Item - 2021.PH29.7

The Planning and Housing Committee recommends that:

1. City Council direct that the financial information, supplied in confidence to the City of Toronto in Confidential Attachment 1 to the report (November 10, 2021) from the Executive Director, Housing Secretariat, remain confidential in its entirety until such time as Toronto Community Housing Corporation agrees that the confidential information may be disclosed to the public.

2. City Council direct that the information about a plan to be applied to any negotiations carried on or to be carried on by or on behalf of the City of Toronto contained in Confidential Attachment 1 to the report (November 10, 2021) from the Executive Director, Housing Secretariat that pertains to City interest be disclosed to the public once Toronto Community Housing Corporation has selected a development partner and negotiations related to Phases 2 and 3 conclude.

3. City Council request that the General Managers of Transportation Services, Toronto Water, Parks, Forestry and Recreation, and Children's Services include the updated public infrastructure cost estimates for Phase 1, 2 and 3, as outlined in Confidential Attachment 1, in the 2022-2031 Capital Budget and Plan and through future budget processes for approval, subject to consideration of all other City priorities and available funding.

4. City Council request the Executive Director, Housing Secretariat, in consultation with the appropriate City Divisions, the Chief Executive Officer, CreateTO and the President and Chief Executive Officer, Toronto Community Housing Corporation, to report to City Council by the third quarter of 2022 with the outcome of the TCHC procurement process and a recommended development partner, refined cost estimates and an update on funding opportunities to support the revitalization project.

5. City Council direct the General Managers of Toronto Water, Transportation Services, Children's Services, and Parks, Forestry and Recreation and request the Board of Directors of Toronto Community Housing Corporation to work together to advance the development of the Community Recreation Centre, to meet the Federal government's requirements and deadline for project completion, should the City receive federal funding to build the new Community Recreation Centre in Lawrence Heights.

6. City Council direct the General Managers of Toronto Water and Transportation Services to submit capital budgets that allow for a portion of the new road as part of Phase 2 to be constructed to support the construction of the community recreation centre.

7. City Council direct the General Manager, Parks, Forestry and Recreation to expedite design of the Lawrence Heights Community Recreation Centre with Children's Services, including moving forward with their procurement process and prioritizing completion of the new community recreation centre project by March 2026 to comply with the requirements of the federal government's Green and Inclusive Community Building Fund.

8. City Council request a full Community Benefits Agreement for the construction of Phases 2 and 3 of Lawrence Heights and that the plan be reported to the Planning and Housing Committee prior to finalizing.

9. City Council reaffirm with the new federal Minister of Infrastructure and Communities, the Honourable Dominic LeBlanc and local Member of the Parliament for Eglinton-Lawrence and Minister of Public Safety, the Honourable Marco Mendicino the City's commitment to expedite the building of the new Lawrence Heights Community Recreation Centre in compliance with the March 2026 timeline, contingent on the City securing the Green and Inclusive Community Building funding to complete this crucially needed project.

On October 27, 2020, City Council adopted Item PH17.8, "Lawrence Heights Phases 2 and 3 - Initial Development Proposal". The Initial Development Proposal ("IDP") was provided to Council for approval in accordance with the new approval framework for Toronto Community Housing Corporation ("TCHC") revitalization projects. This approvals process framework was approved by Council in July 2019 and aims to provide the City with earlier insight into TCHC revitalization projects and ensure that they support wider city-building priorities.

The IDP provided an outline of the project concept for Phases 2 and 3 of the Lawrence Heights revitalization project reflecting the Lawrence Allen Secondary Plan approved by City Council in November 2011. It also summarized challenges and opportunities for achieving city-building objectives, provided preliminary public infrastructure cost estimates, provided details of stakeholder engagement activities, and outlined a series of next steps to advance the project.

This report provides Council with an update on the status of the project, and recommends approval of updated public infrastructure cost estimates so that these items can be included in divisional 2022 capital budget submissions. At the time the IDP was approved by Council in October 2020, the full financial implications were not reflected in the report. The preliminary public infrastructure cost estimates included were escalated from the City’s 2011 Lawrence Heights Financial Strategy which supported the 2011 Lawrence Allen Secondary Plan ("Secondary Plan"). The Secondary Plan was developed based on years of consultation with City Staff, residents and stakeholders and is the foundation for the first phase of revitalization at Lawrence Heights. To accommodate cost escalations from 2020 to 2021, the 2020 IDP costs have since been reviewed and escalated again to 2021 dollars (outlined in Confidential Attachment 1). These revised cost estimates have been reviewed by the respective City divisions and, subject to Council's approval of this report, will be included in divisional 2022 capital budget submissions for consideration through the budget process. Phase 1 cost escalations for the previously approved 2011 Financial Strategy for Lawrence Heights will also be included in 2022 capital budget submissions. Further refined and detailed budgets for Phases 2 and 3 of the revitalization project will be developed once a development partner has been selected and the detailed design of the project is finalized.

In additional to budget updates, this report provides Council with details of work done to-date by TCHC, City and CreateTO staff to: explore adding additional affordable housing onsite; secure third-party funding opportunities, advance the partner procurement process to select a development partner; create the community hub, and implement audit recommendations.

City Council's approval of the recommendations in this report would allow TCHC to proceed with a public RFP process in early 2022 to identify a development partner for Phases 2 and 3 of the Lawrence Heights revitalization project. Following the RFP process, and in line with the approvals process framework, City staff, in consultation with TCHC, will report back to Council in 2022 with details of the TCHC recommended development partner, refined budgets based on proposals received and an update on third-party funding opportunities. Once a development partner has been selected, a master planning process to advance phases 2 and 3 will commence in collaboration with TCHC and the developer, City and CreateTO staff, TCHC tenants and the local community.