Item - 2020.CC14.8

City Council on January 29, 2020, adopted the following:

1.  City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor.

2.  City Council authorize the public release of the confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor.

3.  City Council direct that the balance of Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor remain confidential at the discretion of the City Solicitor as it contains advice and information that is subject to solicitor-client privilege.

The confidential instructions to staff in Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor were adopted by City Council and are now public, as follows:

1.  City Council accept the Settlement Offer as described in the report (January 22, 2020) from the City Solicitor and attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor subject to Parts 2 to 7 below.

2.  City Council authorize the City Solicitor and appropriate City Staff to attend the Local Planning Appeal Tribunal hearing on this matter in support of the Settlement Offer.

3.  City Council defer making a decision at this time on the Rental Housing Demolition and Conversion Application (17 224019 STE 22 RH) under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act, 2006, to demolish the seven (7) existing rental dwelling units at 265 Balliol Street (the "Site"), known municipally as 239-251 Balliol Street, and City Council instruct staff to report to the Toronto and East York Community Council at such time as an Local Planning Appeal Tribunal decision has been issued regarding the Zoning By-law Amendment appeal.

4.  In the event that the Local Planning Appeal Tribunal allows the appeal, in whole or in part, City Council direct the City Solicitor to request the Local Planning Appeal Tribunal to withhold its Order(s) on the Zoning By-law Amendments until such time as the Local Planning Appeal Tribunal has been advised by the City Solicitor that:

a.  the proposed Zoning By-law Amendments are in a final form satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor;

b.  City Council has authorized the Rental Housing Demolition Application 17 224019 STE 22 RH under Chapter 667 of the Toronto Municipal Code pursuant to Section 111 of the City of Toronto Act, as applicable to demolish the seven (7) existing rental dwelling units at 265 Balliol Street, known municipally as 239-251 Balliol Street, and should City Council authorize the application, that the owner has entered into a Section 111 Agreement pursuant to Section 111 of the City of Toronto Act, 2006, and registered such Agreement on title to the satisfaction of the City Solicitor and the Chief Planner and Executive Director, City Planning;

c.  all existing rental units to be retained on Site, tenant relocation and assistance, and any other rental housing related matters in conformity with Chapter 667 of the Toronto Municipal Code and Policy 3.2.1.5 of the Official Plan, and the owner has entered into and registered a Section 37 Agreement with the City incorporating language securing the above all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor;

d.  any and all required replacement rental units on the Site are secured in conformity with Policy 3.2.1.6 of the Official Plan, if applicable;

e.  all existing rental units, together with the new and retained associated facilities and amenities of the existing rental apartment building, are secured for a period of at least 20 years commencing from the date that the Zoning By-law Amendments come into full force and effect and with no applications for demolition or conversion from residential rental use during such 20 year period, all to the satisfaction of the Chief Planner and Executive Director, City Planning and the City Solicitor;

f.  the owner shall provide residents of the existing rental building with access to all indoor and outdoor amenities within and adjacent to the proposed addition, at no extra charge to the tenants and with no pass-through cost to tenants of the existing building; access and the use of these amenities shall be on the same terms and conditions as any other resident of the proposed addition, all to the satisfaction of the Chief Planner and Executive Director, City Planning;

g.  the Chief Engineer and Executive Director, Engineering and Construction Services has confirmed water, sanitary and stormwater capacity, and pending receipt of a Functional Servicing and Stormwater Management Report satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services;

h.  a Section 37 Agreement satisfactory to the Chief Planner and Executive Director, City Planning and the City Solicitor has been executed and registered on title to the satisfaction of the City Solicitor, securing the community benefits and matters of legal convenience outlined in Part 5 below; and

i.  the owner has withdrawn its appeal of Official Plan Amendment 320 as it relates to 265 Balliol Street.

5.  City Council authorize the City Solicitor to enter into an agreement pursuant to Section 37 of the Planning Act as follows:

a.  the community benefits offered in the Settlement Offer attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor and recommended to be secured in the Section 37 Agreement are as follows:

i.  payment of a cash contribution in the amount of one million dollars ($1,000,000) prior to the issuance of the First Above-Grade Building Permit for the New Rental Building to be allocated to the Davisville Aquatic Centre;

ii.  in the event the cash contribution referred to in Part 5.a.i. has not been used for the intended purpose set out above, within three (3) years of the Zoning By-law Amendments coming into full force and effect, the cash contribution may be redirected for another purpose, at the discretion of the Chief Planner and Executive Director, City Planning, in consultation with the Ward Councillor, provided that the purpose is identified in the Official Plan and will benefit the community in the vicinity of the Site;

iii.  the above noted cash contribution in Part 5.a.i above shall be indexed upwardly in accordance with the Building Construction Price Index for Toronto Census Metropolitan Area, reported quarterly by Statistics Canada in Construction Price Statistics Publication 327-0058 or successor, calculated from the date of the Agreement to the date of payment;

iv.  a minimum of 40 percent of new rental dwelling units in the New Rental Building shall have two or more bedrooms, and a minimum of 10 percent of the new rental dwelling units in the New Rental Building shall have three bedrooms or more;

v.  in accordance with the terms set out at in Schedule C of the Settlement Offer attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor, for a period of 15 years, the owner shall provide as affordable rental unit housing the following:

1.  rental dwelling units if the New Rental Building contains 233 or fewer rental dwelling units; or

2.  10 percent of the new rental dwelling units in the New Rental Building as affordable rental housing units if there are 234 or more new rental dwelling units in the New Rental Building;

with a unit mix of 11 one-bedroom units, 2 one-bedroom-plus-den units, 8 two-bedrooms, and 2 three-bedroom units; if the New Rental Building contains 234 or more new rental dwelling units, the unit mix will be as set out in Schedule C of the Settlement Offer attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor;

vi.  the owner will provide a publicly accessible pedestrian walkway (the “Pedestrian Clearway”), to be secured by means of a surface pedestrian public easement, in the location as generally shown on Schedule B of the Settlement Offer attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor, the final location and design of which will be secured as part of and through the site plan approval process, the Pedestrian Clearway shall have a minimum width of 2.1 metres, unless otherwise satisfactory to the Chief Planner and Executive Director, City Planning;

vii.  if within 10 years from the date of execution of the Section 37 Agreement redevelopment of the adjacent lands to the south of the Site, municipally known as 276-290 Merton Street (the “East Merton Property”) and/or 250-260 Merton Street (the “West Merton Property”), receive(s) development approval through the enacting of the necessary amending Zoning By-laws, and such approval secures the provision of a publicly accessible pedestrian clearway connection from Merton Street to the Property (the “Merton Street Pedestrian Clearway”), the owner agrees to provide a pedestrian walkway in addition to the Pedestrian Clearway commencing at a point on the boundary of the Property (the “North South Connection”) within one of the areas identified as “Potential Future Pedestrian Clearway” on Schedule B subject to the following conditions:

1.  for clarity, there shall be only the one North South Connection and thus it will provide a connection to either the East Merton Property or the West Merton Property, but not both;

2.  the North South Connection will have a minimum east-west dimension of 2.1 metres, unless otherwise determined in the site plan approval process;

3.  in the event the North South Connection is provided to the East Merton Property the North South Connection shall be extended to Balliol Street,  and the extent and location of which shall respect and not conflict with the development as approved and constructed on the Site;

4.  the Chief Planner and Executive Director, City Planning will notify the owner in writing that the City has secured the Merton Street Pedestrian Clearway in a binding written agreement with the subject Merton Street owner; and

5.  upon the City bona fide securing the Merton Street Walkway and notifying the owner as required above, the owner will make reasonable commercial efforts to obtain necessary approvals for and implement a North South Connection, subject to any approvals by the City or by any other required authorities; and

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

i.  in accordance with the terms set out in Schedule D of the Settlement Offer attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor, the owner will continue to provide and maintain the existing 202 rental dwelling units in the Existing Rental Building as rental housing for a minimum period of 20 years commencing from the date that the Zoning By-law Amendments come into full force and effect, with no applications for demolition or conversion from residential rental use during such 20-year period;

ii.  the owner will make improvements to the Existing Rental Building and the New Rental Building substantially in accordance with the Settlement Plans (the "Improvements"), to the benefit of the tenants in the Existing Rental Building and the New Rental Building, as follows:

A.  for the tenants of the Existing Rental Building and the New Rental Building:

1.  a new indoor amenity lounge on the ground floor of the Existing Rental Building with a minimum gross floor area of 50 square metres;

2.  a new laundry room on the ground floor of the Existing Rental Building which shall replace the laundry room on the basement level, a portion of which shall be located adjacent to an exterior wall to provide views to the outdoor amenity area on the Site;

3.  new storage area provided in the basement in the area of the Existing Rental Building vacated by the laundry room;

4.  an indoor amenity space in the New Rental Building having a minimum gross floor area of 500 square metres;

5.  an outdoor pet relief area; and

6.  two new outdoor patio areas in proximity to the Existing Rental Building;

B.  for the tenants of the Existing Rental Building:

1.  the provision of 48 new bicycle parking spaces in addition to the existing 48 bicycle parking spaces, for a total of 96 bicycle parking spaces for the use of tenants of the Existing Rental Building;

the cost of the Improvements will not be passed through to the tenants of the Existing Rental Building;

iii.  the owner shall develop a Tenant Relocation and Assistance Plan with assistance and financial compensation provisions that extend beyond those provided under the Residential Tenancies Act, 2006, based on the City`s usual considerations and requirements as of the date of the Settlement Offer, all to the satisfaction of the Chief Planner and Executive Director, City Planning as set out in Schedule D of the Settlement Offer attached as Public Attachment 1 to the report (January 22, 2020) from the City Solicitor;

iv.  the owner shall develop a Tenant Communication Plan prior to the issuance of the first below building permit for the proposed Development of the Property to the satisfaction of the Chief Planner and Executive Director, City Planning;

v.  the owner shall develop a Construction Mitigation Plan prior to the issuance of the first below grade building permit for the proposed Development of the Property to the satisfaction of the Chief Planner and Executive Director, City Planning; and

vi.  a cash-in-lieu of parkland dedication payment by the owner to the City prior to the issuance of the First Above-Grade Building Permit for the New Rental Building in accordance with Section 42 of the Planning Act and the City’s parkland dedication By-law, as amended (as reflected in Chapter 415 of the City’s Municipal Code), as they exist as of the date of the Settlement Offer, calculated based on the market value of the proposed new non-residential gross floor area and residential gross floor area as provided for and subject to the Zoning By-law Amendments, which contribution shall satisfy all current and future parkland dedication requirements in respect of the development (which does not exceed the permitted density in accordance with the Settlement Offer) in accordance with the Planning Act, or otherwise.

6.  As part of its Site Plan application for the Site, City Council direct that the owner shall submit all the revised plans and drawings, and any additional information, as required in the Development Engineering memo dated January 20, 2020, all to the satisfaction of the Chief Engineer and Executive Director, Engineering and Construction Services.

7.  City Council authorize the City Solicitor and appropriate City Staff to take such necessary steps, as required, to implement City Council's decision.

The balance of Confidential Attachment 1 to the report (January 22, 2020) 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 and information that is subject to solicitor-client privilege. The balance of Confidential Attachment 1 to the report (January 22, 2020) from the City Solicitor will be made public at the discretion of the City Solicitor.