Item - 2019.PH7.4

That City Council direct the Deputy City Manager, Community and Social Services to report to the October 15, 2019 meeting of the Planning and Housing Committee on how Toronto Community Housing Corporation staff will ensure that the revitalizations include consultations with affected tenants and produce social development plans.

That:

1. City Council, as sole shareholder, direct the Toronto Community Housing Corporation Board of Directors to ensure that there will be no delay in the preparation and submission of plans and rezoning applications for the Firgrove-Grassways Revitalization Project as a result of the new approvals framework outlined in the report (April 12, 2019) from the Deputy City Manager, Community and Social Services.

2. City Council direct the Executive Director, Housing Secretariat to develop a community engagement and consultation strategy for the Firgrove-Grassways Revitalization Project, in consultation with the local Councillor.

That City Council direct the Executive Director, Housing Secretariat and the Chief Planner and Executive Director, City Planning to work with Toronto Community Housing and the developer Context to hire a consultant to develop the community engagement plan and communications strategy in consultation with the local Councillor, and that funding provided by the developer be directed to Applegrove Community Complex, one of the City's Association of Community Centres, who will take a lead and assist in tenant engagement and development in consultation with the Ward Councillor. 

That City Council adopt the following recommendations in the supplementary report (July 12, 2019) from the Deputy City Manager, Community and Social Services [PH7.4b]:

Service Manager and Shareholder Consents

1.  City Council, in its capacity as Shareholder of Toronto Community Housing Corporation (TCHC):

a.  approve pursuant to Section 7.4.1 (c) of the City's Shareholder Direction to TCHC,

i. the revitalization of TCHC's Don Summerville site at 1555-1575 Queen Street East; and

ii. the adjustment of TCHC's service level obligations under the Operating Agreement between the City and TCHC by reducing the number of rent-geared-to-income units by 17 (from 120 to 103);
 

b.  approve, pursuant to Section 7.4.1 (b) of the City's Shareholder Direction to TCHC, the sale of a portion of the Don Summerville lands to Context (Summerville) Inc. or its designate or any affiliate, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and the interim General Manager, Shelter, Support and Housing Administration;
 

on the conditions that:

c.  consistent with the service level standards, a minimum of 120 units of rent-geared-to-income ("RGI") housing is to be made available on the Don Summerville site;

  
d.  17 rent-geared-to-income commercial rent supplements are made available to the  non-profit affordable rental housing provider selected in accordance with recommendation 12 below;
 

e.  the net sale proceeds of any sale, after costs of the transaction, are invested in the revitalization of Don Summerville; and
 

f.  TCHC report annually, through TCHC's Annual Report to Council, on the status of the revitalization of the Don Summerville site and on any tenant and community impacts resulting from the revitalization.
 

2.  City Council, in its capacity as Service Manager under the Housing Services Act, 2011 authorise the interim General Manager, Shelter, Support and Housing Administration, following consultation with the Executive Director, Housing Secretariat to grant any necessary Service Manager consents pursuant to the Housing Services Act, 2011 to:

a.  the transfer of portions of 1555-1575 Queen Street East  to Context (Summerville) Inc. or its designate or affiliate;
 

b.  the redevelopment of that part of 1555-1575 Queen Street East  retained by TCHC;
 

c.  all encumbrances required by TCHC for the purposes of the revitalization of 1555- 1575 Queens Street East;
 

d.  the redevelopment, transfer, mortgage and encumbering by third parties of all real property disposed of by TCHC and not used for social or public housing, that are required prior to such real property being released from the Housing Services Act, 2011;

subject to:
 

e.  TCHC and/or the prospective purchasers of Don Summerville lands obtaining the various necessary planning approvals and legislative, municipal and corporate consents (including consent of mortgagors, if necessary); and
 

f.  TCHC providing a Tenant Relocation and Assistance Implementation Plan (TRAIP), satisfactory to the Chief Planner and Executive Director, City Planning in consultation with the Executive Director, Housing Secretariat and the interim General Manager, Shelter, Support and Housing Administration, that describes TCHC’s obligations regarding tenant relocation of Don Summerville tenants for all phases of the revitalization and to provide updates to the Plan as appropriate, pursuant to the requirements set out in Agreements under Section 37 of the Planning Act and Section 111 of the City of Toronto Act.
 

3.  City Council, in its capacity as Service Manager under the Housing Services Act, 2011 authorise the interim General Manager, Shelter, Support and Housing Administration, to revise the subsidy paid to TCHC as a result of the revitalization of Don Summerville to reflect 103 RGI units. 

Affordable Rental Housing

4.  City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, a Memorandum of Understanding with TCHC and Context (Summerville) Inc. on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor, to reflect the transactions terms outlined in Attachment 1 this report.

 
5.  City Council authorize that the affordable rental housing and the replacement rent-geared-to-income housing to be constructed on the lands currently known as 1555-1575 Queen Street East, be exempt from the payment of development charges and provide a waiver of all planning and building permit fees and parkland dedication fees.

 
6.  City Council authorize an exemption from taxation for municipal and school purposes for the affordable rental housing and the replacement rent geared to income housing to be constructed on the lands currently known as 1555-1575 Queen Street East for the periods of affordability  set out in the chart in the Financial Impact section of this Report.

 
7.  City Council authorize City staff to cancel or refund any taxes paid with respect to the affordable rental housing after the effective date of the tax exemption.

 
8.  City Council authorize the Executive Director, Housing Secretariat, to negotiate and enter into, on behalf of the City, municipal housing facility agreements, with TCHC and Context (Summerville) Inc., or related corporations, to secure the financial assistance being provided through the Open Door Program, for the affordable housing to be developed on lands currently known at 1555-1575 Queen Street East, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form approved by the City Solicitor.
 

9.  City Council authorize severally each of the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to execute, on behalf of the City, consents, approvals, agreements or other documents that are ancillary to the any security or financing documents required by the developers of the site to secure construction and conventional financing and subsequent refinancing, including any postponement, confirmation of status, discharge or consent documents where and when required during the term of the municipal housing facility agreement, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by Council.

 
10.  City Council authorize the Executive Director, Housing Secretariat and the General Manager, Shelter, Support and Housing Administration to provide any consent necessary to transfer or encumber the site and to negotiate and enter into any agreements or other documents required to effect any future transfer or assignment of the site and the associated legal agreements with the City to another legal entity, on terms and conditions satisfactory to them and in a form approved by the City Solicitor.
Non-Profit Operator and Financial Contribution

11.  City Council approve capital funding up to $6,000,000 from the Capital Revolving Reserve Fund for Affordable Housing (XR-1058) for the acquisition of 32 residential units, to be leased by the City to a non-profit housing provider which leasehold interest will be purchased by repaying the $6,000,000 to the above-mentioned reserve fund.

12.  City Council request the Executive Director, Housing Secretariat and the Deputy City Manager, Corporate Services to report to Council in 2020 to:

a.  seek the authorities required to advance the transactions contemplated in this report, including, but not limited to a obtaining approval to negotiate and enter into an agreement(s) of purchase and sale with Context (Summerville) Inc. or such other agreement(s) deemed necessary to secure the purchase of the 32 residential units; and

 
b.  seek authority to conduct a competitive process to select a non-profit housing provider to operate the 32 residential units (17 RGI and 15 affordable rental units) proposed to be secured by the City.

That City Council request the Chief Executive Officer, CreateTO, the President and Chief Executive Officer, Toronto Community Housing Corporation and the Executive Director, Housing Secretariat to connect with the Toronto Community Benefits Network regarding a potential Community Benefits Agreement for the future development of Don Summerville.

That City Council delete Planning and Housing Committee recommendation 9:

Recommendation to be deleted:

9.  City Council direct that the Executive Director, Housing Secretariat, the joint CreateTO and City-led Strategic Program Management Committee, the Chief Financial Officer and Treasurer and the Chief Planner and the Executive Director, City Planning review the developer submission for the Don Summerville revitalization including the proposed business terms, as well as the presently proposed built form, the proposal within the context of the wider community, other City building objectives, and City land holdings and, if recommended to proceed, report to the Planning and Housing Committee for approval at its September 17, 2019 meeting.

That:

1.  The Planning and Housing Committee meet in closed session to consider item PH7.4 - A New Approvals Framework for Toronto Community Housing Corporation Revitalization Projects, to consider a proposed or pending acquisition or disposition of land by the City of Toronto; to receive advice that is subject to solicitor-client privilege; and to consider a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City of Toronto.

That:

1.  The Planning and Housing Committee request the Deputy City Manager, Community and Social Services, to report directly to City Council at the meeting of July 16 and 17, 2019 on the Don Summerville redevelopment with respect to the following matters:

a. reporting the results of discussions between the Housing Secretariat, TCHC and the Developer on providing a mixed income integrated community and buildings within the overall development; on achieving up to 50 additional affordable rental housing units; and on developing the rental housing through a long-term lease arrangement;
 

b. providing a process for the engagement of the non-profit/co-operative housing sector engagement in the provision of the affordable housing component;

 
c. establishing a proposed resident sector target group(s) for the new affordable rental housing;
 

d. setting out an approach to the site development similar to the Housing Now model where the Housing Secretariat and TCHC would jointly lead the project development and approvals;
 

e. providing for a robust and resourced community consultation engagement plan and communications strategy to be developed in consultation with the local Councillors;
 

f. providing for the necessary capacity and resources at the City’s Association of Community Centres (AOCC) to lead and assist in Toronto Community Housing Corporation (TCHC) tenant engagement and development in consultation with the Ward Councillor; and,
 

g. outlining how the overall revised development proposal and proposed revisions aligns with the guiding principles as set out in the July 2, 2019 Supplementary Report from the Deputy City Manager, Community and Social Services.

That the Deputy City Manager, Community and Social Services report directly to City Council on options for social housing providers to act as the developer.

Adopt the Recommendations in PH7.4a:

1.  City Council amend the Shareholder Direction to require Toronto Community Housing Corporation to work with City divisions and agencies in planning and implementing revitalization projects to ensure that the projects contribute appropriately to city-building objectives by incorporating a range of housing options including net new affordable housing opportunities.

 
2.  City Council, as sole shareholder, direct the Toronto Community Housing Corporation Board of Directors to direct the President and Chief Executive Officer of Toronto Community Housing Corporation to work with the Executive Director, Housing Secretariat, to identify opportunities for new affordable rental housing units on Toronto Community Housing Corporation lands.
 

3.  City Council direct that all Board-approved proposals from Toronto Community Housing Corporation related to revitalizations and redevelopment opportunities, including any demolition and reconstruction of multiple buildings and infill opportunities, be directed to the Executive Director, Housing Secretariat, for review and recommendation in consultation with the Deputy City Manager, Community and Social Services, the Chief Financial Officer and Treasurer, the Executive Director, Financial Planning, the Chief Planner and Executive Director, City Planning and the joint CreateTO and City-led Strategic Program Management Committee prior to being recommended to City Council for approval of an Initial Development Proposal (which will include all details outlined on page 9 below).
 

4.  Subject to City Council approval of an Initial Development Proposal as contemplated in recommendation 3 above, Council direct the President and Chief Executive Officer, Toronto Community Housing Corporation to undertake a public procurement process to select a development partner and work through the Executive Director, Housing Secretariat, who will work in consultation with the joint CreateTO and City-led Strategic Program Management Committee, the Chief Financial Officer and Treasurer and the Chief Planner and Executive Director, City Planning to assess all proposals including the proposed business terms, integration of city-building objectives, and site considerations.

 
5.  Prior to undertaking the public procurement process for future revitalizations/redevelopment including infill projects, as contemplated in recommendation 4 above, City Council request the Chief Planner and Executive Director, City Planning, to work with Toronto Community Housing Corporation to:
 

a.  provide key planning principles and guidelines for each site; and

 
b.  support the revitalizations and redevelopment projects by implementing an expedited review process.
 

6.  City Council direct that developer proposals deemed satisfactory by the Executive Director, Housing Secretariat, the joint CreateTO and City-led Strategic Program Management Committee (including Toronto Community Housing Corporation), the Chief Financial Officer and Treasurer and Chief Planner and Executive Director, City Planning be recommended to Council for approval by way of an Actions Report from the City Manager and Deputy City Manager, Community and Social Services seeking consents for revitalization/redevelopment from the Shareholder and Service Manager (including details outlined on page 10).

 
7.  City Council direct that the Executive Director, Housing Secretariat in consultation with the Chief Executive Officer, CreateTO, report annually to the Planning and Housing Committee on the status of all active revitalization projects including the status of delivery of affordable housing where applicable.

 
8.  City Council direct that the Executive Director, Housing Secretariat, the Chief Planner and Executive Director, City Planning, the Chief Financial Officer and Treasurer and the joint CreateTO and City-led Strategic Program Management Committee review the Initial Development Proposal for the revitalization of Firgrove-Grassways  in line with the revised approval framework outlined in this report and if deemed satisfactory, recommend to the Planning and Housing Committee for approval at its September 17, 2019 meeting.
 

9.  City Council direct that the Executive Director, Housing Secretariat, the joint CreateTO and City-led Strategic Program Management Committee, the Chief Financial Officer and Treasurer and the Chief Planner and the Executive Director, City Planning review the developer submission for the Don Summerville revitalization including the proposed business terms, as well as the presently proposed built form, the proposal within the context of the wider community, other City building objectives, and City land holdings and, if recommended to proceed, report to the Planning and Housing Committee for approval at its September 17, 2019 meeting.

 
10.  City Council direct that the Executive Director, Housing Secretariat, the joint CreateTO and City-led Strategic Program Management Committee, the Chief Financial Officer and Treasurer and Chief Planner and the Executive Director, City Planning review the Initial Development Proposal for the Lawrence Heights Phase 2 revitalization project in line with the revised approval framework outlined in this report and if deemed satisfactory, recommend to the Planning and Housing Committee for approval at its September 17, 2019 meeting.

That:

1.  The Planning and Housing Committee request the Executive Director, Social Development, Finance and Administration in the supplementary report directly to City Council on EC6.15, Community Benefits Framework, identify immediate opportunities to support employment objectives in a Don Summerville Community Benefits Agreement such as with Toronto Community Benefits Network.