Item - 2019.GL8.7

The General Government and Licensing Committee recommends that:  

1.  City Council authorize the City of Toronto (the City) to enter into one or more transfer agreements with Build Toronto Inc. (Build Toronto) or a subsidiary of Build Toronto to transfer the property municipally known as 2530 Gerrard Street East (the City Property), as described in Attachment 3, in one or more transactions, including any related agreements, but excluding the portion of the City Property shown in Attachment 4 as "Land to Remain with the City as Park", substantially on the terms and conditions in Attachments 5 and 6 to the report (September 27, 2019) from the Deputy City Manager, Corporate Services, and on such other and amended terms and conditions as may be approved by the Deputy City Manager, Corporate Services, and in a form satisfactory to the City Solicitor.

2.  City Council authorize the City of Toronto to enter into a parkland reconveyance agreement substantially on the terms and conditions in Attachment 7 to the report (September 27, 2019) from the Deputy City Manager, Corporate Services, in a form satisfactory to the City Solicitor, notwithstanding that portions of the parkland reconveyed will not comply with the City of Toronto's Policy for Accepting Potentially Contaminated Lands to be Conveyed to the City under the Planning Act.

3.  City Council grant authority to fund the City of Toronto's expenses related to the transfer of the Proposed Park to the City which are not the responsibility of Build Toronto from Corporate Real Estate Management's Council Approved Operating Budget funded from the Land Acquisition Reserve Fund (XR1012), with appropriate adjustments to Corporate Real Estate Management's Council Approved Operating Budget, as necessary, through subsequent quarterly variance reports.

4.  City Council authorize the Deputy City Manager, Corporate Services, to execute any further transactions required to complete the transactions authorized in the report (September 27, 2019) from the Deputy City Manager, Corporate Services, on behalf of the City of Toronto, including the execution of any required consents, approvals, or permissions.

5.  City Council authorize the City Solicitor to complete the transactions provided for in the report (September 27, 2019) from the Deputy City Manager, Corporate Services, on behalf of the City of Toronto, including making payments of any necessary expenses, amending the closing and other dates, and amending or waiving terms and conditions, as the City Solicitor may from time to time consider reasonable.

CreateTO, through Build Toronto Inc., (CreateTO) has jurisdiction over 15.5 acres of land near the southeast corner of Victoria Park Avenue and Gerrard Street East (the CreateTO Property). The City owns 2530 Gerrard Street East, a triangular piece of land situated adjacent to the CreateTO Property comprising 4.4 acres (the City Property). The CreateTO Property and the City Property are collectively referred to as the Property. Portions of the Property were historically used as a landfill and, as a result, are contaminated.

In 2016, CreateTO obtained approval of an Official Plan Amendment (OPA 288), Rezoning, and Draft Plan of Subdivision for the Property and authorization for the transfer of the City Property to Build Toronto Inc. (Build Toronto) in accordance with OPA 288 and the eventual reconveyance of a portion of the Property back to the City for park purposes (the Proposed Park). Subsequently, it was determined that the development concept for the Property should be revised, including the relocation of the Proposed Park. This revised development concept will require further Official Plan and Zoning By-law Amendments.

A developer has agreed to acquire the property and redevelop the land as a new community with affordable housing and the Proposed Park and is prepared to go through the time, expense, and risk of obtaining these required planning amendments if they can first acquire the land. Given that the development concept has changed since City Council approved the transfer of the City Property to Build Toronto, staff are seeking confirmation from City Council before proceeding with the transfer to Build Toronto. Further, while CreateTO and the developer will remediate the Proposed Park, which is contaminated (as is the City Property), staff are seeking City Council approval to accept the transfer of the Proposed Park, as it will not comply with the City’s Policy for Accepting Potentially Contaminated Lands to be Conveyed to the City under the Planning Act.