Agenda

Bayside is one of the first new neighbourhoods to be developed in the East Bayfront.  It is comprised of public lands in which Waterfront Toronto has the lead in revitalizing.   The Central Waterfront Secondary Plan, the East Bayfront Precinct Plan and the East Bayfront zoning by-law require that 20 percent of all residential units be affordable rental housing or that land sufficient to construct such housing be provided at the same time as the development of the market housing.

In 2010, Council approved entering into agreements with Hines Canada Management Company ULC (Hines) for the development of the Bayside lands. The Land Development Agreement sets out the terms and conditions under which the City and Hines/Tridel are to work together to develop an affordable housing pilot project as one portion of the larger affordable housing requirements, on two sites located at the eastern end of Bayside, which may not be ready for development for possibly as long as 10-15 years. At the time, Council requested that options be pursued to expedite the building of a portion of the affordable housing by having it located in the earlier Phase 1 development located at  the west end of Bayside.

In accordance with the terms of that Agreement, the City has received a preliminary proposal for an estimated 71 affordable rental apartments in a market condominium on the R3R4 site, a building which would also include a commercial component.  This proposal has the benefit of allowing for the construction of a portion of the affordable rental housing at the same time as, and integrated with, the market housing.   This pilot project would represent the first step to fulfilling Council's policy of providing 20 percent affordable housing in Bayside.

While the preliminary proposal, presented by Hines and its residential development partner, Tridel Corporation (Tridel), is only an outline with an estimated number of units and cost, the Land Development Agreement directs the City to approve an allocation of funds for the preliminary proposal in 2013.  By approving this report, Council will provide an in principle approval for capital funding required by Hines and Tridel to negotiate a definitive proposal with the City, which will be the subject of a report to Council in May 2014.  At that time the final number of units, within a range of 70 – 75 will be specified; as well, the complete capital costs and details of the transaction will be outlined.

This report recommends proceeding with developing an affordable housing pilot project in the Bayside district of the Central Waterfront by approving in principle an allocation of up to $15 million in funding from the federal/provincial Investment in Affordable Housing 2014-2019 program and, as may be required, by providing additional funding from the appropriate City reserve funds.  The Federal Government has renewed the Program and is working with the Province to negotiate a bi-lateral agreement to match Federal/Provincial funding from 2014 to 2019. This is a standard agreement which is expected to be finalized by the spring of 2014.

The balance of the funding to complete the project, currently estimated at $7.5 million, will be provided by the non-profit corporation chosen to lease or own and operate the project, with funding to be provided by the non-profit by mortgaging its interest in the project and by providing an equity contribution.

The Deputy City Manager and Chief Financial Officer have reviewed this report and agree with the financial impact information.