Item - 2019.CC3.4

City Council on February 26, 2019, adopted the following:

1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (February 15, 2019) from the City Solicitor, as amended by motion 1 by Councillor John Filion.

2. City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 to the report (February 15, 2019) from the City Solicitor, as amended by motion 1 by Councillor John Filion.

3. City Council direct that the balance of Confidential Attachment 1 to the report (February 15, 2019) from the City Solicitor remain confidential at the discretion of the City Solicitor, as it contains advice that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (February 15, 2019) from the City Solicitor, as amended by motion 1 by Councillor John Filion, were adopted by City Council and are now public, as follows:

1.  City Council accept the Settlement Offer dated February 13, 2019 in Public Attachment 1 to the report (February 15, 2019) from the City Solicitor and as generally shown on the settlement plans in Public Attachment 2 to the report (February 15, 2019) from the City Solicitor, subject to Parts 2 to 10 set out below.

2.  City Council authorize the City Solicitor and appropriate City Staff to attend the Local Planning Appeal Tribunal hearing on April 23, 2019 generally in support of the revised development as described in the Settlement Offer in Public Attachment 1 to the report (February 15, 2019) from the City Solicitor and as illustrated on the settlement plans in Public Attachment 2 to the report (February 15, 2019) from the City Solicitor, subject to Parts 3 to 10 set out below.

3.  In the event that the Local Planning Appeal Tribunal allows the appeals in whole or in part, City Council direct the City Solicitor to request the Local Planning Appeal Tribunal to withhold the issuance of any Orders on the Official Plan Amendment and Zoning By-law Amendment appeals until such time as:

a.  the Applicant has filed a complete revised zoning submission to the City, including updated plans, drawings, reports and studies, including TDM details, as required, which reflect the Settlement Proposal, subject to any technical revisions as may be required, to the satisfaction of the Chief Planner and Executive Director, City Planning;

b.  the Applicant has submitted a revised Functional Servicing Report, Stormwater Management Report and Hydrogeological Report, all to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services;

c.  the Applicant has entered into an Infrastructure Agreement to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services for the design and construction of any necessary upgrades or required improvements to the existing municipal infrastructure, should any such upgrades or improvements be identified in the accepted Functional Servicing Report, Stormwater Management Report and Hydrogeological Report, at the sole cost and expense of the Applicant;

d.  the Official Plan and Zoning By-law Amendment(s) have been finalized in a form mutually satisfactory to the City Solicitor, the Chief Planner and Executive Director, City Planning and the Applicant, and have been provided to the Local Planning Appeal Tribunal;

e.  the Owner has entered into and registered on title, an agreement with the City pursuant to Section 37 of the Planning Act to the satisfaction of the City Solicitor, in consultation with the Chief Planner and Executive Director, City Planning, securing the matters set out in Part 5 below; and

f.  the Applicant has, at its own cost and expense, satisfactorily addressed any Toronto Transit Commission requirements, including the provision of a detailed cost estimate for any transit works to the satisfaction of the Chief Planner and Executive Director, City Planning and the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the Toronto Transit Commission.

4.  In the event that the Local Planning Appeal Tribunal allows the appeals in whole or in part, City Council direct the City Solicitor to request the Local Planning Appeal Tribunal to withhold the issuance of any Decision on the Site Plan appeal until such time as:

a.  the Applicant has filed a complete revised site plan application to the City, including updated plans, drawings, reports and studies in support of the same, which reflect the Settlement Proposal; and

b.  Site Plan Approval conditions have been finalized in a form satisfactory to the Chief Planner and Executive Director, City Planning, in consultation with the local Councillor.

5.  City Council authorize the City Solicitor to enter into an agreement pursuant to Section 37 of the Planning Act which agreement shall be registered against title and shall provide that the Owner shall, at the Owner's expense, provide or fund the following facilities, services and/or matters on terms satisfactory to the City of Toronto, as more specifically set out below:

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

i.  retail space fronting onto and directly accessible to Yonge Street and Sheppard Avenue West;

ii.  bicycle rooms for the residential and commercial uses, provided that the bicycle rooms are located immediately above  or below the ground floor and that any necessary provision is made in the Official Plan Amendment, and that the bicycle parking spaces are secured in the Zoning By-law Amendment;

iii. bicycle shower change facilities provided for commercial uses;

iv.  indoor recreational amenity space;

v.  a pedestrian connection to the subway station;

vi.  relocation/integration of Toronto Transit Commission stairway in the Sheppard Avenue West right-of–way/boulevard;

vii.  a monetary contribution in the amount of $11,500,000.00, payable prior to the issuance of the first above grade building permit for the development, to be used by the City in its sole discretion toward the provision of parkland acquisition, parkland improvements, public recreation centres and social facilities and/or toward the cost of constructing and furnishing such facilities and/or toward the cost of the City acquiring lands necessary for the completion of planned service roads and associated road network and buffer areas in the North York Centre; and

viii.  the monetary contribution in Part 5.a.vii. above may be offset by up to $5,000,000.00 by the costs of connecting the major office development to the subway through the adjacent property at 25 Sheppard Avenue West including the costs of the removal of the subway entrance stairs in the Sheppard Avenue West right of way;

b.  any cash component of the Section 37 contribution is to be indexed upwardly in accordance with the Statistics Canada Non-Residential Construction Price Index for the Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Building Construction Price Indexes Publication 327-0058, or its successor, calculated from the date of the Council decision accepting the Settlement Offer to the date of payment; and

c.  the following matters shall be secured in the Section 37 Agreement as a legal convenience to support the development:

i.  any Toronto Transit Commission requirements regarding the Toronto Transit Commission pedestrian connection and removal of the stairway in the public right of way referred to in Parts 5.a.v. and a.vi. above, which may include an Entrance Connection Agreement, fees and letters of credit;

ii.  the "Atrium" shall be treated as a Publicly Accessible Open Space with public access easements (similar to PATH connections/subway hours), to be secured prior to and through the site plan approval process;

iii.  the Owner shall work with City Planning staff through the site plan approval process to design and secure public art for the "Atrium", to be secured through the site plan approval process;

iv.  the Owner shall incorporate in the construction of the building, and thereafter maintain, exterior building and landscape materials to the satisfaction of the Chief Planner and Executive Director, City Planning in particular for the base building;

v.  TDM measures to the satisfaction of the General Manager, Transportation Services and the Chief Planner and Executive Director, City Planning as set out in the approved TDM strategy;

vi.  extension of the Yonge Street median adjacent to and in the vicinity of the site as contemplated in the North York Centre Secondary Plan and approved EA for the associated road network, details to be determined and secured through the site plan approval process as required to the satisfaction of General Manager, Transportation Services and the Chief Planner and Executive Director, City Planning;

vii.  the Owner shall construct and maintain the Development in accordance with Tier 1 performance measures of the Toronto Green Standard; and

viii.  prior to the issuance of any above grade permit, the Owner agrees to pay for, construct and have operational any improvements to the required municipal infrastructure in connection with the accepted Functional Servicing Report.

6.  City Council accept a total required parkland dedication value of $5,000,000.00, composed of off-site parkland dedication of properties acceptable to the General Manager, Parks, Forestry and Recreation pursuant to Section 42 of the Planning Act and generally as described in the Settlement Offer, subject to the following:

a.  at least one acceptable property shall be acquired by the Owner within one year of the Zoning By-law Amendment being approved by the Local Planning Appeal Tribunal and shall be conveyed to the City prior to the issuance of the first above-grade building permit for the development: the Owner shall be responsible for all costs associated with any environmental work to be completed prior to the conveyance of the land, including the peer review process; and

b.  if the value of the land acquired for the off-site dedication is less than $5,000,000.00, indexed upwardly in accordance with the Non-Residential Construction Price Index for Toronto calculated from the date of City Council's acceptance of the Settlement Offer to the date of payment, net of reasonable closing costs incurred, to the satisfaction of the General Manager, Parks, Forestry and Recreation, the remainder will be paid to the City prior to the issuance of the first above grade building permit for the development, and shall be used for parkland acquisition in the Ward.

7.  City Council support the use of the parking under Bogert Avenue as per the 1990 agreement between OMERS/Marathon and the former City of North York, registered as Instrument Number TB776554.

8. City Council direct the Chief Planner and Executive Director, City Planning to report back to City Council for information on the final cost estimate for the transit-related works referred to in Part 3.f. above once it has been accepted.

9. City Council direct the City Solicitor and the Chief Planner and Executive Director, City Planning to ensure that the residential bicycle parking spaces referred to in Part 5.a.ii. above are secured as a condition to the condominium approval for the residential component of the development

10.  City Council authorize the City Solicitor and any other City staff to take such actions as necessary to give effect to City Council's decision.

The balance of Confidential Attachment 1 to the report (February 15, 2019) from the City Solicitor remains confidential at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice that is subject to solicitor-client privilege.  The balance of Confidential Attachment 1 to the report (February 15, 2019) from the City Solicitor will be made public at the discretion of the City Solicitor.