Item - 2018.TE33.5

City Council considered Items GM28.28 and TE33.5 together.

The Toronto and East York Community Council recommends that:

1. City Council amend the Official Plan, for the lands at 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue substantially in accordance with the draft Official Plan Amendment attached as Attachment 14 to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District.

2. City Council amend Zoning By-law 438-86, for the lands at 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 15 to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District.

3. City Council amend City of Toronto Zoning By-law 569-2013 for the lands at 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue substantially in accordance with the draft Zoning By-law Amendment attached as Attachment 16  to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District.

4. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft Official Plan Amendment (and/or) draft Zoning By-law Amendments as may be required.

5. Before introducing the necessary bills to City Council for enactment:

 a. the owner is required to submit a complete Plan of Subdivision Application, Part Lot Control Exemption Application, and/or Consent application, for the lands at 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue;

 
b. the owner is required to submit a revised Functional Servicing and Stormwater Management Report, and revised Hydrogeological Report to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

 
c. the owner is required to work with City staff to develop Urban Design Guidelines for the site, to the satisfaction of Chief Planner and Executive Director, City Planning Division; and

d. the owner shall have entered into a Land Exchange Agreement to purchase a portion of 1260 Dufferin Street (Wallace Emerson Park) from the City, subject to the necessary approvals being granted by the appropriate City authorities to declare the land surplus and authorize the sale of the land to the owner, all to the satisfaction of the City Solicitor and the Director, Real Estate Services and register a Section 118 Restriction under the Land Titles Act (to the satisfaction of the City Solicitor) agreeing not to transfer or charge those portions of the lands identified as Block 6, on Schedule B of Attachment 14, that are not currently owned by the City, without the written consent of the Chief Planner and Executive Director, City Planning.

 
6. Before introducing the necessary bills to City Council for enactment, City Council require the owner to enter into and register on title an agreement pursuant to Section 37 of the Planning Act to secure the following community benefits, at the owner’s expense, in connection with 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor:

a. Prior to issuance of the first above-grade building permit for any building on the site, the owner shall enter into an agreement with the City to design and construct 120 affordable rental housing dwelling units comprised of approximately 7,255 square metres of residential Gross Floor Area within an approved development at 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue, substantially in accordance with the Affordable Rental Housing Terms and Conditions attached as Attachment 17 to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District, with any amendments as deemed appropriate by the Chief Planner and Executive Director, City Planning, the Director, Affordable Housing Office, and the City Solicitor, in consultation with the Ward Councillor;

b. Prior to issuance of the first above-grade building permit, the owner shall submit a Letter of Credit equal to 100 percent of the agreed upon value that will be the owner's contribution $6,276,245.00 (including $475,000 from the 2004 Section 37 agreement indexed) for the construction of the new community centre;

c. Prior to the earlier of condominium registration and the first residential use of any residential building for the second phase, and Site Plan Approval for the third phase, the owner shall substantially complete construction of the new Community Centre to be considered as Phase 1 of the overall development, such phase to include Block 5, with latter phases to be generally as described within the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District and more specifically identified through a phasing plan to be appended to the section 37 agreement. The owner will design and construct a minimum 6,000 square metre community centre on the Phase 1 parkland to the satisfaction of the General Manager, Parks, Forestry and Recreation and the General Manager, Children’s Services. The Phase 1 parkland consists of the first phase of parkland dedication as well as the lands conveyed as part of the land exchange;

d. Prior to the issuance of the first above-grade building permit for the latter of either Block 1, 2, or 3 (with all references to Blocks to be the Blocks as illustrated in Attachment 6 to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District) the owner will submit a plan detailing the design and construction of a public art installation on either Block 1, 2 or 3, at a minimum value of $873,468.00 ($720,000.00 from the 2004 section 37 agreement indexed), to be secured by way of a letter of credit provided by the owner to the City to the satisfaction of the Chief Planner and Executive Director, City Planning in consultation with the Ward Councillor;

 
e. Prior to the earlier of condominium registration and the first residential use of any residential building on Block 3 of the development, the owner will provide to the City for nominal consideration, Publicly Accessible Privately-Owned Space (POPS) easements over the new plaza with a minimum area of 850 square metres at the north-east corner of Public Streets 'A' and 'B', for public access and provisions for rights of support if necessary, encumbrances, and  insurance and indemnification of the City by the owner, to the satisfaction of the Director, Real Estate Services, the Chief Planner and Executive Director, City Planning, and the City Solicitor, in consultation with the Ward Councillor.  The owner shall own, operate, maintain and repair the POPS. The owner shall install and maintain signage in a location to be determined through Site Plan Approval, at its own expense, stating that members of the public shall be entitled to use the POPS at any time, 365 days a year;

  
f. The financial contributions, securities and letters of credit required in Recommendations 6.b. and 6.d. above shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for Toronto for the period beginning from the date of the execution of the Section 37 Agreement to the date of payment;

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

 
g. Prior to issuance of the first above-grade building permit for Phase 1, the owner shall enter into a Contribution Agreement to provide City Capital Funding for 30 affordable rental housing units in addition to the 120 units referred to in Recommendation 6.a. above and Incentives Contribution for the 150 affordable rental housing dwelling units through the Open Door Affordable Housing Program to be developed on the lands currently known as 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue. The owner shall provide such affordable rental housing dwelling units in accordance with such agreement(s) to be entered into with the City, all to the satisfaction of the Director, Affordable Housing Office, the Chief Planner and Executive Director, City Planning and the City Solicitor;

 
h. The owner agrees that none of the affordable rental housing dwelling units will form part of an application for Condominium Registration for at least twenty five years from the date upon which the first new purpose-built rental dwelling unit is occupied to the satisfaction of the Chief Planner and Executive Director, City Planning, and the Director, Affordable Housing Office;

 
i. Prior to the issuance of the first above grade building permit for the last phase (Phase 5) of the development, the 150 affordable rental housing units shall be ready and available for occupancy;

 
j. Prior to the earlier of condominium registration and the first residential use of any residential building on the latter of either Block 1 or 2, the owner will convey to the City for nominal consideration, easements over the pedestrian mews connection from the intersection of Dupont Street and Dufferin Street to the POPS indicated in Recommendation 6.e. above, to provide public access with provisions for rights of support if necessary, encumbrances, and  insurance and indemnification of the City by the owner, to the satisfaction of the Director, Real Estate Services, the Chief Planner and Executive Director, City Planning, and the City Solicitor. The owner shall own, operate, maintain and repair the easement lands;

  
k. Prior to the earlier of condominium registration or the first residential use of any residential building on the latter of Block 1 or 2, the owner shall design, construct, provide and thereafter maintain an architectural weather canopy over the pedestrian connection identified in Recommendation 6.j. above at a minimum height of 10.0 metres and a maximum height of 19.0 metres, to the satisfaction of the Chief Planner and Executive Director, City Planning;

l. Prior to the earlier of condominium registration and the first residential use of any residential building on Block 5, the owner will  convey to the City for nominal consideration, easements over the private road from Dupont Street to Public Street 'A', to provide public access, which easements shall include provisions for rights of support if necessary, encumbrances, and  insurance and indemnification of the City by the owner, to the satisfaction of the Director, Real Estate Services, the Chief Planner and Executive Director, City Planning, and the City Solicitor. The owner shall own, operate, maintain and repair the easement;

 
m. Prior to the earlier of condominium registration and the first residential use of any residential building on Block 4, the owner will  convey to the City for nominal consideration, easements over any portion of the private road from Dupont Street to Public Street 'A' constructed as part of Block 4, to provide public access for use by the general public, which easements shall include provisions for rights of support if necessary, encumbrances, and  insurance and indemnification of the City by the owner, to the satisfaction of the Director, Real Estate Services, the Chief Planner and Executive Director, City Planning, and the City Solicitor. The owner shall own, operate, maintain and repair the easement;

 
n. Prior to the earlier of condominium registration or the first residential use of any residential building on the latter of either Block 2 or 3, the owner will convey to the City for nominal consideration, easements over the pedestrian connection from Dupont Street to the POPS indicated in Recommendation 6.e. above, to provide public access for use by the general public, which easements shall include provisions for rights of support if necessary, encumbrances, and insurance and indemnification of the City by the owner, to the satisfaction of the Director, Real Estate Services, the Chief Planner and Executive Director, City Planning, and the City Solicitor. The owner shall own, operate, maintain and repair the easement;

 
o. Prior to issuance of the first above grade building permit for each phase of development, the owner shall submit a Pedestrian Level Wind Study, satisfactory to the Chief Planner and Executive Director, City Planning, including wind tunnel analysis, which identifies recommendations for the pedestrian realm and the outdoor areas of the podiums to mitigate wind impacts year-round, and the owner shall implement and maintain in support of the development all recommended mitigation measures to the satisfaction of the Chief Planner and Executive Director, City Planning;     

p. Prior to the commencement of excavation and shoring work for each phase of development, the owner will submit a Construction Management Plan, to the satisfaction of the Chief Planner and Executive Director, City Planning, the General Manager of Transportation Services, and the Chief Building Official and Executive Director, Toronto Building, in consultation with the Ward Councillor, and shall implement the plan during the course of construction.  The Construction Management Plan will include the size and location of construction staging areas, dates of significant concrete pouring, lighting details, construction vehicle parking and queuing locations, refuse storage, site security, site supervisor contact information, a communication strategy with the surrounding community, and any other matters requested by the Chief Planner and Executive Director, City Planning, the General Manager, Transportation Services, and in consultation with the Ward Councillor;

 
q. The owner shall convey to the City the first parkland dedication block, consisting of a minimum of 1,107 square metres, prior to the earlier of the registration of any plan of condominium for Block 5, or any above grade building permits for the earlier of Block 1, 2, 3, or 4.

  
r. The owner shall convey the second parkland dedication block, consisting of a minimum of 3,865 square metres, to the City prior to the earlier of either the completion of base coarse asphalt for Public Road 'A', or condominium registration of any building of Phase 3, or the first residential use of any residential building of Phase 3. The total on-site parkland dedication shall be a minimum size of 4,972 square metres, as shown generally on the Site Plan, dated September 30, 2016, revised February 28, 2018 drawing number A1.03, prepared by Hariri Pontarini Architects, all to the satisfaction of the General Manager, Parks, Forestry and Recreation;

 
s. Prior to conveyance of the lands in Recommendation 6.q. and 6.r. above (parkland) to the City, the owner shall be responsible for an environmental assessment of the land and any associated costs or remediation works required as a result of that assessment. Such assessment or remediation shall ensure that the parkland will meet all applicable laws, regulations and guidelines respecting the site to be used for public park purposes, including City Council policies respecting soil remediation of sites.  A qualified environmental consultant acceptable to the Executive Director, Engineering and Construction Services shall prepare the environmental assessment. Prior to transferring the parkland to the City, the environmental assessment shall be peer reviewed by an environmental consultant retained by the City at the owner’s expense (the “Peer Reviewer”), and the transfer of the parkland shall be conditional upon the Peer Reviewer concurring with the owner’s environmental consultant that the parkland meets all applicable laws, regulations and guidelines for public park purposes;

t. The owner’s environmental consultant shall file a Record of Site Condition on the Ontario’s Environmental Site Registry and submit to the General Manager, Parks, Forestry and Recreation, the Ministry of the Environment and Climate Change Letter of Acknowledgement of Filing of the Record of Site Condition confirming that the Record of Site Condition has been prepared and filed in accordance with O. Reg. 153/04 and that the  Ministry of the Environment and Climate Change will not audit the Record of Site Condition at this time or that the Record of Site Condition has passed the Ministry of the Environment and Climate Change audit;

 
u. Prior to the first above-grade building permit, the owner shall submit a letter of credit equal to 120 percent of the Parks and Recreation Development Charges payable for Phase 1 of the development as well as a letter of credit equal to 100 percent of the cash-in-lieu for the development;

 
v. Prior to Site Plan Approval for each phase of the development, the owner is required to submit a Functional Servicing and Stormwater Management Report, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, and pay for and construct any necessary improvements to the municipal infrastructure in connection with the site servicing assessment, should it be determined that upgrades are required to the infrastructure to support this development;

 
w. Prior to Site Plan Approval for each phase of the development, a Transportation Impact Study will be submitted, and all recommendations will be secured as part of the Site Plan Agreement, and be constructed and paid by the owner, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

 
x. Prior to Site Plan Approval for Block 5, the owner shall submit as part of the Transportation Impact Study an analysis of the potential need for a new signal to be located on Dupont Street at either the intersection of Public Street 'A' or Emerson Avenue, with any signal to be installed and paid for by the developer, to the satisfaction of the General Manager, Transportation Services, Chief Engineer and Executive Director, Engineering and Construction Services, the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor;

 
y. Prior to Site Plan Approval for Block 4, the owner shall submit as part of the Transportation Impact Study an analysis of the potential need for additional traffic mitigation measures on Public Street 'A', with any mitigation measures to be installed and paid for by the developer, to the satisfaction of the General Manager, Transportation Services, the Chief Engineer and Executive Director, Engineering and Construction Services, the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor; and

 
z. Prior to the first above grade building permit for Phase 1, the owner will pay $70,000 for the installation of transit signal priority on Dupont Street and Dufferin Street, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

 
aa. The owner agrees that all new transit signals, to be installed as part of the development, will be equipped with Transit Signal Priority, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

 
bb. Prior to the earlier of condominium registration and the first residential use of any residential building on Block 3, the owner shall install and convey to the City a nearside bus bay on Public Street 'A' at Public Street 'B', to the satisfaction of the Chief Engineer and Executive Director, Engineering & Construction Services, and the Toronto Transit Commission;

 
cc. Prior to the earlier of condominium registration and the first residential use of any residential building on Block 1, the owner shall install and convey to the City a southbound farside bus bay on Dufferin Street at Dupont Street, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, and the Toronto Transit Commission;

 
dd. The owner shall provide on-site dog off-leash amenities with proper disposal facilities or dog relief stations within a building accessible to all building residents;

 
ee. The owner shall relocate the existing watermain currently located within an easement on the northern portion of the site adjacent to Dupont Street, to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services, at no expense to the City; and

 
ff. The financial contributions, securities and letters of credit required in Recommendation 6.z. above shall be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for Toronto for the period beginning from the date of the execution of the Section 37 Agreement to the date of payment.

7. City Council authorize the City Solicitor to introduce the necessary bill in Council to authorize a site specific exemption from subsection 25A of Municipal Code Chapter 415, Development of Land, to direct that the cash-in-lieu of parkland funds be allocated to the immediate community, to go towards the projects referenced in Recommendation 6.b. and 6.c. above, being the design and construction of the new Wallace Emerson Community Centre.

8. City Council approve a development charge credit against the Parks and Recreation component of the Development Charges payable for the development of Blocks 1 to 5, for the design and construction by the Owner of the Above Base Park Improvements for the parkland dedication, to the satisfaction of the General Manager, Parks, Forestry and Recreation, such credit to be in an amount that is the lesser of (i) the cost to the Owner of designing and constructing the Above Base Park Improvements, as approved by the General Manager, Parks, Forestry and Recreation, and (ii) the Parks and Recreation component of development charges payable for the development in accordance with the City's Development Charges By-law, as may be amended.

9. City Council approve a development charge credit against the Parks and Recreation component of the Development Charges payable for the development of Blocks 1 to 5, for the construction by the owner of the community centre, all to the satisfaction of the General Manager, Parks, Forestry, and Recreation; such credit to be in the amount that is the lesser of i) the cost to the owner of constructing the community centre as approved by the General Manager, Parks, Forestry and Recreation, less the owner's Section 37 contribution, as indexed, any Section 42 cash-in-lieu, and funds relating to the land exchange, and ii) the Parks and Recreation component of Development Charges payable, as determined by the City in accordance with the City's Development Charge By-law, as may be amended.

10. In the event the cost of constructing the community centre less the owner's Section 37 contribution, as indexed, any Section 42 cash-in-lieu, and funds relating to the land exchange exceeds the Parks and Recreation component of the Development Charges for the development of Block 1 to 5, City Council requests the General Manager Parks, Forestry and Recreation to report back to City Council through the subsequent Capital Budget process with options and a funding strategy to allow for the planned scope of work to be fully implemented.

11. City Council directs that the total combined Development Charge credit under Recommendations 8 and 9 above shall under no circumstances exceed the Parks and Recreation component of Development Charges payable for the development as determined by the City in accordance with the City's Development Charge By-law, as may be amended.

12. City Council authorize and direct the Chief Building Official and Executive Director, Toronto Building to waive any Development Charges resulting from the reconstruction of the Wallace Emerson Community Centre.

 
13. City Council authorize the Director, Affordable Housing Office, to provide capital funding to the owner or a related corporation, in the amount of $1,500,000.00 from the Development Charges Reserve Fund for Subsidized Housing (XR2116) through the Open Door Affordable Housing Program, to secure thirty (30) affordable rental housing dwellings units to be developed on the lands currently known as 1245 Dupont Street, 1260 Dufferin Street and 213 Emerson Avenue, in addition to the one hundred twenty (120) units referred to in Recommendation 6.a. above, all  to be developed substantially in accordance with the Affordable Rental Housing Terms and  Conditions, attached as Attachment 17 to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District.

14. City Council authorize the Director, Affordable Housing Office, to provide Open Door Affordable Housing Program incentives for the 150 affordable rental housing dwelling units to be developed on the lands currently known as 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue, substantially in accordance with the Affordable Rental Housing Terms and Conditions attached as Attachment 17 to report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District.

15. City Council authorize the Director, Affordable Housing Office, to negotiate, and execute a Municipal Capital Facility Agreement (a "Contribution Agreement") with the owner, or a related corporation, for the 150 affordable rental housing dwelling units to be developed on the lands currently known as 1245 Dupont Street, 1260 Dufferin Street and 213 Emerson Avenue to secure rents at or below 100 percent of average market rents, to eligible tenants for 25 years including a 5-year phase-out period, substantially in accordance with the Affordable Rental Housing Terms and Conditions attached as Attachment 17 to the report (May 18, 2018) from the Acting Director, Community Planning, Toronto and East York District together with any security, financing or other documents required, as well as any amendments required from time to time, on terms and conditions acceptable to the Director, Affordable Housing Office, in a form satisfactory to the City Solicitor.

16. City Council authorize the Director, Affordable Housing Office to work with the General Manager, Shelter Support and Housing Administration, to secure a minimum of 15 housing benefits (for 10 percent of the affordable rental housing), subject to available funding and the execution of the Municipal Capital Facility Agreement referred to in Recommendation 15 above.

17. City Council exempt the 150 new affordable rental housing dwelling units  to be developed on the lands currently known as 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue from taxation for municipal and school purposes for the 25-year term of the municipal capital facility agreement.

18. City Council authorize the City Solicitor to execute, postpone, confirm the status of and discharge any City security documents registered with respect to the Municipal Capital Facility Agreement, as required by normal business practices.

19. City Council authorize staff to cancel or refund any taxes paid from the effective date of the by-law exempting the affordable project from taxation.

20. City Council direct the Director, Affordable Housing Office, to pursue with the owner participation of the non-profit housing sector in the operation of the 150 new affordable rental housing dwelling units currently known as 1245 Dupont Street, 1260 Dufferin Street, and 213 Emerson Avenue including consulting with, and facilitating discussions between, the owner and the non-profit housing sector.

21.  City Council request the Deputy City Manager, Cluster A to review and to reconsider the licensed childcare centre capacity being planned for the site to determine the feasibility of adding more child care spaces.

The Toronto and East York Community Council held a statutory public meeting on June 6, 2018, and notice was given in accordance with the Planning Act.

The application site includes the Galleria Mall site (Galleria Mall and McDonalds at 1245 Dupont Street & 213 Emerson Avenue) and Wallace Emerson Park and Community Centre (1260 Dufferin Street).  The proposal involves a land exchange between the applicant and the City of Toronto for a portion of the park along Dufferin Street with a portion of the west side of the Galleria Mall site. Wallace Emerson Park will be enlarged and further reconfigured with a parkland dedication from the Galleria Mall site.  The existing Wallace Emerson Community Centre will be demolished following the construction of a new larger community centre on the west side of the enlarged and reconfigured park.

A new public road (Public Street 'A') will run diagonally across the reconfigured lands from Dufferin Street to Dupont Street.  The area south of Public Street 'A' will be the enlarged and reconfigured park and new larger community centre.  The area to the north of Public Street 'A' will be the new development site. 

The new development site will be divided into east and west parcels by a new north-south public road (Public Street 'B') which runs through the centre of the development site from Public Street 'A' to Dupont Street.  The east development parcel will be further divided into three blocks (Blocks 1, 2, and 3) by an 850 square metre triangular Privately-Owned Publicly-Accessible Space (POPS) plaza, a pedestrian mews, and a private service lane.  The POPS plaza will be at the northeast corner of the intersection of Public Street 'A' and Public Street 'B'. The pedestrian mews will run diagonally across the east development parcel and will connect the POPS plaza and the intersection of Dupont Street and Dufferin Street.  The private service lane will run north-south between the POPS plaza and Dupont Street.  The west development parcel will be divided into two blocks (Blocks 4 and 5) by a north-south private road.

The proposal is for the east and west development parcels to be developed with a total of 8 mixed-use towers, ranging in height from 18 to 35-storeys. The tallest towers will be located on the north edge of the development parcels adjacent to Dupont Street, and the heights will decrease towards the Neighbourhoods to the east, west, and south. The site will be developed in phases, with each phase being the development of any one of the 5 Blocks that make up the site.

A total of 29,464 square metres of commercial space (including retail, service, food and 1,961 square metres of office space) will be located in the base of the buildings. The buildings will contain a total of 2,846 residential units, including 150 affordable rental housing units.

This report reviews and recommends approval of the application to amend the Official Plan and Zoning By-laws.