Item - 2020.CC27.8

City Council on December 16, 17 and 18, 2020, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (December 7, 2020) from the City Solicitor.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendices A and B to the report (December 7, 2020) from the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (December 7, 2020) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice and information that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report  (December 7, 2020) from the City Solicitor were adopted by City Council and are now public, as follows:

1.  City Council accept the "without prejudice" settlement offer as described in Confidential Appendices A and B (collectively the "Settlement Offer") to the report (December 7, 2020) from the City Solicitor subject to Parts 2 to 6 below.

2.  City Council authorize the City Solicitor and appropriate City Staff to attend the Local Planning Appeal Tribunal on this matter in support of the Settlement Offer for the redevelopment (the "New Rental Building") of the property at 170-200 Chalkfarm Drive (the "Property").

3.  In the event that the Local Planning Appeal Tribunal allows the appeal, in whole or in part, City Council direct the City Solicitor to request the Local Planning Appeal Tribunal  to withhold its Order(s) on the Zoning By-law Amendments until such time as the Local Planning Appeal Tribunal has been advised by the City Solicitor that:

a.  the proposed Zoning By-law Amendments are in a final form satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor;

b.  the owner has submitted a revised Functional Servicing Report, including confirmation of water, sanitary and storm water capacity, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

c.  the owner has designed and provided financial securities for any upgrades or required improvements to the existing municipal infrastructure identified in the accepted Functional Servicing Report, all to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, should it be determined that improvements or upgrades are required to support the development;

d.  the owner has submitted a revised Transportation Impact Study with respect to parking matters, to the satisfaction of the General Manager, Transportation Services;

e.  confirmation that the Applicant has satisfied all conditions concerning City owned and privately owned trees, to the satisfaction of the Director, Parks ,Forestry and Recreation, Urban Forestry Services; and

f.  the owner has entered into a Section 37 Agreement satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor, and the Section 37 Agreement has been executed and registered on title to the satisfaction of the City Solicitor, securing the community benefits and matters of legal convenience outlined in Part 4 below.

4.  City Council authorize the City Solicitor to enter into an Agreement pursuant to Section 37 of the Planning Act as follows:

a.  the community benefits offered in the Settlement Offer and recommended to be secured in the Section 37 Agreement are as follows:

i.  payment of a cash contribution in the amount of one million dollars ($1,000,000) to the City prior to the issuance of the first above-grade building permit for the New Rental Building to be allocated to local community benefits and improvements in the vicinity of the Property, to be detailed in the Section 37 Agreement;

ii.  in the event the cash contribution referred to in Part 4.a.i. above has not been used for the intended purpose set out in the Section 37 Agreement, within three (3) years of the Zoning By-law Amendments coming into full force and effect, the cash contribution may be redirected for another purpose, at the discretion of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, provided that the purpose is identified in the Official Plan and will benefit the community in the vicinity of the Property; and

iii.  the above noted cash contribution shall be indexed upwardly in accordance with the Building Construction Price Index for the Toronto Census Metropolitan Area, as reported quarterly by Statistics Canada in Building Construction Price Indexes Table: 18-10-0135-01, or its successor, calculated from the date of the Section 37 Agreement to the date of payment to the City; and

b.  the following matters are also recommended to be secured in the Section 37 Agreement as a legal convenience to support development:

i.  in accordance with the terms of the Settlement Offer, ten percent of the total new rental dwelling units in the New Rental Building shall be three-bedroom units having an average size of 943 square feet, and twenty-five percent of the total new rental dwelling units in the New Rental Building shall be two-bedroom units;

ii.  in accordance with the terms of the Settlement Offer, the owner will continue to provide and maintain the existing rental dwelling units in the three rental buildings on the Property as well as in the adjacent 160 Chalkfarm Drive rental building as rental housing for a minimum period of 20 years commencing from the date that the Zoning By-law Amendments come into full force and effect, with no applications for demolition or conversion from residential rental use during such 20-year period, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor;

iii.  in accordance with the terms of the Settlement Offer, the owner agrees to work in good faith with appropriate City staff to conduct a tenant rental survey of the three existing rental buildings on the Property as well as the adjacent 160 Chalkfarm Drive and, based on the results of this survey, to secure improvements that are internal to those four buildings prior to the issuance of the first above-grade building permit for the New Rental Building, up to a maximum of $500,000.00, with the details of these improvements to be confirmed through the site plan process, and there will be no pass through costs of these improvements to the tenants occupying the existing rental units on the Property and in 160 Chalkfarm Drive, such as through rent increases;

iv.  in accordance with the terms of the Settlement Offer, the owner confirms that residents of the existing rental buildings on the Property and of the adjacent 160 Chalkfarm Drive will be given access to all indoor and outdoor amenities located at grade in the New Rental Building, at no extra charge to the tenants and with no pass-through cost to tenants of the four existing buildings including by way of an application to the Ontario Landlord Tenant Board or to any successor tribunal with jurisdiction to hear applications made under the legislation governing residential tenancies in Ontario for the purposes of obtaining an increase in residential rent above the applicable guideline; access and use of those amenities will be on the same terms and conditions as any other resident of the New Rental Building, all to the satisfaction of the Chief Planner and Executive Director, City Planning;

v.  the owner shall develop a Tenant Communication and Construction Mitigation Plan prior to site plan approval for the New Rental Building to the satisfaction of the Chief Planner and Executive Director, City Planning; and

vi.  a cash-in-lieu of parkland dedication payment by the owner to the City prior to the issuance of the first above-grade building permit for the New Rental Building in accordance with section 42 of the Planning Act.

5.  City Council direct that as part of its Site Plan application for the New Rental Building, the owner agrees to work in good faith with appropriate City staff on the following matters:

a.  the design of the residential units;

b.  the potential to reduce the height of the mechanical penthouse on the tower as part of a more detailed design;

c.  the potential to enhance the prominence of the Jane Street entrance;

d.  the greening of the Chalkfarm Drive landscape buffer; and

e.  the management of the grade change on the Property.

6. City Council authorize the City Solicitor and appropriate City staff to take such necessary steps, as required, to implement City Council's decision.

Confidential Appendices A and B to the report (December 7, 2020) from the City Solicitor are now public and can be accessed under Background Information (City Council).

The balance of Confidential Attachment 1 to the report (December 7, 2020) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice and information that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (December 7, 2020) from the City Solicitor will be made public at the discretion of the City Solicitor.