Item - 2022.CC41.17

City Council on March 9, 2022, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (March 2, 2022) from the City Solicitor.

2. City Council authorize the public release of:

a. the confidential instructions to staff in Confidential Attachment 1 to the report (March 2, 2022) from the City Solicitor; and

b. Confidential Appendices A and B to the report (March 2, 2022) from the City Solicitor.

3. City Council direct that the balance of Confidential Attachment 1 to the report (March 2, 2022) from the City Solicitor remain confidential as it contains advice that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (March 2, 2022) from the City Solicitor, were adopted by City Council and are now public as follows:

1. City Council conditionally accept the owner's settlement offer, dated February 28, 2022 composed of the letter attached as Confidential Appendix A to the report (March 2, 2022) from the City Solicitor and the plans and project statistics attached as Confidential Appendix B to the report (March 2, 2022) from the City Solicitor (the "Settlement Offer") subject to Parts 3 to 10 below.

2. City Council authorize the City Solicitor and appropriate City Staff to attend the Ontario Land Tribunal on this matter in support of the proposed development set out in the Settlement Offer, with any necessary revisions to address the matters identified in Parts 3 to 10 below.

3. City Council require the owner to design, construct, finish, and maintain at least 15 affordable rental housing dwelling units on the site (the "Affordable Housing Units"), in accordance with the following terms:

a. at least 10 percent of the Affordable Housing Units shall be three-bedroom rental units with a minimum unit size of 84 square metres;

b. at least 30 percent of the Affordable Housing Units shall be two-bedroom rental units with a minimum unit size of 60 square metres;

c. no more than 10 percent of the Affordable Housing Units shall be studio rental units at similar sizes to the market studio units;

d. one-bedroom Affordable Rental Units shall be similar sizes to market one-bedroom units;

e. the Affordable Housing Units will generally be located on the 7th to 28th floors of the building, and the final location and layouts of the Affordable Housing Units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

f. the Affordable Housing Units will be rented at no more than 90 percent of Affordable Rents as currently defined in the Official Plan, inclusive of utilities for heat, hydro and hot and cold water, for a minimum period of 40 years, beginning from the date that each such unit is first occupied (the "Affordability Period"); during which, no Affordable Housing Unit shall be registered as a condominium or any other form of ownership housing, and no application shall be made to demolish or convert any Affordable Housing Unit to a non-residential rental purpose;

g. after the first year of occupancy of any Affordable Housing Units, the rent charged to the tenants occupying a unit may be escalated annually by not more than the annual provincial rent guideline, regardless of whether such guideline is applicable to the units under the Residential Tenancies Act or any successor legislation governing residential tenancies in Ontario, until the tenancy ends;

h. notwithstanding the annual rent increases permitted in Part 3.g. above, the rent (inclusive of utilities) charged to any first tenants or new tenants occupying an Affordable Housing Unit shall not be increased to an amount that exceeds 90 percent of the average rent for the same unit type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

i. the City's Centralized Affordable Housing Access System will be used to advertise and select tenants, provided it is in place; in addition, at least six months in advance of any new Affordable Housing Units being made available for rent, the owner shall develop and implement a Housing Access Plan, which will outline how units will be rented to eligible households in consultation with, and to the satisfaction of, the Chief Planner and Executive Director, City Planning;

j. the new Affordable Housing Units shall be made ready and available for occupancy no later than the date by which seventy percent of the new dwelling units  are available and ready for occupancy, or to the satisfaction of, the Chief Planner and Executive Director, City Planning;

k. the owner shall provide all tenants of the Affordable Housing Units with access to, and use of, all indoor and outdoor amenities in the development on the same terms and conditions as any other resident of the building;

l. the owner shall provide all tenants of the Affordable Housing Units with laundry facilities on the same basis as other units within the building; and

m. the owner shall provide all tenants of the Affordable Housing Units with access to permanent and visitor bicycle parking/bicycle lockers on the same terms and conditions as any other resident of the building in which the Affordable Housing Units are located, and in accordance with the Zoning By-law.

4. City Council authorize the Chief Planner and Executive Director, City Planning, or designate, to enter into of an agreement with the owner pursuant to Section 37 of the Planning Act as follows, to the satisfaction of the Chief Planner and the City Solicitor:

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

i. the owner will design, construct, finish, and maintain at least 15 affordable rental housing dwelling units on the site (the "Affordable Housing Units"), in accordance with the following terms:

a. at least 10 percent of the Affordable Housing Units shall be three-bedroom rental units with a minimum unit size of 84 square metres;

b. at least 30 percent of the Affordable Housing Units shall be two-bedroom rental units with a minimum unit size of 60 square metres;

c. no more than 10 percent of the Affordable Housing Units shall be studio rental units at similar sizes to the market studio units;

d. one-bedroom Affordable Rental Units shall be similar sizes to market one-bedroom units;

e. the Affordable Housing Units will generally be located on the 7th to 28th floors of the building, and the final location and layouts of the Affordable Housing Units shall be to the satisfaction of the Chief Planner and Executive Director, City Planning;

f. the Affordable Housing Units will be rented at no more than 90 percent of Affordable Rents as currently defined in the Official Plan, inclusive of utilities for heat, hydro and hot and cold water, for a minimum period of 40 years, beginning from the date that each such unit is first occupied (the "Affordability Period"); during which, no Affordable Housing Unit shall be registered as a condominium or any other form of ownership housing,  and no application shall be made to demolish or convert any Affordable Housing Unit to a non-residential rental purpose;

g. after the first year of occupancy of any Affordable Housing Units, the rent charged to the tenants occupying a unit may be escalated annually by not more than the annual provincial rent guideline, regardless of whether such guideline is applicable to the units under the Residential Tenancies Act or any successor legislation governing residential tenancies in Ontario, until the tenancy ends;

h.  notwithstanding the annual rent increases permitted in Part 4 a.i.g. above, the rent (inclusive of utilities) charged to any first tenants or new tenants occupying an Affordable Housing Unit shall not be increased to an amount that exceeds 90 percent of the average rent for the same unit type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

i. the City's Centralized Affordable Housing Access System will be used to advertise and select tenants, provided it is in place; in addition, at least six months in advance of any new Affordable Housing Units being made available for rent, the owner shall develop and implement a Housing Access Plan, which will outline how units will be rented to eligible households in consultation with, and to the satisfaction of, the Chief Planner and Executive Director, City Planning;

j. the new Affordable Housing Units shall be made ready and available for occupancy no later than the date by which 70 percent of the new dwelling units  are available and ready for occupancy, or to the satisfaction of, the Chief Planner and Executive Director, City Planning;

k. the owner shall provide all tenants of the Affordable Housing Units with access to, and use of, all indoor and outdoor amenities in the development on the same terms and conditions as any other resident of the building;

l. the owner shall provide all tenants of the Affordable Housing Units with laundry facilities on the same basis as other units within the building; and

m. the owner shall provide all tenants of the Affordable Housing Units with access to permanent and visitor bicycle parking/bicycle lockers on the same terms and conditions as any other resident of the building in which the Affordable Housing Units are located, and in accordance with the Zoning By-law; and

b. the following are also recommended to be secured in the Section 37 Agreement as a legal convenience to support development if approved by the Ontario Land Tribunal:

i. pursuant to the site plan control application process but in any event prior to final Site Plan approval, the owner shall design a minimum 2.1 metre wide pedestrian walkway connection (the "pedestrian connection") running north-south along the eastern portion of the subject property in the approximate location as shown on the Settlement Offer plans, with the final location of the pedestrian connection and design to be to the satisfaction of the Chief Planner and Executive Director, City Planning or designate;

ii. prior to final site plan approval, the owner shall prepare all documents and convey to the City, at its own expense and for nominal consideration, a public access easement upon the pedestrian connection, including rights of support as applicable, for its use by the general public, to the satisfaction of the Chief Planner and Executive Director, City Planning in consultation with the City Solicitor; the easement conveyance shall be registered in priority and clear of all physical encumbrances unless otherwise agreed to by the Chief Planner and Executive Director;

iii. pursuant to the site plan control application process but in any event prior to final Site Plan approval, the owner shall design a privately-owned publicly accessible space with an area of no less than 126.6 square metres wide at the south side of the property fronting onto Charles Street East in the approximate location as shown on the Settlement Offer plans, with the final location and configuration of the privately-owned publicly accessible space to be to the satisfaction of the Chief Planner and Executive Director, City Planning or his designate;

iv. prior to final site plan approval, the owner shall prepare all documents and convey to the City, at its own expense and for nominal consideration, a surface easement in respect of the privately-owned publicly accessible space, including rights of support as applicable, permitting its use by the general public, to the satisfaction of the Chief Planner and Executive Director, City Planning in consultation with the City Solicitor; the easement conveyance shall be registered in priority and clear of all physical encumbrances unless otherwise agreed to by the Chief Planner and Executive Director;

v. the owner shall make a cash payment to the City in the amount of $50,000, to be paid prior to the first above-grade building permit, to be allocated by the City to the proposed signalization at Church Street and Hayden Street, with the City responsible for the construction of such signalization; the $50,000 cash payment shall be upwardly indexed in accordance with the Statistics Canada Non-Residential Construction Price Index for the Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Building Construction Price Indexes Table 18-10-0135-01, or its successor, and calculated from the date of the Tribunal's order to the date of the first above-grade building permit for the development; and

vi. the owner will construct and maintain the development of the 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 site.

5. City Council authorize the City Solicitor to request the Ontario Land Tribunal to include in its Order for the Zoning By-law amendment application a Zoning By-law amendment in form and content satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor.

6. City Council instruct the City Solicitor to request the Ontario Land Tribunal to withhold its Order for the Zoning By-law amendment appeal pending receipt of written confirmation from the City Solicitor that:

a. the owner has resubmitted to an updated Functional Servicing Report, updated Stormwater Management Report, and updated Hydrogeological Study to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services and the Chief Planner and Executive Director, City Planning; and

b. the owner has made satisfactory arrangements with the Chief Engineer and Executive Director, Engineering and Construction Services for the design and construction of new infrastructure or any improvements to the existing municipal infrastructure, should it be determined in the Engineering Reports that new infrastructure and/or upgrades/improvements are required to the existing infrastructure, to support this development, and that the owner has entered into a financially secured agreement to pay for and construct any necessary municipal infrastructure, with any such agreement to be executed prior to the issuance of the first above-grade building permit.

7. City Council authorize the City Solicitor, in the event the owner has not satisfied the matters set out in Parts 6.a. and 6.b. above on or before May 11, 2022, to request the Ontario Land Tribunal to issue its Order on the Zoning By-law amendment appeal inclusive of a holding symbol under Section 36 of the Planning Act with the conditions for the removal of the holding symbol being the satisfactory completion of the matters set out in Parts 6.a and 6.b. above.

8. City Council require the owner to withdraw its appeal of Official Plan Amendment 352 on or before May 11, 2022.

9. City Council require the owner to file an application under Section 33 of the Ontario Heritage Act permitting the alteration of the property municipally known as 625 Church Street and designated under Part IV of the Ontario Heritage Act pursuant to the passing of City of Toronto By-law 808-2021 in time for the application to be considered by the Toronto Preservation Board at its meeting of April 5, 2022.

10. 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 and B to the report (March 2, 2022) 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 (March 2, 2022) from the City Solicitor remains confidential in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege.