Item - 2022.CC43.17

City Council on May 11 and 12, 2022, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor.

3. City Council authorize the public release of the Financial Impact section in Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor.

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

The confidential instructions to staff in Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor, were adopted by City Council and are now public as follows:

1. City Council accept the with prejudice revised settlement offer, attached to the report (May 3, 2022) from the City Solicitor as Public Attachment 2 (the "Revised Settlement Offer"), in respect of the appeal of the Zoning By-law Amendment application (Application 264041 STE 19 OZ).

2. City Council direct the City Solicitor, in consultation with the Chief Planner and Executive Director, City Planning, to request the Ontario Land Tribunal to revise the conditionally approved Zoning By-law amendment by including the following permissions, subject to Part 3 below:

a. increase the permitted gross floor area from 89,671 square metres to 92,600 square metres; and  

b. permit the use of a District Energy Facility.

3. City Council direct the City Solicitor to request the Ontario Land Tribunal to withhold the issuance of any Order(s) for the development until such time as the Ontario Land Tribunal has been advised by the City Solicitor that:

a. the owner has entered into an Agreement pursuant to Section 37 of the Planning Act, and any other necessary agreements, satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor, securing as a matter of legal convenience the design and construction of a District Energy Facility on the subject site, with the precise location and other details to be secured through an application for Site Plan Control approval;

b. the owner has entered into an Agreement pursuant to Section 37 of the Planning Act, and any other necessary agreements, satisfactory to the Chief Planner and Executive Director, City Planning, the Executive Director, Housing Secretariat, and the City Solicitor, securing 26 affordable rental housing units as a community benefit in accordance with the terms of the with prejudice letter, including:

i. no more than 18 one-bedroom units with an average unit size of 500 square metres;

ii. at least six two-bedroom units with an average unit size of 725 square metres;

iii. at least two three-bedroom units with an average unit size of 875 square metres;

iv.  maximum rents based on 80 percent of average market rent; and

v.  an affordability period of 40 years.

4. City Council authorize the City Solicitor and appropriate City staff to take such necessary steps, as required, to implement City Council's decision, including, but not limited to, requesting the Ontario Land Tribunal to modify its decision and conditions for the issuance of the final order in accordance with City Council's decision and, where appropriate, to request the issuance of any Order(s) for the development prior to the owner entering into any agreements referenced in Part 3 above.

5. City Council authorize 26 affordable rental units to be eligible for waivers of fees for planning application, building permit, parkland dedication and development charges exemptions on the lands known as 2 Tecumseth Street and 125-133 Niagara Street through the Open Door Affordable Rental Housing Program.

6. City Council authorize an exemption from taxation for municipal and school purposes for 40 years, for the 26 affordable rental units to be located on the lands known as 2 Tecumseth Street and 125-133 Niagara Street through the Open Door Affordable Rental Housing Program.

7. City Council authorize the Executive Director, Housing Secretariat to negotiate and enter into, on behalf of the City, a municipal housing project facility agreement (the "Contribution Agreement") with the owner for the development of the affordable housing to be constructed on the lands known as 2 Tecumseth Street and 125-133 Niagara Street, to secure the financial assistance being provided and to set out the terms of the operation of the new affordable rental housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form approved by the City Solicitor.

8. City Council authorize City staff to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the Contribution Agreement.

9. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by the owner to secure construction and conventional financing and subsequent refinancing, including any postponement, tripartite, confirmation of status, discharge or consent documents of any City security 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 that have not been previously approved by City Council.

10. City Council direct that in all other respects the City Council decision of October 2, 2019 in Item TE8.17 and the accepted terms of the original settlement offer, dated July 5, 2019, attached to the report (May 3, 2022) from the City Solicitor as Public Attachment 1 (the "Original Settlement Offer"), shall mutatis mutandis apply to the Revised Settlement Offer.

The Financial Impact Section in Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor is now public and can be accessed under Background Information (City Council). 

The balance of Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (May 3, 2022) from the City Solicitor will be made public at the discretion of the City Solicitor.