Item - 2021.TE24.7

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 315-325 Spadina Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 5 to the report (March 26, 2021) from the Director, Community Planning, Toronto and East York District.

2. City Council amend Zoning By-law 438-86 for the lands at 315-325 Spadina Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 6 to the report (March 26, 2021) from the Director, Community Planning,  Toronto and East York District.

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

4. Before introducing the necessary Bills to City Council for enactment, require the owner to enter into an Agreement pursuant to Section 37 of the Planning Act as follows:

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

i. The owner shall provide and maintain 22 rental dwelling units on the lands at 315-325 Spadina Avenue as affordable rental housing for a minimum period of 25 years or, if Open Door Affordable Housing Program incentives are approved, for a minimum period of 40 years beginning from the date that each such unit is first occupied, in accordance with the terms set out in the Section 37 Agreement, including:

A. The 22 affordable rental dwelling units shall collectively contain a total gross floor area that is ten percent (10%) of the total gross floor area of dwelling units within the development;

B. At least one (1) of the affordable rental dwelling units shall be a three-bedroom or four-bedroom rental unit with a minimum unit size of 103 square metres;

C. At least three (3) of the affordable rental dwelling units shall be two-bedroom rental units with a minimum unit size of 70 square metres, and a minimum average unit size of 73 square metres;

D. At least eleven (11) of the affordable rental dwelling units shall be one-bedroom rental units with a minimum unit size of 53 square metres, and a minimum average unit size of 60 square metres;

E. The remaining seven (7) affordable rental dwelling units shall have a minimum unit size of 46.5 square metres, and a minimum average unit size of 48 square metres;

F. The location and layouts of the new affordable rental dwelling units within the approved development on the lands shall be to the satisfaction of the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat;

G. The owner shall provide and maintain the affordable rental dwelling units as secured rental housing for a minimum period of  25 years or, if Open Door Affordable Housing Program incentives are approved, for a minimium period of 40 years beginning from the date that each such unit is first occupied. During such secured rental period, no affordable rental dwelling unit shall be registered as a condominium 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 rental dwelling unit or to convert any affordable rental dwelling unit to a non-residential rental purpose. Upon the expiration of the secured rental 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;

H. The initial rent (inclusive of utilities) charged to the first tenants of any affordable rental dwelling unit shall not exceed 80% 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;

I. If an affordable rental dwelling unit becomes vacant and is re-rented to new tenants during the 25-year affordability period or, if Open Door Affordable Housing Program incentives are approved, the 40-year affordability period, the initial rent (inclusive of utilities) charged to new tenants 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. 

J. After the first year of occupancy of any affordable rental dwelling unit, 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;

K. Notwithstanding the annual rent increases permitted in Recommendation 4.a.i.J. above, the rent (inclusive of utilities) charged to any first tenants or new tenants occupying an affordable rental dwelling unit shall not be increased to an amount that exceeds 80 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;

ii. At least six months in advance of any new affordable rental dwelling  unit being made available for rent to the general public, the owner shall develop and implement a Tenant Access Plan in consultation with, and to the satisfaction of, the Chief Planner and Executive Director, City Planning and the Executive Director, Housing Secretariat.

 iii. The new affordable rental dwelling units shall be made ready and available for occupancy no later than the date by which seventy percent (70%) of the new dwelling units erected on the lands are available and ready for occupancy.

 iv. The owner shall provide all tenants of the affordable rental dwelling units with access to, and use of, all indoor and outdoor amenities in the development at no extra charge. Access to, and use of, these amenities shall be provided on the same terms and conditions as any other resident of the building without the need to pre-book or pay a fee, unless specifically required as a customary practice for private bookings.

 v. The owner shall provide all tenants of the affordable rental dwelling units with laundry facilities on the same basis as other units within the development at no extra charge.

 vi. The owner shall provide all tenants of the affordable rental dwellings units with access to permanent and visitor bicycle parking/bicycle lockers on the same terms and conditions as any other resident of the building, and in accordance with the Zoning By-law.

vii. The owner shall be responsible for fit-up costs for the initial leases on the retail units, including: Base flooring, standard white walls, standard acoustical ceiling, tile ceilings, HVAC and plumbing rough ins for a standard retail unit, including access to a universal restrooms or provide fit out allowance to commercial tenants to a maximum of $50 per square foot.  Calculation of per square foot allowance shall not include square footage of shared commercial space which will be constructed and finished by the owner in any event.

 viii. The owner shall establish initial commercial base rents comparable to existing rents ($35 per square foot plus Consumer Price Index calculated from the date the amending zoning by-laws have been enacted). Base rents shall not include any reimbursable expenses such as property tax, property management, utilities and insurance.

 ix. The owner commits to offer each commercial unit to the existing tenants (who occupy any commercial space on site on the date that the amending zoning by-laws have been enacted) prior to entering into negotiations with any other prospective tenant. The terms of any lease signed by a non-existing tenant must be substantially similar to the offer provided to the existing tenants. The owner will offer each retail unit to all existing tenants on the same day and they shall have 30 days to accept the proposed terms. If more than one existing tenant accepts the same unit then it shall be at the sole discretion of the owner to select the existing tenant whom it wishes to enter into a lease with. An existing tenant who has defaulted on their lease at any time shall be excluded from this provision.

 x. The owner agrees not to lease commercial space to Chain Stores on the site. Chain Stores are defined as a type of retail sales activity or retail sales establishment which, along with eleven or more other retail sales establishments located in the world, maintains two or more of the following features: a standardized array of merchandise, a standardized facade, a standardized decor and color scheme, a uniform apparel, standardized signage, a trademark or a service mark.

 xi. At the end of the offer period for the existing tenants in Recommendation 4.a.ix. above, should there still be vacancies, the owner shall establish a working group comprised of members of the local community, organizations and agencies, to provide guidance on prospective tenants and to establish a set of principles for attracting commercial tenants and offering leases, that includes, but is not limited to:

A. Promote the return of businesses and services displaced by development;

B. Promote the selection of tenants who are small businesses (defined as having 5 or fewer full time employees); 

C. Promote the selection of retail commercial tenants that reflect the diversity and character of the area, including those that  promote the customs, arts, language, cuisine and health; and

D. Allows for agencies serving the local community to have the opportunity to grow on the site.

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

 i. prior to Site Plan Approval, the owner shall apply for Open Door Affordable Housing Program incentives for all affordable rental dwelling units within the development;

ii. prior to the issuance of any building permit, including permits for excavation and shoring, the owner shall enter into a municipal capital facility agreement ("Contribution Agreement"), subject to approval of an Open Door application with the City to provide Open Door Affordable Housing Program incentives for all affordable rental dwelling units at 315-325 Spadina Avenue that are approved for Open Door incentives. The owner shall provide such affordable rental dwelling units in accordance with such agreement(s) to be entered into with the City, all to the satisfaction of the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning and the City Solicitor;

c. Prior to Site Plan Approval, the owner shall submit, and thereafter implement, a Construction Management Plan to address matters such as wind, noise, dust, traffic mitigation, and street closures during construction, which shall be to the satisfaction of the General Manager, Transportation Services and Chief Planner and Executive Director, City Planning, and developed in consultation with the Ward Councillor.

5. Subject to approval of an Open Door Affordable Rental Housing Program application by the Executive Director, Housing Secretariat, City Council authorize the Executive Director, Housing Secretariat, to negotiate and execute a municipal capital facility agreement (Contribution Agreement) with the owner for the provision of Open Door Incentives and other City funding, if approved, for 22 affordable rental dwelling units at 315-325 Spadina Avenue to secure rents at or below 80 percent of the average rent by bedroom type in the City of Toronto, as reported by Canada Mortgage and Housing Corporation in its most recent annual Rental Market Report, for a minimum period of 40 years, together with any security, financing or other documents required, as well as any amendments thereto required from time to time, on terms and conditions acceptable to the Executive Director, Housing Secretariat, in a form satisfactory to the City Solicitor.

6. Subject to approval of an Open Door Application by the Executive Director, Housing Secretariat, City Council exempt the 22 affordable rental dwelling units at 315-325 Spadina Avenue from taxation for municipal and school purposes for the 40-year term of the municipal capital facility agreement.

7. Subject to approval of an Open Door Application by the Executive Director, Housing Secretariat, City Council authorize that the 22 new affordable rental dwelling units at 315-325 Spadina Avenue be exempt from the payment of development charges and be exempt from the payment of planning, park dedication and building permits fees under existing City policy and with the exception of fees already paid.

8. City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered with respect to the delivery of the affordable rental housing dwelling units as required by normal business practices.

9. City Council authorize the appropriate City staff to cancel or refund any taxes paid pursuant to the by-law exempting the property from taxation if authority is given for an exemption from taxation as set out in Recommendation 6 above.

10. Before introducing the necessary Bills to City Council, the owner shall address comments identified in Section A of the Engineering and Construction Services memo to City Planning, dated March 12, 2021, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services.

The Toronto and East York Community Council held a statutory public meeting on April 21, 2021 and notice was given in accordance with the Planning Act.

This Zoning By-law Amendment application proposes to redevelop the lands at
315-325 Spadina Avenue with a 13-storey purpose-built rental apartment building comprised of 893 square metres of retail space on the ground level and 219 rental dwelling units, including 22 affordable rental units, on the second through 13th floors.
A total of 224 bicycle parking spaces and 34 vehicle parking spaces are proposed within a one-level underground garage that would be accessed from the rear lane.

The proposed development is consistent with the Provincial Policy Statement (2020) and conforms with A Place to Grow: Growth Plan for the Greater Golden Horseshoe (2020), and conforms with all relevant policies of the Toronto Official Plan and the Downtown Secondary Plan.

The proposal presents an appropriate built form and public realm that is compatible with the surrounding context. It has been revised since its initial submission to include 22 affordable housing units, and the proposed retail space has been redesigned to provide a better physical fit within the commercial context of Chinatown and respond to the Retail Design Manual. This report reviews and recommends approval of the proposed Zoning By-law Amendments.