Item - 2021.EX28.13

The Executive Committee recommends that:

1. City Council request the Chief Executive Officer, CreateTO and the Executive Director, Housing Secretariat to include the creation of replacement space for Toronto Artscape Inc. within the residential block(s) of the proposed Parkdale Hub development, including nine live-work units, an art gallery and community space.

2. City Council direct the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Secretariat and the Chief Executive Officer, CreateTO, to initiate lease negotiations with Toronto Artscape Inc. to secure the ongoing delivery of their program within the proposed Parkdale Hub.

3. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, to continue negotiations to acquire fee simple interest in the property municipally known as 1337 Queen Street West, as listed in Appendix A to the report (November 23, 2021) from the Executive Director, Corporate Real Estate Management and shown on the maps attached as Appendix B to the report (November 23, 2021) from the Executive Director, Corporate Real Estate Management (the "Property"), and City Council authorize the initiation of expropriation proceedings for the Property, for the purposes of affordable housing units and operating space for community-based organizations, programs and services.

4. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, to serve and publish Notices of Application for Approval to Expropriate the property municipally known as 1337 Queen Street West, to forward to the Ontario Land Tribunal any requests for inquiries received, to attend the hearing(s) to present the City of Toronto's position, and to report the Inquiry Officer's recommendations to City Council for its consideration.

5. City Council authorize the Chief Executive Officer, CreateTO, in consultation with the Executive Director, Corporate Real Estate Management, the Chief Planner and Executive Director, City Planning, the Executive Director, Housing Secretariat, the General Manager, Parks, Forestry and Recreation, the City Librarian, Toronto Public Library and the Executive Director, Social Development, Finance and Administration, to lead Phase 3 of the Parkdale Hub project, which will include:

a. preparation of design documents suitable to support a City-initiated rezoning process for the Parkdale Hub, including the Housing Now site(s), based on the Demonstration Plan prepared in Phase 2;

b. the submission of a business case for the future Housing Now site(s) to the CreateTO Board; and

c. the competitive procurement of a non-profit affordable rental housing development partner.

6. City Council authorize the public release of Confidential Attachments 1, 2 and 3 to the report (November 8, 2021) from the Vice President, Land and Development Planning, CreateTO following the closing of all purchase and/or sale and/or transaction(s), as they pertain to a proposed or pending acquisition or sale of land for municipal or local board purposes and a position, plan, or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the City of Toronto.

The purpose of this report is to seek City Council authority for City Staff to take the necessary actions to advance the Parkdale Hub project to Phase three. On November 22, 2021, the CreateTO Board adopted RA27.6 (the "CreateTO Board Report") that presented the Feasibility Study (Phase two) for the Parkdale Hub project and recommended that, subject to City Council approval, CreateTO lead Phase three of the Parkdale Hub project in collaboration with Corporate Real Estate Management, City Planning, Housing Secretariat, Parks, Forestry & Recreation, Toronto Public Library, and Social Development, Finance & Administration. Details of Phase two, including the Feasibility Study as well as an overview of the work program for Phase three are presented in the CreateTO Board Report and its Confidential Attachments.

This report also seeks authority to initiate expropriation proceedings for a fee simple interest the property municipally known as 1337 Queen Street West (the "Property") for the purposes of new affordable housing and community program space.

The Parkdale Hub project is a strategic city-building initiative, and therefore it is appropriate that this City companion report and the CreateTO Board Report be considered jointly by Executive Committee.

At its meeting on November 22, 2021, the Board of Directors of CreateTO considered Item RA27.6 and made recommendations to City Council.

Summary from the report (November 8, 2021) from the Vice President, Land and Development Planning, CreateTO:

The purpose of this report is to provide the Board with an overview of the findings and recommendations of the Feasibility Study (Phase 2) for the Parkdale Hub project. CreateTO staff have been leading this work in collaboration with City divisional partners, at the direction of City Council. This report follows an initial information report and presentation to the CreateTO Board introducing the Parkdale Hub project at its meeting on May 11, 2021.

This project represents a strong opportunity for CreateTO to lead a transformational city-building initiative that will deliver wide-ranging social, cultural and economic benefits to the Parkdale community, including:

- The creation of new non-profit affordable rental housing;

- The revitalization and expansion of the Masaryk-Cowan Community Recreation Centre;

- The reconstruction and expansion of the Parkdale Library branch;

- The ongoing delivery of Artscape’s cultural hub program, which includes affordable live-work residences for artists;

- The creation of new community space and design elements that will strategically connect programs, services and people – creating an integrated “Hub”; and

- Significant enhancements to the public realm and the adaptive re-use of heritage buildings and improved connectivity with the adjacent properties.

The second phase of the Feasibility Study included advancing architectural design work, a construction phasing strategy, environmental due diligence, negotiations for a strategic property acquisition, a preliminary civil engineering assessment, high-level costing analysis, and ongoing community and stakeholder engagement. The results of these activities are presented in this report and its attachments. Based on these findings, staff recommend that the project advance into Phase 3 - which would include a City-led rezoning process, the submission of a project business case to the CreateTO Board, and a competitive call for a non-profit housing development partner (led by the Housing Secretariat).