Item - 2021.CC35.21

City Council on July 14, 15 and 16, 2021, adopted the following:

1.  City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (July 7, 2021) from the City Solicitor.

2.  City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 and Confidential Appendix A to the report (July 7, 2021) from the City Solicitor at the discretion of the City Solicitor.

3.  City Council direct that the balance of Confidential Attachment 1 to the report (July 7, 2021) 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.

4.  City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the supplementary report (July 15, 2021) from the City Solicitor as amended by motion 1 by Councillor Ana Bailão.

5.  City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1, as amended by motion 1 by Councillor Ana Bailão, and Confidential Appendices A, B,C, D and E to the supplementary report (July 15, 2021) from the City Solicitor at the discretion of the City Solicitor.

6.  City Council direct that the balance of Confidential Attachment 1 to the supplementary report (July 15, 2021) 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.

Confidential Attachment 1 and Confidential Appendix A to the report (July 7, 2021) from the City Solicitor remain confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as they contain advice and information that is subject to solicitor-client privilege. The confidential instructions to staff Confidential Attachment 1 and Confidential Appendix A to the report (July 7, 2021) from the City Solicitor will be made public at the discretion of the City Solicitor.

The confidential instructions to staff in Confidential Attachment 1, as amended by motion 1 by Councillor Ana Bailão, and Confidential Appendices A, B,C, D and E to the supplementary report (July 15, 2021) from the City Solicitor remain confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as they advice and information that is subject to solicitor-client privilege.  The confidential instructions to staff in Confidential Attachment 1, as amended by motion 1 by Councillor Ana Bailão, and Confidential Appendices A, B,C, D and E to the supplementary report (July 15, 2021) from the City Solicitor will be made public at the discretion of the City Solicitor.

August 9, 2021

The confidential instructions to staff in Confidential Attachment 1 to the supplementary report (July 15 2021) from the City Solicitor were adopted by City Council, as amended by motion 1 by Councillor Ana Bailão, and the amended instructions are now public as follows, the City Solicitor having exercised the City Solicitor's discretion to make them public:

1.  City Council accept the "without prejudice" settlement offer in Confidential Appendix A to the supplementary report (July 15, 2021) from the City Solicitor and the plans and drawings in Confidential Appendices B and D to the supplementary report (July 15, 2021) from the City Solicitor for the lands municipally known as 900 Dufferin Street (the "Development Site") and City Council direct the City Solicitor to attend the Ontario Land Tribunal (formerly Local Planning Appeal Tribunal) to support the Revised Proposal, subject to Parts 2 to 17 below and subject to the following modifications:

a.  as it relates to Confidential Appendix A:

i.  under Parkland Dedication and Privately-Owned Publicly Accessible Space (POPS) is modified in accordance with Part 4 below;

i.  under Section 37 Contribution is modified in accordance with Part 6.a.iii. below;

b.  as it relates to Confidential Appendix B, the "parking ratios" are deleted and subject to Part 15.a. below, with such parking rates satisfactory to the Chief Planner and Executive Director, City Planning and the General Manager, Transportation Services; and

c.  as it relates to Confidential Appendix B, the permitted building height is increased by no greater than 4 additional storeys (3 metre maximum per floor) on Building A or a maximum of 3,685 square metres of gross floor area (based on 89 percent floor efficiency) on the development with such redeployment of additional gross floor area to the satisfaction of the Chief Planner and Executive Director, City Planning.

2.  City Council not accept Confidential Appendix C to the supplementary report (July 15, 2021) from the City Solicitor and City Council direct the City Solicitor to advise the owner that, in addition to modifications to Confidential Appendices A, B and D, that Confidential Appendix C is replaced with Confidential Appendix E to the supplementary report (July 15, 2021) from the City Solicitor, as amended by motion 1 by Councillor Ana Bailão, which shall remain subject to Part 15.a. below.

3.  City Council authorize the Chief Planner and Executive Director, City Planning, the Chief Engineer and Executive Director, Engineering and Construction Services, the City Solicitor and the Chief Building Official and Executive Director, Toronto Building, in the context of the Zoning By-law Amendment Application, to make any such final determinations as to any modifications required related to the content, form, timing, phasing and implementation of any such matters related to the Zoning By-law Amendment, including determinations of where such matters are secured to the

satisfaction of the City Solicitor in order to implement the directions in the supplementary report (July 15, 2021) from the City Solicitor.

4.  City Council accept an on-site parkland dedication pursuant to Section 42 of the Planning Act having a minimum size of 2,079 square metres, generally as shown in Confidential Appendix B to the supplementary report (July 15, 2021) from the City Solicitor, satisfying a part of the owner's parkland dedication requirement under Section 42 of the Planning Act with the remainder being a payment in lieu in accordance with Article III in City of Toronto Municipal Code Chapter 415, Development of Land, with the exact size, location and configuration of the on-site parkland dedication to be to the satisfaction of the General Manager, Parks, Forestry and Recreation; and the on-site parkland dedication to be transferred to the City of Toronto shall be in an acceptable environmental condition, free and clear, above and below grade, of all easements, encumbrances and encroachments and conveyed to the City prior to the issuance of the first above grade building permit on the development site.

5.  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 of Toronto's Development Charges By-law, as may be amended from time to time.

6.  City Council authorize the City Solicitor to enter into and register on title to the lands one or more agreements pursuant to Section 37 of the Planning Act to secure the following matters, on such terms and conditions as may be required satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor, in consultation with the General Manager, Parks, Forestry and Recreation, the General Manager, Toronto Water and the Chief Engineer and Executive Director, Engineering and Construction Services:

a.  the provision of 120 affordable rental housing units, based on 100 percent Average Market Rent and an affordability period of 99 years with these affordable housing units being provided as follows:

i.  the affordable housing rental units shall be provided in contiguous groups of at least six units; and

ii.  the unit types and sizes shall be determined in the Section 37 Agreement building upon the draft terms of reference in Confidential Appendix D to the supplementary report (July 15, 2021) from the City Solicitor, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor; and

iii.  any adjustments to the total gross floor area then the proposed number of affordable rental housing units, affordable rental housing unit mix and/or affordable rental housing unit sizes will be adjusted accordingly, to the satisfaction of the Chief Planner and Executive Director, City Planning, as secured in the Section 37 Agreement; and

b.  the owner shall maintain all the market residential dwelling units on the Development Site, where rental tenure is proposed, as rental dwelling units at 900 Dufferin Street as rental housing for a period of at least 40 years commencing from occupancy of such market residential dwelling units and with no applications for demolition or conversion from residential rental use during such 40-year period, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor.

7.  City Council direct that the following matters required to support development be secured in the Section 37 Agreement, Zoning By-law Amendment and/or Conditions of Subdivision Approval for the Subdivision Agreement, to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, as a legal convenience:

a.  the provision of a privately-owned publicly accessible open space on the northwest corner of the Development Site of a minimum size of 435 square metres, whereby as a pre-approval condition to Site Plan Approval for the Development Site where the privately-owned publicly accessible open space is located, the owner shall convey to the City, for nominal consideration, easement(s) along the surface of the lands, to the satisfaction of the City Solicitor, which shall constitute the privately-owned publicly accessible open space and any required public access easements to connect the privately-owned publicly accessible open space to adjacent privately-owned publicly accessible open spaces and/or public rights-of-way, where necessary; and the owner shall own, operate, maintain and repair the privately-owned publicly accessible open space and install and maintain a sign, at its own expense, stating that members of the public shall be entitled to use the privately-owned publicly accessible open space at all times of the day and night, 365 days of the year; and the specific location, configuration and design of the privately-owned publicly accessible open space shall be determined in the context of a site plan approval for each building pursuant to Section 114 of the City of Toronto Act, 2006 and secured in a Site Plan Agreement with the City of Toronto;

b.  the provision of public access easement(s) over the Private Street within a minimum width of 18.5 metres to the satisfaction of the Chief Planner and Executive Director, City Planning, with the exact location, design and timing of delivery of the pedestrian easement to be determined in the context of a Site Plan Approval; the owner shall convey to the City, for nominal consideration, easement(s) along the surface of the lands, to the satisfaction of the City Solicitor, which shall constitute the public access easement area for vehicular and pedestrian access and any required public access easements to connect the adjacent open spaces and/or public rights-of-way, where necessary; the owner shall own, operate, maintain and repair the private street and install and maintain a sign, at its own expense, stating that members of the public shall be entitled to use the private street at all times of the day and night, 365 days of the year; and the specific location, configuration and design of the private street shall be determined in the context of a site plan approval for the Development Site pursuant to Section 114 of the City of Toronto Act, 2006 and secured in a Site Plan Agreement with the City and any such temporary closures of the Private Street be expressly limited in the Section 37 Agreement to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor;

c.  the owner will construct and maintain the Development Site in accordance with Tier 1, Toronto Green Standard and the owner will be encouraged to achieve Tier 2, Toronto Green Standard or higher, where appropriate, consistent with the performance standards of Toronto Green Standards applicable at the time of the site plan application for each building on the Development Site;

d.  the requirements for a construction management plan to be provided at site plan approval, including but not limited to, noise, dust, size and location of staging areas, location and function of gates, dates of significant concrete pouring, lighting details, vehicular parking and queuing locations, street closures, coordination with adjacent ongoing development construction, parking and laneway uses and access, refuse storage, site security, site supervisor contact information and 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, Transportation Services;

e.  implementation of, and/or mitigation measures listed, in any of the reports, studies and plans accepted by the City submitted by the owner and any such implementation measures secured in the appropriate agreements;

f.  the required transportation improvements, including any required improvements along Croatia Street and/or Dufferin Street and warrant analysis along Croatia Street and at Dufferin Street and Croatia Street and transportation demand management (TDM) measures identified in the Transportation Impact Study accepted and satisfactory to the General Manager, Transportation Services and secured to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning;

g.  the owner shall provide, at their sole cost and expense, wind tunnel testing for the development as part of a site plan control application, and thereafter secure and implement mitigation measures identified in any accepted Wind Tunnel Study/Report satisfactory to the Chief Planner and Executive Director, City Planning;

h.  the owner shall provide a revised landscape plan and soil volume plan for the entire Development Site subject of the Zoning By-law Amendment, including streetscape cross-sections, all satisfactory to the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services and the Director, Urban Forestry;

i.  the owner shall provide a Public Utilities Plan for the entire Development Site that is the subject of the Zoning By-law Amendment to ensure, among other matters, that above ground and underground utilities and streetscape elements, such as street trees and sidewalk locations are located at appropriate locations for all new and existing streets and such plan should be submitted as a separate grayed out underlay on the Landscape Plan required above, for the entire Development Site, all satisfactory to the Chief Planner and Executive Director, City Planning, the Chief Engineer and Executive Director, Engineering and Construction Services, the General Manager, Transportation Services and the Director, Urban Forestry;

j.  at the sole cost and expense of the owner, should the public street extension extend through the entire Development Site, the manner (including consideration of any agreements, easements and/or covenants that may be required) in which the City in the future will be able to require the relocation and removal of the loading spaces within the lands subject of the Zoning By-law Amendment of where the future public street may be located on such terms and conditions that are satisfactory to the General Manager, Transportation Services, the Chief Planner and Executive Director, City Planning and the City Solicitor, in consultation with the Executive Director, Corporate and Real Estate Management; and

k.  prior to the issuance of any building permit, including permits for excavation and shoring, the owner shall enter into a municipal capital facility agreement ("Contribution Agreement") with the City to provide Open Door Affordable Housing Program incentives for 120 affordable rental housing units to be developed on the lands; the owner shall provide such affordable rental housing dwelling units in accordance with agreement(s) to be entered into with the City, all to the satisfaction of the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning and the City Solicitor.

8.  City Council approve funding for 120 affordable rental housing units through the Open Door Affordable Rental Housing Program.

9.  City Council authorize the Executive Director, Housing Secretariat to negotiate and execute a municipal capital facility agreement (Contribution Agreement) with the owner for 120 affordable rental housing units to be developed on the lands to secure rents at or below 100 percent of average market rents for a period of 99 years, together with any security, financing or other documents required, as well as any amendments thereto required from time to time, on terms and conditions acceptable to the Executive Director, Housing Secretariat and in a form satisfactory to the City Solicitor.

10.  City Council exempt up to 120 affordable rental housing units to be developed on the lands from taxation for municipal and school purposes for the 99-year term of the municipal capital facility agreement.

11.  City Council authorize that the up to 120 affordable rental housing units to be developed on the lands be exempt from the payment of development charges and be exempt from the payment of planning, park dedication and building permits fees under existing City of Toronto policy, unless already paid.

12.  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 of Toronto, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by the owner to complete pre-development activities, construction and secure conventional financing, where required, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City of Toronto that have not been previously approved by City Council.

13.  City Council authorize staff to cancel or refund any taxes paid pursuant to the by-law exempting the property from taxation if authority is given for an exemption from taxation as set out in Part 10 above.

14.  City Council direct the City Solicitor to request the Ontario Land Tribunal (formerly Local Planning Appeal Tribunal), prior to holding any settlement hearing on the Official Plan Amendment and Zoning By-law Amendment, to provide for new notice on the Official Plan Amendment Application.

15.  City Council direct the City Solicitor to request the Ontario Land Tribunal (formerly Local Planning Appeal Tribunal) to withhold issuance of its Order on the Official Plan Amendment and Zoning By-law Amendment Applications until such time as the Ontario Land Tribunal has been advised by the City Solicitor that:

a.  the proposed Official Plan Amendment and Zoning By-law Amendments are in a content and form satisfactory to the City Solicitor and the Chief Planner and Executive Director, City Planning, with changes including, but not limited to, securing the following matters in the Zoning By-law Amendment:

i.  minimum requirements of 2 bedroom and 3 bedroom units on the Development Site;

ii.  bicycle parking, loading space and vehicular parking rates;

iii.  the location and maximum projection of balconies where determined appropriate and where permitted; and

iv.  a Holding (H) Symbol pursuant to Section 36 of the Planning Act as a generally described in Part 15.b. below;

b.  the Zoning By-law Amendments contain a Holding (H) Symbol pursuant to Section 36 of the Planning Act, the form and content to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, whereby prior to any redevelopment of the lands, that matters related to the Garrison Trunk Sewer, including any approvals required by the Ministry of the Environment, Conservation and Parks under the Ontario Water Resources Act, the removal and decommissioning of the existing Garrison Truck Sewer be undertaken, the new storm and sanitary sewers designed and constructed and demonstrated that the newly constructed sewers are able to service the development of the lands, all at the sole cost and expense of the owner of the lands and to the satisfaction of the City of Toronto, unless such matters can be resolved prior to the issuance of the Order on the Zoning By-law Amendment;

c.  the owner has, at its sole cost and expense:

i.  submitted a revised Functional Servicing Report, together with supporting documentation, including confirmation of water and fire flow, sanitary and stormwater capacity, Stormwater Management Report and Hydrogeological Report (the "Engineering Reports") to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services and the General Manager, Toronto Water;

ii.  confirmed that the implementation of the Engineering Reports that are accepted by the Chief Engineer and Executive Director, Engineering and Construction Services either do not require changes to the proposed Zoning By-law Amendment or any such required changes have been made to the proposed Zoning By-law Amendment to the satisfaction of the Chief Planner and Executive Director, City Planning, the City Solicitor and the Chief Engineer and Executive Director, Engineering and Construction Services;

iii.  submitted a revised Transportation Impact Study, including identifying the Transportation Demand Management measures, improvements to Croatia Street and/or Dufferin Street and any required analysis to the satisfaction of the General Manager, Transportation Services and the Chief Planner and Executive Director, City Planning and that such matters arising from such study, including the required Transportation Demand Management measures, be secured where appropriate and as required;

iv.  filed a complete revised Official Plan Amendment and Zoning By-law Amendment application to the City, including updated plans, drawings, reports and studies in support of the same, which reflect the revised proposal for circulation and comment by all applicable divisions, agencies and boards, both internal and external, to the City, the circulation of the applicant shall have been completed and the Chief Planner and Executive Director, City Planning shall be satisfied with the revised resubmission;

v.  secured the requirement for the design of any upgrades or required improvements to the existing municipal infrastructure and/or new municipal infrastructure identified in the accepted Engineering Reports to support the development, including securing the provision of financial securities for any such upgrades or improvements, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, and such upgrades or improvements shall have been secured at the discretion of the Chief Engineer and Executive Director, Engineering and Construction Services in the appropriate agreement(s) with the City or otherwise addressed in the Holding (H) Symbol on the Zoning By-law Amendment;

vi.  provide a revised Sun/Shadow Study which includes the new public park on Croatia Street at 1141 Bloor Street, the new public park on this Development Site and the new school at 90 Croatia Street and Dufferin Grove, satisfactory to the Chief Planner and Executive Director, City Planning and the General Manager, Parks, Forestry and Recreation;

vii.  provide a wind tunnel testing for the development and thereafter secure and implement mitigation measures identified in any accepted Wind Tunnel Study/Report satisfactory to the Chief Planner and Executive Director, City Planning;

viii.  provide a revised landscape plan and soil volume plan for the entire Development Site subject of the Zoning By-law Amendment, including streetscape cross-sections, all satisfactory to the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services and the Director, Urban Forestry; and

ix.  provide a Public Utilities Plan for the entire Development Site subject to the Zoning By-law Amendment to ensure, among other matters, that above ground and underground utilities and streetscape elements, such as street trees and sidewalk locations are located at appropriate locations for all new and existing streets and such plan should be submitted as a separate grayed out underlay and underlay on the Landscape Plan required above, all satisfactory to the Chief Planner and Executive Director, City Planning, the Chief Engineer and Executive Director, Engineering and Construction Services, the General Manager, Transportation Services and the Director, Urban Forestry; and

d.  the owner has entered into a Section 37 Agreement with the City that has been executed and registered on title to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor securing the owner's Section 37 contributions identified above and the matters agreed to and/or required in support of the development of Development Site.

16.  City Council authorize the Executive Director, Housing Secretariat to work with the General Manager, Shelter, Support and Housing Administration to secure up to two housing benefits (for 20 percent of the affordable rental housing), subject to available funding and the execution of the municipal capital facility agreement.

17.  City Council direct the Executive Director, Housing Secretariat to work with the owner to develop a Housing Access Plan that includes the following matters:

a.  the affordable housing units will be rented to tenants provided by local referring agencies, with the referring agencies to be approved by the Executive Director, Housing Secretariat;

b.  in the event that no appropriate local referring agency is available, the Executive Director, Housing Secretariat, in consultation with the owner, will identify an appropriate agency to refer tenants;

c.  the referring agency or agencies will enter into a referral agreement with the owner that details their responsibilities;

d.  the selection of the tenants for these units and the management of these units and tenancies will comply with the City of Toronto's requirements for tenant selection, income verification, reporting and overall administration of affordable rental homes;

e.  management of the tenancies of these affordable housing units will managed by the owner;

f.  reasonable eviction prevention protocol, satisfactory to the Executive Director, Housing Secretariat; and

g.  notwithstanding Part 17.e. above, the owner and the Executive Director, Housing Secretariat will explore the option of the owner entering into a head lease with the referring agencies and/or other appropriate agencies, and if the owner deems it viable (through a successful track record) and the Executive Director, Housing Secretariat provides their consent, then the owner will enter into a head lease with that agency.

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

Confidential Appendices A, B C and D to the supplementary report (July 15, 2021) from the City Solicitor and Confidential Appendix E to the supplementary report (July 15, 2021) from the City Solicitor, as amended by motion 1 by Councillor Ana Bailao, are now public, the City Solicitor having exercised the City Solicitor's discretion to make them public, and they can be accessed under Background Information (City Council).