Item - 2012.TE17.16

City Council on July 11, 12 and 13, 2012, adopted the following:

1.         City Council authorize the City Solicitor, together with City Planning staff and any other appropriate staff, to attend at the Ontario Municipal Board in support of the revised proposal respecting the Zoning By-law Amendment application for 323-333 King Street West (File10 182677 STE 20 OZ) as outlined in the report (May 22, 2012) from the Director, Community Planning, Toronto and East York District.

2.         City Council authorize the City Solicitor and the Acting Chief Planner and Executive Director, City Planning Division to continue to work with the applicant on the final form of the By-law to be presented as part of the settlement at the Ontario Municipal Board.

3.         City Council authorize the City Solicitor and the Acting Chief Planner and Executive Director, City Planning to prepare and present minutes of settlement, to be presented to the Ontario Municipal Board jointly with the applicant.  These minutes of settlement will be based upon the following:

a.         The Parties agree to request the Ontario Municipal Board to withhold its final order until the following events shall have occurred:

i.          A site plan agreement is executed and registered on the title to 321-333 King Street West and a Statement of Approval is issued by the City.

ii.         The Applicant agrees to provide the City with proof that a Limiting Distance Agreement, in a form satisfactory to the City, is executed by the owner of 321 King Street West and registered on title.

iii.        The Applicant agrees to provide the City with proof that a Heritage Easement Agreement, as required for the relevant addresses within 321-333 King Street East identified by Heritage Preservation Services, in a form satisfactory to Heritage Preservation Services, is executed by the owner of 321-333 King Street West and registered on title.

iv.        The Parties agree to enter into a Section 37 Agreement with respect to 323-333 King Street East that provides for, inter alia: 10 units to be retained for a period of 20 years and to be rented at a rate consistent with the City’s definition of affordable rental housing; and provision of the heritage preservation steps called for in the Heritage Conservation Plan, satisfactory to Heritage Preservation Services.

v.         The Applicant agrees that the ownership of 321-333 King Street East be consolidated into a single ownership and proof be provided to the satisfaction of the City Solicitor.

iv.        The Applicant agrees to provide to the City all necessary background material (Sketch Illustrating Lots 10 to 13 Inclusive Registered Plan 57 City of Toronto, Architectural Plans and Drawings, Landscape Plans, Arborist Report, Toronto Green Standards Checklist, Shadow Study, Heritage Impact Assessment, Addendum to Planning Assessment and Rationale Report, Revised Stormwater Management Report, Revised Preliminary Servicing Report and Updated Urban Transportation Considerations Report) for the purpose of the City commencing (at no cost to the Applicant) a municipally-initiated rezoning application to amend the by-law to be approved by the OMB regarding 323-333 King Street West to also include 321 King Street East.  Such zoning by-law amendment is not to be commenced until the Board issues its final order regarding 323-333 King Street West.

4.         City Council require that the applicant agrees to provide a minimum of 102 parking spaces.

5.         City Council authorize the City Solicitor and the Acting Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, to secure services, facilities or matters pursuant to Section 37 of the Planning Act, as may be required by the Acting Chief Planner, in consultation with the Ward Councillor.

Such benefits will include:

a.         An indexed cash contribution of $600,000, $400,000 of which will be allocated to streetscape improvements to John Street and the remainder for the provision of one or more of the following: public housing in Ward 20; streetscape and public realm improvements in the vicinity of the site; and Heritage Conservation District studies in the King-Spadina Secondary Plan Area.  The cash contribution is to be provided prior to the issuance of an above-grade building permit.

b.         The provision, as a Section 37 community benefit, of at least 10 affordable rental housing units encompassing an entire residential floor of the new development, with provisions that:

i.          The rental housing units shall remain as rental housing for a period of at least 20 years, with no application for condominium registration or any conversion to non-rental housing purposes.

ii.         The rents shall be affordable rents for a period of at least 20 years, with provisions for phase-out of the affordable rent restrictions to market rents thereafter.

iii.        The unit mix shall include at least 4 two-bedroom units and 2 three-bedroom units.

As a matter of legal convenience, the following will also be secured pursuant to Section 37 of the Planning Act:

c.         The owner shall provide a minimum of ten percent (10%) of the residential units in the building (including affordable rental units) having at least three bedrooms.

d.         The implementation of any wind mitigation measures required by the applicant’s wind study, satisfactory to the Acting Chief Planner and Executive Director, City Planning Division, to be submitted as part of an application for Site Plan Approval.

e.         Issues regarding the protection and preservation of heritage resources as outlined below.

6.         City Council direct that, as a condition of the settlement, the owner agree to submit, as soon as possible, an application under Municipal Code 667 for a Section 111 permit for the demolition of all the rental units in the affected properties from 321 to 333 King Street West, which provides for the replacement of the rental units and the provision of tenant relocation assistance.

7.         City Council direct that, as a condition of settlement, the owner agrees to the necessary amendments to the zoning by-law that is before the OMB to incorporate the replacement of the rental housing units and the provision of tenant relocation assistance, and the securing of these provisions in the Section 37 Agreement.

8.         City Council direct that, as a condition of settlement, the City require that a construction management agreement be negotiated between the owner, adjacent property owners, and adjoining restaurant row businesses with attention paid to wind, noise, dust, street closures, parking and laneway uses and access.   Such agreement to be to the satisfaction of the Acting Chief Planner and Executive Director, City Planning Division in consultation with the local Councillor.

9.         City Council direct that, as a condition of settlement, laneway access by established uses be recognized and incorporated into condominium documents.  Additionally, restaurant uses shall be recognized and acknowledged as an existing use, including but not limited to, restaurant storage in the alley and mechanical apparatus on the roof tops.

10.       City Council direct that, as a condition of settlement, the owner agree to the following conditions regarding the protection and preservation of heritage resources:

a.         Prior to the zoning by-law coming into full force and effect, the owner shall:

i.          Withdraw his appeal to the Conservation Review Board with respect to the City's Intention to Designate the properties at 321-325 King Street West and 333 (327) King Street West.

ii.         Enter into a Heritage Easement Agreement with the City for the designated heritage properties at 321-325 King Street West and 333 (327) King Street West.

iii.        Provide a Conservation Plan detailing all restoration, repair, dismantling, reconstruction, stabilization and new construction work associated with the project, to the satisfaction of the Manager, Heritage Preservation Services.

b.         Prior to Site Plan Approval the applicant shall provide site plans and drawings in accordance with the approved Conservation Plan.

c.         Prior to issuance of any heritage permit, including a permit for demolition, shoring or excavation, the applicant shall:

i.          Provide a Letter of Credit to secure all conservation work set out in the Conservation Plan.

ii.         Submit building permit drawings, including plans, elevations and details, to the satisfaction of the Manager of Heritage Preservation Services.

11.       City Council direct that, prior to the release of the Letter of Credit, the applicant shall provide a certificate of project completion prepared by a qualified heritage consultant confirming that the conservation work has been completed in accordance with the approved Conservation Plan to the satisfaction of the Manager, Heritage Preservation Services.

12.       City Council authorize the City Solicitor and other City staff to take any necessary steps to implement Council's decision.