Item - 2022.TE34.32

The Toronto and East York Community Council recommends that:

1. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 254-260 Adelaide Street West, substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 6 to the report (June 15, 2022) from the Director, Community Planning, Toronto and East York District.

2. City Council authorize the City Solicitor to submit the necessary bill to implement the foregoing recommendations provided the City Solicitor is satisfied that the appropriate legal mechanisms are in place to ensure that no building permit will be issued until such time as the Section 37 Agreement is executed and registered.

3. City Council direct the Executive Director, Housing Secretariat, to secure a minimum of 20 percent of the residential gross floor area as affordable rental housing for 99 years as part of the market sale for the lands at 254 - 260 Adelaide Street West.

4. City Council require the owner to enter into an Agreement pursuant to Section 37 of the Planning Act, prior to the issuance of any building permit for the development, as follows:

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

i. Prior to the issuance of any building permit on the lands, the Owner shall enter into a municipal housing facility agreement (the City's "Contribution Agreement"), with the City for the delivery and operation of a minimum of 20 percent of the residential gross floor area as affordable rental housing for 99 years.

ii. Prior to the earlier of condominium registration or first residential use on site, the owner shall design, construct, commission, finish and convey in fee simple to the City, in an environmental condition in accordance with all City policies, for nominal consideration and at no cost to the City, a minimum 925 square metres Community Agency Space located on levels one (156 metres) and two (770 metres) of the base building fronting Nelson Street and subject to the following:

A. The Community Agency Space shall be delivered to the City in accordance with the City's Community Space Tenancy Policy in order to be leased by the City to an eligible non-profit organization and finished to Base Building Condition (shell space prior to final fitout), with the terms and specifications to be secured in the Section 37 Agreement, all satisfactory to the Executive Director, Social Development, Finance and Administration, the Executive Director, Corporate Real Estate Management, the Chief Planner and Executive Director, City Planning and the City Solicitor;

B. Prior to the conveyance of the Community Agency Space to the City, the owner shall provide a one-time cash contribution in the amount of $1,500,000.00 for total finishing costs of the community agency space;

C. The financial contribution pursuant to Recommendation 4.a) ii. B. above shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto Census Metropolitan area, reported quarterly by Statistics Canada in Building Construction Price Indexes Table: 18-10-0135-10, or its successor, calculated from the date of execution of the Agreement to the date of payment; and

D. Concurrent with or prior to, the conveyance of the Community Agency Space to the City, the owner and the City shall enter into, and register on title to, the appropriate lands an Easement and Cost Sharing Agreement for nominal consideration and at no cost to the City, that is in a form and content satisfactory to the City Solicitor in consultation with the Executive Director, Social Development, Finance and Administration, the Executive Director, Corporate Real Estate Management, the Chief Planner and Executive Director, City Planning. The Easement and Cost Sharing Agreement shall address and/or provide for the integrated support, use, operation, maintenance, repair, replacement, and reconstruction of certain shared facilities, and the sharing of costs, in respect thereof, of portions of the subject lands to be owned by the City and the owner as they pertain to the Community Agency Space. 

iii. Prior to the earlier of condominium registration or first residential use on site, the owner shall design, construct, finish, commission and convey in fee simple to the City, in an environmental condition in accordance with all City policies, for nominal consideration and at no cost to the City, Paramedic Post comprising of a minimum of 110 square metres of interior space plus an adjacent two-bay ambulance parking area, measuring a minimum of 110 square metres with access from Nelson Street, all located on the ground floor, and subject to the following:

A. The Paramedic Post shall be delivered to the City finished to Base Building Condition (shell space prior to final fitout), with the terms and specifications to be secured in the Section 37 Agreement, all satisfactory to the Executive Director, Corporate Real Estate Management, the Chief, Toronto Paramedic Services, the Chief Planner and Executive Director, City Planning and the City Solicitor;

B. Prior to the conveyance of the Paramedic Post to the City, the owner shall provide a one-time cash contribution in the amount of $ 371,250 for total finishing costs of the Paramedic Post;

C. The financial contribution pursuant to Recommendation 4.a. iii. B above shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto Census Metropolitan area, reported quarterly by Statistics Canada in Building Construction Price Indexes Table: 18-10-0135-10, or its successor, calculated from the date of execution of the Agreement to the date of payment; and

D. The financial contribution pursuant to Recommendation 4 a. iii. C above shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Building Construction Price Index for Toronto, calculated from the date City Council adopts the zoning by-law amendment(s) to the date of payment;

iv. The owner shall construct, provide and maintain a Privately-Owned and Publicly-Accessible Open Space ("POPS") at 254 - 260 Adelaide Street West with a minimum area of 301 square metres in the form of a promenade running through the site between Adelaide Street West and Nelson Street in the location generally identified in the Zoning By-law Amendment, with the specific configuration and design of the POPS to be determined and secured in the context of a review of a Site Plan Control Application for the development to the satisfaction of the Director, Community Planning, Toronto and East York District, in consultation with the Ward Councillor; and

A. Prior to the earlier of one (1) year from any non-residential or residential use or occupancy, including interim occupancy pursuant to the Condominium Act, 1998, and registration of the first condominium for the site, except as otherwise agreed by the Chief Planner and Executive Director, City Planning, due to unforeseen delays (eg. weather), the owner shall prepare all documents and convey to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, in priority to all title encumbrances, to the satisfaction of the City Solicitor, for nominal consideration and at no cost to the City, a public access easement in perpetuity in favour of the City over the Privately-Owned Publicly-Accessible Open Space set out in Recommendation 4.a) iv. above, on terms set out in the Section 37 Agreement satisfactory to the Chief Planner and Executive Director, City Planning. The owner shall be responsible, at its own expense, to prepare, submit to the City for approval and deposit all required reference plans to describe the easement; and

B. the owner shall prepare all documents and convey, a 5.5 metre wide public pedestrian access easement to the City, in a location generally described as a north/south access over the western portion of the site, between the northern edge of the "POPS" and Nelson Street, on terms to be set out in the Section 37 Agreement and with details of the location and final design to be determined and secured in the context of site plan approval for the development and that such easement lands be maintained by the owner at its sole cost. The conveyance of the easement shall be in priority to all title encumbrances, to the satisfaction of the City Solicitor, for nominal consideration and at no cost to the City all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor.  The owner shall be responsible, at its own expense, to prepare, submit to the City for approval and deposit all required reference plans to describe the easement.

v.  the following matters are also recommended to be secured in Section 37 Agreement as a legal convenience in support of the development:

A. The design, construction, finishing, maintenance and provision of a minimum of 20%  (with a target of thirty (30%) percent) of the total residential gross floor area as affordable rental housing dwelling units on the lands at 254-260 Adelaide Street West (the "Affordable Housing Units"), to the satisfaction of the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat, in accordance with the following terms:

aa. the number of units, the unit types, minimum unit sizes, unit layouts and unit location shall be to the satisfaction of the Chief Planner and Executive Director, City Planning and Executive Director, Housing Secretariat and shall reflect, and in no event be less than, the minimum and average sizes of the market units;

bb. the owner shall provide and maintain the Affordable Housing Units as secured rental dwelling units for 99 years beginning from the date that each such unit is first occupied (the "Affordability Period"). During the Affordability Period, no Affordable Housing Unit shall be registered as a condominium unit or any other form of ownership housing that provides a right to exclusive possession of a dwelling unit, including life lease or co-ownership, and no application shall be made to demolish any Affordable Housing Unit or to convert any Affordable Housing Unit to a non-residential rental purpose. Upon the expiration of the Affordability Period, the owner shall continue to provide and maintain the units as rental dwelling units, unless and until such time as the owner has applied for, and obtained, all approvals necessary to do otherwise.

cc. the initial rent (inclusive of utilities) charged to the first tenants of any Affordable Housing Units shall not exceed 100 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report, and the project average across the Affordable Housing Units shall not exceed 80 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report ;

dd. if an Affordable Housing Unit becomes vacant and is re-rented to a new tenant during the Affordability Period, the initial rent (inclusive of utilities) charged to the new tenant shall not exceed 100 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report, and the project average across the Affordable Housing Units shall not exceed 80 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

ee. after the first year of occupancy of any Affordable Housing Units, and for the duration of the Affordability Period, the rent (inclusive of utilities) charged to the first tenants or new tenants occupying such 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;

ff. notwithstanding the annual rent increases permitted in e. above, the rent (inclusive of utilities) charged to any first tenants or new tenants occupying an Affordable Housing Unit during the Affordability Period shall not be increased to an amount that exceeds 100 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, and the project average across the Affordable Housing Units shall not exceed 80 percent of the average rent for the same bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report;

gg. 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 an Access Plan, which will outline how units will be rented to eligible households in consultation with, and to the satisfaction of, the Executive Director, Housing Secretariat;

hh. the new Affordable Housing Units shall be made ready and available for occupancy no later than the date by which seventy percent (70 percent) of the market residential units on site are available and ready for occupancy, or to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;

ii. 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 at no extra charge and on the same terms and conditions as any other resident of the mixed use building, without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings;

jj. the owner shall provide all tenants of the Affordable Housing Units with laundry facilities no extra charge; and

kk. 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 market residential on the site, to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat; and in accordance with the Zoning By-law.

B. prior to the commencement of any excavation or shoring work, the owner shall submit a Construction Management Plan to the satisfaction of the General Manager, Transportation Services and the Chief Building Official and Executive Director, Toronto Building, in consultation with the Ward Councillor and thereafter in support of the development, will implement the Plan during the course of construction.  The Construction Management Plan will include, but not be limited to the following construction-related details: noise, dust, size and location of staging areas, location and function of gates, dates of significant concrete pouring, lighting details, vehicular parking and queuing locations, street closures, parking and access, refuse storage, site security, site supervisor contact information, and a communication strategy with the surrounding community, and any other matters requested by the General Manager, Transportation Services, in consultation with the Ward Councillor;

C. Prior to the earlier of Site Plan Approval or the first building permit for shoring and excavation, the owner shall submit the following materials for review and acceptance to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services:

i. Updated Functional Servicing and Stormwater Management Report;

ii. Updated Hydrogeological Report;

iii. Servicing Report Groundwater Summary Form; and

iv. Hydrogeological Review Summary Form.

D. Prior to the earlier of Site Plan Approval or the first building permit for shoring and excavation, the owner shall pay for and construct any improvements to the municipal infrastructure in  connection with the Functional Servicing and Stormwater Management Report, to be resubmitted for review and acceptance by the Chief Engineer and Executive Director, Engineering and Construction Services, should it be determined that improvements to such infrastructure are required to support this development.

E. The construction and maintenance of the development in accordance with at least the Tier 2 performance measures of the Toronto Green Standard;

F. In the event the City sells the lands municipally known as 260 Adelaide Street West to an arm's length entity prior to Site Plan Approval, the conveyance to the City for nominal consideration of the required 0.72 metre strip of land between the existing commercial lane to the east of the subject site and the proposed building face for a lane widening to be dedicated to the City at no cost to the City, free and clear, above and below grade, of all easements, encumbrances and encroachments and in acceptable environmental condition, all to the satisfaction of the General Manager, Transportation Services;

G. In the event the City sells the lands municipally known as 260 Adelaide Street West to an arm's length entity prior to Site Plan Approval, the conveyance to the City for nominal consideration of the required 1.63 metre strip of land between the existing commercial lane to the west and south of the subject site and the proposed building face for a lane widening to be dedicated to the City at no cost to the City, free and clear, above and below grade, of all easements, encumbrances and encroachments and in acceptable environmental condition, all to the satisfaction of the General Manager, Transportation Services;

5. City Council authorizes the City Solicitor to make such stylistic and technical changes to the draft Zoning By-law Amendment as may be required.

6. City Council declare, pursuant to subsection 45(1.4) of the Planning Act, R.S.O. 1990, c. P.13 for the purposes of subsection 45(1.3) of the Planning Act, R.S.O. 1990, c. P.13, that the Owner, may be permitted to apply to amend the site specific zoning by-law for the lands at 254-260 Adelaide Street West before the second anniversary of the first day on which any part of the site specific by-law comes into effect.

7. City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute a municipal housing facility agreement (the "Contribution Agreement") with the owner for the development of the Affordable Housing Units at 254-260 Adelaide Street West, to secure the financial assistance being provided and set out the terms of the operation of the Affordable Housing Units, on terms and conditions acceptable to the Executive Director, Housing Secretariat, in a form satisfactory to the City Solicitor.

8. City Council approve the provision of financial incentives pursuant to the City's Open Door Affordable Housing Program in relation to the Affordable Housing Units as follows:

a. City Council exempt the up to 244 affordable rental dwelling units at 254-260 Adelaide Street West from taxation for municipal and school purposes for the 99 year affordability period;

b. City Council authorize the up to 244 new affordable rental dwelling units at 254-260 Adelaide Street West to be eligible for waivers of fees for planning applications, building permits and parkland dedication, and for development charges exemption, unless already paid. 

9. City Council authorize the Executive Director, Housing Secretariat, on behalf of the City, to execute any security or financing documents, or any other documents required to facilitate the delivery of the Affordable Housing Units, including any documents required by the owner to complete pre-development activities, construction and secure conventional financing, where required, including any postponement, confirmation of status, discharge or consent 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.

10. City Council authorize the Controller 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.

The Toronto and East York Community Council held a statutory public meeting on June 30, 2022 and notice was given in accordance with the Planning Act.

This report reviews and recommends approval of the application to amend the Zoning By-law to permit a 61-storey mixed-use building at 254-260 Adelaide Street West. The proposed development includes commercial uses, a community agency space and a paramedic post within the first 2 levels and 813 residential dwelling units above. A target of 30 percent of the dwelling units are proposed to be provided as affordable rental units at 80% average market rent for a period of 99 years. Two levels plus mezzanine of underground parking are proposed with 97 parking spaces for residents. A total of 819 bicycle parking spaces are also proposed within the ground floor and mezzanine of the garage.

This report provides revised recommendations for the Section 37 community benefits package respecting the Zoning Amendment Application at 254-260 Adelaide Street West, to be considered by the Toronto and East York Community Council on June 30, 2022, item TE34.32: http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2022.TE34.32

The proposed revisions include removing requirements for financial securities to be posted for the cost of the design and construction of an on-site Community Agency Space and Paramedic Post, as these have been deemed not necessary, and also to amend numeric referencing errors in the Recommendations section of the report (June 15, 2022) from the Director, Community Planning, Toronto and East York District.