470,000.00 to be allocated towards the Capital Revolving Reserve Fund for Affordable Housing (XR1058) for existing and/or new affordable housing that may be owned by Toronto Community Housing within Ward 13, to the satisfaction of the Executive Director, Housing Secretariat;

vi. Prior to the issuance of the first above-grade building permit, the owner shall pay to the City the sum of $1,660,000.00 to be allocated towards local area park or streetscape improvements located within Ward 13 and within the vicinity of the subject lands, to the satisfaction of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, the General Manager, Parks, Forestry and Recreation and the General Manager, Transportation Services;

vii. Prior to the issuance of the first above-grade building permit, the owner shall pay to the City the sum of $1,670,000.00 to be allocated towards community, cultural, or recreational facilities capital improvements within Ward 13;

viii. The cash contributions  outlined in Recommendation a. ii., v., vi. and vii. above are to be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for the Toronto Census Metropolitan Area, 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;

ix. In the event the above-noted cash contributions have not been fully used for the intended purpose within three (3) years of the date of the issuance of the first 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. The following matters of convenience are recommended to be secured in a Section 37 Agreement:

i. Before introducing the necessary Bills to City Council for enactment, a restriction on the property at 620 Church Street will be secured through a Limiting Distance Agreement between the owner of 55-61 Charles Street East, the owner of 620 Church Street, and the City of Toronto, to the satisfaction of the City Solicitor, which will establish a Limiting Distance Area on the property at 620 Church Street where no new building or structure may be constructed within 25 metres of the building at 55-61 Charles Street East, above a height of 24.5 metres.

ii. Before introducing the necessary Bills to City Council for enactment, the owner is required to submit a revised Functional Servicing Report satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services.

iii. The owner shall provide and maintain 140 knock-out panels between units on Levels 9-48 to enable the conversion or combination of two or more units into larger units, and include appropriate provision(s) in any condominium documents to enable any such conversions in the future.

iv. The owner shall construct and maintain the development in accordance with Tier 1 performance measures of the Toronto Green Standard, as adopted by Toronto City Council at its meeting held on October 26 and 27, 2009 through the adoption of item PG32.3 of the Planning and Growth Committee, and as updated by Toronto City Council at its meeting held on December 5, 6 and 7, 2017 through the adoption of item PG23.9 of the Planning and Growth Committee, and as may be further amended by City Council from time to time.

v. Prior to the issuance of a permit for excavation and shoring work, the owner will submit a Construction Management Plan, to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager of Transportation Services, and the Chief Building Official and Executive Director, Toronto Building, in consultation with the Ward Councillor, and thereafter will implement the plan during the course of construction. The Construction Management Plan will include the size and location of construction staging areas, dates of significant concrete pouring, lighting details, construction vehicle parking and queuing locations, refuse storage, site security, site supervisor contact information, a communication strategy with the surrounding community, and any other matters requested by the Chief Planner and Executive Director, City Planning, and the General Manager of Transportation Services, in consultation with the Ward Councillor.

5. 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 one hundred (100) existing rental dwelling units located at 55 Charles Street East and 61 Charles Street East, subject to the following conditions:

a. The owner shall provide and maintain one-hundred (100) replacement rental dwelling units, comprised of twenty (20) bachelor units, seventy-five (75) one-bedroom units, and five (5) two-bedroom units, on the subject site for a period of at least twenty (20) years, beginning from the date that each replacement rental dwelling unit is first occupied, and as shown on the architectural plans titled 55 Charles Street East, Rental Floor Plans, dated June 6, 2019. Any revision to these plans shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

b. The owner shall, as part of the one-hundred (100) replacement rental dwelling units required above, provide at least four (4) one-bedroom replacement rental dwelling units at affordable rents, and twenty (20) bachelor units, seventy-one (71) one-bedroom units, and five (5) two-bedroom units replacement rental dwelling units at mid-range rents, as defined in the City's Official Plan, all for a period of at least ten (10) years, beginning from the date that each replacement dwelling unit is first occupied;

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

d. The owner shall provide at least 35 replacement rental dwelling units with a balcony or terrace;

e. The owner shall provide tenants of the replacement rental dwelling units with access to all bicycle parking and visitor parking on the same terms and conditions as any other resident of the building;

f. The owner shall make common storage areas available to tenants, with a combined area of no less than 51 metres, with the final number of lockers to be determined at Site Plan Approval;

g. The owner shall make available a clothes laundry room to all tenants, containing at least nine (9) washing machines and seven (7) drying machines;

h. The owner shall provide tenant relocation and assistance to all eligible tenants occupying the existing rental dwelling units proposed to be demolished, including the right to return to a replacement rental dwelling unit, all to the satisfaction of the Chief Planner and Executive Director, City Planning; and

i. The owner shall enter into and register on title one or more agreement(s), pursuant to the City of Toronto Act, 2006, to secure the conditions outlined in (a) through (h) above to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning.

6. City Council authorize the Chief Planner and Executive Director, City Planning to issue the Preliminary Approval for the application under Chapter 667 of the Toronto Municipal Code for the demolition of the one-hundred (100) existing rental dwelling units at 55 and 61 Charles Street East after all of the following have occurred:

a. The conditions in Recommendation 5 above have been fully satisfied;

b. The Zoning By-law Amendment 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 their designate, pursuant to Section 114 of the City of Toronto Act, 2006;

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

e. The execution and registration of a Section 37 Agreement pursuant to the Planning Act securing Recommendation 5 (a) through (h) and any other requirements of the Zoning By-law Amendment.

7. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a Rental Housing Demolition permit under Municipal Code Chapter 667 after the Chief Planner and Executive Director, City Planning has given Preliminary Approval referred to in Recommendation 6 above.

8. City Council authorize the Chief Building Official and Executive Director, Toronto Building to issue a 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 given Preliminary Approval referred to in Recommendation 6 above, which permit may be included in the demolition permit for Chapter 667 under 363-11.1, of the 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 and Executive Director, Toronto Building;

c. The owner erects a residential building on site no later than four (4) years from the day demolition of the buildings is commenced; and

d. Should the owner fail to complete the new building within the time specified in Recommendation 8.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 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.

9. City Council declare surplus the property municipally known as 218 Carlton Street, effective as of the date the City acquires ownership of 218 Carlton Street, with the intended manner of disposal to be by way of a long term lease to a not for profit affordable rental housing provider for the purposes of operating of affordable rental housing for a period of 50 years.

10. 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, to be taken.

11. City Council authorize and direct the appropriate City officials to undertake a competitive process for the selection of a not for profit affordable rental housing provider to operate affordable rental housing within the existing building at 218 Carlton Street for a minimum period of at least 50 years, under a long term lease with the City, in consultation with the Ward Councillor.

12. City Council authorize up to 20 affordable rental housing units to be developed on 218 Carlton Street to be exempt from the payment of development charges, building, planning and parkland dedication fees.

13. City Council exempt the up to 20 affordable rental homes to be developed at 218 Carlton Street from taxation for municipal and school purposes for the term of 50 years.

14. City Council authorize City staff to cancel or refund any taxes paid from the by-law exempting the property from taxation.

15. City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute, on behalf of the City, a municipal housing facility agreement (the City's Contribution Agreement), and any other agreements necessary with MOD Developments (Charles) Inc., 2690799 Ontario Inc., or such other related corporation, and a municipal housing facility agreement, and any other agreements necessary with the successful non-profit proponent under the competitive process for an operator, all agreements to secure the financial assistance, being provided and to set out the terms of the development and operation of the new affordable rental homes at 218 Carlton Street on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

16. 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 MOD Developments (Charles) Inc., 2690799 Ontario Inc. or its related corporation, or the successful non-profit proponent under the competitive process for an operator, 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, 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.

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 Chief Planner and Executive Director, City Planning to amend Attachment 10 to the report (June 13, 2019) from the Director, Community Planning, Toronto and East York District, as follows:

Delete paragraph (c) and replace it with the following new paragraph (c):

"All closing costs for 218 Carlton Street, including but not limited to land transfer tax and registration fees, related to both the purchase of 218 Carlton Street by the Owner and the acquisition of 218 Carlton Street from the Owner by the City shall be the sole responsibility of the Owner." 

19. 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.

20. City Council authorize the appropriate City officials to take such actions as are necessary to implement the recommendations above, including execution of the Section 37 Agreement, Section 111 Agreement, and other related agreements.

The Toronto and East York Community Council commenced a statutory public meeting on June 25, 2019 and notice was given in accordance with the Planning Act.

This application proposes a 48-storey residential building at 55-61 Charles Street East. The building will be 160.5 metres tall, including the mechanical penthouse, and has a total gross floor area of 45,000 square metres. A total of 541 condominium units and 100 rental replacement units are proposed in the building. A total of 155 parking spaces and 642 bicycle parking spaces are proposed within a 4-level underground garage accessed from Macy Dubois Lane. The proposed building would have a density of 19.71 times the area of the lot.

The Rental Housing Demolition application proposes to demolish two existing residential rental apartment buildings containing a total of 100 rental dwelling units and provide replacement of all 100 rental dwelling units within the proposed building.

As part of the Section 37 contribution, an off-site property at 218 Carlton Street will be purchased, renovated and transferred to the City by the owner for affordable housing purposes. The City will select an experienced non-profit housing agency through a competitive proposal call to operate the affordable rental apartments under a 50 year lease.

The proposed development is consistent with the Provincial Policy Statement (2014) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2019).

This report reviews and recommends approval of the application to amend the Zoning By-laws (438-86 and 569-2013). The proposal represents an appropriate redevelopment of the site and presents a built form and public realm that is compatible with the surrounding context. The massing of the building has been revised to provide a better relationship with the public realm and adequate transition to neighbouring properties.

This report reviews and recommends approval of the Zoning By-law Amendment and Rental Housing Demolition Applications.