Item - 2019.TE2.3

The Toronto and  East York Community Council recommends that:

1.  City Council authorize the City Solicitor and appropriate City staff to attend before the Local Planning Appeal Tribunal (LPAT) respecting the Zoning By-law Amendment appeal for 647, 663-665 King Street West, 69-73 Bathurst Street and 58-60 Stewart Street in support of revisions made to the proposed development as described in the Issue Background section and appended as Attachments 1-5 to the report (December 14, 2018) from the Director, Community Planning, Toronto and East York District.

2.  City Council authorize the City Solicitor and the Director, Community Planning, Toronto and East York District to prepare and present a settlement to the Local Planning Appeal Tribunal, based on the following:

a.  A maximum height of 58 metres, not including the other usual permitted projections such as  elevator overrun, exit stairs, parapets, vents, stacks, and window washing equipment to the satisfaction of the Chief Planner and Executive Director, City Planning;

b.  A total combined gross floor area of 21,850 square metres; and

c.  In situ retention of the entire north, west and south walls of the existing Banknote Building, which will be integrated with new construction, in accordance with the Heritage Impact Assessment prepared by ERA Architects Inc., dated November 21, 2018.

3.  City Council direct the City Solicitor to request the Local Planning Appeal Tribunal to withhold its final Order until such time as:

 
a.  The final form of the Zoning By-law amendment is to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor, including securing the replacement rental units, rents, and tenant relocation and assistance plans and any other related rental matters for the rental dwelling units at 58-60 Stewart Street, and are in conformity with Section 3.2.1.6 of the Official Plan; 

b.  The owner has entered into and registered a Section 37 Agreement with the City incorporating such replacement rental units, rents, tenant assistance and other related rental matters and other Section 37 matters, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor;

c.  The owner has secured an off-site parkland dedication pursuant to Section 42 of the Planning Act to the satisfaction of the General Manager, Parks, Forestry and Recreation;

d.  The owner has secured off-site office replacement through the submission of a development approval application for another property within the vicinity of the site at 647, 663-665 King Street West, 69-73 Bathurst Street and 58-60 Stewart Street. Any proopsed development at the off-site location must demonstrate the following characteristics, all to the satisfaction of the Chief Planner and Executive Director, City Planning: 

-  contextually appropriate height, built form, density and massing, including any building setbacks and stepbacks;

-  heritage conservation, if applicable;

-  appropriate use(s); and,

-  ability to accommodate a minimum of 1,955 square metres of office space to fulfill the office replacement requirements for the subject site, without creating an office space deficiency at the off-site location.

e.  The owner provides revised plans, drawings and studies to reflect the outstanding requirements outlined in the Engineering and Construction Services memorandum of February 22, 2017, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the Chief Engineer and Executive Director, Engineering and Construction Services;

f.  The owner agrees to pay for and construct any improvements to the municipal infrastructure in connection with the site servicing report, as accepted by the Chief Engineer and Executive Director, Engineering and Construction Services, should it be determined that upgrades to such infrastructure are required to support this development;

 
g.  The owner has entered into a Heritage Easement Agreement with the City for the property at 663-665 King Street West substantially in accordance with plans and drawings prepared by Diamond Schmitt Architects, submitted with the Heritage Impact Assessment prepared by ERA Architects Inc., dated November 21, 2018 or otherwise revised in accordance with a settlement offer or Local Planning Appeal Tribunal Order, subject to and in accordance with the approved Conservation Plan required in Recommendation 3.h. below, all to the satisfaction of the Senior Manager, Heritage Preservation Services including execution of such agreement to the satisfaction of the City Solicitor;

h.  The owner has provided a detailed Conservation Plan prepared by a qualified heritage consultant that is substantially in accordance with the conservation strategy set out in the Heritage Impact Assessment for 663 King Street West, ERA Architects Inc., dated November 21, 2018 or otherwise a conservation strategy revised in accordance with a settlement offer or Local Planning Appeal Tribunal Order, all to the satisfaction of the Senior Manager, Heritage Preservation Services;

 
i.  The owner has provided for the withdrawal of the appeal of the King Spadina Heritage Conservation District plan which was approved by City Council stating its intent to designate the area, including the properties which are subject to this proposal, under Part V of the Ontario Heritage Act; and  

j. City Council has dealt with the Rental Housing Demolition application No. 16 270246 STE 20 RH under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act, 2006 to demolish the seven existing rental dwelling units at 58-60 Stewart Street.

 
4.  City Council defer making a decision on Rental Housing Demolition application No. 16 270246 STE 20 RH under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act, 2006 to demolish the seven  existing rental dwelling units at 58-60 Stewart Street, and instruct staff to report on the Rental Housing Demolition application to Toronto and East York Community Council at such time as a Local Planning Appeal Tribunal decision has been issued regarding the Zoning By-law Amendment appeal for the lands at 647, 663-665 King Street West, 69-73 Bathurst Street and 58-60 Stewart Street.

5.  City Council require the owner to register on the properties at 647, 663-665 King Street West, 69-73 Bathurst Street and 58-60 Stewart Street one or more agreements with the City pursuant to Section 37 of the Planning Act to the satisfaction of the City Solicitor, the Chief Planner and Executive Director, City Planning and the Senior Manager, Heritage Preservation Services with such facilities, services and matters to be set forth in the related site specific Zoning By-law Amendments giving rise to the proposed alterations.

a.  Before the Local Planning Appeal Tribunal issues any Order approving a site-specific by-law for the lands, the owner shall enter into and register an agreement pursuant to Section 37 of the Planning Act.  The community benefits recommended to be secured in the Section 37 Agreement are as follows:

i. The owner shall provide a minimum cash contribution of $250,000.00  toward new affordable housing within Ward 10;

ii. The owner shall provide a minimum cash contribution of $250,000.00 toward capital repairs for Toronto Community Housing within Ward 10;

iii. The owner shall provide a minimum cash contribution of $1,000,000.00 for the provision of public realm improvements in the vicinity of the subject site, along King Street West, Bathurst Street, and/or Stewart Street and/or around Victoria Memorial Square Park;

iv. The owner shall provide a minimum cash contribution of $1,000,000.00 for the provision of community services and facilities in the vicinity of the site.

v. The $2,500,000.00 cash contribution referred to in Recommendation 5.a.i - iv above is to be indexed upwardly in accordance with Statistics Canada's Construction Price Index for the Toronto Census Metropolitan Area, calculated from the date of the Local Planning Appeal Tribunal decision to the date of payment.  All cash contributions will be payable prior to issuance of the first above-grade building permit.

b.  The following matters are also recommended to be secured in the Section 37 Agreement as a legal convenience to support development, at the owner's expense:

i.  Securing the rental tenure for the seven rental replacement units for at least 20 years, rents for the two affordable and mid-range rental replacement units for at least 10 years, and an acceptable tenant relocation and assistance plan for all eligible tenants within the existing rental buildings located at 58-60 Stewart Street that are proposed to be demolished as part of the development application, and any other related rental matters, to the satisfaction of the Chief Planner and Executive Director, City Planning;

 
ii.  Provision of a minimum of ten percent (10%) of the residential units in the building in the form of three bedroom units and 25 percent (25%) as two bedroom units;  
 

iii.  Submission, and thereafter implementation, of a construction management plan by the owner of 647, 663-665 King Street West, 69-73 Bathurst Street and 58-60 Stewart Street to address such matters as wind, noise, dust, street closures, parking and laneway uses and access.  Such plan to be to the satisfaction of the Chief Planner and Executive Director, City Planning in consultation with the local Councillor and shall be completed prior to Site Plan approval; and,
 

iv.  Securing the preparation and thereafter the implementation of a Heritage Lighting Plan, a Signage Plan, an Interpretation Plan and requiring a letter of credit to secure all work included in the approved Conservation Plan and approved Interpretation Plan, including provision for upwards indexing, all to the satisfaction of  the Senior Manager, Heritage Preservation Services.

This application proposes to redevelop the site at 647, 663-665 King Street West, 69-73 Bathurst Street and 58-60 Stewart Street with a 17-storey mixed-use building containing retail uses at grade and residential uses above. The building will have a height of 58 meters, including the mechanical penthouse, and the fronts of the existing heritage building at 663-665 King Street West, along King Street West, Bathurst Street and Stewart Street, will be retained. The application also proposes to demolish the four-storey building at 58-60 Stewart Street containing seven rental dwelling units and replace all of the existing rental units within the new proposed building.

On August 21, 2017, the applicant appealed the Zoning By-law Amendment application to the Local Planning Appeal Tribunal, citing City Council's failure to make a decision within the time prescribed by the Planning Act. At its May 23, 2018 meeting, City Council adopted a Request for Direction report opposing the project in its current form, but also including a recommendation that City Planning continue discussions with the applicant to resolve outstanding issues with the proposal. Since that time, City Planning staff and the applicant have met a number of times to discuss revisions to the proposal. On November 19, 2018, the applicant submitted a proposed settlement of its Zoning By-law appeal as outlined in the revised plans, dated November 19, 2018, and attached as Attachments 1-5 to this report. This is a revision from the original proposal submitted on December 22, 2016, for a 19-storey mixed-use building with a height of 62 metres (67 metres including mechanical penthouse).

The revised proposal is consistent with the Provincial Policy Statement (2014) and conforms with the Growth Plan for the Greater Golden Horseshoe (2017).  The revised proposal also conforms with the policies of the Official Plan, the King-Spadina Secondary Plan, the Council-adopted King-Spadina Urban Design Guidelines (2006), King-Spadina Secondary Plan Review, the King-Spadina Heritage Conservation District and the Downtown Official Plan Amendment 406.

This report reviews and recommends that City Council authorize the City Solicitor and appropriate City staff, to attend before the Local Planning Appeal Tribunal in support of a settlement of the Zoning By-law Amendment appeal for the site, subject to conditions as outlined in the Recommendations section of this report.

An application for Rental Housing Demolition under Section 111 of the City of Toronto Act (Chapter 667 of the Toronto Municipal Code) has been filed to permit the demolition of seven existing rental units at 58-60 Stewart Street.  This report recommends that City Council defer making a decision on the Rental Housing Demolition Application to demolish the seven existing rental dwelling units at 58-60 Stewart Street until a decision has been issued by the Tribunal regarding the Zoning By-law Amendment appeal. The report also recommends that a Tribunal order not be issued until such time as the form of any implementing By-laws is satisfactory to the Chief Planner and the City Solicitor and until a Section 37 Agreement and a Section 111 Agreement with the City has been executed and registered to the satisfaction of the City.