Item - 2020.PH14.2

The Planning and Housing Committee recommends that:

1. City Council amend Zoning By-law 569-2013, as amended, for a portion of the lands at 705 Warden Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 1 to the report (June 1, 2020) from the Chief Planner and Executive Director, City Planning.

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

3. City Council request the Chief Executive Officer, CreateTO, in consultation with the Chief Planner and Executive Director, City Planning, to engage City partners and the development partner to advance the detailed design of Development Requirements identified in Attachment 3 to the report (June 1, 2020) from the Chief Planner and Executive Director, City Planning, to the satisfaction of the Chief Planner and Executive Director, City Planning, and to secure the delivery of the development requirements on terms, including details and timing, in a Lease Agreement with the development partner.

4. City Council approve the development target of 250 affordable rental units with average rents not to exceed 80 percent of annual Canada Mortgage and Housing Corporation average market rent, and up to 350 market housing units on a portion of the lands at 705 Warden Avenue, a minimum of 250 of which will be market rental, with the tenure of the market units to be finalized through the Lease Agreement with a development partner, to the satisfaction of the Executive Director, Housing Secretariat.

5. In accordance with the delegated approval under By-law 229-2000, as amended, City Council be advised that the Chief Planner and Executive Director, City Planning, intends to approve the Draft Plan of Subdivision for the portion of the lands at 705 Warden Avenue as generally illustrated in Attachment 5 to the report (January 28, 2020) from the Chief Planner and Executive Director, City Planning, subject to:

a. the condition that a Lease Agreement has been entered into between the City and the development partner that includes, to the satisfaction of the Chief Planner and Executive Director, City Planning, standard subdivision obligations as applicable and with necessary modifications for implementation of the proposed plan as well as site specific subdivision requirements generally outlined in Attachment 6 to the report (January 28, 2020) from the Chief Planner and Executive Director, City Planning, on such terms, including details and timing, as are set out in the Lease Agreement, and;

b. revisions to the proposed Draft Plan of Subdivision and additional or modified subdivision requirements for inclusion in the Lease Agreement with the development partner as the Chief Planner and Executive Director, City Planning, may deem to be appropriate to address matters arising from the ongoing technical review of this development.

6. City Council request the Chief Executive Officer, CreateTO, in consultation with the Chief Executive Officer, Toronto Transit Commission, to coordinate servicing planning of the TTC development block and amend, as appropriate, the Functional Servicing Report for the subdivision prepared under the direction of CreateTO to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, prior to the execution of the Lease Agreement with the development partner.

7. City Council request the Chief Executive Officer, CreateTO, and the Acting President, Toronto Parking Authority, to engage the development partner on the operation of a paid public parking facility at 705 Warden Avenue and report to the Board of  CreateTO or the Board of Directors of the relevant CreateTO corporate entity as part of the proposed transaction terms.

8. City Council authorize the installation of traffic control signals at the intersection of Warden Avenue and Roper Road.

The Planning and Housing Committee commenced a statutory public meeting on February 12, 2020, that ended on June 15, 2020 and notice was given in accordance with the Planning Act.

This report recommends approval of a City-initiated Amendment to Zoning By-law 569-2013, as amended, for a portion of the City-owned property at 705 Warden Avenue, as part of the Housing Now Initiative. The report also outlines the proposed Draft Plan of Subdivision for the site, preparing the site for the development of mixed-use development blocks, a future Toronto Transit Commission (TTC) operations centre, a new public street and expanded parkland as well as the renaturalization of lands along the Massey Creek ravine edge.

The recommended Zoning By-law Amendment implements the Warden Woods Community Secondary Plan and will permit 58,200 square metres of development, comprising two mid-rise buildings on the Warden Avenue frontage (approximately 9 and 11 storeys), a tall building at the southeast end of the site (approximately 18 storeys) and a Toronto Transit Commission operations centre (up to four storeys). The proposed amendment will facilitate the development of approximately 500 new residential units on the site as part of the Housing Now initiative, including approximately 250 affordable rental units, as well as retail space on Roper Road and a 62-space child care facility.

Redevelopment of the site in accordance with the Draft Plan of Subdivision will result in a new public street linking Mendelssohn Street and Howe Avenue. Approximately 0.6 hectares of a new centrally located parkland will be provided and integrated with the existing parkland associated with the Warden Hilltop Community Centre. The expanded park will be redesigned for improved functionality, greater recreational use and additional parking for the Community Centre. The southern edge of the property will be renaturalized to provide an enhanced, green edge to the Massey Creek ravine with a walkway connection to the pedestrian bridge to Warden Station. The proposal also provides a new publicly-accessible pedestrian walkway connecting the Community Centre, new public street and expanded park to Warden Avenue.

The street, park, ravine edge and TTC blocks will remain in City ownership with short term leases or licences to facilitate required works while the mixed-use blocks will be leased to a selected partner for 99 years for the development and operation of affordable housing and the other recommended uses. The selected partner will be responsible for detailed design and construction of the required municipal infrastructure, including streets and services, based on initial work undertaken by CreateTO.

The recommended Zoning By-law Amendment and Draft Plan of Subdivision will enable redevelopment of the site consistent with the development concept prepared by CreateTO and refined through public engagement and the City's review process.

Development of a portion of 705 Warden Avenue in accordance with this report's recommendations will ensure this City-owned property is optimized for the development of affordable and market rental housing and employment-generating TTC facility. The development of this property will provide an important building block for the creation of a complete, inclusive, livable community. The combination of retail space, community services, expanded parkland and improvements to the pedestrian experience will contribute multiple public benefits and support integration of the new development with surrounding neighbourhoods. The proposed development supports densities and a mix of land uses which efficiently use land and resources and are transit-supportive. As such, the rezoning is consistent with the Provincial Policy Statement (2014) and conforms with the Growth Plan for the Greater Golden Horseshoe (2019), the Official Plan and the Warden Woods Community Secondary Plan.

City Council's decision regarding the recommended Zoning By-law Amendment and support for the subsequent registration of the Draft Plan of Subdivision will accelerate the next phase of the Housing Now Initiative, which involves procurement of a development partner by the City to develop the proposed plan of subdivision. The development partner will be responsible for submitting a Site Plan Control application in 2020 to develop and finalize detailed plans for the mixed-use development. The City will secure the terms of development, including the subdivision obligations set out in this report, as well as the subsequent housing operation through a 99-year lease. The TTC will submit a separate Site Plan Control application for its operations centre and will retain responsibility for development of its block, which will be serviced through the subdivision infrastructure.

This report recommends approval of the City-initiated Amendment to Zoning By-law 569-2013, as amended for a portion of 705 Warden Avenue, one of a number of sites activated by the City as part of the Housing Now Initiative.

A Final Report on the 705 Warden Avenue Housing Now site (dated January 28, 2020) was previously considered by the Planning and Housing Committee ("PHC") at its meeting of February 12, 2020. PHC adjourned the meeting and requested the Chief Planner and Executive Director, City Planning, in consultation with the Chief Executive Officer, CreateTO and the Executive Director, Housing Secretariat, to review potential revisions to the development concept with the objective of providing additional housing opportunities on the site. The Committee also directed staff to consult with the Ward Councillor and local community on this matter and report back to the PHC.

In response to PHC's request, City staff and CreateTO prepared an updated development concept, which was presented to the community in an online public information session on May 13, 2020.

The updated development concept accommodates additional residential density at the southwest corner of the site where a 19-storey tall building will replace the previously proposed 11-storey mid-rise building. The previously recommended mid-rise mixed-use building at the southeast corner of the intersection of Roper Road and Warden Avenue has been reduced from nine storeys to six storeys. The proposed 18-storey tower on the southeast corner of the site, a new Toronto Transit Commission administration building, a 3,834-square square metre expansion to the Warden Hilltop Park, 535 square metres of retail space, and the 62-space child care facility remain unchanged and are carried forward in the updated proposal. The associated proposed plan of subdivision remains unchanged.

The updated development concept permits 60,000 square metres of development, which would include up to 600 residential units, an increase of 100 residential units from what was originally proposed, of which 250 would be affordable residential units delivered through the Housing Now Initiative.

To implement the updated development concept, this Supplementary Report recommends that the draft Zoning By-law (Attachment 4 to the report from the Chief Planner and Executive Director, City Planning, dated January 28, 2020, Item PH13.2 ("January Planning Report") and the Development Requirements (Attachment 5 to January Planning Report) be amended to reflect the revisions discussed in this Supplementary Report. The Report also recommends that City Council approve the development target of affordable rental and market housing as set out above. This Supplementary Report does not recommend revisions to recommendations 2, 3, 4 and 6 introduced through the January Planning Report (Item PH13.2) which have been brought forward to this report and re-numbered accordingly.

This Supplementary Report includes a planning analysis of how the updated development concept as reflected in the recommended Zoning By-law is consistent with the Provincial Policy Statement, 2020, which came into effect on May 1, 2020. The updated development concept, conforms with the Growth Plan and conforms with the Official Plan, including the Warden Woods Secondary Plan; an analysis of these policy documents is included in the January Planning Report.