Item - 2022.PH33.8

The Planning and Housing Committee recommends that:  

1. City Council authorize up to 28 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 90 and 100 Simcoe Street, 130 Pearl Street, and 203, 207 and 211 Adelaide Street West.

2. City Council authorize an exemption from taxation for municipal and school purposes for 40 years, for the up to 28 affordable rental units to be located on the lands known as 90 and 100 Simcoe Street, 130 Pearl Street, and 203, 207 and 211 Adelaide Street West.

3. 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 Sun Life Assurance Company of Canada for the development of the affordable housing to be constructed on the lands known as 90 and 100 Simcoe Street, 130 Pearl Street, and 203, 207 and 211 Adelaide Street West, 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.

4. 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.

5. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents required by Sun Life Assurance 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 Council.

This report recommends that City Council approve Open Door Affordable Rental Housing Program incentives for 28 new affordable rental homes in the redevelopment of 90 and 100 Simcoe Street, 130 Pearl Street, and 203, 207 and 211 Adelaide Street West ("100 Simcoe Street"). The affordable rental homes will be part of a larger mixed-use development, including an additional 498 units of purpose-built rental housing, as well as retail and office uses.

The project has been the subject of an Ontario Land Tribunal ("OLT") appeal by the owner Sun Life Assurance Company of Canada ("Sun Life Assurance"), and a settlement is being finalized. As part of the settlement process, City Planning and Housing Secretariat staff have confirmed the affordable housing proposal recommended in this report with Sun Life Assurance. Subject to the approval of this report, the affordable homes will be supported by both a community benefit contribution under Section 37 of the Planning Act and the City's Open Door Program. Combined, the contributions increase the affordable housing realized through the redevelopment.

The Open Door Program incentives recommended for Council approval will assist Sun Life Assurance in providing affordable housing options to low-and-moderate-income households, including persons with disabilities and those from equity-deserving groups. The homes will remain affordable for a minimum of 40 years at average market rent by unit size. Approval of this project will contribute towards the delivery of the City's HousingTO 2020-2030 Action Plan which aims to approve 40,000 new affordable homes by 2030.